Sunday, October 24, 2010

Free patterns subversive

Although the free model has been discussed for a long time, but I found that many people are still misunderstanding.

I think the "free" is the Internet's genes and blood. If a service is we all need, it must be free, such as search, instant messaging and so on; but the value-added services, not everyone should use, you can be charged. Such as playing games, you do not want to spend time grinding on the inside; some people buy a sword directly on the Swordsman, so the sale of props can be a value-added services.

Chris Anderson summed up the free theory and the Long Tail have built a huge user base, the otherwise can not work. China and the U.S. in the Internet world in the same starting line, also has the largest population, traditionally have 300 million Internet users, mobile users will reach 6 700 million. Therefore, China can find good examples of free patterns, such as Tencent and 360.

Get a free service after a huge user base, then the cost of access to users is almost zero. If the introduction of new products such as Tencent, only their own users to be a description, overnight, a lot of people to use. In addition to value-added service charges, cost savings on the market and huge brand value, is free of charge to the intangible asset model obtained.

I have to do with Charles Zhang said input very good, he say no money, but he found a dog through a free input method can establish the brand and reputation, than to spend the same money play much better advertising results. Such as Mengniu, Yili annual cost a lot of these traditional companies do a lot of advertising in the CCTV, but the real with the 360, Thunderbolt these Internet companies than the last people who come into contact with many? Has a huge user base, follow-up marketing to enter the virtuous circle basically no marketing costs.

But "free" model looks simple, not everyone can do. If you enter an existing market giants, fierce competition, often requires a lot of input. For example, 360 years ago into the security market, it is because we have the support of several million U.S. dollars, or security software is really free to do with their Rising competition is difficult to stick to it. But judging from the United States, Web2.0 era, many creative input is not significant advance, including Twitter, but only if you have a special innovation, to New Two years later we still can not understand how did Twitter matter.

We are easy to make a mistake, that is to take existing business model to cover new applications. For example, Yahoo is doing Banner ads, Google will not operate, but do keyword advertising, this is a commercial model of subversion. Out to Facebook, many people will use search engines point of view of it should do targeted ads, proven advertising model which does not work, Facebook's revenue depends mainly on value-added services, which some like Tencent model.

Look at Twitter, I can tell you, the Company's micro-Bo is not Twitter, it's business model is doomed Sina on the original media model, advertising, or with the operator split, they do not really understand Twitter. I think that, Twitter is a revolution in the future, it may include the Internet, Google is a kind of subversion, this is under way. We can not use the traditional gateway to the business model to see Twitter, or would come to wrong conclusions. Twitter allows communication between people is not a "one on one" or simply "one to many", but a complex network. When the terminal is no longer limited to the Web site Twitter, there may be television, mobile phones, the Internet is subversive, then, now many Internet products will be completely Xiecai, it can ruin an old industry, which is the power of the revolution !

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