How does the Internet survive?

Three Essentials for Internet Survival

Recently, my friends and I often talk about entrepreneurship and development on the Internet. I have summarized the survival and development of the Internet and summarized it into several major principles.

Xique is the king

Is Xique the king a typo (the winner is the king)? Of course not, just these four words. Why are these four words? Please listen to me explain slowly. What kind of Internet websites in China are really profitable? The answer is: Only the remaining websites from the large number of websites that have gone through the waves can make money. How many websites were there in the early days of the Internet in China? Most of them must have made money if they survive now. For example: Sina (sina), Sohu (sohu), and NetEase (163) among portal websites; among vertical portals, real estate portal Soufun, financial industry portal Financial Street (jrj) and Xun (hexun); among literary websites The starting point (cmfu), under the banyan tree (rongshuxia); in the automotive category, xcar (xcar), China Cars (chinacars); B2B representative Alibaba (alibaba). These are all success stories. Those websites that failed to persist slowly disappeared from the market. "Yinghaiwei", which was at its peak at that time, did not survive and disappeared from this market. There are so many such websites that have disappeared during the development of the Internet that it is difficult to count. As far as the real estate websites that I know of, there are no less than 1,000 websites that have appeared on the market, but there are only a few that have really survived and are well-known to everyone. It is an absolute truth that the Internet is dominated by the leftovers.

The three principles of the website

What is the most important income of the website? In advertising, advertisers generally invest advertising costs in the top three hands of a certain industry. In other words, in a certain Internet industry, if a website ranks fourth in the industry, it will be difficult to continue to do so.

For example, if I were a company and needed to recruit people, the three websites I would consider are chinahr, 51job, and zhaopin. But it is difficult to consider the fourth website. (Of course, some more professional websites can still make money, such as SP’s Talent Network)

Let’s take a look at the three giants of the Internet:

Portals: sina, sohu, 163 (The portal situation is quite special. There is also QQ. Although the traffic is large, most of the traffic comes from young people. It can be understood that the traditional portals are sina, sohu, and 163, and the emerging youth portals are QQ, sina, and Mop)

Talents: chinahr, 51job, zhaopin

Friends: Jiayuan, Marry Wo.com, Baihe.com

Cars: at least these are Pacific Automobile and Aika Automobile , Sina Auto, Autohome, Online Auto Market, China Automotive Network. Several of these companies are burning money. Once they run out of money, I believe the market capacity will be around three.

Real estate: Soufun, Focus, local portals (real estate is regionally operated, if it is a website affiliated with Qingdao News Group in Qingdao)

Search: Baidu accounts for 60% of the market Google accounts for 20% of the market, iask, sogou, yisou (Yahoo), zhongsou, etc. divide the remaining market. Among them, iask, sogou, yisou, and zhongsou are all burning money. When all the money is burned, there will probably be one left. Please refer to the first article of this article for principles.

Every Internet segment industry is following this principle, so you can pay attention to it. If there are more than three large websites in a certain market segment, then several of them must be burning money, and they will abide by this principle when everyone runs out of money.

Let’s talk about the most important principles

Details are king

The characteristics of the Internet determine that the user’s transfer cost is very low, which is different from traditional industries. It’s the same. For example, if we buy a car of brand A, if the user is unhappy and wants to change to a car of brand B, the transfer cost will be very high. But Internet transfer costs are low. For example, if I opened Sohu's page this morning and found it was very slow, I would close it immediately and then turn around and go to Sina's page. Therefore, the Internet is a place that pays more attention to details. It can be said that whoever does the details well will have a higher number of visits and will be more successful.