New Online Business Rules: The Long Tail
In his article in Wall Street Journal, It May Be a Long Time Before the Long Tail Is Wagging the Web, Lee Gomes is discussing Chris Anderson’s new book, “The Long Tail.” Lee says that”
“The book argues that while traditional companies are limited by shelf space to offering only a relatively small number of “hits,” on the Web, they can carry a vastly bigger number of slower-selling items. These “misses,” which make up the “tail” of the title, can, he says, add up to a big number — maybe even bigger than sales of the hits.”
So far, so good, right? Does this mean that anyone can publishing an e-book or a report on pretty much anything, and make money selling it? Can we all write a song each, submit it to iTunes and profit?
But Lee says that:
“By Mr. Anderson’s calculation, 25% of Amazon’s sales are from its tail, as they involve books you can’t find at a traditional retailer. But using another analysis of those numbers — an analysis that Mr. Anderson argues isn’t meaningful — you can show that 2.7% of Amazon’s titles produce a whopping 75% of its revenues. Not quite as impressive.”
So, what does this tell you? I think noone would argue with me when I saw that knowing what your clients want, and catering to these wants will produce the “hits”, the best-selling products everyone is looking for.
But how about “misses”? How can a small business owner profit from misses? Small business owners typically don’t have the same amount of traffic as Amazon does. They would be able to sell a few of their “misses”, but selling just a few of a product will not be profitable in the long run.
My recommendations? Strive to create as many “hits” as possible – those will be profitable for your business.
Biana Babinsky
Biana Babinsky is the online business consultant, expert and author, who can help you make money with your custom products online. Get marketing advice directly from Biana at https://www.MarketingSalad.com