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image: REVERSE NETWORK EFFECT ON SOCIAL MEDIA by tomi-col

REVERSE NETWORK EFFECT ON SOCIAL MEDIA

Network effects are the holy grail for Internet startups looking for venture-scale returns. On a platform with network effects, the value to a user increases as more users use it. Facebook, Twitter, LinkedIn, YouTube, Skype and many others benefit from this dynamic. 2012 will go down as the year when a billion people were connected over a single platform for the first time in history.  But as online networks grow to a size never seen before, many question their sustainability and believe...