![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f4750d-faba-4f9b-b1da-44f60492a8c2_800x1103.jpeg)
Source: FutureBlind
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”.
Examples:
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