Page 112 - The Sales Acceleration Formula: Using Data, Technology, and Inbound Selling to go from $0 to $100 Million - PDFDrive.com

Let's add some context to this chart. Let's assume the chart is illustrating various
books sold in this year. In this case, the x-axis, labeled “Products,” would
represent the titles of all the books that will be sold this year. The y-axis, labeled
“Popularity,” represents the total sales for each book. The best seller of the year
is listed first and all the other titles, listed in order of total sales, follow along the
x-axis. At the extreme right of the x-axis are the many titles that will sell only a
handful of copies this year. The first books listed have generated enormous
revenues. The area under the curve represents the total revenue generated by all
of the books produced this year.

By segmenting this revenue, we can illustrate the long-tail concept. The area
under the “head” of the curve represents the revenue generated from the best
sellers of the year. This is where brick-and-mortar book stores had to make their
money. Because of the limitations on physical inventory in their stores, it only
made sense for them to sell the absolute best-selling books. These businesses are
limited to the revenue potential illustrated at the “head” of the curve.

As a reader, if I wanted to purchase a book written many years ago that is no
longer a best seller, I certainly would not stroll down to my local bookstore. The
book likely wouldn't be in stock. Where would I go? Amazon.com, of course.
One way Amazon.com differentiated itself, especially in its early years, was by
doing business in the “long-tail” area of the curve. In many industries, the area
under the tail is actually greater than the area under the head. Most importantly,
it is often less competitive. The Internet enables businesses to attract customers
by using the “long-tail” portion of the curve. The “long-tail” concept can be
applied to the movie rental business, with Netflix versus Blockbuster. It can be
applied to video content, with YouTube versus cable TV. It can be applied to
music, with Spotify versus Best Buy.

So how does long-tail theory apply to your business? As you embark on a
content product process, focus on the “long tail,” not on the “head,” especially
when selecting target topics. If you sell IT services, don't focus on phrases like
“IT consultant” or “information technology.” These words sit at the head of the
curve. Yes, there are millions of searches per month. However, it is
extraordinarily competitive to rank for these terms. Furthermore, a small portion
of the visitors are actually qualified buyers for your business. Instead, focus on
“Sharepoint implementations” or “IT for pharmaceutical companies” or “hosted
VOIP implementations.” There are not millions of searches for these terms every
month. However, there are still hundreds of them, and the people searching for
these terms are much more qualified for your business than those folks searching