Internet Profit Model study Notes II: Commissions and partitioning

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Lead: Commissions and partitioning are not the terms of Internet inventions, these long-established business order in the Internet industry has been used to form the Internet's second profit model.

The second common profit model of the Internet is to help customers achieve a certain purpose and then collect commissions or share them from their customers ' income in a certain proportion.

Commissions and partitioning are not the names of internet inventions, but the long-standing concepts of the whole business community. To find a lawyer lawsuit, the lawsuit won, to pay money, find intermediary to buy a house, the house bought, to pay money, want to do business outside, but unfamiliar, find agents to help, to sell products received part of the money to the agent. These are the business orders that have been formed, and these commercial orders have been used in the Internet industry to form the second profit model: commissions and splits.

Similarly, there are several common concrete landing plans for this pattern:

1, the electric business platform (generally is the consumer will adopt this kind of pattern)

The Electronic Business platform product is the representative of the Commission and the pattern of partition. For the famous cat, if a businessman wants to open a shop on a cat, he needs to pay the following fees to the cat:

Margin

Technical Service Annual fee

Technical Service Rates

The "Technical Service rate" is one of the main profit models of the cat. After each item is sold, the cat will charge a certain rate of "service charge" from the turnover and different kinds of commodity rates. For example, according to the 2013 standard, if a successful sale of a book on the cat, the cat will be in accordance with 2% of the proportion of the service charge, and if the successful sale of a set of sanitary ware, you will need to pay 5% of the service charge. Day cat daily turnover is huge, so rely on a service charge, every day will produce a lot of profit.

Image above: If I buy this iphone, the store will pay the cat 100.6 yuan 1 cents as Commission (2%).

2, buy and Coupons

For a merchant, how to price a product is a science. If the price is higher, the number of units sold will be more profitable, on the other hand, if the price is lower, sales may increase. So, the two variables of price and sales affect profit, perhaps they can form a function, theoretically should be able to find a point, so that the value of price x sales maximization, so that the profit maximization.

But the above is only a mathematical sense of the conclusion. In fact, the real way to maximize profits is to sell the same item at a higher price to someone who doesn't care much about it and sell it to people who care about it at a lower price. This strategy in marketing has a special term to describe, called "price discrimination."

And the two kinds of product form, buy and coupon are effective means to produce price discrimination. The main profit model of these two forms is Commission and Commission.

The United States Group Network is more famous group purchase site, now many friends in the consumption before, are accustomed to go to the United States to find a group, to see if there is a corresponding group purchase. So for businesses, the United States is the equivalent of the business to filter out that part of the price more sensitive customers, and the United States to do so the conditions are very simple, is based on the amount of each order to the merchant to charge a certain proportion of the cost. Depending on the type of commodity and location of the merchant, the cost is also different.

Image above: Once Groupon and the United States such groups of group buying sites push only one commodity a day, but the effect is too good, businesses lined up to come to the door to "discriminate" consumers, so the United States Regiment now seems to have become a mall feeling.

In addition, do you think that the form of group buying looks a bit like a diversion for the merchant? But the difference is that one of the "Internet Profit Model study notes: Flow change" refers to several product models in the user side of the scene mostly: users look for some information, by the way to see the ads. and the purchase and coupon for the user, often spontaneous to look for, and the latter's profit is actually from the transaction itself, not from the flow. So I would like to classify it as Commission and Commission mode.

3. Open Platform

A few years ago, when SNS Popular, network (now Renren) and happy net is the scenery Unlimited. At that time, there are many discussions in the industry, some friends think that the school will kill happy to become the boss of SNS, and some other friends think happy more reliable. Later, it turns out, the school is still more stamina, and thousand oak will it and several other products packaged, in the NYSE told a fairly good story (Nyse:renn), and successfully listed. Although the stock after the collapse, but finally realized the desire to go public.

I think there are two main reasons for this outcome. First, the users of the school are located in a happy upstream, the user can only from students into white-collar workers, but rarely from white-collar into students. Therefore, once the students in the upstream stage to establish a relationship, will form viscous. The equivalent of the school to a certain extent the closure of the happy user base. Second, the school in the appropriate time to launch an open platform, the introduction of Third-party developers for the network to develop a variety of applications (mainly games), so that the school can play games and small applications far more than happy, the successful promotion of user stickiness.

The main profit model for an open platform is to take a cut from the revenues of apps running on it.

Above: The same year in the major SNS on the hot moment of happy farm game.

