The law is abundant and existent due to the ability of internet users to link together. If the internet were for information posting only, Metcalfe’s Law would be a mere imaginative concept. Websites and blogs such as Twitter, Facebook, and Myspace are the center of this law taking effect. Forty five percent of Americans in 2005 said the internet had played a huge role in a major decision in their life as a result of this social networking. Some of the major decisions involved buying a home, buying a car, inquiring medical help, and discovering a career. Interconnecting two networks is said to greatly exceed the power of the two separate, individual networks.
The law has often been illustrated using the example of fax machines: a single fax machine is useless, but the value of every fax machine increases with the total number of fax machines in the network, because the total number of people with whom each user may send and receive documents increases. Goods characterize the first component or intrinsic network effect. Services fall under the second component of network effects known as complementary. A social networking site works the same way as the fax machine described above. The greater number of users with the service, the more valuable the service becomes to the community. Deriving from Metcalfe’s Law, every new “friend” accepted or added on these social networking sites makes the user’s profile ever more valuable in terms of the law. Positive and negative outcomes take place with all network effects involving a service of this sort. New jobs, relationships, and opportunities arise with more people coming together, however, if not used correctly, services of this type can lead to distant relationships.
Influence marketing in a nutshell. This is what I believe about branding’s intersection with consumer psychology. Metcalfe’s Law (via Princeton University)