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A Summary of

An Epiphany about Network Effects

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NfX
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Tickle was one of the first viral, user-generated content sites, but had near-zero retention.

Tickle began to build products that had network effects

  • Dating marketplace
  • Tickle Social Network
  • Grapevine: an advertising marketplace for ads on user-generated content sites

Despite network effects, these businesses weren't successful

  • Potentially due to lack of skill or running five different businesses inside one company

In 2004 Monster, a two-sided labor marketplace, bought Tickle

  • Monster was suffering from poor products, poor customer services, poor strategic decision making, and a lack of foresight.
  • Ultimately they succeeded because network effects can be all that matter
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