Network effect: the effect that one user of a good or service has on the value of that product to other people; when network effect is present, the value of a product or service increases as more people use it.
Facebook clearly has a very strong network effect working within it – imagine Facebook if you were the only user. But when everyone you know is on it, it becomes useful and fun and you want to be on Facebook too.
The Facebook Effect is nonfiction, and it isn’t the Ben Mezrich thriller, but it’s every bit as gripping. I can’t put this book down.
Kirkpatrick had many meetings with the founders and employees of Facebook to get all the detailed information about how the company started and the struggles they have faced. It takes us through the many phases of the company. For example, when it first launched in February 2004, only Harvard graduates and alumni could sign up. Email addresses were validated by checking that the ended in @harvard.edu. Facebook quickly took over the campus. The company started adding other colleges and eventually high schools in a methodical fashion, before opening it up to everyone in the fall of 2006.
There was internal personnel strife as well. One of the co-founders drifted away that first fateful year, working on other things, while the rest of them were focusing mainly on the new company. That led to some unfortunate events and bad feelings, and ultimately to a lawsuit. Lance and i went to see the social network Sunday night, and i think it mostly gets the story right, though of course some things are dramatized and some are presented out of order.
I realize now how powerful this social networking tool can be. In the prologue for this book, it was related that in early 2008, a man named Oscar Morales decided to create a Facebook group protesting FARC (Revolutionary Armed Forces of Colombia). In just a few days his group had thousands of members, and one month later, Facebook had been the medium through which dozens of countries and 2 million people participated in an organized protest against FARC. You can read a partial excerpt here. The full story is pretty moving.
I highly recommend this book. Our world is still figuring out how social network effects are changing the way we do things, and Facebook will have an effect on that. I know the children of today and my future kids will be like, “how did you survive without the internet?”
