For this second blog, I will be writing about examples of successful niche businesses and outlining my digital artefact.
Amazon is arguably the the most popular long tail business. They have used the internet, to create a platform, that sells rare products, without the need of actually holding the product on a physical shelf. 57% of Amazons sales come from long tail searches.
But the beauty of the long tail is in the variety of available niches.
One of my favourites long tail businesses is Rent A Mourner. They are a United Kingdom based company who provide professional funeral and wake guests. The interesting thing about this business is that it is not new. Similar services were available through the Middle East thousands of years ago. This shows that the long tail is not necessarily about new products, but about using new technology to fill a current market void.
Cuddle party, is a company that works in the United States, Canada and Australia. It is a website, not for profit, that organises parties where adults go and cuddle. Its website states that the organisation hopes to explore communication boundaries and affection. It should be noted that is has had a huge, mostly, scandal free success rate. This example goes to show that even if the idea sounds somewhat crazy, if there is a market, and an appropriate supplier, it will work.
Throx is a US based website who sell socks in threes, not in twos. This way, when you loose a sock, you can use the additional third sock and still have a pair. It is a very simple idea, that any sock making company could have previously done. Throx portrays that a simple twist on an existing idea can lead to a significant success.
YourNovel provides international readers with customised romance novels. The customer builds a character, completes a questionnaire and receives a personal romance novel. Romance novels account for the largest book market, and generates 1.44 billion dollars a year. YourNovel reveals that there is a lot to learn from the mass market, and that niches benefit when working from exisiting trends.
And finally, we have 3beds, a website that reviews air mattresses. It has made a whole science of air mattresses. No niche is too strange. And a niche has a niche. In the long tail of camping equipment, there is a smaller air mattress market. And an even smaller air mattress assessor market.
Between every start up owner I have met, there has been one point of agreement. It will take longer, much longer, than initially expected to create a small business. It is for this reason that I have decided to begin a series of vlogs that will share what I have learned in this process. There will be four (three to four minute) vlogs in my final digital artefact.
The first video is going to explain the Long Tail effect and how this needs to be a part ones niche brand. Long tail market brands are more flexible in their personal concept, but not necessarily in the way they promote. No matter how passionate you are about your product, or how small a market, it is not about you, it is still about your customer. It just happens to be that your customer has unique needs. Meet them. And communicate them in a way that makes you different to other market options.
The second video looks at a Business Plan. Every tangible and intangible part of your business is created and maintained by you. A business plan is a way to ensure your business concept, presence in the market place and finances remain in check over time.
The third video looks at paperworks and legalities. This is a practical guide as to where to find relevant sate documents to obtain ABNs and appropriate licensing. The process sounds simple, but in reality is tedious and requires the patience of a saint. It can take up to one year to complete all the necessary paperwork.
The final video is about overcoming obstacles. From troubles with paperwork, disappearing suppliers and simply losing motivation, there will be so very many obstacles along the way. The video will aim to discuss some ways to work through such occurrences.
After my in class presentation, it was suggested I look further into Long Tail and focus on niche markets. This is what I plan to do before beginning my digital artefact.
header image for article found here.