I have just finished reading THE LONG TAIL by Chris Anderson. Very interesting and very well written, Chris shows us how the internet by reducing the access costs to products has changed radically the business landscape. One can now make money out of extremely niche offers, and niche products can now meet a market.
One of the key conclusions are that the 80/20 rule (which was really never exactly 80/20, thank you Mr Pareto) does not really apply anymore in the internet world. The portion of the business that was previously considered non profitable because of its size actually represent 2 or 3 times more than the portion we used to consider profitable. And the list goes on, Amazon, e-Bay, Google are all successful examples of the LONG TAIL of business.
The key learning for me is a stronger focus on the importance of a new concept. The concept of aggregation. Aggregating content, offers, information, products.
Aggregators are the bottlenecks who will provide simple access to what you are looking for. Once called portals, they are the key Touch points for finding something. This is where the money is being made. This is where the traffic converges. And the key to being a good aggregator is simplicity. I think that one has been proven by Google already.
If you can become a successful aggregator then you have it made.
Pic Credit: JRhode
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