Network Effects And Elon Stans

The value of a network increases proportionally to its underlying userbase. This newsletter is an example of having network effects. It increases in value the more readers it gets. Not just the amount, but the quality of engagement.

More users = more value per user.

My growth comes through word of mouth (from you) and content distribution (from me). Strong word of mouth means high network effect.

Whether it's technology, people, or businesses, network effects will be the groundwork for future impact. We see this with Elon stans.

Tesla car owners are some of the most relentless people you'll meet. The network effects of owning a Tesla (stock or car) is what gives it a market cap of $800 billion.

That's a higher market cap than GM, Ford, and Chrysler... combined. All because of Elon's ability to market as a CEO.

The cult-like Elon stans give Tesla high network effects. Would there be a dating appfor Mustang owners?

Pay attention to the presence of network effects. It'll serve as the bedrock for emerging technological impacts.