You learn something new every day.

Well, every other day, at least.

Anyways, some things you learn take a couple of days to process (well, as far as I go) so turns out every other day is plenty quick enough.

Perhaps I’m arriving late at this party, but the notion of The Long Tail is something I just this week heard about.

Well, technically I heard about it several weeks ago, but it was just this week that I took the time to actually analyze and understand what it meant.

And, more importantly, what the implications for small business might be.

Turns out they are outstanding!

In a nut shell, The Long Tail theory (mainstreamed by Wired magazine editor Cris Anderson) states that the internet now creates a “long tail” of product sales that has never before existed.

With the advent of online “warehouses,” there is no longer any requirement that physical product be stockpiled. Stores can now offer infinite inventory for sale, which creates a “long tail” of products that would have never before seen the light of day, extending sales potential for many more entrepreneurs.

And the way these products are typically identified is through ratings systems on sites like Amazon and Netflix, as well as auto-generated “If you liked this, you’ll like that” recommendations.

Companies are now making more money from sales out in the long tail than they are in the short tail of more heavily marketed and therefore “popular” products. Customers are now buying what used to be called “obscure” varieties of music, literature, movies, etc. in volumes that are unprecedented.

Build good products, get them out there. The chances are now better than ever that they will be bought, and you will succeed.

All hail Long Tail!

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