The Internet Profit Model from the Perspective of Dedao App

There is no unified way to classify profit models in the industry. At most, I have seen more than 70 types, but in essence, there are only a few. In this article I divide them into five categories.

1. Traffic monetization

All models that find ways to direct website traffic to specific locations and charge those who obtain the traffic fall into this category. For example: various advertisements, navigation sites, mobile application distribution , etc.

The characteristic of this model is that, in theory, the more traffic, the more profit. Generally speaking, people only recognize "traffic" and not "people". In other words, in theory, the traffic value of a click from me and a click from Ma Huateng is the same.

2. Value-added services

Many tool products use this type of profit model. Simply put, there are some functions/content that you must pay to use/watch. For example: switching between high-definition versions of various membership and video websites, etc.

The underlying logic of the value-added service model is to use free functions or content to attract enough users and traffic, and then "encourage" them to pay.

3. Commission sharing

In traditional industries, commissions and profits are a common profit model. For example, when we buy or rent a house, we have to pay an "agency fee", which is the commission. Among Internet products, theoretically all products with "cash flow" can consider this type of model.

For example: B2C e-commerce platforms ( Tmall, etc.), third-party payment tools ( Alipay, etc.), various open platforms, various Android app stores , etc.

4. Paid services

This type of model is relatively simple, it is purely "selling things". For example: JD.com ’s self-operated business, various “cloud services”, paid software, movies and novels that require payment, etc.

5. Others

The above four are common profit models for most Internet products. Of course, there are still some relatively complex or gray areas, but they are generally not widely used and are uniformly classified into other categories. For example:

• Financial appreciation (collecting a deposit and using it to make more money)
• Paid development (various outsourcing companies)

While writing this chapter, I noticed the app called " Dedao " - the "Dedao" app founded by Luo Zhenyu , the initiator of the famous talk show " Luoji Siwei ". After carefully experiencing this product, I found that Lao Luo has basically used all of the above-mentioned four most common profit models of Internet products in his products, and combined them very naturally and efficiently.

First of all, in this app, Luo Zhenyu’s column "Luoji Siwei" only costs 1 yuan to subscribe, which is basically considered free. In other words, the most basic content in this app is free - this is a "value-added service" . The "free" "Luoji Siwei" attracts a large number of users and traffic, and then "finds ways" to get them to buy value-added services, that is, columns from various other big names. These columns are all paid.

Therefore, the profit model of other columns besides "Luoji Siwei" is "paid service" - directly selling content.

At the same time, in "Luoji Siwei", Luo Zhenyu will quote content from other columns more and more frequently. You often hear content like "There is an article like this in the ××× column of the Get App recently", which can actually be seen as "diverting traffic" to other content, that is, - monetizing traffic .

Finally, I don’t know whether the course fees of the current instructors on Getui need to be shared with the Getui platform. But it is obvious that even if it does not exist at present, the profit-sharing model will be a natural model in the future. Because this is a typical case, Duoduo provides the platform, traffic, technical services, and cash flow must also pass through Duoduo, fully meeting the basic requirements of the "commission sharing" model.

To sum up, Luo Zhenyu is an operational expert, I really admire him!

Author: Liu Hanyu, authorized to publish by Qinggua Media .

Source: uxcafe