What's hidden behind the free

This article in fact I have been brewing for a long time, feel that they do not write, certainly no one will write, so the first, when cannon fodder also recognized, the following I said the composition of China's internet, China's internet is mainly divided into three levels: the first level is the media on the Internet, that is, the public easy to identify and understand the Internet; The second level is the grassroots Internet, this is a huge part of China's internet, but it rarely appears in the public; the third is the dark Internet, which has always existed and is very secretive, very large, or even very scary, so often because some omissions have caused national events, People can get a glimpse of the tip of the iceberg.

The first, the media on the Internet, the main idea is to cover as many users as possible, for fear that others do not know themselves; make a press conference, to reporters transportation, a variety of soft wen PR overwhelming.

The second kind, many years ago, I always thought that they didn't have the media resources, so neglected; later, and these people more contact, just understand, in fact, grassroots Internet, many are afraid of the media, fear of being the elite and peer understanding, the reason is very simple, they are very worried, if the Giants understand their business composition, Understand their user access, I'm afraid soon, they will lose everything to zero; Do you still remember the happy net? A variety of people to the decline of the happy net for countless reasons, I only state a simple fact, QQ Farm online time, is happy with the turning point of the decline.

Grassroots Internet, survival and growth in the Giants look down on the environment, and rely on a specific audience development, their idea is that I take good care of my users, the elite are best not to know.

Of course, the growth of the grassroots Internet, often will also be transferred to the media on the Internet, such as the recent Forgame listing, how many media wake, how many media people started crazy lessons, where the company came out?

The model of the grassroots Internet has, before 2004 hao123;2012 years before 4399, various local communities such as Dragon Lane, small fish community, West Lake, 8684 bus inquiries, 9158 and so on.

In fact, before 2002, QQ is also a model of grassroots Internet. Who remembers, when the South African telecommunications investment QQ, how many industry experts joke South Africans SB, it turns out, who is SB?

The third Kind, the dark Internet, they hide deeper, only at a certain time, specific events, will inadvertently exposed to the media; Remember the six provincial network? Remember the last few days, suddenly in the middle of the night. cn domain resolution all hung up? This is the dark Internet wipe gun fire, this area includes but not limited to ( Billion + market your size), plug-in, organizational theft, underground account trading and vulnerability black market, network fraud, DDoS attack industry (closely related to the computer industry), black Card; a simple child may think that this matter to the police uncle is not good, China so many network police; this, according to my humble understanding, this, I dare not disclose it in the open text.

Just say a small example, that year Xfocus forum has a hot post, two black production of the representative characters because the spoils are not all in the Forum scold War, mutual fess, turned over hundreds of pages, become a god affixed, after the relevant departments ordered lock post, as to the content, very yellow very violent just.

Grand Final with the business of comprehensive reconciliation, to become the Chinese characteristics of the legitimate business, this background, do not say.

2. The development logic of Internet in China

First, users are more important than customers

Some of the earliest business elite have a way of thinking that the closer the business is to the money, the nearer the money.

But in the Internet, this logic is wrong, both China and the United States, this logic is wrong, some time ago Zhou 祎 borrowed Mao Zedong's saying "people in the land, all the people;" People are dead, people are lost ", people are users, the land is profit; that's right.

Example 1: The first companies to launch competitive rankings, called Overture, this business model is very good, also developed enough customers, relying on the cooperation with Yahoo and Google, has become the market's most capital-chasing companies, but the problem is that he only business model and customers, but not their own users; Google announced that no longer with overture cooperation, the establishment of their own advertising system, overnight, the company's performance fell by 2/3; The double whammy is that Yahoo also looked for, or sell me, or we also learn Google's own advertising system, overture not even the opportunity to bargain; Had to commit to the sale. Have the highest quality customers, have the most B business model, no user base. In addition, DoubleClick the same. Interested children's shoes can be checked, DoubleClick, the world's largest advertising intermediary platform, with the most powerful advertising algorithm, covering the global quality of customer base, because no own user base, is how the stock price plunged, and finally forced to sell to Google.

Example 2:263 free e-mail post, once the market first, in order to pursue revenue; forced upgrades to fully paid versions; their logic is that email addresses are similar to mobile numbers, and high-end people don't change their email addresses at will; the funny thing is that not only did they lose free users, but also paid users lost, A wonderful case of Chinese Internet.

