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A long tail distribution is a probability distribution that has a large number of occurrences that are far from the central part of the distribution. Long tail distributions the basis for many business models.
ExampleProfessional photographers and highly skilled amateurs produce a large number of exceptional photographs that people find compelling. Everyone else also has a chance to produce an exceptional photograph, but it is far less likely on an individual basis.The graph above shows that professions produce a large number of exceptional photographs followed by a long tail of exceptional photographs produced by everyone else. The long tail stretches a great distance as there are billions of amateur photographers on the planet. Although professionals produce a good number of exceptional photographs, they are vastly outnumbered. As such, amateurs as a group produce more value from photography.
Business Model Long tail is a common term for business models that open a market for everyone to supply an industry that had been previously dominated by firms, professionals or an elite. For example, if you set up a market for everyone to share and sell their photographs, such a market has potential to dominate the market for photos due to the large scale value produced by amateur photographers. |
Type | | Definition (1) | A probability distribution that has a large number of occurrences that are far from the central part of the distribution. | Related Concepts | |
Business Models
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