The network effect is an occurrence where an increase in people's quantity enhances a product's value. An example of a network effect is the internet; initially, with fewer people using the internet, there was not much value there, until recently when the number of people using it increased, increasing its value.

As a social network, Facebook provides more market power to a business person who has a Facebook profile. Facebook has many people using the platform, who produce more content and information, which attracts individuals to the platform to find out about products. The enhanced number of individuals who comfortably access Facebook gives a business person more market power as they have access to potential buyers' continuous traffic. The Facebook experience provides more traffic and more value at the same time, through a network effect.