Viral effects are when the existing users bring you new users for free. When something goes viral on social media, it doesn't mean those users will stay with you or that they add value to your product or service. All there is, is a buzz for the moment.
Network effects are about retention and defensibility. Defensibility is what adds value to your business. Value makes people come back.
Network effect:
A network effect is s something where a product becomes more valuable as it scales its users.
Example: if I am the only one with a phone then that phone has no value or very little value to me. The more people there are that have phones, the more I can interact with those people so the more valuable the phone becomes.
Work with Alan W
“Solving niche challenges founders face”.
Illustrator: Lisa Williams (Instagram: @artist_llw)