The title picture comes from: Oriental IC

There is a recent saying: today is the “free era 2.0”, which is also the “money era”.

The words are a bit rough and also an insight.

The “free era” is an old stalk, “free era 1.0” is just no charge, first watch the news for free (Portal) , Use search engine for free (Yahoo, Baidu) , email free, then online games free, videos free, antivirus software free, later Google will Library information retrieval, mailbox, map, photo management, office software are all free.

“Free Age 2.0” started in the last seven or eight years. Not only is 99% of content and apps free, it even found gold directly, and it is not limited to the Internet.

The economist Friedman bluntly stated: “It is better to send money directly than social security.”

The steps to send money directly are simple and easy to calculate. The government only needs to send the money directly to the citizens’ accounts without having to bear a whole set of bureaucratic system and many welfare institutions. It would be more affordable to pay salaries to civil servants directly.

This view seems ridiculous. Some countries really do it this way.

Finland intends to pay 800 euros per month to its citizens. The price is that many social security will be cancelled at the same time, and the government will save money instead.

In recent years, there is even a popular trend in the world called “unconditional basic income”, that is, the government sends money to the people every month. Switzerland has already begun to do this, The goal is for everyone to do what they do best, according to their interests.

Going back to the Internet and directly discovering the golden red envelope is already a basic action.

In recent years, financial data released by companies including Didi Taxi, Meituan Takeaway, Ruixing Coffee, Pinduoduo, Qutou Toutiao, etc. The words “1 billion subsidies” and “tens of billions of subsidies” are everywhere and it is difficult to find Internet companies that don’t subsidize users anymore.

It is said that Didi, Meituan, and Pinduoduo all provide users with tens of billions of subsidies every year. 2,000 yuan, 3,000 yuan, this subsidy is almost beyond common sense) , the difference is that Meituan began to make a profit, Didi and Pinduoduo are still on the way.

Many young entrepreneurs hold business plans and say that my product design is better than WeChat and better than Taobao, so I can beat Tencent and Alibaba. Actually, they didn’t understand the world at all.

It’s not that there is something wrong with their product design, but that no matter how good the product design is, it’s useless. why?

The real product is the user and the data.

There is a saying in “Free Age 1.0”: If you buy a product without paying, then you are the product itself.

“Free Age 2.0” is even more brutal: How much money do you have to send a red envelope to a user to start a business?

However, subsidized users do n’t have to send out red envelopes. The key is what kind of vision and pattern do you have:

From a micro perspective, you can test the user ’s pain points, cool points, and psychological defense; in the middle of it, it is a kind of “track deterrence”. I have the determination of this strength. If you do not, warn potential opponents not to enter this field; From a macro perspective, the huge subsidies instead bring greater profits, indicating that you have a deep understanding and influence of users, which will gradually become your “ecological sovereignty”.

Specifically, how can it be smart to send red envelopes to users?

Subsidies are unavoidable, and the focus is on the efficiency of spending money.

Tencent CEO Liu Chiping once said, The users obtained through subsidies may not be your real users, and they will leave if the subsidies stop.

In addition to wasting resources, the bigger blow is that the company may be blinded by false growth and fail to do what is truly valuable to users.

For mature stock markets, (such as Weibo, WeChat) , Liu Chiping’s words are undoubtedly correct.

For more Internet entrepreneurs who have expanded their territories, Without subsidies, it is really difficult to precipitate users.

How to improve the efficiency of spending money may be a more pragmatic issue.

I think there are at least five aspects to consider:

01 precipitation Users, aim at the 20% tipping point

Any large tuyere originally originated in the marginal zone.

The concentrated outbreak of the PC Internet started in 2005. The Internet penetration rate in China reached just 20% that year, as did the outbreak of the mobile Internet in 2013.

Why VR (virtual reality) and the blockchain can’t do it temporarily? There may be less than 1% of people using related technology products around you. At this time, it is useless to subsidize and cultivate users.

In the early days of the rise of the online ride-hailing market, there were at least dozens of online ride-hailing companies in China. When you found that 10% of people around you started calling for cars online, Didi resolutely resolutely subsidized users and blocked competitors. When the user penetration rate exceeded 20%, the market was completely detonated. After several rounds of fierce battles, Didi became the dominant company.

It all started with Didi at the most appropriate time to radically subsidize users. This was when it was most efficient to spend money.

02 The worst subsidy for small and long-distance businesses

For example, even if Pinduoduo has huge annual losses and huge subsidies, the number of users has surged (Active users have broken the 500 million mark) , instead Attract many investors.

It is not so much subsidizing users as it is subsidizing investor confidence.

06 How to stir user uproar

In recent years, there have been fun riots almost every year.

For example, the “Ice Bucket Challenge” that was popular all over the world, including Lei Jun, Jack Ma, Elon Musk, Bill Gates and other business leaders have gone crazy; this year’s hottest riot in China is probably It is a “blind box game” that the “post-90s” and “post-00s” circles are all playing.

You may be particularly confused: How can these so-not-technical gameplay attract so many people to go crazy and go crazy?

American sociologist Mark Granovetter (Mark Granovetter) -known for inventing the concept of “weak ties” The sociologist of the world-proposed a “threshold model of disturbances”.

Unexpectedly, this turbulent model was played by the Chinese Internet company (Putuoduo, interesting headlines) .

There are three kinds of people in the world:

The first kind of person dares to try anything new and will act without any incentive; the second kind of person may have an idea, but the defense is too heavy to win othersOften different. It depends on how you knead all kinds of uncertain refreshments and certain refreshments together to make the users endless pleasure and excitement.

Smart marketing is endless turmoil. ……………………………