The network effect refers to the phenomenon where the value of a product or service increases as more people use it. It is also known as the network externality, Metcalfe's law, or demand-side economies of scale. Other synonyms for the network effect include network externalities, network effects, positive feedback loop, bandwagon effect, and snowball effect. In the digital age, the network effect is particularly important in technology-based businesses, where the value of social media platforms, online marketplaces, and other digital services is dependent on a critical mass of users. Understanding the network effect is crucial for entrepreneurs and businesses seeking to create products and services that grow exponentially.