A few years ago, I’ve started seriously studying network effects. I’ve started a few businesses (retired now, RIP) trying to incorporate things that I’ve learned.
More recently, I’ve taken to examining public companies that exhibit strong network effects in their businesses.
![](https://eugeneting.com/wp-content/uploads/2020/05/koyfin_20200522_123725785-1024x529.png)
I’m not sure what to make of these companies except that I want to ask a few questions:
- How can we learn from established companies that have strong network effects?
- How can we spot a company with a potential for or ability to maintain the defensibility around their network effects early on?
- Are network effects a “moat”?
- Can all software companies build network effects into their business?
- Is it harder to build a strong core network effect once you have some legacy code/processes built?