In a team of 10,000 people, there will be no more than 10 people earning money.
Editor’s note: This article comes from the WeChat public account “Burning Finance” (ID: rancaijing) .
Author | Jin Yuefan
Edit | Wei Jia
Two other giants turned to social e-commerce.
In the battlefield of social e-commerce, Pinduoduo is the leader of the buyout group, and no one can match it, but it is far from cleaning the battlefield. It was formerly known as the fragrance of Jingdong ’s strategic partner. Ali’s latest social e-commerce product, Tao Xiao Shop, and Xiaomi Youpin’s continued efforts to produce products and fish.
E-commerce giants are betting, but judging from the profitability of the already listed social e-commerce “top three”, this does not seem to be a profitable business.
A few days ago, China Zambian, Yunji, and Weimeng have released their 2019 financial reports. Only Weimeng made use of the SaaS service to make a profit of 311 million yuan, and the other two lost 592 million yuan and 126 million yuan, respectively. From the micro-business model to the membership-based gathering, member revenue fell by 50% year-on-year, while Youzan suffered losses due to a significant increase in sales costs and marketing expenses.
Not only that, but looking back over the past year, social e-commerce has been dead for a lifetime, and the frequency of thunder is quite high. In the past, the unicorn Taojiji took only one year from the e-commerce dark horse to bankruptcy. The head social e-commerce It also exposed the problems of declining revenue and weak membership growth.
Social e-commerce born out of WeChat should originally save the marketing expenses of traditional e-commerce in streaming media, and at least 20-30% of the cost will be distributed to members for commission, but why ” Can’t dreams come into reality? ” Social e-commerce has been on the rise since 2017. Why did it encounter a bottleneck in less than 3 years? What are the routines and lies? This article attempts to find the cause.
01 Two big lies of social e-commerce
Social e-commerce is born out of micro-commerce, and it also inherits its inherent characteristics. All social e-commerce platforms except Pinduoduo are “purchasing member gift packs, or completing specified tasks to become a member or upgrade”. In essence, they are doing head-to-head business. The names can be newcomers / members / gifts, newcomer training fees.
Yunji, Beidian, Global Catcher, Daily Amoy, Global Choice of Yangpu, Xiaohongdian’s Xiaohongdian, Ali’s Amoy Shop, etc. are among the member gift packs. This membership package of varying value has become the platform’s best weapon for harvesting people’s heads, and it is the first big lie of social e-commerce.
Jinna Youpin, the founder of Zhang Jianfu, told Ran Finance that the usual routine of gift-giving packages is sub-optimal. Then find Tmall and JD.com to endorse. JD.com and Tmall have become the best platforms for anchoring prices. Pay homageThe price of package goods is raised, and from the high price, there are high head fees at all levels to earn.
These gift packages for members must be new brands. The category is generally one of beauty, health care products, toys, household items, and home appliances. The price is from 99 yuan to 399 yuan. The actual industrial cost Very low, the cost of 99 yuan gift package can be controlled between 10-15 yuan.
The packaging methods of the brand operators are almost the same. They all use today ’s credible e-commerce platforms as childcare, such as opening a store in Tmall and JD.com, uploading a link to the single product of the brand, and setting a high Due to the high price of membership packages. Not for sales, just to display a commodity benchmark, and provide the commodity to the social e-commerce platform.
Song Hui, a social e-commerce entrepreneur, revealed that the cost of a well-known pseudo-German brand wok is only under 75 yuan, and then go to Tmall and JD.com to hang a sign price of more than 400 yuan to go to major social e-commerce The platform is going to make a gift package of 399 yuan.
A social e-commerce platform often has dozens or hundreds of membership packages. Because of the large profit margins, especially after the rise of social e-commerce in the form of profit sharing by members, membership gift packages have evolved into a large industry. Some supply chains only accept social e-commerce membership gift pack orders, and some brands also take the initiative to do so.
“A 399 yuan gift package carries a commission, usually 100 yuan for a first-level agent, 100 yuan for a commodity manager, and 50 yuan for a director. There are corresponding commissions for each level.” Everyone knows why they are motivated to buy gift packs. What they want is a qualification to earn a head fee.
The vast majority of them are for “lie earning”, and this is another lie of social e-commerce, lying earning is a naked pseudo-proposition.
Social e-commerce platform’s promotional binding word is mostly “lie earning”
Source / Baidu search
“Leeks” call it “income after sleep”. The implication is to earn money when you fall asleep, but it is called “cognitive dividend” in the industry, that is, the sooner you discover a platform, The sooner you enter, the higher your position in the tier deployment, and it is possible to earn the subsidies and incentives issued by the early stage of the platform for the development teamMoney. When the team undergoes a tree-shaped fission, the pool of user conversions is sharply compressed, and there is no possibility for the latecomers to lie.
The “2019 China Social E-commerce Industry Development Report” released by the China Internet Association shows that the number of social e-commerce employees in 2019 will reach 48.01 million. “Hundreds of social platforms are divided into one point, and there are not many people on each platform. Those who can make money are the people who recognized the dividend early.” Zhang Jianfu also revealed that after internal statistics, a team of 10,000 people earned money There will be no more than 10 people. The monthly income of these 10 people can be more than 10,000 or 100,000, but it is also based on these 10 people to create the effect of lying and earning.
Chen Linlin, who has been in the business for eight years, told Ran Finance that she switched from Wechat to social e-commerce, and her daily work remains unchanged. She still spends a lot of time on income, life, and management of friends, all for the purpose of developing offline , To encourage the offline to continue to pull people and sell goods, so as to lie down and earn commissions from them.
Xu Yang, who is about to enter the industry, has heard of many social e-commerce platforms before. When he saw a friend who joined Fragrance showing up 800,000 screenshots of the monthly income, he could n’t help it. But after opening, joining a few training groups, and chatting with group friends, I learned that few people with a monthly income of more than 500 yuan are few, and more people comfort themselves “just save money when shopping.”
Zhang Jianfu analyzed that the efficiency of everyone who promotes purely on WeChat is extremely low. It can affect up to 20 people. Each platform has different marketing methods to motivate the team. Most of them will assign time-limited tasks, such as “how much must be converted at the end of the month. Only people can get any rewards. ”
He has evolved within the team. Most people start from five social circles successively. Family> Immediate family members> Classmates> Friends or colleagues> Others, the next level of transformation is also continued to develop through this circle. line. Almost every team started from this path.
02 Making money: “hijack” official traffic and subsidies
“In fact, in the social e-commerce team, there are two types of people who make money, one is cognition and early investment, and the other is to go to the public domain traffic pool to fool users.” Zhang Jianfu told Fuel Finance. Of course, the latter’s professional operation technique requires resources for promotion, contacts, and customer acquisition. The proportion is also extremely low, accounting for 5% -10% of the practitioners.
The usual practice is to put keywords on mainstream search engines such as Baidu, 360, and Sogou. Generally, you will buy the names of social e-commerce platforms, the words “earn money” and “lie earn” to find accurate users. These industry veterans know that every social e-commerce platform will spend a lot of money to promote after going online, buy brand keywords, and users will definitely go to the search engine to search first during the hesitation period. This gives some people space to operate online, which is equivalent to the platform spending money to advertise and let them do low-cost traffic closure.
Danran Finance and Technology searched for “Fenxiang” in Baidu and found that the top four are not official links or publicity, and