Saturday, March 12, 2005

Making Money from the Long Tail

The long tail of software. Millions of Markets of Dozens. "You know the real reason Excite went out of business? We couldn’t figure out how to make money from 97% of our traffic. We couldn’t figure out how to make money from the long tail – from those queries asked only once a day."

"57% of Amazon’s sales come from books you can’t even buy at a Barnes and Noble (to be fair, there is some skepticism around this number voiced here). This runs totally counter to the traditional 80/20 rule in retailing – that 80% of your sales come from 20% of your inventory. In Amazon’s case, 57% of their book revenue comes from 0% of Barnes and Nobles inventory."

"iTunes has over one million songs in it’s catalog. You know how many have been bought at least once?

Every one."
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