We hear about the network effect around web technologies and especially related to social media as the value of the network is correlated with the number of users registered. In the case of pure social networking websites (Facebook, Bebo, Hi5, LinkedIn) there is a race for numbers -- there success is inextricably linked to the number of users on their network so it's no wonder that the bubble in starting new "Facebooks" burst some time ago (along with the rest of new media investment)

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Tagged with : network effect, social networking, coachweb