Sohu Former editor-in-chief Shanyou: Venture not to make money or to die

With other peers on the investment site, "reluctant to children can not bear the wolf" temperament is not the same, shanyou in the beginning to pay attention to the pursuit of stage profit and business model of the reality of the problem "do not make money, or rather die!" "The current 酷6网 chairman and CEO Shanyou's entrepreneurial slogan sounds loud.　　After stepping down as editor-in-chief of Sohu last April, Shanyou joined the video-sharing website's entrepreneurial army, becoming one of hundreds of such entrepreneurs.　　When hundreds of video-sharing sites threw millions of of dollars into the flames of bandwidth, markets and personnel burning silent Ashes, shanyou "hid" in a two-storey building in the countryside of Beijing, recovering 2 million yuan of his own investment.　　When almost all of the world's video-sharing sites are not making big profits, shanyou can not be an exception, but he founded the 酷6网, with other peers on the investment site "reluctant to children to the wolf" temperament is not the same, shanyou in the beginning to pay attention to the stage of the pursuit of profit and the reality of the business model. Last June 1, shanyou in the western suburbs of Beijing, a white two-storey building inside, their own investment of 2 million yuan to start a business.　　He recruited dozens of people to eat and live all on the first floor, work on the second floor, a year rent is only 150,000 yuan. Shanyou said that he abandoned in Sohu annual income of millions of yuan, began to put into the video-sharing site of the venture, is optimistic about the industry-the wind came to the pigs will fly.　　He agrees with Bill Gates at an annual meeting in Davos that internet video will subvert the status of television within five years.　　At the same time, China's broadband infrastructure is maturing and video-sharing sites are a "necessity" for venture capitalists-almost every VC has a video-sharing site. But Shanyou soon realised that his 2 million dollars would soon be spent.　　Because the bandwidth demand of video sharing website is huge, it takes 1.2 million yuan to rent 1G bandwidth per year, and 酷6网 must purchase at least 10 g above. "I almost spent a lifetime of relationships.　　"Shanyou finally from Guangdong Maoming and Harbin extremely inexpensive to find his source of bandwidth, the provider even allow him to make money to pay later."　　A good sense of cost control, so that shanyou than every year to invest millions of yuan to buy the bandwidth of the founder of the site can be more light on the road, focus on the other problems that follow: content, business model, flow, financing.　　In late August, 酷6网 called "Money Together" business system began to open, Shanyou decided to massively with the upload video to share revenue to stimulate the amount of video content and quality improvement. Although many websites agree to display the pattern of advertising and video authors, the first one is cool 6.　　The implementation of 8 months, most of a netizen earned 42,000 yuan, there was a video author in 15 days of time to earn 5000 yuan. 酷6网 according to the number of visits and advertising show the upload is divided into nine paragraphs, from the month ads show the upload section, the higher the proportion of the divisionHigh, each click is divided from 1 to 5 points.　　At present, 酷6网 upload video 20,000 every day, and the news that Sohu crawls every day is only 20,000. At the same time, because the system is directly linked to the number of clicks, so users are willing to actively promote their own uploaded works in other forums. "The user is the content provider of the website at the same time is the business propagandist, so our traffic rises very quickly, also saved a lot of market promotion expense."　　"Shanyou said.　　In advertising mode, 酷6网 not only to insert hard ads before and after the video, but to help advertisers and video creators set up a platform to embed advertising content into the video.　　If Coca-Cola is willing to pay a penny for a coke-drinking scene in each video, the video creator will join the scene in making the video. Shanyou called "Creative people do", that is, product or brand elements as content, the creation of the video part of the qualification, and then to the video producers to solicit ideas of a marketing approach.　　So far, there have been Yili, Lenovo, Hisense, Samsung, Motorola, Nokia, McDonald's, Disney and several other enterprises in 酷6网 advertising, brand customers reached dozens of.　　酷6网 therefore become the first to achieve tens of millions of dollars in revenue video site, last year became the first to achieve the break-even of such sites, comprehensive strength of the top three in China. Not long ago, Sina CEO Cao Chao and "inspired" Shanyou, Cao Chao had asked Shanyou, how to deal with a huge flow of the ability to become a portal site?　　Shanyou decided to find a flow of "umbilical cord." 酷6网 therefore with Baidu reached a strategic cooperation, 酷6网 exclusive for Baidu Bar users to provide video services, and Baidu Bar is China's largest online forum. Baidu Bar of netizens, such as Li Yuchun, want to preach Li Yuchun video, must go to the 酷6网 register, and then the video go up.　　酷6网 so upload volume doubled. 酷6网, by virtue of these attempts, has attracted investment from DFJ, the US venture capital, and the Chinese investment Fund.　　May, tens of millions of dollars of wind in place. Shanyou that now the Web2.0 site actually occupies more than half of China's traffic, but the business value of less than 20%, it is precisely the future opportunities in this area.　　At the same time, licensing issues, copyright issues, competitive issues, cost problems, these four risks like four mountains down. "But I'm definitely going to make a money-making video site. Shanyou said that 酷6网 early through small-scale users, small-scale income, by cost control to achieve a profit, but then through the big investment, on the scale of the stage, is the key to the decision of video site profitability of the war.