Chen proposes a multi-stage approach to scale network effects. This includes solving the Cold Start Problem, reaching the tipping point, achieving escape velocity, managing growth plateaus when hitting the ceiling, and finally, building the moat for sustainable growth and protection against competition.
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When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it to be worth anything. So how do you start the very...
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is Chen's attempt to help us better understand network effects: how to solve the Cold Start Problem, how to scale network effects, how to manage growth plateaus, and so on. Chen's Cold Start Theory is broken down into 5 stages: 1. the cold start problem; 2. the tipping point; 3. escape velocity; 4. hitting the ceiling; 5. the moat.
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