Example 3:qq Ma initially did QQ and did not own the idea of operating platform, just want to sell the system to operators; The result is the operator from the idea of software engineering to assess, this thing how many people months to do it? Such a calculation, QQ even 1 million yuan can not sell off! 1 million yuan, you did not read the wrong!! At that time, Ma almost 800,000 yuan sold QQ, but then just saw the AOL acquisition ICQ News, more than 100 million dollars as if, is according to a user how much money, pony eyes a bright, the original internet, user = money! And then he revalued it according to the valuation, Results China's various internet elite ridicule unceasingly, Sina all kinds of white-collar users can also calculate some money, QQ those small p child also valuable? Stop joking! IDG Seriously, South Africans seriously, the elite said, look, SB Africans, be horse-made teng. Today, there will be people who doubt that QQ users are worthless? But in the last two years, there are many people questioned 4399 of the user is not valuable, this, I can only hehe.

Example 4: Baidu, who still remember that year, Baidu is just a technical service provider, when a popular word called ASP (creator Service Provider), the story of the investment Circle is, the U.S. nuggets, selling pants of the rich, Baidu was walking this route, To provide the technology engine to the portal, but later to develop their own user platform, offending the largest customer Sina. At that time the media a brain thought, the Overlord Sina minute pinch dead start-up company Baidu. So, today you see Robin Li meaning moaning business model is how important, I only remind you that, when he overturned is the customer-centric model, Baidu later brilliant.

Example 5:360, Zhou before the time to share the article mentioned cases, free antivirus, please users, a year 180 million anti-virus software is divided, offending their biggest customers. The return was 10 times times the original. Yes, I know this is a lot of people will be controversial, I know a lot of friends to mention 360 must tell a pile of 7788 of the problem;

Second, the grassroots are more important than the elite

Initially, the investment circle say a word, 80% of the wealth concentrated in 20% of the users, so, good service these people, you can make a lot of money, it turns out, in China, the Internet, Service good grassroots users, is kingly.

Example 1: Site of the miracle; I know that a lot of people still don't understand how 360 makes money; I tell you, their biggest source of income is actually 360 of the Web site navigation; you know what? Baidu acquired Hao123, has been a low-key treatment, stuffy sound to make money; but today, you go to Baidu to see again, Hao123 has rapidly expanded into the independent business unit, and has its own alliance channel business, and very loose budget, why? Baidu and 360 of the confrontation center of gravity, in the flow entrance, And this flow of access, most of the focus on the Web site navigation. Web site navigation, grassroots users of the Internet portal, how many elite disdain.

Example 2: QQ, the mobile phone of China Internet, at one point it was considered to be a low-end user's product worthless, a few years ago, there is a trend, business people with MSN, Small p child with QQ, I told friends around me, want to do not leave the Chinese Internet, do not give up QQ, it turns out, I was right; Today you have a reason to give up, because the micro-letter came out.

Example 3: Only goods will, China has listed in the electric Business company, seemingly the best performance is the only product will be, who still remember, the only product will start, vowed to believe that China's luxury consumption into the outbreak period, to make money for the rich, is the king, the results burned out how many dollars? All the way to lose money, and then the bitter experience, determined transformation, Main two or three line brand promotion, reduce user consumption level, suddenly broke out, money also earned. This example is the most typical.

Example 4: Domain name business, 1997, I studied in Beijing, began to work for internet companies, when the Internet companies, and now can not compare, is registered domain name do Enterprise website, at that time, we think, good domain name, is the English domain name, digital, Hanyu Pinyin, weak burst, who will use. The internet at that time was the elite Internet. and English domain name, basically foreigners are registered, so, we think, 1997, there is no good domain name can be bought. 2001 or 2002, Mr. Cai entered the domain name industry, Hanyu Pinyin, is familiar to the Chinese, and the digital domain name, is the lowest input difficulty coefficient. Grassroots demand is far greater than elite demand. said that they have no vision, that was not aware that the grassroots demand is the Internet kingly.

Third, transboundary advantages and resource side effects.

Caoz has been a traditional IT industry for several years, always thought that resources are the key factor to determine success or failure, but in the internet for several years, more and more found that resources advantage, often because of resource advantages, ignoring the user experience and user demands, in the competition, slow, can-do, often defeated.

The more resources are not good, almost become the Internet iron law; At present, including Baidu, Tencent, also appeared such a reflection, they are called "rich second-generation thinking", Baidu, Tencent's internal products, often rich second-generation ideas, relying on resources, but lack of competitiveness.

First, a few examples of resource side effects:

Example 1: Micro-letter is an important product of Tencent, but, the micro-letter is not the success of Tencent's direct team, Tencent Mobile Department Hundreds of people, in the field of mobile internet repeatedly missed opportunities, Guangzhou's electronic post Office team, but broke the huge impact.

