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Issue - May/June 2023

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The Network Effect

Past Chair: IAM Executive Committee


If you’ve ever taken a course in economics, you almost certainly were introduced to the concept of “Network Effects.” Fortunately, unlike some other economic theories, this is a pretty easy concept to understand and, as a result, that makes me capable of explaining it. Essentially, the idea is that the more users there are in a network, the more valuable that network becomes. Easy examples of this exist in our economy with most of the social media platforms like Twitter and Facebook. Another modern example is Amazon—the more they grow the network, the more valuable it becomes and the more benefits they can deliver to the members of the network in the form of price and service efficiency. I’m sure you can think of some other examples too. Uber, LinkedIn, etc.


This idea is also evident in the moving business as each of us has a network of agents that we work with. The U.S.-based van lines have even made an entire business model essentially on the idea of the network effect. Furthermore, it’s why an organization like IAM makes sense and is a great value to its members—you’re becoming part of a network and the larger that network gets, the more valuable it is for each member of the network. An Annual Meeting with just two attendees wouldn’t be very valuable; however, one with nearly 2,000 attendees from around the globe creates a tremendous value. That’s the network effect.


My experience is that, while being a member of IAM has great benefits, volunteering to serve on one of their committees really serves to operate as a multiplier to the network effect. That’s because when you volunteer, you’ll be on a committee that gives you the opportunity to meet other industry leaders who are experiencing the same issues that you experience and who very well might have a need for your services—or be able to provide a solution to your service needs in their corner of the world. And every person on that committee has their own network that you can potentially engage with as well. As a result, volunteering really is a no-brainer. It provides you with great opportunities to grow your network.


My first volunteer opportunity with IAM was working on the Accessorial Committee. It was led by Jim Gaw, who was with Atlas International at the time. From there I joined the Government Traffic Committee and eventually got elected to the Executive committee. After a few years on the Executive Committee, I took the role as Vice Chair and eventually had the wonderful opportunity to serve as Chairman. The number of positive business and personal connections that I’ve benefitted from because of this volunteer work is incredible. In fact, it’s been so beneficial that it’s almost wrong to call it volunteer work—because what I’m getting in return, from the network effect, is of great value not only to me, but to our entire organization as well.


Now is the time to put the power of the network effect to work for you. Reach out to IAM leadership today to explore volunteer opportunities so that you can help this network become even more valuable than it already is.

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