Grassroots mob 28.com and its twin brothers

Article | Our correspondent Dingxiaolei three entrepreneurs join the exhibition site and more than 100 project experts from Hubei, set up a gray investment industry chain. Why is the organization's stunning industrial chain so low-key and ferocious, it is how to run rampant nationwide "Internet advertising field, in addition to the portal, only we really make money."　　Mr Dong vomited a smoke ring and said to the entrepreneur reporter with a thick northwest accent. What Mr Tung called "we" refers to the so-called investment exhibition site, will be hundreds of franchise projects, in the form of graphic links to the Web page, the Internet platform charged advertising fees.　　Over the past 6 years, he has operated the website of Investment exhibition (name should not be disclosed) every month for its contribution of about 1 million yuan of income, let him the native of Xian farmers realize his dream of becoming rich.　　And he is only a pawn in the industry of Investment exhibition. The real big guy is 28 business opportunities nets, U88 franchise network and 3158 merchants to join the network of three enterprises, they almost dominated the investment exhibition industry. "These three companies now have a large sales volume, with at least 70 million or 80 million of the flow and more than 20 million of the profits." "said a 3158 former executive who declined to be named. Over the past few years, they have been in the major portal home, "Reference News", "Business" and other print media on advertising; in the past one or two years, but also signed the Fanwei, Wang Gang, Zhang Tielin, Wangbaoqiang, such as star endorsement, CCTV and local TV stations to promote the big, its momentum is no less than the brain platinum. "At the top of the day, the 28 opportunity net advertising fee for one year is 120 million."　　"said another 28 former executive who was anonymous. It used to be a lucrative business. In its 2004-2006-year heyday, according to insiders, "it's easy to make a millionaire in one year, and how much profit margins are going to be."　　But now with the industry reshuffle intensified, as well as the media prices to more than 30% per annum growth, "advertising effect is not as good as before, businesses are not willing to dig more, the industry profit rate is only about 10%." It is also a grey business that walks on the edge of morality and law. In the three major investment site home page, there are about 600 franchise items. And these projects are controlled by more than 100 of the familiar Hubei merchants, to one to tens of thousands of yuan low cost of joining, playing "hot small business to make crazy", "1000 Yuan open shop when the boss" and other names to attract the franchisee.　　But more than 90% of these projects have not been filed with the government, and the project survival rate is not high. Whether 28 or U88 or 3158, they have direct or indirect interest in their behind-the-scenes projects. In fact, the founders of these companies had long foreseen possible business risks, so they never received any press interviews, and even the star signing ceremony was rarely held. This newspaper reporter has repeatedly called the mail to these companies, hoping to interview the founder of the company, have been rejected for various reasons. "There are rules in this industry.Money, and not accept any interviews. "The report is no good for us," said the 3158 former executive.　　"When the entrepreneur wanted to learn more about the hundreds of projects that Hubei bosses and their masters had in private, they were confronted by repeated excuses from the interviewees that" knowing too much about the truth is bad for you. "　　So, what is a group of people, and through what kind of pattern, created this leader "suck the Golden monster"? The exhibition site how "sudden surplus", if there is no XX portal to help the friend, 3158 can not be so quickly developed.　　"3158 of the former executives said. At that time was 2004 March, 3158 officially on-line soon, Front has the U88, behind has 28 business opportunities net, did more difficult. At this time, one of his brother's classmate, then served as the advertising director of a major portal site. With this layer of relationship, 3158 and the portal signed a one-year exclusive advertising contract.　　In other words, this year, only 3158 of the "Entrepreneurial enrichment" project can be advertised on its homepage, no one else can. In this way, with 400,000 yuan of start-up funds and the site of a paper contract, by 2004 July, 31,581 months of income will reach more than 1 million. "It will increase by month, nearly 7 million per month after two years."　　"said the 3158 former executive. The speed of such a bonanza is enough to make the elite of the Internet industry speechless.　　