Published: August 2019
The Flywheel Effect
Circulated: August 22, 2019
Technical definition: Positive feedback loops that build momentum, increasing the payoff of incremental effort.
Layman’s definition: When good things you do lead to more good things “just happening”.
- Direct network effect: more users -> more value for existing users
- Economies of scale: more sales volume -> lower fixed cost per unit -> lower prices
- 2-sided network effect: better value prop -> more users -> more developers