Tag Archives: models

Cycles – Gaussian Curves and Long Tails

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Until recently the Bell Curve ruled everything. Today there are the Long Tail theories of unlimited distribution and sales potential delivered by the more infinite terms of the internet.   The long tail basically states that equal gross and net terms can be experienced from many small successes as can be from a large Tornado like experience. 

Common proof points are often cited in Netflix and Amazon. Yes their machine is pumping out widgets be they movies, books or music by the thousands and the more standardized their product and distribution terms the more they can lower costs to the customer and maintain margin. 

SaaS software also point to the many from one. The counter argument is that the tornado is Amazon itself, remember single click checkout. Or Netflix with their subscription. For that matter think of any publishing model. 

Cycles are part of life, they will change and must!  Models change and preparation can sustain growth as can new products or one plus features. But as we say here!

To be a Box there must be a top and bottom! The smart marketer knows both!

A Revenue-Centric Culture

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Somewhere in the great beyond, business leaders and professors are meeting trying to determine where they slipped up that we now live in a world where business is talking about creating a “culture of revenue”! The conversation is not a “Culture of Profit” or extreme wealth building profitability but of just creating revenue? I had hoped this is simply a hangover effect from the later 90s in a few small start-ups but alas it is more.

Twitter with their vast popularity, millions of users and market awareness has started to expose that a large crowd of the web2.0 forgot revenue when writing MRDs and creating products! Granted revenue is not in the formal definition of product, however why put in energy if not to get more energy out; otherwise we are just wasting energy. Quick call congress and outlaw this waste of energy, oh I forgot that is the definition of congress! I would like to find the investor who believes in a business case with no return. This may be sarcastic but honestly revenue creates growth and jobs and all the things that move the ball forward! Sooner or later revenue must enter the equation, I have worked many start-ups where the model shifts and evolves and new revenue potential emerges or an assumed revenue stream is less that predicted but honestly!!