Long Tail

by Chris Anderson
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"Why the future of business is selling less of more"

Chris Anderson coined the expression "The Long Tail" in a article in Wired 2004. The book is expanding on the subject and provides a thorough account of how the technology of today has diminished the dependence of the big hits. The internet has made it possible for an increasing number of businesses to find profitability in selling many unique items to few buyers, a profitability previously only found in the big hits.

Anderson illustrates this with examples from the book, music and entertainment businesses, but also from further back in time. Sears, Roebuck and Co found their opportunity of doing business in the long tail in the end of the 1800s by starting up a mail order service.

This is the power of the Long Tail. The companies at the vanguard of it are showing the way with three big lessons. Call them the new rules for the new entertainment economy.

1. Make everything available
2. Cut the price in half. Now lower it.
3. Help me find it
   

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I am pleased that I've read this book. It has been a while since I studied economics and statistical distributions. Now I got a refresher course as well as an update in new principles to apply. I am left with the feeling that it is possible to find business opportunities with a starting point in myself. If you can find a way to use channels and filters to enable the correct audience to find your business chances are that audience will be big enough to provide profitability. Perhaps as a large corporation you still need the big hits, but as a small business or individual you have a better opportunity to succeed in a niche business today.

Wikipedia has an extensive article on the concept of "The Long Tail".