Retention is about how often your users return to use your product. This can make a big Retention difference in how powerful the network effects of a product are. Recall that network effects happen when increased usage of a network leads to greater value. Read more about Retention Usage can increase in one of two ways: either new users join the network, or existing users increase their usage. Any drop off in usage from existing users will weigh against the growth of the network from new users. That’s why retention is so important for building network effects. 36

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