Internet Entrepreneurship Experience: Some people are not equal to profit

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In recent days, the blog China Network into the plight of the spread of the Internet, this is known as the world's largest Chinese blog network has been China's new Internet power representatives.

In the economic depression situation, such as blog China Network of new internet companies encounter a "cold winter" of a minority. Previously, video-sharing site six rooms one-time layoffs 70%, currently only 40 people left behind, and those who are still in the entrepreneurial phase of the Internet companies (such as SNS) is worse.

Internet marketing expert Liu Dongming that, overall, China's Internet companies still lack of a diversified profit model, the site relies too much on advertising, in the advertising cake is not big enough, most sites can only hope that the popularity and traffic to do, and then seek advertisers favor. However, such a model is very dangerous: in the economic climate, depending on venture capital may also eventually find a profit model, but in the economic "winter", only rely on sentiment and traffic is difficult to support.

Andrew Kein, a Silicon Valley writer and entrepreneur, has published in a blog post that the recession will hit free content, while companies charging for their content are finding exactly what their users think is worth. The current financial crisis will test the operating model of internet start-ups.

Now, it seems, the profit model that can withstand the test is far from clear. The most popular SNS site, is still in the accumulation of popular stage. Although happy to rely on Word-of-mouth marketing in a short span of a year to quickly the user to do the millions, quite popular with the city white-collar, but to wait until advertisers favor, or a relatively distant dream. Ecapital Capital CEO ran also believes that today's hyper-popularity does not mean business success. Even if you can maintain popularity, how to turn popularity into profit is a more fundamental problem. In his opinion, "thought that has the sentiment to have the value automatically, is somewhat self-deception". Unless you can find enough people to pay the bill, the lively scene is just a mirage.

In the economic boom, emerging internet media may be patient to the flow and the number of users to do large enough, slowly waiting for advertisers to favor, but in the economic downturn in the winter, the big flow is not the enterprise can not survive the measurement index, more important is to see who has more adequate cash flow, Who can rely on their own hematopoietic function at a lower cost to endure to "spring to the winter".

Paul Kedrosky, senior researcher at the Kauffman Foundation, pointed out: "When you have enough money, you can decide whether to develop first or make money first." However, when there is no money, this is wishful thinking, you have no choice.

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