Since we started two years ago, we've applied many principles of Long Tail theory to our strategy for developing niche vertical Web sites. Our success proves they've worked--and that they will continue to do so as we put them to work in the following ways.

Start Small. To build Demand Media's network, we looked for sites that were under the radar with very active, very engaged, and in many cases, small audiences. Communities of Super-Users. We acquired sites around passion verticals such as paintball, sci-fi & anime, gardening and how-to. Some sites had only a few thousand visitors, but those few were there every day, pitching in to build a community.

Go With Legacy. Many of the sites we acquired had been around for a long, long time. Their pages were deeply indexed with Google and had high page ranks. Some were hobbies or side projects, and all were passions for their owners.

Add Content. We invested significantly in creating a library of professional, wholly owned, made-for-the-Internet articles and video. We then populated special interest Web sites with content from the library--content that spoke directly to the audience of particular sites. Thus, we were able to prove--in each niche vertical--that when fresh and relevant content is added to a site, traffic and page views increase.

Add Social Media Tools. It's one thing to provide relevant content to a user base, but when you add tools that allow users to socialize around the content and with each other, it sets off a multiplier effect that greatly magnifies the value of either the content or the community, valued by itself. Instead of creating static Web sites, Demand Media uses social media tools to grow vibrant, interactive destinations around its unique special interest content.

Always Remember--"Community Is King." Once you have created a vibrant community, you need to spend time and resources to cultivate it. Our sites use teams of full-time employees, as well as thousands of volunteer moderators, to ensure that we address the needs of our communities.

Iterate. Iterate. Iterate. When you engage with communities, the one thing you can be certain of is that you're going to get customers with strong ideas about how their site can be made better. This is valuable. An active community should be seen as an extension of a product development team, and can help drive the prioritization of launching new features on a site. At Demand Media we are constantly launching new features to our communities--features that are always developed in response to their feedback.

Just recently there has been some debate about the validity of Anderson's Long Tail thesis. Stepping back from the theoretical debate to reflect on our experience at Demand Media, what we will argue is that when applied specifically to the development of niche, vertical Web sites and communities online, the basic principles of Long Tail theory have proven themselves to be a recipe for success.

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