Reverse network effects
An interesting dimension of network effects is its downsides. Network effects can drive down three key components of a product’s value due to the increase in scale: connection, content, and clout.
Connections refer to the interpersonal connections that users can form on a platform as the user pool increases. Networking and communication platforms such as LinkedIn and WhatsApp increase in value as the number of possible connections between users increases. However, reverse network effects could also prove to be true. For example, a surge in new users could drive down the quality of interactions between existing users and contribute to noise that is created from the new users’ unsolicited requests to connect.
Content refers to the increased value from an expanded corpus of content created by the user pool. Network effects can create an unsustainable abundance of content that the platform cannot properly moderate and therefore lead to the failure of content curation and personalization for the users, incentivizing them to leave the platform.
Lastly, clout refers to the value that power users create on the platform for the entire user pool. Network effects could create an inadvertently biased environment that promotes older users over the more recent ones, making it more difficult for newer users to find a following.
To resolve these negative effects of rapid scaling, a digital platform must utilize a democratic model for building user influence to counteract the built-in bias for older users, develop a durable curation and personalization system that adapts to the rapid scaling of content, and create an appropriate level of “friction” in accessing and connecting with existing users to prevent spamming or abuse.
https://www.wired.com/insights/2014/03/reverse-network-effects-todays-social-networks-can-fail-grow-larger/