Zhou Hongyi talk about subversion: the Internet business model is not equal to money mode, the product model is more important August 24, 'Zhou Statement: My Internet methodology' book conference and \u0026 ldquo; Internet Transition Guide \u0026 rdquo; share will be held in Beijing. Sharing scene, Zhou shared with more than 1000 participants themselves thinking of the Internet as well as traditional enterprise transformation of the Internet in China. The following is Zhou Hongyi site lectures Record: Thank you very much today to come to my press conference, I actually never thought like me so Cock wire, so \u0026 ldquo; two \u0026 rdquo; a man, the last to the book, and can get everyone's recognition, is really very happy. Because China Successful entrepreneurs generally fall into several categories, there is a successful entrepreneur, theatrical entrepreneurs, ordinary entrepreneurs, as well as two forced entrepreneurs, I often classified as the last category. But many entrepreneurs and SME owners like me, they are actually struggling, so I put some of my experience to give you some reference. We talk about innovation in China, in fact, especially easy: because from top to bottom in particular advocating innovation. We can not wait for everyone Innovation words inscribed on his head. Why China Silicon Valley innovation with the United States still much smaller than later I thought, a very important reason is that we are too lacking \u0026 ldquo;? Spirit; Second \u0026 ldquo. Innovation in fact not doing things normal people, normal people usually had a very good, easy life comfortably, holding the high-wage, corporate development very well, why should innovation? Even when not necessary after a giant innovated. What is innovation? Is the basic dry thing nobody else has done. Nobody else has done something absolutely a minority, most people are not optimistic. You have to adhere to a majority of people are not optimistic about the dry, do not make money, if not afraid of failure, afraid of loneliness, fear no ridicule the spirit of innovation is really difficult. The most important innovation is in fact not the technology, nor the method of writing the book, I think innovation is more often a spiritual need. Steve Jobs speech at Stanford that year when, at the end with a few English speaking, I reluctantly translated it: First, you do not install; second, you do not always carrying, to stay humble and open; third, also little II. To want to succeed, we must first from the palace some time ago, many Chinese entrepreneurs, including some great entrepreneurs suddenly all got a disease, called \u0026 ldquo; \u0026 rdquo ;. anxiety Internet Internet in the past in their eyes is a bunch of kid actor get the foam industry, just know that VC money to burn, do not know how to make money, we are a long way from the Internet. But this year we suddenly feel like the Internet is not an industry, and it has many industries have carried out the impact before it creates value, but also destroyed a lot of value. So there is a kind of very successful people just want me how not to subvert the Internet, how do I use the Internet, called Internet anxiety. Martial arts you have seen, in fact, holy canon words: I want to want to succeed, must first from the palace. Our company called even from the house, may not be successful, exemption. Or else a lot of people did not excel holy canon, evil sword down to practice success. For entrepreneurs from the house easily, for people who really successful from the palace up more trouble. Since the house of my own feeling is that the body lighter, strides are big. In fact I said from the house refers to thinking, is to himself as a fool, do not regard myself as a successful person. The pattern of innovation in the face of the following, forget his past success of all things. We often say that the past 20 years how to be, I'm sorry, you're standing now look at the past, who can see the future you could do very well. Or that in the past we always had so much accumulated and advantages, but I'm sorry, the Internet makes a lot of advantages to become a burden. So I speak from the palace is not the physical from the palace, but a thought of self-cleared. A few days ago I heard a saying, listen very impassioned, he said the Internet thinking is a liar. Many thinking people talk about the Internet is indeed a liar, no one really practiced easily possessed by the devil. But I also hear some traditional entrepreneurs say the Internet can not eat, the Internet also can not solve the real problem. That day I told a story of entrepreneurs. I say, what China Best of invention? The four great inventions in the most cattle are spread civilization, bringing the papermaking and printing, but what is of concern today readers? Audience care about is the content. Readers of this book will be concerned about is where to buy the paper, where print it? Not. So the industry is not to say the industry to subvert the will die, does not mean that the industry does not make sense, it is actually in the value chain being marginalized, being replaced. Corporate subversion, because lost and the user's contact through this book I want to talk about the rationale for some of the Internet. Now talk about the Internet methodology has two schools, a technical school, they often talk about big data engage, engage in cloud computing, engage in mobile devices, in some ways, the use of Internet technology, as we all electricity , the future certainly is such a trend, but can not say that because you home of the electricity, you become a power enterprise or that you would be particularly about the Internet. So I think this is still stuck at the level of art. Another genre is the marketing pie. For example, recently there are many large V out their own experiences on TV, talking about how they drive navy on the Internet, people do push hands, it was as Internet marketing. There are many companies when it comes to how to run the ads on the Internet, he believes this is the Internet thinking. Others say the line under the past have a physical store, shop online have changed now, and I also Lynx, Jingdong opened a pavement, it is not it also called the Internet of the. These two schools