Internet business: The first month of smarter Entrepreneurship from the US website talk about profitability

During a recent interview with the first financial daily reporter, the United States Mezimedia co-founder Harry, the American Overture product and Market vice president proudly told me that he and the partner pioneering Internet site began to make money in the first month of business, Think of all the web2.0 famous website entrepreneurs I met in Shanghai, they think all day is the loss of 10 million this year, next year loss of 8 million, and people began to profit in the first month, the Internet as a business to do. And Harry told me that his U.S. web site traffic is only 10 of the 51Job, now only half the turnover of 51job, but the profit is twice times 51Job, tom.com online profit is not as good as his internet company. We should pay tribute to the real internet business and despise those internet entrepreneurs who are thinking about vc/Nasdaq/BURNING money all day!

I used to do health care products, in this has been the most brutal marketing competition in China's rivers and lakes mixed very deep, now the industry is declining, I speculate on the Internet arena. So I didn't start to see the internet so mysterious and High-tech, has always felt that the Internet business and health care products such as traditional business should be no different. One of my support points is that the typical business success of the Internet is supported and operated by a sophisticated old businessman behind a young internet genius: Google's CEO has more than 20 years of traditional IT industry experience, and ebay's female CEO is over 50 years of age, also a traditional industry background, Yahoo's CEO is also a 58-year-old, and the most recent fire classification of Craigslist founder, 52 years old. So the traditional business mind makes a new type of internet company more successful in business.

After entering the Internet arena, it is said that the main difference between Internet business and traditional business is that internet business is easier to relate to venture capital and Nasdaq than traditional business. But I think the essence of business is "low buy high sell", venture capital or listing, but also early investment in small funds (low buy), and then set up now (high sales), but also a common business practices just. I have been exposed to a lot of health care owners, they are all this thinking, with very low cost products to packaging "low buy", and then through large-scale promotion set now "high sell", to make money after the enterprise to sell low prices such as Shi Yuzhu of the brain platinum, from beginning to finish is a short-term "low buy high selling" business behavior, And those who do not know how to do business brand marketing experts always criticize health care products do not pay attention to long-term planning, but do not know that China's health care products boss just want to make money, only to do 2-3 years of brand products have been, the heart has never been intended to do a century brand.

Into the internet industry, my other experience is now the Internet is not standardized, "yellow, gambling, poison" prevalent, and the health care industry at the same time. Any site as soon as the "sex" and other applications to the extreme, will flow greatly increase will make money. I have aired this view in my blog: Sex and vulgarity have saved the Chinese Internet. We all know that SMS saved the Chinese Internet and the three major portals, but did not know that sex and vulgar saved the entire Chinese Internet. A few years ago, Sina, NetEase, Sohu website is full of erotic text messages, according to the internal statistics accounted for more than 30% of their income, and entertainment, pornography, gambling, lottery-related vulgar message revenue accounted for more than 90%.　　If a few years ago any one of the Web portal to do not do these vulgar entertainment text messages, erotic text messages, betting text messages, lottery text messages, certainly not the Internet winter fell. Now three BBS aggregation website: Qihoo/daqi/teein, in my opinion is the new web2.0 concept of "yellow, gambling, poison" of the representative website (I This is from the business perspective of positive praise). And I originally planned health care products, is mainly the use of "sex, gambling, music, awards" strategy, such as sex: health care products advertising is always a big beauty of the newspaper and television ads attract attention; BET: The activities of the plot to attract participation in the promotion; Award: Lottery is always an effective means; music: always seize the consumer's entertainment psychology and so on. I have used health care products to promote the use of online marketing, has proved to be very effective. Traditional promotional techniques and the promotion of the Internet are not without the same connection, but the use of offline promotion of the target group of people online is the need for a superb promotional skills.

In addition to the target market positioning, I used to in these health care products tens of millions, billionaire boss learned that there are 2 points of impressive: one is vulgar, they have repeatedly taught us that these senior white-collar management to vulgar and vulgar to make money, the second is popular: we completely abandon the senior white-collar mentality and thinking, to the public, to understand the public. I now use their thinking to analyze the Chinese Internet, the public is almost synonymous with the success of the Internet:

China's Internet market, low-end positioning and high-end positioning of the number of users is roughly 80% to 20% of the proportional relationship (the former is successful, the latter is compared to failure), such as:

Baidu 80% vs Google 20%

Taobao 80% vs ebay 20%

163 80% vs Hotmail 20%

QQ 80% vs MSN 20%

Alibaba 80% vs Global Resources 20%

Hao123 80% VS Ma Yunzhou yahoo China 20%

Now many young internet people have no common sense and clear understanding of the whole social stratum of China, so it is not surprising that China's so-called new websites compete for losing money. Recognizing that the vast majority of consumers in the Chinese market are not "knowledgeable" (after all, no more than 5% of the 1.3 billion Chinese have a college education), this is vital to our understanding of the contradictory facts and reasons behind many business issues. We must not, according to our so-called "intellectual" to analyze and understand the most mainstream consumers in China including the Internet population.

Western society is dominated by the middle class spindle structure, so rational, professional, elegant planning methods can create a popular. At this stage, Chinese society basically does not have middle class, one end is very rich special stratum, the person is too few, the other end is too many people, but the average consumption power is limited 1 billion people, is the so-called pyramid-type consumer group structure. So doing business in China is either making expensive products for no reason, such as Benz600, XO and so on, these people who buy are not their own money, or money to come too easy, or do the fun, irrational function of popular mass products, such as "Gift of" melatonin, or "Laid-off people use" carving cards and so on. Now many young internet companies (toodou/douban//Zhi, etc.) are apt to be located in senior white-collar (ignoring the large market of 1 billion people), positioned in the top 500 companies (ignoring 90% of the large market of small and medium-sized enterprises) to show their taste of the internet, But the result of the Internet is doomed to do not big market. such as the positioning of senior white-collar crowd Donews/douban has been a very successful Internet brand, but from the business point of view is almost no revenue of the site, and a long period apart from selling to sell will not have any real business growth.

My advice to those who are swinging in the white-collar and public positioning Internet companies is to build a slightly higher profile of white-collar web sites, but not to give up the public content and positioning. After all, the site also has to maintain a large number of visitors to maintain a certain competitive advantage, that is, the proposed "Dual Focus strategy":

Target object strategy should focus on the long-term, but also consider the short-term behavioral performance

From the main white-collar to get the propulsion and image power, later through them to produce value, but also to the mainstream of the general public people have access to click and popularity.

Not only focus on white-collar, but also pay attention to the effectiveness of the ordinary target users, that is, white-collar/large corporate image, to do mass traffic and business.

The essence of business is to sell goods and sell services, discard those web2.0 and other Internet concepts, solid business vision to see the Internet, imagine if it is a traditional business, will let you such a game loss. I used to do health care products, the boss gave me 1 million business promotion to a new market, 3 months must be back to paragraph 1 million, or class. I came to Shanghai to contact some famous web2.0 label Internet companies, many losses for many years a penny income did not, still boast loudly insisted that the loss is victory. And you from these young, pure white collar CEO, completely do not understand business and rivers and lakes, the site entirely to senior white-collar and petty bourgeoisie for positioning, know forever loss is inevitable, unless they go to try to understand the traditional business, China Chemical Network listing and success also prove this.