4. Internet Finance

Internet finance is now a very popular concept, the concept of the following derived a large number of products. The simplest, financial media can be seen as a relatively rudimentary internet financial product, their main profit model, of course, is diversion, which will lead to the relevant financial products, and similar to digging money, 51 credit card Butler and so on, because they can get the user information, such as how much money each month, Bought something, how much money to pay credit cards and so on, this information through analysis and processing, can be used to more accurately recommend financial products to users, in fact, from the recommended product sales commission is one of their profit model; Further, similar to everyone's loans, a favorable network, such as flying Peer-to-peer network loans products, or melt 360 of the kind, also all more or less to profit by commission.

Internet finance sounds very complicated, a lot of things can not understand, but in fact, there is a kind of internet financial products have already been integrated into everyone's daily life, this is a third-party payment tool, that is, Alipay, tenpay such products.

If you surf the Internet earlier, you may have heard of Qomolangma (8848.net, now this domain name jumps to the day cat ...) This site, that year, it enjoyed "China's first E-commerce station" title. But then, Ali's Taobao became synonymous with China's e-commerce, and Qomolangma disappeared, fading out of everyone's vision. The failure of Everest is related to the great environment of the time, and I think that Taobao can succeed, one of the important reasons is Alipay.

Back then, online shopping is still a new thing, most people in the Internet to knock a password, can transfer money to sell things that person's account in this matter or fear. Taobao identity verification is to upload an identity card just (remember "ebay" this site?) the way it was validated in the past is that you provide an address, and then it sends you a letter, which has a captcha. Entered authentication code authentication succeeded ... God, the cost of cheating is very low, go to the post office to get a mailbox can be a little bit more knowledge of PS people may easily muddle through. The emergence of Alipay successfully solved the fears of the people at that time. Because the principle of Alipay, will pay the first payment to Alibaba, etc. received goods, and then notify Ali satisfied, then the money really reached the seller's account. And Ali is a formal big company, credit or trustworthy. So I think, Alipay and Taobao faced with the seller's free policy together, the achievements of Taobao today.

Ok, mind back to the present. Alipay is one of the profit model for the merchant's "Secured transaction receivables", in fact, the principle is still the same set. If I am an unknown business, online business to require customers directly to the payment of money into my ICBC account, certainly not a few people dare to do so. But if this thing has Alipay "guarantee", for customers, security is much better, so it is easier to reach a deal, and Alipay will be in accordance with the "single ladder rate" or a certain set of packages to the merchant charges.

Figure: Alipay's Merchant Services page

Similarly, for Lakara, micro-credit payments, as well as the famous UnionPay and so on, a similar way of sharing can be (or already) as one of its profit models.

Summary: Typical closed loop of commission and partitioning mode

The logic of the Commission and the partitioning pattern is to help the customer to reach a transaction and deduct a certain fee from the transaction amount. This kind of logic in the traditional industry has a long history, but because the essence of the Internet is the information intermediation, once the information intermediation, the transaction is easier to achieve. So this model is particularly important in the Internet industry. There have been many cases, but as an end, I would like to summarize the logic with another product. This product is a tick-tock taxi.

(If there is no taxi war, in fact, these taxi-type application of the most simple profit model is with the driver and the taxi company split.) )

First of all, the status quo is for users, especially during rush hours or more remote sections, it is difficult to hit the car.

Second, for the driver, many times before only aimlessly wandering in the street, hoping to "meet" the people who take a taxi. This "touch" process is a waste of resources.

Taxi software successfully promoted the no-load rate of taxis, so that taxi drivers in less "wandering" under the premise to find more passengers, so as to make more money, so take out a part of the taxi software is a logical thing.

Well, but the above is just a theory, just to illustrate the logical relationship. In fact, why do all kinds of big men desperately to send money to promote taxi software? It's simple, not for a commission (in fact, no commission), but for the user to bind the bank card, and thus compete for the near-field payment of this important scenario. Paying the whole eco-chain is a big game, which is much more important than charging drivers a bit.

Finally, a list of common domestic use of Commission and Commission mode of profit-making products:

-Cat, the non-self-owned part of Jingdong, Dangdang

-American group, mass Comment Group and other group purchase website

-Tencent open platform and other open platforms

-Finance and financial platform of 360

-Alipay, Tenpay and other third-party payment tools

-Digging money, with notes, 51 credit cards and other accounting tools

-Application of PayPal, Baidu application market, such as mobile application distribution tools.