The Long Tail and Sugar Packets

Have you read Chris Anderson’s The Long Tail? It brilliantly describes our new digital economy and its far-reaching economic and cultural implications.

iTunes is a perfect example of a Long Tail business. Since its inventory is digital, iTunes has virtually no storage and distribution costs. Thus, iTunes can sell everything–and they do. Its “Long Tail” of niche songs constitutes a surprisingly large market, one that traditional brick-and-mortar retailers can’t afford to pursue. Healthy Long Tail markets are springing up everywhere.

The Long Tail is by no means limited to digital markets by any means. In his book, Anderson describes how toy manufacturer Lego created thousands of new products by digitally kitting its vast array of individual items.

The Long Tail has created opportunities for millions of aspiring musicians, writers, comedians, niche manufacturers; indeed, anyone with a good idea and a sound e-commerce marketing plan stands an excellent chance of finding customers.

As I read the book, I thought about the “Sugar Packet marketing strategy” I had written about on this blog. The idea was, that in the future, people will not have one job, but many jobs. They will take advantage of the digitally-leveled playing field to develop income streams from any number of businesses.

Is the “Sugar Packet” strategy simply the supply side of the Long Tail equation?

If the new economy is comprised of millions of niche markets, will these markets be large enough to financially sustain an artist or an entrepreneur? Or, is it more likely that producers will need to cultivate multiple Long Tail markets in order to survive?

Multiple income streams might be a wonderful thing. People will have greater flexibility and opportunity to do the work they enjoy. But in addition to creating scads of entrepreneurs, the Long Tail will bring a rise in joint ventures, collaborations, formal and informal creative partnerships of every kind. Otherwise, I don’t see how enough suppliers will survive to satisfy the demands of Long Tail consumers.

Further reading …

Keith Lango expresses the concerns of the Long Tail microproducer.

Nicholas Carr equates content producers to sharecroppers.

Mark Cuban describes the Internet as “A Long Tail Ghetto”.

Yaro Starak reflects wisely on the economies of abundance.

Word Sell … Funny Business