While flipping through the book Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers one chapter caught my attention more than others. It was about Long Tail Business Model and how the principles outlined in the book applied to it.. It caught my attention since I thought it resonates with what consultants and bloggers do. When I finished reading it I was convinced. Here is why.
The chapter maps key 9 building blocks of business model to a Long Tail pattern. As I was walking through the pattern and the mapping it looked natural for me to think about both blogging and consulting.
“Niche content providers (professional and /or user generated) are the KEY PARTNERS.“
Successful bloggers and consultants usually choose a narrow niche and they usually partner with like minded sharing their trade secrets at their level of partnership.
“The KEY RESOURCES is the platform; KEY ACTIVITIES include platform development and maintenance and niche content acquisition and production.”
Successful bloggers and consultants usually invest in enriching their foundation, the content they offer to their customers – either for premium or freemium.
“The main COSTS incurred cover platform development and maintenance.”
Successful bloggers and consultants are usually light on costy assets.
“The VALUE PROPOSITION of a Long Tail business model is characterized by offering a wide scope of “non-hit” items that may co exist with “hit” products. Long Tail business models may also facilitate and build on user-generated content.”
Successful bloggers and consultants are usually very niche’ish. They also get a lot of help from crowdsourced materials. This is how they scale. Network of in-depth niche offering usually creates most powerful and unmatched offerings.
“Long Tail business models focus on niche CUSTOMERS.“
…I’d rephrase it as “…focus on very specific needs.” Many regular customers would have such needs and they would gladly pay for content/service that provides priceless solution for their specific needs.
“Long Tail business model is based on aggregating small revenues from large number of items. REVENUE STREAMS vary; they may come from advertising, product sales, or subscriptions.”
Successful bloggers have usually multiple streams. Bloggers streams include multiple affiliation programs and many consultants have multiple clients. This helps making sure the revenue is balanced. If one program/customer stops being profitable it can be easily dropped and the efforts can be repurposed in finding the substitute while keeping healthy income.
Long Tail business models usually rely on the Internet as a CUSTOMER RELASHIONSHIP and/or TRANSACTION CHANNEL.
Well… who doesn’t, eh?
image by krystian_o