The poor are poor, the rich are rich
Chapter 6 1 Making good use of the long-tail theory, earning nothing and earning all the time
Chapter 6 1 Making good use of the long-tail theory, earning nothing and earning all the time
Chapter 2 Master the rules and make good use of the law of wealth creation to accumulate wealth
Chapter 21 Make good use of the long-tail theory, earn nothing and earn money all the time
Rhapsody, a record music dealer, recorded and graphed monthly statistics and found that the company, like any other record store, had the same demand curve in the form of a "power exponent"—a A sloping curve from upper left to lower right.The short head on the left indicates huge demand for top-of-the-chart tracks; the long tail on the right indicates less popular tracks.The short head represents the traditional mass production, and the long tail represents the emerging small batch customization.The funniest thing to do is to dig deeper into songs that rank above 40, and that number is the average record store's floating inventory (the number of records that will eventually be sold).
Although sales of Wal-Mart's albums ranked after 4000 are almost zero, there is a steady stream of demand for these records online.Not only is every track in the top 10 charts at least once a month, but so are the top 20, 30, and 40 tracks.Whenever Rhapsody adds tunes to its library, listeners order those new songs, though only a handful of people each month order them, and that's spread across different countries around the world.As long as one condition is met, so that the cost of operating 40 songs is almost the same as the cost of operating 40 songs, then adding up the profits from other than 000 songs will win a world.This is the long tail theory that these two hands are popular all over the world.
Simply put, the so-called long-tail theory means that when the venues and channels for commodity storage, circulation and display are wide enough, the cost of commodity production drops sharply so that individuals can produce, and the cost of commodity sales drops sharply, almost similar demand is extremely low before. As long as someone sells a product, someone will buy it. Merchants who seize this long tail can earn everything and everything.
Google is the most typical "long tail" company, and its growth process is the process of commercializing the "long tail" of advertisers and publishers.
Millions of small businesses and individuals who have never advertised before, or have never advertised on a large scale.They are so small that advertisers disdain, and even they themselves have never thought of being able to advertise.But Google's AdSense has lowered the threshold of advertising: advertising is no longer unattainable, it is self-service, cheap, and anyone can do it; on the other hand, for thousands of Blog sites and small-scale For commercial websites, it has become a piece of cake to put advertisements on your own site.
Half of Google's business now comes from these small sites rather than ads placed in search results.The millions of SMEs represent a huge long-tail advertising market.How long this long tail can be, I am afraid no one can predict.
Google's market value has reached 800 billion US dollars, surpassing Time Warner by 20 billion US dollars, becoming the world's largest media company.This is the power of the Internet.This is the charm of the long tail.
There has always been a traditional business model in the economic field - the 20th rule, which has always been respected by various businesses. If you get 80% of the business people, you can bring 3% of the profits to the company. After all, it is a matter of getting twice the result with half the effort. The emergence of the long tail rule is undoubtedly a challenge to the [-] rule. However, the two are not contradictory, because under the current economic conditions, the scope of application of the long tail mainly focuses on the Internet and digital economy. The classic long tail theory For example, whether it is Google or Amazon (Amazon com is referred to as Amazon is an online e-commerce company in the United States), their products have a common feature, that is, the initial fixed investment, and the marginal cost is decreasing. For example, although the fixed investment in the construction of [-]G network is huge , but the cost of each new user does not require new infrastructure and facility investment, and the original investment cost can be shared equally. The more users, the lower the relative cost.
But the real economy corresponding to online products can’t do it. For example, Wal-Mart must sell 10 copies of the same CD in order to amortize the management costs and make profits. CDs with such sales volume are less than 1%.So what about the 6 or so consumers looking to buy Fountains of Wayne, the latest Crystal Method album, or other alternative music?They can only go to other places to buy; or give up searching, smooth out their individuality, and only consume the same things as the public.
The reduction of transaction costs and maintenance costs has led to a long tail on the Internet, and this long tail can be effectively developed; these less popular things will accumulate and generate very high value. It will also occupy a high market share.The continuous reduction of transaction costs has lowered the threshold of "doing business", so the supply will show more and more diversity. As long as you spend a little time, any personalized demand may find supply.This makes "Long Tail" more valuable.The long tail means that everyone can do small business, and it also means that the market place where small businesses can gather is a big business.By taking advantage of the long tail and entering the Internet, you can earn everything and everything.
(End of this chapter)
Chapter 2 Master the rules and make good use of the law of wealth creation to accumulate wealth
Chapter 21 Make good use of the long-tail theory, earn nothing and earn money all the time
Rhapsody, a record music dealer, recorded and graphed monthly statistics and found that the company, like any other record store, had the same demand curve in the form of a "power exponent"—a A sloping curve from upper left to lower right.The short head on the left indicates huge demand for top-of-the-chart tracks; the long tail on the right indicates less popular tracks.The short head represents the traditional mass production, and the long tail represents the emerging small batch customization.The funniest thing to do is to dig deeper into songs that rank above 40, and that number is the average record store's floating inventory (the number of records that will eventually be sold).
