#2 - Network Effects with Anu Hariharan

Virality

Anu Hariharan explains that virality is about the speed of growth, often driven by word of mouth and unpaid growth. She contrasts this with network effects, which are about the value provided by the network, such as Facebook's early retention rates. Anu uses examples like Uber and Facebook to illustrate how superior products can drive virality through user recommendations.

Virality is often about free growth, meaning unpaid growth, which you can drive without marketing because your product is just much superior to the alternate option available.

--- Anu Hariharan

She also differentiates between organic growth from product use, as seen with Facebook, and word-of-mouth growth, as seen with Airbnb 1 2.

   

Platforms

Anu discusses the importance of leveraging established platforms like Facebook, Twitter, and Instagram for app distribution. She highlights the success of Musical.ly, which pivoted from an education app to a social media tool by utilizing these platforms. Anu emphasizes the need for a clear entry strategy and growth plan to build a strong user base.

One app that recently has gained a lot of traction is Musical.ly, which pivoted from being an education app to a tool among teens for creating short-form lip-sync videos.

--- Anu Hariharan

She advises startups to focus on growth to achieve critical mass and create lasting value 3 4.

   

Growth

Anu outlines the key components of formulating entry points and growth strategies for consumer apps. She stresses the importance of differentiating between growth and network effects, and how each requires distinct approaches. Anu uses examples from Facebook and Uber to illustrate effective entry strategies and the importance of achieving critical mass.

The only way you build a moat is by growing, because you have to get that critical mass right.

--- Anu Hariharan

She also discusses the evolving nature of entry strategies and the need for continuous adaptation to stay competitive 1 4.