Internet free logic: Want to make money you have to be rich enough

Zhou is a staunch supporter of "free", and I saw an interview on TV at the airport, and he thought that the free service would be available to users. As long as you have enough users, you can always find a way to make money. There is a point of Google's so-called "user-centric, all the way" meaning. In addition, there is also a book advocated for free, "Long Tail theory" author Anderson's works, the title is called "Free", is also a best-selling.

Let us first think that "free to do, always make money," the assumption is that the establishment of the--360 in the end of the net earned 5 cents per share, may be more in the future. On this assumption, let's take a look at how this "always earns money" is earned.

Roughly, there are two ways to make money. One of the ads to pay for Third-party customers, the second for some free users have special needs to pay for value-added services. But we know that not every user will click on the ads, and not every user will become a value-added services to pay customers, on the contrary, only a small percentage of users will click on ads, only a small proportion of users will become charged customers. Further down the inference is: Free mode is actually a large number of principles, there is no mass of free users, to make money this matter, free to talk.

So, how can we do the mass user? The answer is: you have money.

The first way to get Rich is to: you have the money yourself. For example, Zhou is a rich Lord. In fact, Zhou is not the first to do anti-rogue software. My hard drive still has a software called "Malware Cleanup assistant", but the software has not been 360来, almost disappeared.

The second way to get rich is to look for an investment to get rich. In fact, their own money is not enough, at most can do their own angel. The so-called "round of financing", "two rounds of financing" are professional venture capital trading. In the digital world, there is hardly a precedent: there has never been a financing to go public.

The third way to be rich is to invest in big companies. Sina Weibo, Baidu Odd art are examples. Of course, in these examples, we can still see the shadow of professional investors.

Why do you have to be rich in free mode? Because you need to accumulate a huge free user group that can make money as soon as possible. If not fast enough, competitors from the rich will quickly wipe you out. This is not just the cost of server spending, people's salaries, and so on, but also: money to establish a barrier to entry.

One example is the video of the war. It is said that 100 million dollars is the industry threshold. Video is a high cost business, in the video game of battle, we can see that cool 6 because of not enough money, we can only sell themselves, eventually the founder out. Another example is group buying. Group buying and video is different: it is not the sale of the money itself, but the same, in money to do the industry threshold. The investors in the handle net think: Group buying is also a business that needs 100 million of dollars.

Generally speaking, the cost of group buying should not be high. Its technology is simple and not "free", and in the cash flow chain it receives money before the real supplier. But in fact, in order to compete for suppliers, group buying in the promotion of a huge investment, the overwhelming advertising we have seen, but most people have not seen, in the group buying field, and even the first armored to the supplier practice, because the need to rob customers-this has a bit of free mode of shadow.

The vicious circle in the digital economy is so formed: a business that can charge, and under pressure from a large enough number of users, will become a free business. and free business to the demand for a large number of users to the hungry, they need enough money to quickly promote, with the least amount of time to burn the largest scale, to force back competitors.

So the real logic of free is: Want to make money? You have to be rich enough. The result of the free economy is that it is a game for the rich. (Wei Wave)