Although sales of Wal-Mart's albums ranked after 4000 are almost zero, there is a steady stream of demand for these records online.Not only is every track in the top 10 charts at least once a month, but so are the top 20, 30, and 40 tracks.Whenever Rhapsody adds tunes to its library, listeners order those new songs, though only a handful of people each month order them, and that's spread across different countries around the world.As long as one condition is met, so that the cost of operating 40 songs is almost the same as the cost of operating 40 songs, then adding up the profits from other than 000 songs will win a world.This is the long tail theory that these two hands are popular all over the world.
Simply put, the so-called long-tail theory means that when the venues and channels for commodity storage, circulation and display are wide enough, the cost of commodity production drops sharply so that individuals can produce, and the cost of commodity sales drops sharply, almost similar demand is extremely low before. As long as someone sells a product, someone will buy it. Merchants who seize this long tail can earn everything and everything.
Google is the most typical "long tail" company, and its growth process is the process of commercializing the "long tail" of advertisers and publishers.
Millions of small businesses and individuals who have never advertised before, or have never advertised on a large scale.They are so small that advertisers disdain, and even they themselves have never thought of being able to advertise.But Google's AdSense has lowered the threshold of advertising: advertising is no longer unattainable, it is self-service, cheap, and anyone can do it; on the other hand, for thousands of Blog sites and small-scale For commercial websites, it has become a piece of cake to put advertisements on your own site.
Half of Google's business now comes from these small sites rather than ads placed in search results.The millions of SMEs represent a huge long-tail advertising market.How long this long tail can be, I am afraid no one can predict.
Google's market value has reached 800 billion US dollars, surpassing Time Warner by 20 billion US dollars, becoming the world's largest media company.This is the power of the Internet.This is the charm of the long tail.
There has always been a traditional business model in the economic field - the 20th rule, which has always been respected by various businesses. If you get 80% of the business people, you can bring 3% of the profits to the company. After all, it is a matter of getting twice the result with half the effort. The emergence of the long tail rule is undoubtedly a challenge to the [-] rule. However, the two are not contradictory, because under the current economic conditions, the scope of application of the long tail mainly focuses on the Internet and digital economy. The classic long tail theory For example, whether it is Google or Amazon (Amazon com is referred to as Amazon is an online e-commerce company in the United States), their products have a common feature, that is, the initial fixed investment, and the marginal cost is decreasing. For example, although the fixed investment in the construction of [-]G network is huge , but the cost of each new user does not require new infrastructure and facility investment, and the original investment cost can be shared equally. The more users, the lower the relative cost.
But the real economy corresponding to online products can’t do it. For example, Wal-Mart must sell 10 copies of the same CD in order to amortize the management costs and make profits. CDs with such sales volume are less than 1%.So what about the 6 or so consumers looking to buy Fountains of Wayne, the latest Crystal Method album, or other alternative music?They can only go to other places to buy; or give up searching, smooth out their individuality, and only consume the same things as the public.
The reduction of transaction costs and maintenance costs has led to a long tail on the Internet, and this long tail can be effectively developed; these less popular things will accumulate and generate very high value. It will also occupy a high market share.The continuous reduction of transaction costs has lowered the threshold of "doing business", so the supply will show more and more diversity. As long as you spend a little time, any personalized demand may find supply.This makes "Long Tail" more valuable.The long tail means that everyone can do small business, and it also means that the market place where small businesses can gather is a big business.By taking advantage of the long tail and entering the Internet, you can earn everything and everything.
(End of this chapter)
You'll Also Like
-
Traveled through time and space and became Sukuna, but the host was Yukinoshita?.
Chapter 202 1 days ago -
The Return of the Great Emperor
Chapter 972 1 days ago -
Martial Arts: Killing enemies will increase your power, my skills are overwhelming!
Chapter 285 1 days ago -
Dark Fairy Tale: The Evil Queen Rolls Her Eyes at the Beginning
Chapter 128 1 days ago -
I pretend to cultivate immortality in kindergarten.
Chapter 216 1 days ago -
The Martial Saint who slays demons starts with refining insects
Chapter 195 1 days ago -
Unknown Coming: I have an invincible domain
Chapter 477 1 days ago -
I am writing a diary in a crossover manga.
Chapter 193 1 days ago -
I asked you to be a mage, not to raise a nine-tailed fox.
Chapter 406 1 days ago -
Taiping Inn
Chapter 2150 1 days ago