by Sanjay
Many young companies — especially “web 2.0″ ones — bemoan the network effect. When their userbase is small, their value to each user is limited. This is a dangerous place to be because it appears you’ll never get pass the critical mass necessary to make your service useful.
There are some obvious ways to get past this point, the most common one being to jumpstart your user base or to focus on a user base that is already highly internally connected, or to start with a small collection of very interesting nodes. All of these increase the value of the network to your users within the confines of Metcalfe’s law.
Here’s another thought: To avoid being beholden to the network effect, build something that is useful with for a single user, but better for a thousand users.
It sounds pithy, but we’re putting that notion into play here at LuckyCal.
LuckyCal provides immediate value by mining your own data; it does not require all of your friends to use LuckyCal in order to be immediately useful. Even if your friends aren’t using LuckyCal, as long as their addresses are in a Google Account or an Outlook contact list, LuckyCal can use them. This leads to a new concept, which we’ve termed half-duplex relationships.
Social networks define a connection as being full-duplex: you know me, I know you; we’re friends. For most individuals, their number of friends is somewhere around 200-300, the fabled Dunbar Number.
However, we all have a much larger set of people, organizations or businesses that we keep track of that aren’t “friendships” in a bilateral manner. Instead, we care about them even though they don’t know who we are. This is the “half-duplex” relationship; archetypical examples include the relationship between a salesperson and a customer or between a fan and a band.
Similarly, by looking at the set of things you might be interested in which have some sort of public calendars or events, LuckyCal can create one-sided relationships to track them. By providing LuckyCal with access to your interests, you can know when every band you care about is playing anywhere nearby.
Typically, the valuation of a social network doesn’t recognize these relationships because there has been no way to capture their potential value. In fact, half-duplex relationships could be modeled/valued based on Sarnoff’s law.
That such relationships have value is beyond dispute: Springsteen doesn’t have to know who you are for you to enjoy his music. Similarly, knowing where someone lives is information that you own—it resides in your address book—and mining it for opportunities is valuable.
By taking advantage of half-duplex relationships, you can avoid becoming hostage to the network effect where having too few friends in a the system results in too little value.

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