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What are "Long Tail" business models?

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I was reading an article that mentioned them and maybe I am just out of the loop, but I never heard of them.

Can someone explain what they are and how they work? I know i could just search for it but I would rather get a human response than a generated answer from AI lol

These are just strategies that focus on selling more products in smaller margins. So instead of focusing on higher volume sales of popular items, you make the less popular ones more scarce and focus on moving smaller loads.

I have actually never heard of this phrase but I have heard of something similar. I just can't remember what it was called.

Anyways, I looked into it a bit and donnie is correct. Although, I don't think this is a good business model for most people.

On 9/25/2026 at 9:07 AM, jonasb23 said:

I have actually never heard of this phrase but I have heard of something similar. I just can't remember what it was called.

Anyways, I looked into it a bit and donnie is correct. Although, I don't think this is a good business model for most people.

It's not. It is very niche. It can be successful for the right fit though. I have seen people make great revenue with this and really push their business (online in particular) to the next level. One guy I knew ran a craft store. Ended up being bought out by one of the chains. He retired before he was 50.

I think you guys are overlooking the big players.

Amazon, Netflix, eBay, Spotify, and Etsy are all examples of the long tail model. Each company profits via low-volume of products but selling a lot of them.

On 9/29/2026 at 9:15 AM, amberb94 said:

Netflix

I understand the other ones you mentioned. That makes sense for them being long tail businesses but how does Netflix fall into this? I would not consider any streaming service to be this kind of business but maybe I am not fully understanding the definition of the topic.

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