The sixth hidden value of network marketing is found in the power of Metcalf’s Law. Metcalf’s Law is about the economic value of a network. This law is named after Robert Metcalf. This law says, that a network’s economic value is equivalent to the number of users.
What are the advantages of maximizing the power of Metcalf’s Law?
1. Utilizing Metcalf’s Law, we see that the economic value of a network soars exponentially.
This means that an individual has no economic value unless it is duplicated. When a person is duplicated, his economic value is squared to 4 and this exponential growth goes on and on as the number of network increases.
2. The new economy is utilizing the power of Metcalf’s Law.
If we do not want to be left behind, we better go where the big business wave is. The old economy is dying. Numerous business experts claim that we are now in the new economy. In this new economy, the power of Metcalf’s Law is maximized. Therefore, we will be witnessing in the coming years that old economy businesses will be left behind by new economy businesses.
3. Rugged individual businessmen will be overtaken by networkers who maximized the Metcalf’s Law.
Robert Kiyosaki relates that during his real dad’s generation, rugged individual businessmen like John D. Rockefeller and J. P. Morgan reign in the business world. In the 1950s, another system of business, which is called franchising entered into the world of business. At first, many traditional businessmen criticized franchising as illegal but franchising continued to soar due to the power of Metcalf’s Law. An example of a franchise that utilized Metcalf’s law is McDonald. If a traditional hamburger business stand would compete with McDonald, chances are, sooner the traditional hamburger stand will be out of business due to its failure to utilize the power of Metcalf’s Law.
4. Networking is the second type of business that utilized the power of Metcalf’s Law.
Unlike in franchising where we see the network of franchised businesses, in networking marketing, we see a network of franchised individuals. Using the power of Metcalf’s Law is the reason why network marketing continues to grow in spite of severe criticism. “It continues to grow into many domains once controlled by traditional businesses.”
5. Network marketing made the power of Metcalf’s Law accessible to anyone.
Anyone can now experience the economic power of Metcalf’s Law provided that an individual will obey this law by duplication.
6. A successful networker due to Metcalf’s Law has now the potential to surpass the income of most professionals like doctors, lawyers, and accountants.
For a networker, working hard building a network makes more sense than working hard as an individual. Someone said, that is is wiser to earn 1% from a network of 100 individuals than earning 100% alone. The income of a networker is both passive and unlimited whereas the income of doctors, lawyers, and accountants is active and limited.
Robert Kiyosaki claims that “big independent businesses are now beginning to network.” In other words, they are now utilizing the power of Metcalf’s Law. This is now made easier due to the existence of the Internet. Robert predicts that the future belongs to businesses and individuals, which decided to build a network because they understand the Metcalf’s Law and maximize its power.
Christian Entrepreneur 