Three main factors of network media profit

What is the difference between media and medium? Media production content. The innovation of network media lies in the relationship and interaction, so it is more--ugc than traditional media. After more than 10 years, how does the industry understand the profit factors of Internet media?

Profit is the most important to receive money, and hope that over time, received more and more money. Receipt of money depends on value, a lot of money needs not only value, but also have bargaining power and pricing capacity. It is therefore possible to gain consensus:

Network Media Price = value + Bargaining Power + pricing ability

Let's think about what is worth, what is bargaining power, and what is pricing power.

Value

The visible value is the effective flow, the invisible value is the website cumulative influence. No traffic, no influence, only flow is not necessarily influential. Therefore, there must be a reasonable flow of influence. Value, the core is influence.

Bargaining Power

Value itself is indeed a bargaining power, but the value itself is not strong bargaining power. For example, in the area of local Web sites, you can allow customers to deal with dozens of Mercedes-Benz BMW one-time, but the customer gives you not necessarily a lot of money. It's like the taste of any hot pot shop on the streets of Chongqing is very good, but most hotpot shops are labeled "inexpensive" evaluation, the beauty of things, but cheap, and the price of the seabed to be higher than the same dish with similar dishes 30%-40%, in addition to fame, there is a factor is the service. Value determines the customer is willing to give you money, and the service experience allows customers to give you more money, this is bargaining power. Therefore, the refinement of the service is the bargaining power of the core factors, bargaining ability is the first service force.

In order to avoid proving, briefly said: bargaining power = value + service.

Pricing power

The value is the passive price control force, can only fluctuation; The service is the equal price control force, needs to negotiate; So what can make your product commodity, get the market initiative, so that you can set market prices?

We've heard a word in the community--channels, and many websites have a lot of strict rules to control; we saw a word in the O2O field--closed loop, and many companies took advanced technical means to control the channel from line to line. However, these measures can be feeble-why should the market run according to your rules? Leave the flow, leave the user's habit, leave the service, no matter how Gongqiao technology, waste only;

But these attempts have made me realize that pricing power depends on control. Either your product or service is commodity, or you get a market monopoly. This is a contradictory and unified strategy: You have 20% of the customer's channel, you can get the bargaining power through the service, you have more than 50% channels of customers, even if there is not much service, you also get pricing power. Control is not logic, not technology, but hard soft power.

So we know: The profit model of the network media depends on influence, service force, control power.