39. Gaining Permission
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41. Designing Network Effects Exercise
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A network effect determines whether your early adopters will pull the mainstream toward you or quietly keep you to themselves. It has nothing to do with their generosity and everything to do with whether the experience improves when more people join or declines with more people.
A negative network effect works like traffic. One person is fine, a few more make it worse, many make it unbearable. When something gets worse with more participants, early adopters hide it. They protect it the way surfers hide good surf spots.
A positive network effect is the opposite. Social media is the classic example. Alone, it is meaningless. Add friends and it becomes fun. Add millions and it becomes a global ecosystem. Thanks to the internet removing the constraints of physical space, these positive network effects grow exponentially. Metcalfe’s law explains that the value of a network increases roughly with the square of its users, which is why companies with network effects dominate entire markets.
Your job is to design this into your practice. When a positive network effect is embedded in the experience, early adopters have a selfish reason to bring people with them. The value improves when more of their friends, family, or community participate. Without that positive feedback loop, they will not share it. With it, they will naturally draw in the mainstream.
Up to this point, the “what will I tell my friends?” has already been answered through the tension, change, promise, positioning, and meaning you built. The network effect answers the second half, “why will I tell them?” If the experience gets better as more people join, the early adopters become motivated advocates, and the mainstream follows.
Knowledge without execution is just wasted time. Our Implementation Kit is designed to give you the clarity you need to plan your work, and work your plan.
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