Without any venture capital, how can a seemingly low-tech business model be so lucrative? In fact, the essence of investment exhibition is very simple: the centralized advertising distribution platform. For example, a similar Sina such a portal site, on the home page advertising to 100,000 yuan/day, and a franchise project just 100,000 yuan advertising budget.　　As we all know, advertising time has a long effect, do not do one day, so many small projects like this is difficult to advertise on the portal site to promote and investment projects. Investment exhibition company is to see this opportunity to appear. They first find the project side, promised that there is a way 100,000 yuan can let him in the portal home to do 10 days of advertising, the project side must be happy, so he found 10 projects side, a total of 1 million yuan. Exhibition company also found the portal site, said I buy 1 million Yuan home page ads link, the portal is very happy, will give a 30 percent-50 percent price. For example is 30 percent, the exhibition company spent 300,000 yuan advertising fees, and the remaining 700,000 is gross margin, and then sublet out, "although the advertising position of each merchant a little bit, but the time is long, the effect is good." "The 28-former executive said.　　At present, several major portals of the home page advertising chain close to One-third are bought by these exhibition companies. The model was pioneered by U88 's boss, Lu Caihong. A small number of online data show that he is Anhui people, Sichuan University graduates, has worked in the State Council for several years, very early contact with the network. The first to do Sina, Sohu advertising agencyProvider。　　2003, founded u88.cn. In 2006, when Lu Caihong as CEO of Beijing Business Travel Technology in several Internet industry meetings, proudly summed up the model as "storm surplus"-that is, through subversive precision marketing, precision advertising, so as to help advertisers achieve extraordinary advertising effects. "We find the best media suppliers, assemble all the requirements, and then focus on the platform." "He's emboldened by" spending 100 million of dollars in advertising over the past three years, and not paying for it. "To this end, in his view," Baidu said its accurate advertising is revolutionary, and now I tell Baidu what is subversive marketing, subversive than the revolutionary strong number of times. "But at that time, Lu Caihong has not satisfied with the individual entrepreneurs U88, he wants to do a service 90% users of the big platform 800so.com, a so-called" classified information search Encyclopedia "of the new site. and IDG Partners in the macro, soft silver race rich sheep East also have had in-depth contact with it, but Lu Caihong finally failed to replicate U88 success.　　Today, when you click into the 800so.com, you enter the U88 's homepage. After U88, 28.com, 3158.com and so on a large number of websites followed. Unlike Lucay Red, 28 of the behind-the-scenes boss, Chen Jia (formerly Chen Handong), was born in Hubei, where he controlled 40-50 projects.　　[Page] all with the effect of speaking with more than a chip marketing wrist, 28 from behind. According to the former 28 former executives, they found that the real interest in these small-cost start-up projects came mostly from 234-line cities and even rural areas. For them, the most effective advertising media, in fact, is not a portal, but television. In the 2006-2007, television was a headache for television shopping commercials.　　28 began to take the lead in a large number of investment advertising in all over the Star TV, as well as CCTV's prime time. "Every TV station you can see is on the market. We like to buy the advertisements between the popular TV and TV programs, because the people who want to join are ordinary people, most of them love watching those serials. "28 former executives said," At that time, local television station to talk to us about advertising is the deputy Taiwan chief to come in person.　　"The traditional media to the investment exhibition Company's attention can be seen." When you see the TV on the introduction of a project advertising, please note that the lower right corner of the advertising film, basically there will be U88, 28 or 3158 of the trademarks. "We have these ads to better talk to customers, you see this is our advertising, this period is very good, your advertising will definitely have effect." "28 former executives said.　　Of course, there are some ads, in the lower right corner will also appear in the name of the specific project, such advertising is to add money. When the advertising volume to a certain extent, the company began to cooperate with the television station, to carry out some soft operation. "Before XX TV station is not" the road of Wealth ", is ourThe boss and XX Taiwan said, you open a file similar to the CCTV "wealth story" like the program it, with the form of soft text, investment effect better. "28 former executives said.　　