IT people must know the mainstream business model of the Internet

Recently, I have been paying attention to knowledge related to Internet e-commerce marketing, and I have some understanding of commercialization and traffic realization.

Familiar friends know that writing articles is a way for me to learn. Output forces input, and then strengthens the knowledge system. Therefore, I will also use the input during this period to make a series of sharing from top to bottom. .

The understanding of business models can be said to be essential knowledge for product managers and engineers in the commercial field. In addition, if you want to start a business and seek venture capital, the first question investors will ask you is: The odds will also be: What is your business model?

Only by knowing what is true can you know what is true. The question is actually, what is a business model?

To describe it in the simplest vernacular, a business model is the way a company or organization makes money.

To give a few examples, supermarkets make money by selling daily necessities, express companies make money by delivering express delivery, and China Mobile and China Unicom make money by charging phone calls and text messages. A business model describes the way money is traded, and wherever money is made, there is a business model.

Entrepreneurship is not charity. The development and growth of an Internet company must be inseparable from a good business model. Management guru Drucker once said:

Here is a reference to the MBA Think Tank Encyclopedia to give a complete definition of business model:

A business model is the underlying logic and business that enables an enterprise to operate. A basic and complete business model can make an enterprise operate more scientifically, rationally and in a targeted manner.

So, what are the elements of a successful business model? What is the process of business model design?

Different managers and researchers have developed different business model models, such as the four-aspect model and the six-factor model. This is about a thinking management tool for designing business models - the business model canvas.

The Business Model Canvas was developed by Alexander Osterwalder and Yves Pigneur in "Business Model Generation" ) is a universal language for describing business models, visualizing business models, evaluating business models, and changing business models.

The business model canvas uses a set of rigorous and pragmatic systematic analysis processes and engineering design steps to ensure the scientificity and effectiveness of the final design plan.

The business model canvas contains nine elements, covering the four aspects of customers, offerings (products/services), infrastructure and financial viability. Business models can be easily described and used to build new strategic alternatives.

After understanding the meaning and interrelationship of each module, you can use the business model canvas to design a business model unique to your company according to a specific process.

The Business Model Canvas provides an executable tool. After thinking about these nine aspects, you can have a complete and clear understanding of your business model.

Taking Xiaomi as an example, we use the business model canvas tool to analyze and practice this tool.

Xiaomi’s customers are divided into the mass market and the niche markets of China Mobile, China Unicom, and telecom operators. Xiaomi’s values ????are born for fever to create product differentiation, service differentiation, and image differentiation.

There is a formula in the Internet industry: users = traffic = money. When a product aggregates users, the product will generate a corresponding commercial price. After it has users, how to plan for commercialization? ?

The business models of most Internet companies are complex, that is, one master and multiple slaves, a T-shaped structure. Most Internet business models will revolve around e-commerce, advertising, games, value-added, and content monetization. .

E-commerce monetization means selling goods. Typical e-commerce models can be divided into B2C, C2C, and B2C2C:

As an Internet company, advertising monetization is almost the most mainstream method of monetization. , represented by Toutiao and Baidu.

Toutiao’s advertising is very precise. Through data mining, it recommends accurate and valuable information to users. However, what is ultimately recommended to users is not only information, but also accurate advertisements.

Today’s Toutiao has two major advertising engines: Juju Engine and Pangolin. The Juju Engine is responsible for advertising advertisers, and the Pangolin Alliance is responsible for collecting fragmented media traffic. Advertising revenue allows Toutiao to make various investments.

Game monetization is a traditional monetization method. National games such as Honor of Kings and CF are a huge source of cash cows for Tencent. Game monetization mainly includes the sales of skins and props in the game.

Value-added services refer to services other than general regular services. Value-added services mainly take the form of membership, and membership functions include content, functions, benefits, etc.

The typical model for monetizing value-added services should be video websites. After purchasing a membership, you can remove ads and give priority to watching member videos.

Content monetization platforms are a model that has emerged in recent years, typically knowledge payment and live streaming rewards.

There are two main types of users on the platform, content exporters and content receivers. The main model is for the exporter to make money, the platform shares it, and the receiver pays.

Similar to paying for this kind of knowledge, a typical model is to invite big names in various fields to offer courses, and the platform gets a share of the revenue. On the other hand, the access of big names will also attract traffic to the platform.

Reference materials

Some pictures are from MBA Think Tank Encyclopedia

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