Chen's Cold Start Theory is a framework that helps understand network effects. It outlines how to overcome the initial 'cold start' problem, where a network has little to no users, and how to scale and manage growth. The theory is divided into five stages: the cold start problem, the tipping point, escape velocity, hitting the ceiling, and the moat. Each stage represents a different phase in the growth of a network, and understanding these stages can help manage and leverage network effects.
When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it...
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