Tech Spheres

Discussion of Web 2.0 Business Strategies (SaaS, PaaS, Strategy, Enterprise, Small Business, Flex)

Data on The Longtail

Posted by Alex Chriss on November 9, 2008

We have a running conversation around the office on the shape and size of “the long-tail” for SMB RIA applications.  We know that small businesses want right-for-my-business applications, but how long is that tail before a company should really just go to a custom built app (like on QuickBase)?  There’s a big market for our Intuit Partner Platform developers to provide vertical SaaS apps, but there still needs to be enough customers in each vertical to actually make money.

So I don’t have the app answer (yet) but I found this article from Dustin Woodward on the Hitwise blog pretty interesting.  It shows the longtail dynamic for internet search terms.  The big shock for me is that the “Top 10,000 terms = 18.5% of the all search traffic”. 

What does that tell me?

1) People search for all sorts of stuff

2) Developers trying to sell their app to a vertical, could spend a TON on SEO and still have a hard time driving traffic to their product.

3) Search is a divider more than an aggregator – Marketplace’s (like Amazon or Intuit Marketplace still have tremendous opportunity to be an aggregator of “like” products and the single place to allow customers to find what their looking for.

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