December 24, 2012

The Biggest Threat to Facebook

Sangeet Choudary, The Next Web

AP Photo

Network effects are the holy grail for Internet startups looking for venture-scale returns. On a platform with network effects, the value to a user increases as more users use it. Facebook, Twitter, LinkedIn, YouTube, Skype and many others benefit from this dynamic.

2012 will go down as the year when a billion people were connected over a single platform for the first time in history.  But as online networks grow to a size never seen before, many question their sustainability and believe that they are becoming too large to be useful.

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TAGGED: social networks, Facebook


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