Introduction

Everyone talks about network effects, but few understand what really makes products stick. This article shows why defaults matter more than anything else.

What's the problem it solves?

People believe network effects make companies unbeatable, but this article explains why that’s not always true. It reveals a stronger advantage: becoming the go-to option, or default, in people’s minds, devices, and routines.

Quick Summary

Many think products win because they grow fast with network effects-where more users make something better. But real power doesn’t come from just getting bigger. It comes from becoming the option people use without thinking. This is called being the default. Big companies like Google, Apple, and Facebook don’t just rely on growing users—they work hard to become the automatic choice.

Defaults are sticky because people don’t like to change. Changing apps or habits takes time and effort. That’s why Apple puts its own apps on your home screen, and Google pays billions to be the search engine on your phone. These moves make sure users stick around, even if better products exist. The real battle isn’t for features-it’s for space on your screen, your habits, and your belief in what works.

The article also explains how “defaults” go even deeper than just apps. Tools like Salesforce win not because they’re the best, but because they’ve become the agreed-upon “truth” inside companies. Once enough people believe in something, it becomes hard to replace-not because it’s perfect, but because everyone uses it. In the end, beliefs are the strongest force of all.

Key Takeaways from the article

• Network effects help products grow, but they don’t always protect them.
• Being the default (pre-installed or auto-selected) makes products much harder to beat.
• Physical products (like phones) are more defensible than apps because switching costs more.
• Real power comes from controlling lower layers-like operating systems or browsers.
• Google moved “down the stack” by owning Chrome and Android to protect its search business.
• Apple started from the bottom (iPhone) and built layers above with apps it controls.
• Defaults win even when the product isn’t the best-because people don’t want to change.
• Identity is a powerful layer too-Facebook Login made accounts easier and more “sticky.”
• Beliefs, not just users, make a product unshakable. If everyone believes in one tool, it becomes truth.
• The strongest moat isn’t code, users, or features-it’s owning space in people’s minds.

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