Four quadrants of the profit model of Internet entrepreneurship

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A lot of time need to find a fix and move, know difficult and easy, entrepreneurial is so, a lot of things do not think clearly before, do may be equal to white do, perhaps still diametrically opposed to do, and ended up with the end of the first death.

At the Lujiazui today, and the network of an angel investor chat, when talking about the enterprise's profit model, he bare the secret: axb= income, which is a customer, B is the unit price, product or service unit price, as the yin and yang gossip, this extinction, to pursue the profit maximization of the entrepreneurs, Thinking about the money-making model should probably be simple.

According to this, four typical cases of starting a business:

The first is that you don't have a lot of clients and you don't make much money from a single customer, at this time, you are in a lifetime, to feed yourself as the ultimate goal of the start-up, cash flow is important, of course, in addition to making money, but also can melt money, anyway to live this time, you have a positive cash flow; the second, you have a lot of clients, And each customer's fee is not much, this time, to rely on tactics, to achieve automated ways to make money, such as you sell shoes, perhaps a pair also earn 10 yuan, but you can sell 100 million pairs a year, that also earn more; third, your customers are not many, but each customer is a VIP, A customer less every single or more than hundreds of thousands of a year to collect a few billion, three years to do a single, a single block for three years, this case by the list, do not need you more people, the need is the customer's unit profit contribution rate is high. The fourth kind of situation is most cow, this kind of situation is your customer also more, each customer charges also many, this kind of pattern is like the government's finance, any enterprise and individual is the government's customer, must pay taxes, ha, this perhaps is the ultimate pattern. Of course, there are some atypical cases, and that's probably it.

Compared to internet entrepreneurship, it seems to be the same:

The first situation, such as Internet services for small businesses, selling domain names and servers and bidding rankings, at the same time do a small web site, the company is not much, live also leisurely, the annual income is basically stable, although not many customers, each customer income is not high, but their own cost is not high, no superior pressure and team rules, Working for yourself, this kind of entrepreneurship is also very motivated. A large number of start-up enterprises are at this stage, as long as there is income, is the practice of profit model.

The second situation, the user is good, or their own accumulation, or with VC money to burn out, anyway, a lot of users, this time, it is in line with the long tail theory, 10 million users, 10% fee, each 10 yuan/month, a year is more than billion, this is the user scale effect, QQ is so, in the membership fee, SMS fee, each customer a little bit, bit, catchment into the sea, this is the internet born tactics, is also the most suitable for the Internet model: Automated large-scale replication services, this time as long as there are products, the system can automatically generate money. Take a look at the current market for most of the money. For example, Ctrip received a large number of customers on behalf of the discount fee, such as online games and membership fees related services are mostly this form to make money, this is the most exciting VC model, because the Chinese more, the user more good things ah.

In the third case, there are not many clients, and many of the services provided by internet companies are free, can not rely on the user's own charges, and rely on related communications services, such as advertising business, this time, the Internet is the four media, is a new media, the Internet relies on the company to advertise to charge, not many users, perhaps a year only thousands of advertisers, But the profits may also have a good hundreds of millions of, Sina's advertising is such a model, but there are exceptions, such as Baidu and Google's bidding rankings, which is a user more, more advertising users, and a single charge is not high model. For traditional industries, such as consulting and the VIP service industry, are a single single, not many customers but each single profit is high.

The fourth situation is the most cattle, its users more, a single charge is also high. This point in the domestic internet industry, Ali's tens of thousands of pieces of a foreign trade pass or supplier member, is an example, heard that such a number of members, in Ali has more than million, users and more, a single charge is high, this will be the Internet enterprises are ultimately the pursuit of the model, as, as the traditional car and housing industry, customers demand large, A single service or product charge is high, this for Internet entrepreneurs, there may be some reference to the meaning of a night to explode rich may think more about such a pattern.

The model is lightweight, do it difficult to measure the only standard of entrepreneurship is not the model strategy, but the outcome, many times, we do trickery things, income and mode is irrelevant, this is what we know, here the discussion is only for the people idle reference, no condemnation.

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