Unveiling the Hidden Network Effect: Exploring Unconventional Network Effects and Their Impact on Competition

Unveiling the Hidden Network Effect: Exploring Unconventional Network Effects and Their Impact on Competition

In the world of entrepreneurship and startups, the concept of network effects is widely recognized as a powerful force that can propel a company to long-term success. However, there are instances where network effects are not immediately apparent but still have a significant impact on the competitiveness of a company. These hidden network effects can create unique advantages that set a company apart from its competitors.

One such example is The Athletic, a sports media company that started in 2016 and quickly gained traction in the market. Founded by two former colleagues at Strava, The Athletic positioned itself as an integrator, with all content created by full-time journalists. The company's team pages catered to strong user intents, providing information on upcoming games, game recaps, player updates, and more. This aggregation of content, anchored in the latest updates about a team, proved to be a successful strategy for The Athletic.

Not every company can adopt an SEO aggregator strategy like The Athletic. The key question for businesses is to determine whether their website has the potential for aggregation. To surface their supply to search engines, companies must treat their website as a product rather than a marketing property. This shift in mindset requires a deep understanding of the user experience and the steps users go through to receive core value. By identifying where users encounter entities that could be made public, where new entities can be created, and whether the product has integrations or functions as a platform, companies can assess their potential for aggregation.

When it comes to SEO aggregation, there are three types of supply: UGC (User-Generated Content), inventory, and programmatic. UGC platforms, such as G2 for reviews or Figma/Miro for templates, provide a strong source of contextual content that can be aggregated. Inventory refers to the entities created by products when used, such as Airbnb listings or directory entries. Programmatic landing pages, like keyword-based directories, can also be aggregated. Understanding the different types of supply and their potential for aggregation is essential for developing an effective SEO strategy.

To leverage hidden network effects, builders and entrepreneurs need to shift their thinking from marketing to product. They must consider the value their product brings to users, its feasibility in terms of business growth, and the overall user experience. Additionally, they need to assess whether significant traffic can be generated through targeted keyword aggregation. By focusing on these aspects, companies can unlock the potential of hidden network effects and gain a competitive edge.

Here are three actionable pieces of advice for companies looking to explore hidden network effects:

1. Understand your users' journey: Dive deep into the user experience and identify the steps users go through to receive core value. Look for opportunities where entities can be made public or new entities can be created. This understanding will help you identify the potential for aggregation within your product.

2. Assess your supply: Determine the type of supply your product generates and evaluate its potential for aggregation. Whether it's UGC, inventory, or programmatic, understanding the nature of your supply will guide your SEO strategy.

3. Focus on product value and feasibility: When exploring hidden network effects, it's crucial to prioritize product value and business feasibility. Ensure that your product truly helps users and has the potential to drive growth. Consider how your product can provide a better experience than what's already available in the market.

In conclusion, hidden network effects can provide companies with a unique advantage in the competitive landscape. By recognizing the potential for aggregation within their product, understanding the different types of supply, and shifting their thinking from marketing to product, companies can unlock the power of hidden network effects and drive long-term success.