{"id":1397,"date":"2020-08-12T16:12:35","date_gmt":"2020-08-12T23:12:35","guid":{"rendered":"https:\/\/www.scot.fun\/damentals\/?p=1397"},"modified":"2020-08-15T08:27:13","modified_gmt":"2020-08-15T15:27:13","slug":"the-network-effect-vs-incentives","status":"publish","type":"post","link":"https:\/\/www.scot.fun\/damentals\/the-network-effect-vs-incentives\/","title":{"rendered":"The Network Effect vs Incentives"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"607\" data-attachment-id=\"1446\" data-permalink=\"https:\/\/www.scot.fun\/damentals\/the-network-effect-vs-incentives\/cat\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?fit=2000%2C1185&amp;ssl=1\" data-orig-size=\"2000,1185\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"cat\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?fit=1024%2C607&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?resize=1024%2C607&#038;ssl=1\" alt=\"\" class=\"wp-image-1446\" srcset=\"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?resize=1024%2C607&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?resize=300%2C178&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?resize=1536%2C910&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?w=2000&amp;ssl=1 2000w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The network effect enhances the core value of a service to the customer by getting their peers to join. It means the thing you&#8217;re creating has a built-in crucial component that depends on a growing or large network to make it awesome.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>If I tell my friend to watch this show, we can talk about this show and I&#8217;ll enjoy it more<\/li><li>If I take a friend to this theater, I&#8217;ll have more fun <\/li><li>If my friend plays this multiplayer game with me, it will be more enjoyable<\/li><li>If my friend attends this zoom, we can battle in the comments<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Giving a gift or a discount is not the network effect, it\u2019s a referral program incentive and it\u2019s kinda expensive for you (managing the referrals, time and shipping and stuff). A gift like &#8220;tell a friend, get a free watch&#8221; does not enhance the <strong>core value<\/strong> of the service you&#8217;re offering.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some different ways to get a customer to share what you&#8217;re doing&#8230;<br><strong>natural network effect (best)<\/strong>&nbsp;facebook : &#8220;you joined to connect with friends. tell your friends, get more connection&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>artificial network effect (good)<\/strong>&nbsp;dropbox : &#8220;you joined to get storage. tell your friends, we\u2019ll give you more storage&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>referral program (not super) &nbsp;<\/strong>&#8220;you joined to get a funny show, tell your friends and we\u2019ll give you a DVD&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>asking (least effective, but free)&nbsp;<\/strong>&#8220;you joined for golfing tips. tell your friends who need golfing tips&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The opposite of the network effect<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s possible to work against the network effect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you have an underground project that attracts people that love the underground, they might tell a few in the underground, but they will not proudly announce it because they want to preserve it. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you do a show that asks for requests from the audience, you can have an unlimited audience size and you can only take one or two requests, I&#8217;m not gonna tell my friends because I want my request to be heard.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The network effect enhances the core value of a service to the customer by getting their peers to join. It means the thing you&#8217;re creating has a built-in crucial component that depends on a growing or large network to make it awesome. If I tell my friend to watch this show, we can talk about [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":1446,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10158666434799935_26707174888":"","twitter_aToyMjM4MTQzMDs=_22381430":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/cat.jpg?fit=2000%2C1185&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/pc33gc-mx","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1431,"url":"https:\/\/www.scot.fun\/damentals\/everyone-gets-a-talk-show\/","url_meta":{"origin":1397,"position":0},"title":"Everyone Gets A Talk Show!","author":"scot","date":"August 11, 2020","format":false,"excerpt":"A lady is standing outside a grocery store handing out $50 bills. Your first question is, \"Since these are easy to get, are they worth fifty bucks?\" Talk shows are easy to make because they're not worth $50 Successful talk shows (like ones where there's an audience) are not easy\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/fork.jpg?fit=1200%2C660&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/fork.jpg?fit=1200%2C660&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/fork.jpg?fit=1200%2C660&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/fork.jpg?fit=1200%2C660&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/08\/fork.jpg?fit=1200%2C660&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":1243,"url":"https:\/\/www.scot.fun\/damentals\/viral-content-is-sickening\/","url_meta":{"origin":1397,"position":1},"title":"Viral Content is Sickening","author":"scot","date":"July 18, 2020","format":false,"excerpt":"covid makes you cough Many contagious diseases cause your body to do an involuntary thing like puke or cough or sneeze and this makes transmission of the disease super awesome! The user downloads the virus, then shares. The common belief about viral content (videos, articles, memes, etc.) is that they\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/07\/breaded-shrimp-on-black-background-4049949.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/07\/breaded-shrimp-on-black-background-4049949.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/07\/breaded-shrimp-on-black-background-4049949.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/07\/breaded-shrimp-on-black-background-4049949.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.scot.fun\/damentals\/wp-content\/uploads\/2020\/07\/breaded-shrimp-on-black-background-4049949.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4730,"url":"https:\/\/www.scot.fun\/damentals\/referrals-recommendations-the-sweet-way\/","url_meta":{"origin":1397,"position":2},"title":"Referrals \/ Recommendations the sweet way","author":"scot","date":"November 8, 2025","format":false,"excerpt":"We know people who are social duct tape. \"You HAVE to see this artist\" or \"I know exactly who you need to talk to.\" They see how things fit together and they get excited about making introductions. These people are gold. We can empower them and breed them. 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