Book Summary: The Cold Start Problem

‘The Cold Start Problem’, by Andrew Chen

The Cold Start Problem

by Andrew Chen

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Resonating Message

More and more of the world’s leading products are leveraging network effects to establish, grow, and sustain success in the market — but establishing a new networked product is very difficult. You need to overcome the Cold Start Problem to build your first sustainable network, carefully tapping into those users to grow, engage, and retain the network to create unique and sustainable advantages over time.

Part in one sentence

1. Network Effects: It has never been easier to build products, but never has it been harder to reach product/market fit. Through network effects, you can build, grow, sustain and defend your product using the compounding value nature of the network, derived from the users within it.
2. The Cold Start Problem: Ignition of a networked product requires the creation of an atomic network — the smallest network that can sustain itself. Achieve this by targeting the hard side of the network; keeping the product simple and focused on acquiring a small and specific set of users.
3. The Tipping Point: You need to identify the motivational factors that will drive network growth — applying…