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🚀 Business Model & Network Effects Explorer

Interactive learning tool for Module 3 concepts

Digital Business Models Explorer

Click on each model to learn more and see real-world examples:

💰 Freemium

Basic service free, premium features paid

Examples: Spotify, Zoom, Slack

🔄 Subscription

Recurring payments for ongoing access

Examples: Netflix, Adobe, Amazon Prime

🏪 Marketplace

Platform connecting buyers and sellers

Examples: Amazon, eBay, Airbnb

📢 Advertising

Free service funded by advertisers

Examples: Google, Facebook, YouTube

☁️ SaaS

Software delivered as a service

Examples: Salesforce, Dropbox, Office 365

🌐 Platform

Enabling others to build and sell

Examples: iOS App Store, Shopify, AWS

🌐 Advanced Network Effects Simulator

Experience how different types of networks create exponential value growth:

Choose Network Type:

Social Network Simulation

Each user can connect to every other user, creating exponential value growth

Network Visualization

0 Users
0 Connections
0 Network Value

Value Growth Chart

Linear Growth
Network Growth

🔗 Direct Network Effects

Definition: Value increases as more users join the same network

Formula: Value = n × (n-1) where n = users

Examples: Facebook, WhatsApp, LinkedIn

Why it works: Each new user can connect to all existing users

🔄 Indirect Network Effects

Definition: More users on one side attract users on another side

Formula: Value = buyers × sellers × transaction_rate

Examples: Uber, Airbnb, eBay

Why it works: Two-sided markets create mutual value

📱 Platform Effects

Definition: More apps attract more users, more users attract more developers

Formula: Value = users × apps × quality_factor

Examples: iOS App Store, Google Play, Steam

Why it works: Ecosystem growth benefits all participants

⚡ Critical Mass

Definition: Point where network value exceeds alternatives

Key insight: Early growth is slow, then accelerates rapidly

Strategy: Focus on dense networks before expanding

Example: Facebook started with college students before going global

📊 Real-World Network Effects

Facebook

2.9B users creating massive social network value

Network Type: Direct Started: 2004

Uber

Two-sided marketplace connecting riders and drivers

Network Type: Indirect Started: 2009

iOS App Store

Platform enabling millions of apps for billions of users

Network Type: Platform Started: 2008