As a result, similar entrepreneurial programs are now available at various local stations, behind which are the shadows of the company's bosses. With the further white-hot of industry competition, these three investment exhibition companies are also aware of the importance of their own brands. So, since 2007, they have signed up with celebrities to attract the attention of millions of viewers: first is "and" Wang Gang said "U88 you Hair", and then Fanwei with the "sell" in the tone said "28, 28, ka ka is hair", and Zhang Tielin wearing the "also bead" in the Royal Robe Roar " Venture to join to find items on the 3158 ", recently, the popularity of the Wangbaoqiang also endorsement of the 08.cn to join Rich network. According to insiders revealed that the endorsement fee is around 2 million. They have also made a full effort in the area of television media procurement.　　Among them, 28 opportunity Network and Hunan satellite TV marriage, to 4.8 million yuan Hunan satellite TV "Zhi Yong da Chong Guan" to qualify for the championship title. In order to increase the trust of customers, improve the volume of business, several major websites have formed their own production team, and hired a number of part-time marketing experts, channel experts, media managers, marketing consultants for its guidance. In addition to 28 of the 200-person team, the number of U88 and 3158 employees was maintained at 40 to 50.　　It is no exaggeration to say that this is the highest per capita output in China's advertising industry. Of course, all this is in order to improve the effect of advertising ads to produce. 3158 of former executives told the entrepreneur that if it had not worked, the company would not have survived. Generally speaking, the advertisement effect of these investment exhibition companies is measured by two kinds of indicators. One measure is the number of messages, and the second measure is the number of calls. "If there are more messages and telephones, it will prove that the delivery effect is good." The quality of the media you buy is good, others will continue to vote. "3158 former executives said.　　Of course, some investment site in order to improve the effect, will find a lot of gunmen, on the site to leave a message. In general, the message volume and telephone volume is 1:1, that is, the number of messages, telephone volume is almost so much. But people are still reluctant to call, unless they are interested in your project. So, "After this site, you have to develop a message system, because you want to put ads, put online ads you do not have a flow monitoring system how to do?" Then, also develop the advertising system out of the release.　　The 28 former executive said. It is no exaggeration to say that in China's media sector, investment exhibition Company's figure is everywhere. "Reference News", "Business", CCTV, local television stations, portals and so on, as long as the eye-catching places, there are their promotional projects. Under the support of such a wide range of media resources, investment exhibition company has gained great popularity. To the industry boss 28.com, for example, its Alexa global ranking around 10,000, page traffic average of more than 5 million, sinceAccess traffic reached more than 1 million, the average annual registered user 7.2 million people. In a sense, these people are really the media format, fully tap the media resources of a group of experts, and in the rich media resources behind is true gold and silver.　　A portal page of the text link, 28.com a month can sell to 50,000, the cheapest also to sell to 20,000. Hubei help "To do the team exhibition is not bad, really strong behind the project people."　　Said the 3158-former executive.　　They are the real protagonist of this franchise industry.　　Most of them come from the same province: Hubei, and the two places are mainly Xiaogan and Anlu. In fact, in the business world, Xiaogan is famous for its construction workers. In the northeast, northwest of the construction site, a said that the plaster is known to be Hubei, said that Hubei's know is Xiaogan.　　From 2007 onwards, Xiaogan will hold "Xiaogan venture out of ten News" of the selection, its ten news from the construction industry. However, the real assets of these people are far less than the next group of Xiaogan people to be mentioned later. The latter, however, has been known for its secrecy, and the "entrepreneur" reporter can only sketch the outline of the group from the words of the insider. They were originally ordinary people, not too many special backgrounds.　　At the beginning of the reform and opening up to do some "rich small kam bag" such as small projects, since then embarked on the project Investment Road. What we can know today is that by the year 2003 or so, more than 100 big bosses have been formed to master about 600 projects. "These people are basically one or two families, of which at least more than 10 to more than 20 are big bosses and at least one year's income is billions." Another part of the year's income is tens of millions of, and the rest is millions of of the annual revenue.　　