Chuck LEAN Business Consultant
0
I was asked to do a Long Tail Business Model.
I know The Long Tail Business Model works by selling a wide variety of niche products, which individually sell very little, but which in total generate high sales volume.
Nowadays, search engines have made it possible for consumers to find anything they want all over the world, no matter how specific their interests and tastes are. At the same time, online targeted media have made it easier for a niche business to have access to their own consumers, through demographic and behavior filters.
What is your experience with the Long Tail Business Model?
How is implemented?
What is the Long Tail?
To make it possible to understand the concept of long tail more clearly, let’s look at the common retail model. In general, businesses focus on marketing and selling a reduced number of profitable popular items. So, they make money by selling large volumes of a few items.
The long tail business model does the opposite. It focuses on selling large numbers of unique items, niche products. These businesses don’t have a superstar bestselling product. They have several hard-to-find items, for different niche consumers.
The long tail phrase was coined by [removed] , a British-American writer and former editor of Wired Magazine, in 2004. He highlighted that, when a store has a large [removed] , it can market low demand products, which can collectively make up market share.
Anderson gave this name to this business model, based on the curve that this type of economy draws on a graph. Our current purchasing culture is increasingly moving away from traditional products and markets (beginning of the curve) to a demand for several different products along the curve (forming a long tail).