Unveiling the Power of Hidden Networks: Leveraging Below the Fold Strategies

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Aug 21, 2023

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Unveiling the Power of Hidden Networks: Leveraging Below the Fold Strategies

Introduction:
In the world of digital marketing, there is a prevailing belief that above the fold content on a web page garners more attention and holds greater value than content below the fold. However, there is a growing understanding that hidden networks and below the fold strategies can yield significant advantages. By exploring the concept of hidden networks and their various manifestations, we can uncover unique insights and actionable advice for entrepreneurs, investors, and professionals alike.

  1. Slow Networks: Unleashing the Power of Patience
    Slow networks, characterized by a time delay between their creation and the realization of their value, can be a formidable force in the competitive landscape. Take Lambda School, for example. While it may take years for the true value of its network to emerge, once established, these networks become incredibly difficult to displace. Patience and resources are key in allowing slow networks to come to fruition.

Actionable Advice:

  • Identify slow networks that possess the features of a network effect business and exhibit long product loops or insufficient saturation.
  • Ensure that all stakeholders, including founders, employees, investors, and users, are committed to the long-term vision of the network.
  1. Unfinished Networks and Throttled Networks: Unlocking Hidden Potential
    Unfinished networks and throttled networks present unique opportunities to harness the power of hidden network effects. In the case of unfinished networks, a product feature or strategic decision may temporarily leave the network incomplete. However, once completed, the network effects become immediately apparent. OpenTable serves as a prime example, as it created an opportunity for itself to be the easiest platform for diners to discover restaurants once it had enough restaurants in its network.

Throttled networks, on the other hand, limit the size or engagement of the network, masking the strength of the network effects. While their value may not be evident in the short run, they have the potential to unlock significant opportunities in the long run. Chief, a professional network for women, operates as a throttled network that may eventually unlock its full potential through increased engagement, pricing adjustments, or an expanded membership pool.

Actionable Advice:

  • Identify unfinished networks by assessing whether users are actively trying to complete the network and if there is emergent behavior on the incomplete side.
  • Analyze throttled networks by understanding the potential impact of relaxing constraints such as pricing, network growth, or engagement.
  1. Latent Networks: Building Communities for Future Success
    Latent networks, often known as "Come for the network, stay for the tool" networks, involve building a community that acts as a network before introducing a product or tool. This approach creates a vibrant ecosystem that amplifies engagement and value creation once the product is launched. Game developers have successfully employed this strategy by establishing Discord servers to build communities of gamers before launching their games.

Identifying latent networks can be challenging since they rely on the engagement of users with each other, rather than just the central node. A true latent network offers additional value to existing members when new members join, distinguishing it from a mere audience. Understanding the distinction is crucial in determining whether a network has the potential for activation.

Actionable Advice:

  • Consider building communities as a precursor to launching a product, fostering engagement and value creation among users.
  • Evaluate whether a network truly engages with each other or merely consumes content from a central node to determine its latent network potential.

Conclusion:
Hidden networks, often overlooked and underestimated, possess unique advantages that can be harnessed by entrepreneurs, investors, and professionals across various industries. By recognizing the power of slow networks, unfinished networks, throttled networks, and latent networks, individuals can unlock hidden potential and leverage below the fold strategies for long-term success.

Actionable Advice:

  1. Identify and invest in slow networks with the necessary patience and resources to allow their value to emerge.
  2. Assess the potential of unfinished and throttled networks, understanding the impact of completing or relaxing constraints on network effects.
  3. Explore the concept of latent networks, building communities that act as networks before introducing products or tools, to amplify engagement and value creation.

Sources

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