Long Tail
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Transcript of Long Tail
the long tail.
The future is here.
Why a long tail?
OBAMA BOOM
• More thn 10,000 people donated $5 and $10 to Obama on the internet. According to the Washington Post, an Obama spokesman said that “$28 of the $32 million came over the internet. Ninety percent of the online donations were $100 or less; forty percent were $25 or less.”
• January, 2008, 90% of Obama’s online donations were $100 or less and 40% were $25 or less.
OBAMA BOOM
Old Record Store• Each CD slot holds a value
– Ex. $2.00 per slot (Storefront location)
• Store is forced to sell high selling artists to exceed overhead of store.– Limited geographic region around store
limits sales for indie bands.
Amazon.com• Each CD slot holds a value
– Ex. 22 cents per slot (warehouse)
• Store can now afford to sell indie bands.– global geographic region provides
satisfactory demand.
Back To Politics• Old Way of Raising Money
– $5,000 Chicken Dinner• Cost significant dollars• Limited to wealthy people• Cost time for candidate
• Old Way of Raising Money– Direct Mail
• Cost significant dollars• Cost time for donations to return
Back To Politics
“the internets”• New Way of Raising Money
– Low overhead– Instant, cost candidate little time– Enables more to donate small amounts
Higher Ceiling• The more small dollar donors you have,
the more “buy-in” you have.
• Small dollar donors have not reached maximum donation limit.
• They can continue to invest again, and again.
This is it.