are the use of the Internet tactics. But it does not mean that you have electricity supplier, has shop, and began to advertise on the Internet, you can learn on the Internet began to curse the street, which is called Internet technology. This is only the most basic level. I would like to talk to the Internet for some of la corda doro wigs the most principle of understanding: First, the user first. If you think this sounds like special commonplace that we had talked about the customer is God, the customer is always right. In fact, you want to enter the Internet, I think the concept of a user must first establish, in particular, many of the traditional business to do good boss, entrepreneur, you must take the original concept of the customer is switched to the user. Why? I think these two are not the same? These two Cosplay Costumes are not the same. Customer is the concept? Customers spent the money to buy your products and services to people, you need not spend money, you may use your stuff for free, but users must be long-term with your service, you may occur with certain kinds of people to contact. The most important difference is not just toll free inside this issue because the user can also be converted to the customer, but the customer does not necessarily become a user. Think about it, our traditional business, many do more complex, high turnover and then, in essence is a thing to sell to others. This thing is one-shot deal, users paid the money took your product went home, unless later engage in the sale, customers complaints, or client really has nothing to do with you. So between you and the customer is a business only. We think that the future may be more behind this business. In contrast, the Internet is not a most valued up from whom it is necessary to get a one-time money, but to consider how to allow users to have with me a long connection point anything can happen often. Today you see a lot of business because of the original Subversion client either does not exist, either between the client and you lose contact. A corporate hands only money is the poorest, the poor only money. Today's most valuable Internet company who owns a large number of kanzaki h aria wigs users, not just have a user's registered account, the most important is that users often use it every day with it, by using it to produce so-called fans feel, in order to produce Beyond the emotional and economic value of business outside, we have a follow-up to the economic experience and fans. From the Internet business model is concerned, you do not look at the Internet every day to get the bells and whistles, in fact profitable model I own summary to summarize opinions on three things: first, sell things on the Internet, selling real goods, we call electricity supplier. Service to sell the line, we call it O2O. Second, the user virtual value-added service fee income, the most typical is the online games. Third, when you look enough, they do not pay, but there are advertisers pay. The most typical is the search engine, the right of the search engines, based on your keyword search advertising is all related, so today Google is the world's largest advertising company. These three models have a requirement that you have enough user base as a foundation. Do you want to sell something, you must be in a place where people traffic is particularly heavy. Today, if there is not enough flow of Taobao Taobao shop who would go it? Like virtual value-added services on the Internet where people worked all know that today you must have a massive game for free players, will have a small number of players in order to appear with people different, choose to buy props in. Any online game, it may be a few percent of subscribers to feed tens of thousands of mass of users. I think the Internet business model determines the point is to have a user first. Even if you are a greedy businessman, you want to make money on the Internet, but also put aside the idea of making money, I think I was able to provide some valuable service to the Internet and who can give them value creation, They know me, so that they become my users. With such user basis, you just might top to build a value-added service model, you just might build your customer pricing model. Only the first user can create the value to consider commercial value. We think every business should go, who are your customers, you give users what kind of value creation, our business may be experienced enough, I think it may be difficult to immediately say they know how to make money overall, But even if you believe that the user does not make money but to create something valuable service, the user must give you in return. Many people today understand the business model is wrong. In fact I understand the business model: business models not mean money mode, points are many, the most important is the product model. That you do what kind of product that the user what the problem it solves, it creates what value to the user, which is the fundamental of any business model, and then the user mode, that is to say what I found user group, what kind of users are willing to use my stuff, can solve his rigid demand. If you are a company's CEO, you must first put their own business as a product, if you do not understand the product, you are just in the flicker to make money, not make a good product, all strategies are castles in the air. With user mode, with the product model, you may also have a market model to extend it out. After obtaining a certain user base, the fourth step might you be able world of warcraft cosplay to say I'm gone my construction revenue model, that is my money mode. If there is no previous bedding, we go up the first step to a straight line between two points, went straight to the model to make money, I see a lot of Internet companies is not established, and even many great Internet company after his success, you see to his model to make money, you do not see him in order to achieve profitable mode, the front is how to make the product, so users do promotion to pave the way. We are talking about the future business model, be sure to think about it is what step. I advocate forget mode, less talk a bit doctrine, more work done on the user valuable