Finding Product/Market Fit with Network Effects and How to Use "Solomon's Paradox" to Give Yourself Good Life Advice

Finding Product/Market Fit with Network Effects and How to Use "Solomon's Paradox" to Give Yourself Good Life Advice

Introduction:

Finding product/market fit is crucial for the success of any business. It is about finding a level of satisfaction that will drive scalable acquisition. However, when it comes to network effect businesses, the traditional framework may not apply easily. Network effects add a layer of complexity, making it challenging to understand the real issues preventing the product from reaching product/market fit. This article will explore the concept of finding product/market fit with network effects and how Solomon's paradox can be used to give oneself good life advice.

Finding Product/Market Fit with Network Effects:

Cross-side network effects can be particularly difficult to find product/market fit for because you are building a product for two different types of customers that have to align. For businesses like marketplaces, it is easier to understand how to constrain the audience initially. By testing the value proposition and scaling supply and demand to find liquidity, which is synonymous with product/market fit for marketplaces, one can measure retention and acquisition for both sides of the market. Platforms, on the other hand, follow a similar logic as marketplaces but are more complicated in the beginning.

For products that rely on data to create a better experience, the journey to product/market fit revolves around collecting enough data to provide a compelling experience. This can take a significant amount of time. For example, Pinterest had to make a hard pivot to onboard new users based on topics instead of their friend graph to find stronger product/market fit as a content recommendation engine. Geographical expansion can pose challenges in such cases, requiring adjustments to emphasize local content and language.

Understanding the user data or having a strong vision for the type of cross-side network effect or data network effect that can be created is essential for scaling product/market fit over time. While it may be difficult to determine the different sides of the network in the early stages, having a strong thesis for the target market and being prepared to be surprised by the target market and right features can lead to success.

How to Use "Solomon's Paradox" to Give Yourself Good Life Advice:

King Solomon is known for his wisdom and great advice. However, in his personal affairs, he was incredibly shortsighted. This gave rise to the concept of Solomon's paradox, which suggests that we are better at giving rational and useful advice to others than to ourselves. Studies have shown that when we distance ourselves from a situation, we become more expert in giving advice.

Solomon's poor parenting decisions led to the rise of his son, Rehoboam, who became a cruel tyrant. In 2014, psychologists introduced the idea of Solomon's paradox, revealing that people display wiser reasoning about another person's problems compared to their own. When we try to eliminate self-immersion and distance ourselves from our own problems, we tend to make more sensible decisions.

The distinction between general wisdom (interpersonal) and personal wisdom (intrapersonal) is important. While some individuals may be smart and sensible, they may struggle with giving advice. To overcome this paradox and give ourselves good life advice, we can employ two techniques:

• 1. Talk to yourself: Ask yourself why you are doing something and what you can do to help. Engaging in self-reflection and questioning our actions can provide clarity and better decision-making.

• 2. Journaling: Write down your thoughts, emotions, and experiences. This practice allows for self-reflection and can help gain insights into your own behavior and choices.

• 3. Seek a third-person perspective: Ask someone close to you who they think you resemble the most and learn about that person. By adopting a third-person perspective, you can distance yourself from your own biases and gain new insights.

Conclusion:

Finding product/market fit with network effects requires understanding the complexities of building a product for multiple customer types. By testing and measuring retention and acquisition, it is possible to identify product/market fit for marketplaces and platforms. Additionally, having a strong thesis and vision for the target market, along with the ability to adapt and understand user data, can lead to success.

In terms of giving ourselves good life advice, embracing Solomon's paradox and distancing ourselves from our own problems can result in more rational decision-making. By talking to ourselves, journaling, and seeking a third-person perspective, we can gain clarity and make better choices. Remember, we are often experts when it comes to giving advice to others, and by employing these techniques, we can apply that wisdom to ourselves.