Donnie Berkholz

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Not every user is the same, nor is every network the same. Dropbox’s insights on this were profound: some users joined Dropbox as part of the “come for the tool” strategy—but stayed with the tool without increasing their engagement by sharing folders and documents with others. In contrast, the ones who used Dropbox for collaboration and sharing—the network features—became significantly more valuable over time. Dropbox’s users could be divided into High-Value Actives (HVAs) and Low-Value Actives (LVAs), which was useful as a quality indicator. It could be overlaid into the strategies for ...more
The Cold Start Problem: How to Start and Scale Network Effects
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