The Power of Social Network

THE POWER OF SOCIAL NETWORK The minute the user adds just five friends to their list, his or her network's value Since the average user has 130 friends, this means that any typical user's network can be have a value up to 17,161 connections. One user joins Facebook, but doesn't have any friends yet. goes up to 36. What Doesn't Achieve the Network Effect? If one more item sold or added doesn't provide value to the network of all its users, and there's no difference between one user and one million users, it's not classified as part of the network effect. Example: television set. How is Social Networking More Powerful? The assumption for devices like telephones and fax What social media sites have that these machines is that they connect only directly to each other traditional methods don't is the ability to create a network. to network simultaneously. One single tweet can reach hundreds of followers in real-time. Critical Mass There comes a point in the network For businesses, a key method in attaining this pinnacle is to effectively attract more active members. Some common ways? where critical mass is reached. O Credit O Fee waivers O Getting friends to sign up for a service This occurs when: The value or benefit from the service is > or = to the price Once the critical mass threshold is passed, the network powers itself and paid for the service. the system becomes even more valuable. And the quicker value is derived, the more is recelved in the long run.