"The value of a network like the Internet is at least of the order of N-squared, where N is the number of users of the network."

So says Bob Metcalfe, inventor of Ethernet and founder of 3Com. He's saying that a network of:

• 5 members is 25 times more powerful than a single entity
• 10 members is 100 times more powerful than a single entity

Judging by how fast the Internet is becoming involved in our intellectual, business, social, cultural and political activities, Metcalfe may be onto something.

I'd like to go a step further. N-squared is probably an average. Some network members do not get involved much and contribute little to the power of the Net. Others are completely absorbed and contribute a lot. If we can put together a specific network of thoroughly involved people or companies, its power may be closer to N-cubed!

How do we do this?

• By pushing services, rather than products.
• By standing for principles.
• By stressing cooperation.

The Internet is for Services

Companies that market services find general networking - at meetings, conventions, chamber events - more useful than do those who sell products. Service requires more knowledge and discussion. Service requires a higher degree of confidence of the client in the vendor. Service requires more cooperation between client and vendor.

And the Internet, especially the WWW, presents the perfect environment for networking. Instead of meeting once a week or once a month, as is done in offline networking, people interact with others as frequently as they wish. Things happen fast on the Net.

Principles Attract Network Members

Principles which appeal to potential clients, induce people to join a network. Here are a few examples:

• EXCELLENCE - Who does not prefer excellence to shoddiness?
• HONESTY - A prospect craves for the truth and hates being misled.
• ETHICS - All want to be treated fairly and with consideration.
• NO-SPAMMING - Offering a guarantee that the client will not receive messages he does not ask for will soothe most people.
• PRIVACY PROTECTION - Guaranteeing that private information will not be misused will make most people feel better about the vendor.

Cooperation is the Major Driving Force

More than any other factor, the spirit of cooperation suffusing the Net is the reason for Metcalfe's Law. But there are various degrees of cooperation, depending, for the most part, on the degree of involvement, which can be distinguished by:

• DEGREE OF FORMALITY - On the Internet there are many informal ways to network: mailing lists, forums, chats, reciprocal links, reciprocal endorsements, exchange of articles. You can make the networking formal and more productive through joint ventures, banner exchanges, referral networks, etc.
  
  
• TYPE OF ACTIVITY - Most networking on the Net involves intellectual discussion. Although you may learn a lot and connect with others, if you actually do some work you are more likely to achieve more powerful results. An excellent example is the Open Source Program, where programmers across the Globe worked together to make the Linux Operating System a competitor to Microsoft's O.S.
  
  
• LEVEL OF CONCERN FOR OTHER MEMBERS - How much is each member involved with the success of other members? Is there a hierarchy or a community. Most affiliate networks, for instance, are hierarchies: Those who run them are involved, defining the rules, implementing them and collecting the money; affiliates are not much involved and receive little money. In a community each member has a say and is involved with other members; all profit highly.
  
  

The highest level of cooperation is achieved when the network is made formal, when there is active working participation, and when it's structured as a community.

Summary

If we design a network whose objective is the selling of services and which is based on principles potential clients appreciate, we may attract a solid group of members. If we structure the network as a formal community of actively-cooperating members, the power of the network is likely to reach, not N-squared, but N-cubed!

Cooperation is what makes the network powerful.

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Paul "the soarING" Siegel is an eBusiness Consultant, Manager of the Learning Fountain Network and moderator of LearningFOUNT, a discussion list on business problem solving.