What is the Network Effect, and why is it so important?

What is the Network Effect?

The Network Effect is the effect one user has on the value of a service for other people using it. It is when a service becomes more valuable as more people use it.

A good analogy is the telephone. If only 2 people in the world have telephones, then the telephone is of not much value. Because let’s say that I am one of those 2 people with a telephone. I can only call the other person, and no one else. But, when more and more people have telephones, then the value of the telephone and the telephone service increases. Now I can call many people…the telephone is worth having.

Why is it so important for Maate?
Just like the telephone, the more people using our app, the more valuable it becomes, the more connections we all have access to.

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For more information on the Network Effect, here is a great infograph. (Thanks to “Get Satisfaction”)