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March 18, 2005

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» 'Long Tail' author starts blog from jason pettus [metafeed]
...This is not necessarily just for business people, by the way - he also goes into the arts, education, etc... [Read More]

» The Long Tail: Apples and Oranges from appliedthinking
Take a look at Chris' comments here: Link: The Long Tail: 80/20...cracked!. [Read More]

Comments

Loïc

Hi, sorry to use comments but I don't have your email.

Would you be interested to speak in Paris here ?

http://www.socialtext.net/loicwiki/index.cgi?internet_2_0

Check the speaker list. I would love to have you talk about the long tail !

fling93

Here's a better link to Jakob Neilsen's comment. By the way, you should make the comment permalinks visible. Right now you have to view the page source to see the anchors.

Robert Young

I'm a bit confused about thing whole 80/20 concept, particularly when pricing is factored in. Allow me to illustrate my confusion by way of an example...

I used to work at a major consumer online service. At first, we charged users on a metered basis per hour for access. The result was that 80% of our revenues were derived from 20% of our users.

Then, we changed to an all-you-can-eat flat-rate monthly pricing plan. And with that, 80% of our revenues came from 80% of our users... 1:1.

If you've already covered this issue in a prior posting, please forgive the redundancy... but am I missing something here?

Thanks.

LeegleechN

to Robert Young: that would assume that all products are going to sell equally. That's obviously untrue assuming they can be purchased seperately.

chris anderson

Robert,

The 80/20 rule applies to cases where products or customers are different. Some will be more popular or heavier users than others, and the "powerlaw" demand curve that results can be generalized as 80/20. But in your case, the move to flat fees made all the customers the same. That's why you ended up with a totally flat demand curve and the 80/80 effect you noticed.

Robert Young

Chris & Lee... thanks for the clarification.

Coincidently, I stumbled across this post at Ventureblog that was also helpful...
http://www.ventureblog.com/articles/indiv/2005/001204.html

Thanks again.

xmas gifts

This is very nice post.My sense is that long-tail economics is heavily related to the practise of yield managment where customer segmentation and differential/discriminatory pricing are stock and trade. It would be interesting to characterize the "customer" at various points along different long-tails....

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Tidbits

The Long Tail by Chris Anderson

Notes and sources for the book

FREE was available in all digital forms--ebook, web book, and audiobook--for free shortly after the hardcover was published on July 7th. The ebook and web book were free for a limited time and limited to certain geographic regions as determined by each national publisher; the unabridged MP3 audiobook (get zip file here) will remain free forever, available in all regions.

Order the hardcover now!