&108/ Just Found: Best Practices from Leading Social Network Websites

From a research paper published recently:

"Networks display two effects:

• Network externalities: the interest in being a member of a network increases more than proportionally with the number of users
• Congestion point: an increase occurs up to the point where the network cannot support the number of users which depletes the service provided

The challenge for managers of networks is to reach the critical mass where there are enough users to produce this network effect, which implies to:

• Ask a low price when the network begins to grow
• Make users pay for the use of the services provided by the network, not the access to it"

Read the paper!