"3158 former executives spoke three levels of these bosses. These Hubei bosses basically in the way of buyout or planning projects to accumulate projects. "For example, I am a big boss, I see a patent project, OK, I dig hundreds of thousands of or millions of buy that project, and then let one of my relatives to run, can take up some shares, earn the count of his, lose My."　　"3158 former executives said. "Each project is a company, has the general manager, has the salesman, among them general manager, the organization structure is very formal."　　"In this way, they are similar to the development of a pyramid scheme for project accumulation and promotion, has been developed to the current more than 600 projects, forming a group has a number of subsidiaries of the business organization structure." In other words, before the advent of the U88, the project had already existed, "the need for promotion has always been there." But at that time their advertising means is still very elementary, mostly in the newspaper's Raphe.　　"And the" storm surplus "mode of appearance, will advertise the effect of investment promotion 5~6 times." Of course, these more than 600 projects, almost not as required to the commercial authorities to apply for the record, because it does not reach the requirements of the licensing requirements of the franchise. "Development ConcessionOperates at least two direct stores and operates for more than one year. Cross-provinces engaged in franchising, it must be through the Chinese chain Association, intermediary agencies, or directly to the Ministry of Commerce for the record. "It was written in the franchise filing.　　But the reality is that these 600-odd projects have a high turnover rate. "The reason is very simple, if you do a journalist for three months do not make money do you still do?" The project is the same, do not make money for a year will change.　　"28 of the former executives said to the" entrepreneur "reporter. Of course, these projects are not all in the way of collecting fees to profit. "There are agency fees, labor costs, the transfer of patents, the cost of selling machines, charging a lot of ways, if simply to join the wrong."　　"3158 former executives said. Facing the reporter's inquisitive, he explained: "This inside the operation process is like the secret of magic, such as Liu Qian's magic, you have to go to the bottom of Liu Qian, this is no business ethics." "Generally speaking, this kind of project's joining cost is between 10,000 and tens of thousands of, this is also a delicate design, that is to use the franchisee to small broad speculative psychology, and not let its ruin and cause big problem."　　Although these projects are a mixed bag, in the eyes of insiders, the real scam is not much, at least 60% is true, but not anyone can make the project.　　In this respect, a franchise project for many years in the industry said: "If you join KFC, McDonald's what good millions of, it is not necessarily able to earn money, not to say quick money, why you spend ten thousand or twenty thousand to join them can quickly get rich, no reason why!"　　Those who are eager to get rich do not know how rich the resources of the bosses with more than 600 projects are: More than 600 projects in the three major exhibition companies are required to vote, all of these media for these big customers are respectful, investment exhibition companies also have these people equity participation, and even in the operation of multiple projects. However, Mr Tung and 28 former executives did not agree with the so-called franchise scam: "As long as there is a formal business license can be in the investment exhibition company advertising, which is in line with the advertising law."　　As for their true and false, it is not our business, the business sector does not care, what do we care? CCTV is not also have ads, they do not check AH? Also, join IS signed the contract, no one forced you, if even the contract can not understand, you add what the league, this is tuition! It sounds cold, but it is reality. 3158 of former executives said: "The Chinese market is too big, for each project, facing the national users, facing the national market, there is always someone willing to pay." This is the most powerful. "The basic information of the three major web sites founder of the founders of the time of Origin spokesperson staff sales u88.cn joined the net 2004-3-1 Lu Caihong Anhui Wang gang 40-50 billion 3158.cn rich information network 2004-3-15 unknown Chongqing Zhang Tielin more than 405.07 billion 28.cn business Opportunities Network 2004-4 Cheng Jia　　Hubei Fanwei 200-300 billionThe relevant information is compiled by the Economist according to the public information