The Power of Network Effects and Finding Work You Love


Hatched by Glasp

Aug 18, 2023

3 min read


The Power of Network Effects and Finding Work You Love


Network effects have played a significant role in shaping the technology industry since 1994, accounting for 70% of the value created in this sector. Understanding the importance of network effects and how they work is crucial for businesses and individuals alike. In this article, we will explore the various aspects of network effects, their properties, and the strategies to build and maintain them. Additionally, we will delve into the concept of finding work that you love, as highlighted in Scott Dinsmore's TED Talk. By combining these two topics, we can gain insights into the power of networks and how they can influence our professional lives.

Part I: Why Network Effects Are Important

Network effects are responsible for a significant portion of the value generated in the technology industry. By understanding the fundamentals of network effects, businesses can harness their power to create successful products and platforms.

Part II: How Networks Work

Networks are interconnected systems of people or things, with nodes representing the participants within the network. Central nodes, which have a high number of links, are often more valuable. Understanding the directionality and density of a network is important in designing products that promote higher network density and activate users to behave like the densest group within the network.

Part III: Network Properties

Recognizing the irregularities within a network, such as clustering and critical mass, allows businesses to focus on the most valuable nodes and build network effects. The importance of real identity in network profiles and the distinction between homogeneous and heterogeneous networks are essential considerations. Additionally, understanding the different types of network effects, such as same-side and cross-side effects, helps in leveraging their benefits.

Part IV: Building and Maintaining Network Effects

Switching costs and the chicken or egg problem are challenges businesses face when building network effects. Strategies such as multi-tenanting and prevention of disintermediation can help mitigate these challenges. Retention is crucial for strong network effects, and businesses need to focus on increasing network usage to drive growth.

Part V: Related Concepts

Geometric growth, viral effects, and the platform business model are related concepts that intersect with network effects. These concepts highlight the importance of scalability, virality, and external networks in maximizing the benefits of network effects. Additionally, brand and embedding play significant roles in reinforcing network effects and maintaining defensibility.

Finding Work You Love

Scott Dinsmore's TED Talk emphasizes the importance of finding work that aligns with your passions and values. Becoming a self-expert and understanding your strengths and values are crucial first steps. Overcoming self-doubt and surrounding yourself with inspiring individuals are essential for pursuing your passions. By changing your surroundings and choosing the right people to support your journey, you can unlock your full potential and inspire others to do the same.


Network effects are a powerful force in technology and business, shaping the value created and influencing the success of products and platforms. By understanding the principles behind network effects and incorporating strategies to build and maintain them, businesses can unlock exponential growth. Additionally, finding work that aligns with your passions and values is key to personal fulfillment and making a positive impact. By combining the insights from network effects and the pursuit of fulfilling work, individuals and businesses can harness the power of networks to achieve extraordinary results.

Actionable Advice:

  • 1. Pay attention to network density and design your product to promote higher network density, focusing on the densest part of the network.
  • 2. Identify the "white-hot center" of your network and activate other users to behave more like that group.
  • 3. Surround yourself with inspiring individuals who support your passions and push your limits. Change your surroundings to align with your goals and aspirations.

Remember, network effects have the potential to transform industries and individual lives. Embrace the power of networks and pursue work that you love to unlock your full potential.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)