It's not a good idea to burn money in a peer-to-peer frenzy.

It's like a reduced version of the Butterfly Effect, when a platform in the industry through promotional activities, advertising and other forms of access to users, expand market share, the other platform will immediately respond to the same means to fight back, but when the platform input faster than the growth rate of market capacity, The result is an increase in the cost of getting the user.
The increase in cost mainly has two aspects, one is the Peer-to-peer platform large-scale hard wide launch, if everybody lends in the Beijing subway huge propaganda poster, Jinxin net in New York Times Square's high-profile appearance ... But the author believes that such a market strategy is not only expensive, but also not necessarily good effect. Because the investment domain and the consumer domain are completely two different thinking mode, although the platform enhances the platform the popularity, but cannot convert it to the reputation and the registered user. Second, large-scale promotional rebate coupon activities, which are used by most platforms. By delivering the platform's preferential activities directly to potential investors in a precise way, this approach not only lowers the cost of being a customer, but also gets better customers.
According to the author's understanding, according to the platform of different market strategies, the current platform to obtain an investment user costs about 500-1000, and in six months before the cost of the customer is only 50-100. In the conversion rate, Peer-to-peer platform registered user conversion rate of 10% to 20%. The above data intuitively reflects a problem: the input of the platform is not translated into the corresponding output.
The author believes that the reasons for this mainly by two, 1, Peer-to-peer Market is still in its infancy, the market capacity of the narrow is not enough to support the current Peer-to-peer platform expansion speed. In 2014, Peer-to-peer trades amounted to 250 billion, but compared with 44 trillion of national Bank savings deposits and 4 trillion of private lending, we found that this was just a bucket in the financial sector. Of course, as the same competitive industry, Peer-to-peer based on the unique advantages of its own model, in the future is completely able to achieve the meat of the tiger. 2, Peer-to-peer as investment and financial products, and rely on advertising delivery can access users of the consumer goods market is completely different, and consumer goods, compared to the impulsive, investment products because of its natural risk makes investors in the choice of rationality and restraint. So just by advertising and relying on rebate of promotional means to obtain user results is small.
How to get users, the key is to explore the needs of users. As an investor, its most desire is tantamount to obtaining the expected income under certain risk, which is the core and motivation of all investors ' investment decisions. Therefore, the platform and put the cart before the horse will be a large number of resources for advertising, as well as the construction of their own platform, to create a wind control, access to quality assets, access to the user as the core of the competition system.
But others will ask: if you do not do large-scale marketing, the whole market will be presented to each other in vain. I think this is not the time to large-scale promotion, because the whole marketNot yet nurtured.
At present, the platform for large-scale advertising may be due to the industry's development is too optimistic, resulting in their own quick success, but also may be in order to gain the recognition of investment institutions, but no matter what reason, large-scale burning money expansion for the platform is not a good thing. Because this is the same as their own platform Lei Feng's burning money will be big market, once the market mature, platform due to lack of funds cause follow-up, can only helplessly watch others cut cake. This is particularly evident in the nascent peer-to-peer sector, which is like a marathon, where the lead is not the key to sustainability.