Free Web Publishing Trends & News - Your Email:

February 20, 2007

How to be a long tail millionaire

by Andrew

There was a book that came out last summer titled The Long Tail: Why the Future of Business Is Selling Less of More by Chris Anderson. I bought the book. I ended up reading a chapter or two and paging through the rest (to be fair, I do this with most books.)

The concept is simple: more niches and more choices for consumers mean more money for big sellers, aka aggregators. One of the given facts goes something like most of Amazon.com’s revenue comes from books that each sell a few copies. The reason it works is because there are so damn many books out there, it adds up to a huge number.

The author has a pretty good blog. He points out the various manifestations of the long tail, one recent post shows a picture of Anheuser-Busch’s line up from 1997 and then another picture from 2007. 1997 has 26 different beverages, 2007 has around 85 (I lost count.) Micro-breweries and alternatives have slowly been drawing away drinkers, they have chosen to compete.

I got to be honest, I’m a little annoyed. Chris plays down the ability of anyone but the big guys to make serious money off the long tail — “eBay, Amazon, iTunes, and Google.” An anecdotal post over at the Valleywag quotes some woman annoyed that Google keeps raising the payout limit right before she is going to get her first check.

The fact is I have been living off of the long tail for the past 2 1/2 years. Hmm, how did I manage that? Recently, I’ve been making quite a bit of money off it.

What Chris seems to completely miss is that automation, globalization, and commoditization (my favorite word) are making it brutally easy to get rich off of the long tail. Yes, aggregation is still important, but even long tail producers can aggregate.

As a publisher there is a straight forward path for you to follow — tons of content. 5 or 10 pages of content just aren’t going to cut it if you want organic traffic. Think about 500 or 1000 pages for starters. If you can’t be bothered to create (or buy) that much content then plan on not making a whole lot of money.

Here are my two rules of the long tail:

1. Saturation. Rather than perfect a single niche, cover all of its holes. There are an unbelievable number of underserved markets out there. Take your business process and replicate it to meet each one. There are many top ranking sites for business industries that have nothing a site in 1999 couldn’t offer.

2. Automation. In order to effectively saturate, you have to automate. The automation may come from cheap human labor, it may come from a computer program. What matters is you are not doing the repetitive and easily-learned stuff.

3. Globalization. The world is your market, or at least a big part of it. Tiny niches die when isolated by geography. Today you have a chance now to reach every potential consumer of that niche. The rapid spread of communication spreads and influences the offline world too — Finnish death metal in Dubai, anyone?

To luddites, isolationists, and religious extremists, this may be a chilling and scary world to live in. Too bad for them, the future will belong to smart entrepreneurs who choose to embrace it.

5 Comments »

  1. I didn’t get the message about big aggregators at all. What I saw was there is more money in tiny niches than anyone thought, which matches my experience.

    I agree more content is good, I am less certain that putting it all on one site is the way to go. I recently moved some material from two levels deep on one site to it’s own domain where it is doing much better (traffic is up and so is income).

    I agree about automating as much as you can, I think that is very hard to do with content. When I read the examples of paid content posted by writers on DP most of it is pretty bad. So I am back to handcrafted writing and automating the rest of the process as best I can.

    Comment by Paul — February 20, 2007 @ 8:31 am

  2. Good to affirmation of my game plan. What you discuss here is part of the reason I got out of the Zune market and expanded to a more all encompassing approach with PocketSynch.

    Comment by GeorgeB — February 20, 2007 @ 10:41 am

  3. Paul, you are right, there are often advantages to spreading content out accross multiple domains. For one, a possible SEO advantage. Secondly, you can target a very narrow niche. If a consumer is looking for red toy fire trucks, he may be more inclined to visit and purchase from toytrucks.com than wehaveeverysingletoyintheworld.com. Of course its not as simple as this, but its the general concept.

    Comment by Andrew — February 20, 2007 @ 8:53 pm

  4. Also you got to wonder how much of those famous scrapper sites are benefiting from the long tail effect themselves.

    Comment by Ken Savage — February 22, 2007 @ 2:26 pm

  5. Every single one of them Ken; it may not rank for “home refinance” but it may rank for “fast home refinance in Reno Nevada” and so on.

    Comment by Andrew — February 22, 2007 @ 4:04 pm

RSS feed for comments on this post. TrackBack URI

Leave a comment