products, with the products, with the user, patterns came naturally. I for users and customers there is a very important to understand, is how to change the relationship between the growth stage of the customer's users and you keep dealing with, this is the biggest problem. User one week and use your product once a day with your user is not the same product black butler wigs twice. Today, users do, to temporarily forget your index among customers, the size of your income, you have to think about how you allow users to generate knowledge, this knowledge is the time many of our enterprises in the transformation of the Internet's most important. The biggest challenge is that when the value of the interests of users, or users and your business model conflicts, you can not really like when I do give it free antivirus 2 million in revenue, it is possible to pursue a real free, thereby win customers. If you really can do it, I think this is the best interpretation of user-oriented. Free is the most powerful means of competition free very lethal, because free is very appealing to users. Internet special case is put off your business for free, but the fierce competition to repeat itself. I think it unlikely that the original hardware is free, but the recent discovery of the hardware free trend has come. The most typical is the existence of mobile operators to send phone calls, pay 2 consecutive years of calls, calls high profits that he can cover for you this phone costs, making it possible to send mobile phones. Another trend I call it the hardware free of charge, not that it is a zero price to sell, but sell at cost price. Today you see Internet TV, Internet box, then you'll find free hardware price extremely low. Today, how to sell TVs with music as such enterprises to compete? People to your original business into a profitable business for free, does not exist price war. These one-time only know to make money selling hardware vendors face of this free strategy how they follow up? Do not run up users, up from the palace himself, and no revenue, no profits. Internet companies never talk about margins, what we want is a user conversion rate. In this case, these traditional manufacturers can not compete, so free is indeed very, very potent indeed. Each of you will be able to consider how to create a free business to my competitors to make money out of the business for free, this is the most powerful means of competition. But at the same time you have to watch out for my core business how not to subvert the others, or I can not really original core business of free time, how I was able to create some new services to provide users with free services. I emphasize free, but free how to make money is very important. 360 years ago suffered a great injustice to this end, as do 360 free antivirus, when anti-virus vendors to whining that we sell anti-virus for 20 years, Zhou said to be free, he must be a liar. Finally, they do not understand the Internet with their little brain originally is like a long time, they are making money by Arctic Monkeys privacy. Including 360 to the US market, when investors also do not understand that you claimed to be China's largest security company, antivirus software, but not a penny of income from the sale of software, you rely on to make money. Later, the United States found that many Chinese liar short, so short that we 8 times, and gave me an opportunity to explain how we go around making money. With the Internet this year thinking, we are slowly understand, the original free Internet thinking very important point, free also to establish health and healthy business model. Free how to build the business model? It is free to use to create a user group, based on the user group you want to make money, would the wool in pigs. For businesses, this time there will be a challenge, companies can no longer stick to their original areas, and must be cross-border. I think this is free of charge to the industry to bring enormous challenges. That is, if you define yourself as I was then a shop selling mobile phone company, I am selling a television company, I was doing a communications operator, I'm sorry, most likely you will be the original core business of others by Free to impact, and you can not cope. No response is to die, to deal with a death wish, which forced you to do cross-border, you have to enter a new field, in new areas to find ways to use your user base to establish a new product model, the establishment of new revenue models. So the reason is very simple, if it's just to do antivirus 360, just like those anti-virus vendors, we do free must be a dead end, but we did a browser, after we have done with the browser to navigate in the browser to do search, web games do. So many anti-virus vendors will feel very first do not understand, he felt that much work, that is deviant, but today many of China's anti-virus vendors have become our disciples. They earn through free mode, maybe more than the original anti-virus software do a lot more money. Why today's cross-border Internet company in crazy? We were the original basis weakened people, we are building new products and revenue models. So sometimes I joke, I told some entrepreneurs say that in the face of the tide of free Internet time, what is very important is the problem? First, reposition themselves. Everyone can not then say that I had secured himself what to do, I will always do. Second, look for clear who is your enemy, who is your opponent. We say peer is the enemy, in this case, your original counterparts is likely to no longer be your enemy, and he is a victim like you, your enemy is totally unaware of you. I started eight years ago, when free antivirus, Baidu may not expect this one to do free antivirus vendor results may become his rival, we rushed into the field of search engines, yesterday we got 30% share, change China's search for a dominant situation. Subvert not just a slogan many people confidence that I want to subvert Tencent, I want to subvert the 360, I think there are very good this ambition, but you know are not true subversive Boxer-style ambitions, by shouting slogans, sensational singing songs can do. Subversion where to start? There are three types of subversion. The