Welcome newsletter readers. For folks coming directly to the blog, this is a space to comment on a recent newsletter article about the danger of averages.
August 1, 2005
My reference to the concept of the “long tail” may have been a bit cryptic.
Amazon sells a very large number of popular books, but few books achieve such popularity. It also sells a ‘long tail’ of less popular books. Whats the split between each: probably not 80:20. Its closer to 1%/99%.
If one uses averages when pricing the long tail, they will leave money on the the table.
Jon, perhaps you and I are assuming too much. Although the “long tail” concept has gotten a lot of press here recently. See The Long Tail for more.