Example 2: Sina just came out of the fire, there is a High-profile news site was born, is the Thousand Dragon News Network; At that time, the Millennium News Network is the product of traditional media groups, with the traditional media, the legal authorization, simply, can be regarded as the second generation of officials; at that time, a group of commentators said that the resources of the Millennium News Network is far superior to Sina, Sina will soon be terminated, and the fact is that this is the golden key of the birth of the site, doomed to not be competitive, unexpectedly reduced to a link farm, as a search engine to pay special attention to the spam link source site.

Moreover, cross-border competition cases, Cross-border competitors, not limited by the industry thinking, dare to change, a start on the subversion of your business model, often surprise.

Example 1: Shi Yuzhu Games

At that time think of health care to make the game is pure nonsense, how many senior game people to Shi Yuzhu's game under a certain conclusion; Although today we say that giants seem to follow the product is not much good, but the game industry is recognized that the journey to subvert the traditional business model of the game, This model has been called the Chinese model. and follow-up China's page tour, hand tour, has continued this model, from the time to pay for free game, props pay.

Example 2:360 Antivirus

360 rising war at the beginning, I think rising lost, I judged the basis is that the Internet model will break the traditional software model, the fact as I expected. All traditional IT companies should learn from it.

Example 3: Millet to engage in mobile phones

Although I have always been compared to the open Cross-border competition, I still think that lei crossed too large, the idea of using the Internet to reverse the traditional production area seems unlikely, but the fact that shattered my judgment.

Example 4: Newly listed Forgame

The company's executive, founder, does not have a traditional gaming industry! At the beginning of the page, when the hot, the traditional game company in what? Can't see, look down, can't see through, do not come, can't catch up, on these five steps. No game industry background, but there is no baggage and thinking, more dare to let go.

Of course, to talk about the field of page tour, the nouveau riche of these years are all over the world, such as echocardiography games, such as the Kai-UK network, such as the tour, and so on.

The field of vision is more important than diligence.

Diligence, of course, is important, but the right vision will make your diligence to add value to n times.

Example 1: I have a friend who has known for more than 10 years called Suguang. He used to do a smartphone community, is about Symbian, but do not large scale, probably the market third appearance, the bitter Baba insisted; later, the Karma meeting met Mr. Cai, CAI Boss and the market first talked about, suggested that the other side of the transformation of Android, The other said the Symbian market is booming, there is no need for transformation; Mr. Cai later talked with Suguang, when the market share of Android is still less than 5%, Suguang to the future of Android is also doubtful, and then consulted the innovation Workshop of Mr. Hua, two bulls unanimous judgment let him have a backbone, resolute transformation, The result in a very short time, a succession of highly influential Android products and the recognition and capital cooperation of giant companies, the company's valuations have increased dozens of times-fold in two-year time; rivals that were previously considered unreachable are now, um, in the back of their reach.

Example 2: In 2004, I saw June for the first time, listening to him talk about search engines, he said, search engines are a revolution in the ability to change human knowledge, alongside paper-making, movable type. Over the years I've been thinking, why did so many companies have to do search engines, but only Baidu stand out, because many people, including many of our well-known giants, but also including the Zhou, Charles Zhang, just as a search engine as a tool, a means of profit, a model; only people with enough vision will realize that Search engine brings about the impact and change, is how huge and far-reaching! 2004, who will believe that a search engine company, can subvert the high school portal, in fact, 2001, June has foreseen. It turns out that his vision, the achievements of Baidu, but also achieved his own.

Five, free is the most expensive

This is really Chinese characteristics, seems to be the earliest Shi Yuzhu said? Not sure, but Shi Yuzhu is definitely a typical representative.

Giant group of games, not only play for free, but also pay the players? Traditional gamers will find it incredible, but in the end, yields are surprisingly high. This model has become the Golden rule in the field of Chinese game.

Plants vs Zombies 2, in the world are paid to download, only China is free download, but, only the Chinese market, the most expensive props! This is also an example of localization. Of course, to cite this example does not mean that I endorse this behavior.

360, the free anti-virus, the profit has exceeded the previous antivirus industry sum of n times.

Taobao Vs Ebay, with free shop mode + grass-roots website promotion seconds to kill the paid open shop Model + Portal exclusive ads.

But today we are looking at the latest data, Taobao's profit level far beyond ebay, not far beyond ebay China, is far beyond ebay global. Amazing?

Pure Chinese characteristics, free is the most successful business model.

' Maybe one day, the hardware will be free, ' says Zhou. How far this day is unknown, but the pole route has been sold at below cost price, I understand, this is a signal.