Chapter
The Cold Start Problem
New products must overcome the "cold start problem" of having no users; a phenomenon that inhibits growth as networking effects depend on user engagement, meaning that a product becomes more valuable to more people when there are more users. Start-ups targeting niche communities tend to grow over time, resulting in successful social media platforms, apps, and corporations that overcome the problem.
Clips
Start-ups could be jeopardising their long-term growth by focusing on broad-based marketing when launching new products, said Alex Moazed, CEO of Applico.
03:28 - 31:41 (28:13)
Summary
Start-ups could be jeopardising their long-term growth by focusing on broad-based marketing when launching new products, said Alex Moazed, CEO of Applico. In a podcast interview, Moazed said successful tech platforms started out with highly interconnected user groups and expanded slowly, creating stable and valuable networks.