Geoffrey Mack, of Alexa, writes about the lopsided distribution of traffic:
Out of a total of 18 million sites to choose from, the Top 500 represent less than .003% of sites. But, as you would expect, these sites get a disproportionate amount of traffic. In fact they get 45% of all traffic. No, that's not a misprint.
Like the distribution of wealth on the planet, the distribution of traffic on the Web is extremely lopsided. The Top 500 are champagne and caviar. Sites 501 - 100,000 are meat and potatoes. The rest are hungry.
Although I am more of a fan of meat and potatoes than caviar my new goal is to eventually be in the top 500 then. Maybe not with this particular site, but with one. Not so much for wealth, but for the challenge of it. :)
It would also be interesting to check how the ratios changed over time. Is traffic consolidating into the top 500? How often do new sites break in? I would gladly link into that sort of data. They could even make monthly reports from similar ideas that keep building exposure and authority for their brand. Archive.org is an amazing resource at their disposal.
Based on Alexa's understanding of traffic patterns they have to be able to leverage that some way, maybe to show people where they think market opportunities exist? Some search engines could do the same thing too. Although one Google employee told me my idea was "evil" I still am watching and waiting for the Google Hedge Fund :)
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