The Long Tail Rule

The Long Tail Rule describes how, in certain markets, products with lower individual sales can collectively generate significant revenue because of their large variety. Instead of solely focusing on a few popular items, businesses can benefit by offering a broad selection, appealing to niche tastes. Online platforms like Amazon or Netflix exemplify this, stocking many niche products that, combined, can outperform bestsellers. Essentially, the rule highlights that the combined sales of many niche items can rival or exceed those of the few top-selling ones, emphasizing the importance of diversity and accessibility in expanding revenue opportunities.