While Hipstamatic built a great tool, it was Instagram that used network effects to win the market. The Instagram versus Hipstamatic story is perhaps the canonical example of a strategy made famous by Chris Dixon’s 2015 essay “Come for the tool, stay for the network.” Chris writes: A popular strategy for bootstrapping networks is what I like to call “come for the tool, stay for the network.” The idea is to initially attract users with a single-player tool and then, over time, get them to participate in a network. The tool helps get to initial critical mass. The network creates the long term
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