Mix Internet circle five rules!


cloud network hunting note: this is an article are widely circulated in the industry of dry goods. Want to mix in the Chinese Internet industry, we must grasp five death logic: 1, the user is more important than customer; 2, the grassroots is more important than the elite; 3, cross-border advantage and resource side effects; 4, vision is more important than hard work; 5, free is the most expensive. Understand, life and death all Ann destiny!

the author: caoz

the first, the user is more important than customer

some of the earliest business elite have a train of thought, says it is business as close to money, make money more nearly.

but in the Internet, this logic is wrong; No matter China or the United States, this logic is wrong; Recently Zhou Hongyi borrowed from MAO zedong’s statement “in people, people is lost; To people, people are too “, man is the user and is income; Said is right.

example 1: the first launch of the bidding company, called overture, this business model is very good, also developed enough customers, rely on the cooperation with yahoo and Google, had become the capital of the company on the market, but the problem is that he’s only business model and the customer, but not belong to your own user; Suddenly one day, Google announced that, no longer and overture cooperation, building their own advertising system, overnight, 2/3 of the company’s performance decline; It never rains but it pours, yahoo also, find or sell it to me, why don’t we learn Google self-built advertising system; Overture, which have no chance to even bargain; Had to be committed to sell. Have the best quality customer, have the best b’s business model, no user base. In addition, DoubleClick similarly. Interested can check the children’s shoes, doubleclick, the world’s largest advertising agency platform, with the most powerful advertising algorithm, global coverage of high-quality customer base, because there is no your user base, how is the share price plummet, finally forced to sell to Google’s.

example 2:26 3 free electronic post office, once the market first, the pursuit of income; Forced to upgrade to the full paid version; Their logic is that email address is similar to mobile phone Numbers, high-end crowd not to change your email address; As a result, ironically, they not only lost the free users, subscribers is running out, a miracle of the Chinese Internet.

example 3: QQ, ma originally do QQ did not own the idea of operating platform, just want to sell the system operators; Operators from the ideas of software engineering to the inspection result, make this thing how much one month? So a calculate, QQ even 1 million yuan all sold out! 1 million RMB, you read that right!!!!! Almost 800000 yuan at that time, ma was sold the QQ, but just saw the news, AOL acquisition ICQ more than $100 million as, calculate how much money is in accordance with a user, pony, originally on the Internet, users=money! He then according to the valuation to revalue, the result of China’s various Internet elite derisive, sina various white-collar users can also calculate money, QQ those small p hai also worth? No kidding! IDG seriously, south africans to seriously, those elite said, look, SB, africans are ma fool. Today also some question QQ users worthless? But in the last two years, there are many people questioned 4399 users worthless, this, I can only ha ha.

example 4: baidu, who remember that year, baidu is a technical Service Provider, however, the time popular a word called ASP (application Service Provider), the investment story is, the Denver nuggets in the United States, made a fortune selling pants, baidu is this way at the time, provide the portal engine technology, but then in order to develop its own user platform, we have sinned against sina’s biggest customers. The dominant media all think at that time, sina points minutes crush entrepreneurial company baidu. So, today you see robin li significance of realizing how important business model, I just remind you, that year he reverse the pattern, is take the customer as the center is the baidu later.

example being zero, Zhou Hongyi article mentioned the case of that paragraph of time sharing, free antivirus, please users, 180 million antivirus software into a year not to, we have sinned against their biggest customers. Later, the return is 10 times of the original. Yes, I know that many people would be controversial, I know there are many friends mention 360 must speak out a pile of the 7788 issue; I just state the facts, the other, and everyone free play.

second, grassroots is more important than the elite

originally, investment circles to say a word, 80% of the wealth is concentrated in the 20% of the users, so, good service, these people can earn a lot of money, in fact, the Internet in China, service good grassroots users, is king.

example 1: url stand miracle; I know that many people didn’t understand 360 how to make money; I tell you, their biggest source of income, in fact, the 360 site navigation; And do you know? Baidu, after acquisition of hao123 has always been low-key processing, focusing to make money; But today, you go to baidu look again, hao123 has rapidly expanded to independent sector, and have their own union channel business, and is very loose budget, why? Baidu and 360 against the center of gravity, the entrance of the flow, the flow entrance, for the most part, focused on the site navigation. Site navigation, grassroots users of Internet portal, how many elite.

example 2: or QQ, China’s mobile Internet, once thought to be a low-end users of the products are worthless, a few years ago, have a kind of culture, business people use MSN, only use QQ small p hai, I talk to friends, not from the Chinese Internet, don’t give up QQ, in fact, I was right; Of course, you have a reason to give up today, because the letter came out.

example 3: wei, China’s listed electricity companies, seems the best is the only product; Who remember, that year Vipshop entrepreneurship, pledged that China’s luxury consumption into the outbreak period, make the rich money, is king, was burned to the result how many dollars? Lose money all the way, then from these mistakes and are determined to transform, the main two or three line of brand promotion, reduce the user’s consumption level, suddenly broke out, to earn the money. This example is the most typical though!

