a16z Podcast: Getting Network Effects


  • Zuckerberg wanted 80% useage at Harvard with 50% daily activity retention
  • Do you get more value for more people using?
  • How much of the medium.com views came internally versus facebook and google?

Growth Hacks: In a two-sided network, who shows up first?

  • Mark Zuckerberg “hacked” the Harvard directory to pre-populate facebook with data.
  • Uber subsidized traffic around a city
  • Instacart subsidized until it built up a lever of orders with grocery stores.
  • when you subsidize, what is your ROI and lifetime value?
  • Open Table could take advantage of high fragmentation, where the suppliers didn’t have market paper

It is virtually impossible to displace OpenTable because you have to go market to local market