A graphical representation of connections between people based on Metcalfe’s Law
Metcalfe’s Law effect on Network Marketing

Network Marketing | Metcalfe’s Law

Metcalfe’s law states the effect of a telecommunications network is proportional to the square of the number of connected users of the system (n2). Only later with the globalization of the Internet did this law carry over to users and networks — its original intent was to describe Ethernet purchases and connections.

There are few business opportunities today that allow the average individual to leverage the power of Metcalfe’s Law. Network Marketing is one of them. Metcalfe’s Law is often cited as an explanation for the rapid growth of the Internet today and can be used to explain the rising wave of information technology that we are riding in the 21st Century. However, even with this knowledge, it can be difficult to convince others of Network Marketing’s power due to its perceived status.

Some people still view all Network Marketing as a pyramid scheme. This is far from what legitimate Network Marketing really is. This is an important subject to address in your Network Marketing training, with your downline.

As a Network Marketer who desires success and all the benefits of this industry, your first task is to duplicate yourself. The results of a good compensation plan begin with you cloning yourself and sponsoring another person. This is when you will start to see the power of duplication and exponential growth — experiencing firsthand Metcalfe’s Law.

For example, let’s say a Network Marketer decides that sponsoring 10 people is enough. They then focus on helping their ten people to each sponsor 10 of their own people. That original network of 11 (original Network Marketer + 10), has now grown 101 (original Network Marketer + (10 sponsored x the 10 people each one sponsored)), in just a few short years;(remember — people come and go, rather than stick it out — usually due to a lack of training or support from their Sponsor).

Metcalfe’s Law loosely interpreted can define the Network Marketing business model. It can also show how one’s efforts can be exponentially multiplied, and will better explain how that first commission of $3.60 that you earned in your first month with your Network Marketing company grew into a residual check of $1,000s of dollars — each and every month.

If you are interested in learning more about Network Marketing; download my FREE ebook “Networking Secrets” HERE.

You can also reach out to me at business@stevenrgibson.com



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Steve Gibson

Steve Gibson


Helping Entrepreneurs to get started and succeed in the worlds of Network Marketing and Affiliate Marketing, through Duplication, Coaching and Mentoring.