example 4: domain name business, in 1997, I study in Beijing, began working for Internet companies, Internet companies at that time, and now can’t than, do enterprise web site is a registered domain name, at that time, we believe that a good domain name, domain name is English, Numbers, Chinese pinyin, too weak, who will use. At the time of the Internet, the Internet is elite. And English domain, essentially all foreigners to register, so, we believe that in 1997, is a good domain name can be bought. 2001 or 2002, Mr CAI to enter the domain name industry, Chinese pinyin, is Chinese familiar; As input difficulty coefficient and digital domain name with the lowest. Grassroots demand elite is greater than demand. Say that they have no vision, that is, has not realized at that time, king grassroots demand is the Internet.

third, cross-border advantages and resources side effects

I did a few years the traditional IT industry, always thought that resource is the key to determine success or failure factors; But in the Internet contact for several years, more and more found, resource advantage, often because resources advantage, ignore the user experience and user demands, in the competition, slow, easily, is often lost.

the more the more resources, almost become the Internet iron law; Now, including baidu, tencent, also appeared such reflection, their internal referred to as the “rich second generation” thinking, baidu, tencent internal product, often have the thinking of rich second generation, rely on resources, lack of competitiveness.

first say a few examples of its resource side effects

example 1: WeChat is one of the important products, tencent outbreak but WeChat not tencent clique team results, tencent’s mobile division hundreds of people, often miss the good opportunity in the field of mobile Internet, guangzhou electronic post office team, it witnessed the huge impact.

example 2: sina has just come out of fire, high-profile was born, there is a news website is QianLong news; QianLong news network is the product of the traditional media group at the time, have a legal authorization, traditional media, in a nutshell, can be thought of as officer the second generation; At that time, a group of critics, QianLong news resources much better than sina, sina will soon come to an end; But the fact is, this kind of bit born with a silver website, destined to not competitive, even to link farms, once become a search engine spam links source of the website are of greater concern.

say cross-border competition cases, cross-border competitors, industry thinking limitations, dare to change, did they undermine your business model, often by surprise.

example 1: shi yuzhu game

thought make health care products get pure game is fooling around, how many senior game everyone to shi yuzhu under a certain no conclusions; The result? Although today we said giant seems follow-up of products is also not much good; But the game industry recognized that journey to subvert the traditional business model of the game, this mode has been called the Chinese model. And subsequent pages of China travel, tour, hand is the continuation of this model, from the game, free of charge according to time pay to prop to pay.

example 0 around so make antivirus

360, war from the start, I think, a loser, my judgment is based on, the Internet will break the traditional software model, the truth as I expected. All traditional IT company, should draw lessons from now on.

example 3: millet mobile phone

although I have been pretty to watch the opening of cross-border competition, I still think that lei jun crossing the line is too big, the use of the Internet, the conventional production counter attack seems unlikely, but that shattered my judgment.

example 4: newly listed forgame

the company’s executives, founder, is not a traditional game industry! At the beginning of the page to swim, hot, the traditional game companies doing? See, look down on, cannot see through, can’t do it, don’t catch up, these five steps. Instead of the game industry background, no baggage and mind-set, dare to try more.

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of course, to swim in this area, these upstarts are cross-border masters, such as cardiac games, such as kai ying network, such as swimming, and so on.

4, vision is more important than hard work

diligence is surely important, but the correct vision, can let your diligence, to n times value.

example 1: I have a more than 10 years of friends called foif litres, a smart phone community, he did about symbian, the scale is not large, but do about the appearance of the third market, persist in bitter baba; Later karma know Mr, Mr. CAI CAI boss talked to prevailing market first, android suggests that transformation, the other party said symbian market heyday, no necessary transformation; Mr CAI and foif litres chatted later, at that time seems to be less than 5%, the android market share foif rise is also a grain of salt, to the future of the android then consult the innovation works Wang Hua Sir, two people’s consistent judgment to let him have a backbone, resolute transformation, results in a very short period of time, have made a very influential android products, and get the recognition of big companies and capital cooperation, the company’s valuation value in two years time dozens of times; Originally thought unreachable competitors, now, uh, unreachable location in the rear.

paradigm “04, for the first time I see yu jun, he said, to hear him tell the search engine search engine is to change a revolution of human knowledge acquisition ability, and papermaking, movable type. Over the years my reflection, why do so many companies have a search engine, but only baidu stand out, because a lot of people, including our familiar with many of the giants, including zhou at that time, Charles zhang, the search engine as a tool, a means of profit, a pattern; Only enough horizons, realized that some of the impact of search engine and change, how great and profound! In 2004, who would believe that a search engine company, can upset the heyday of the portal, in fact, in 2001, yu jun has been foreseen. In fact, his vision, made baidu, also made his own.

5, free is the most expensive

this is Chinese characteristics, shi yuzhu said that the earliest is like? I’m not sure, but shi yuzhu is a typical representative.

the giant group games, not only free to play, pay wages to players? Traditional game people will feel incredible, but in the end, the yield is high. This model has become the gold standard in the field of Chinese game.

2, plants vs zombies are paid to download in the whole world, only China is free to download, but only the Chinese market, and pay for items is the most expensive! This is the localization of an example. Of course, this example doesn’t mean I accept this behavior.

360, after the free antivirus, revenue has exceeded the total before the antivirus industry n times.

taobao Vs Ebay, with free open mode + seconds kill paid open mode to promote grassroots website + portal exclusive advertising.

but figures released today, we look at the latest, taobao’s profit levels than ebay, not far above ebay China, are far more than ebay all over the world. Magic is not?

the pure Chinese characteristics, free is one of the most successful business model.

Zhou Hongyi said, maybe one day, the hardware will be free.