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If you do n’t have a deep understanding, everyone feels that this industry is full of gold, and MCN should make a profit, but the facts are far less simple than you think.

I worked for three years in an MCN organization mainly doing Taobao live broadcast. I know how hard the anchor is.

It takes about three years to accumulate 400,000 followers. The premise is that you have to do an uninterrupted live broadcast every day, with 7-8 hours of non-rest every time.

Even after the broadcast, I’m going to look for tomorrow’s goods, so Li Jiaqi can’t make so much money that ordinary people can’t do. If the next day is not broadcast, the fans will flow to other anchors, and you dare not rest.

In the past three years, the most profitable thing is not necessarily to rely on the anchor to bring the goods, but to sell live broadcast courses. Free live broadcast courses are published on some platforms, and interested parties will promote them, followed by selling the entire set of courses worth 3750 yuan.

You do n’t know how much these people are craving for overnight storms, so the income of the course accounts for our big part. More importantly, this has become one of the ways to attract future anchors. The interaction between students and teachers will produce a natural sense of trust. Those anchors with better conditions can easily choose to sign a contract with the company.

Why are there so many anchors? Because the liquidity of this industry is too great. Hangzhou’s e-commerce atmosphere is relatively strong nationwide.

In the entire Hangzhou anchor, the proportion of fresh students accounts for about 30%. But most young people can’t stand the hardship, insisting on it for a year at most, and disappearing after at least two days of broadcasting, so finding anchors is a constant proposition in the MCN organization.

The live broadcast industry is not as good as everyone thinks. If there is a big brand to do live broadcasting, it must be the best. Generally, they do not need us to guarantee the bottom. The biggest headache is the small businesses.

But the flies legs are also meat, and the market is not good, we ca n’t give up.

Our method is to cut a live broadcast into 30 pits, each pit will be charged 900 yuan pit fee + 20% commission, so that you can try to bring in the bottom merchants.

For example, if the final sales of a pit is 400 yuan, and a commission of 80 yuan is drawn, then a live broadcast, together with the commission + pit fee, can earn 14400 yuan.

Next, the 100-person amateur live broadcast room (30 pits per person per night) was hatched in the same way, 3000 pits * 900 yuan, which is 2.7 million plates, and then distributed through the agents, each agent ’s commission is 500 yuan / pit, so the 1.2 million net pit fee per night, this is still not a commission.

But do n’t think it ’s profitable, after all, there are so many amateurs to support. Each amateur uses the basic salary + 20% commission to pay the fee.

The anchor who can make money will slowly increase his expenses and consume. For example, the team needs assistants, buyers, makeup, lighting … Doesn’t it all cost?

MCN development process, business type and market size

MCN link platform, KOL and advertisers and other multi-party links, mainly through large-scale signing or incubation of celebrities, help celebrities through content production, packaging promotion, multi-platform operation and other methods of commercial monetization.

For the platform, MCN providesThe rich and high-quality content helps the platform build the content ecology more efficiently.

For KOL, the MCN organization organizes content production in an industrialized way of production, and can provide professional support in the stages of topic selection planning, script creation, shooting and editing.

At the same time, small and medium-sized KOLs are also expected to benefit from the resources given by MCN institutions.

For advertisers, MCN agencies can match up and distribute according to the needs of the brand side, and become a key link in brand advertising marketing.

2012-2014 was the budding period of the MCN industry. Some influential self-media began to appear on platforms such as Weibo and WeChat. Some advertising and marketing companies transformed into MCN.

2015-2016 entered the development period, the capital promoted the rapid rise of the short video PGC industry, the multi-account matrix incubation model evolved, and entrepreneurs began various commercial attempts such as e-commerce and payment.

2017-2018 has entered an explosive period, major platforms have transformed and launched a “content subsidy” strategy, attracting a large number of popular organizations including live streaming guilds to transform MCN.

The number of MCN institutions surged 304% to 1,700 in 2017.

The industry has entered an evolutionary period from 2019. On the one hand, the original MCN strengthened the business output model based on the content output, and closely followed the hot spots such as Taobao live broadcast to broaden its business boundaries; Taking advantage of the rise of new platforms.

MCN business takes content production and operation as the core, and derives a variety of business forms based on this, mainly including seven categories: content production business form, operation business form, marketing business form, e-commerce business form, brokerage business form, community / Knowledge payment format, IP authorization, copyright format.

Among them, the e-commerce business form integrates e-commerce elements in the basic business form to promote sales transformation, and expands the traditional mode of advertising and IP monetization to e-commerce sales and monetization. Monetization method favored by MCN.

The scale of China ’s MCN market at the beginning of 2015 was only 800 million yuan. It developed rapidly in 2016, with a year-on-year growth rate of up to 300%. Since then, it has maintained an absolute growth of 4-5 billion yuan every year.

After 2018, the growth rate of the industry slowed down to about 50%, and gradually entered the integration period. Some small institutions began to be eliminated, and medium and large institutions continued to expand their organizational scale to seek scale effects.

In 2019, the scale of China’s MCN market reached 16.8 billion yuan, and the proportion of medium and large-scale MCN institutions continued to increase.

Comparing 2016 and 2019, the proportion of MCN institutions with fewer than 50 employees decreased from 42% to 18%, and the proportion of MCN with more than 300 employees increased from 11% to 31%.

After going through the outbreak period in 2016 and 2017, capital financing has become more rational, and the scale of industry financing has declined significantly. In 2019, the amount of industry financing was only 3.5 billion yuan.

According to the survey results of 315 MCN institutions by Crawray, in 2018, the organizations with revenue exceeding 50 million exceeded 30%, but the organizations with revenue exceeding 300 million accounted for only about 2%. Han’s fiscal year 2019 revenue was only 1.093 billion yuan, and there was no obvious industry leader.

At present, most of the MCN’s monetization mode is still relatively single. On the basis of consolidating its own advantages, the head institution is also constantly exploring diversified monetization channels suitable for its own operation model.

MCNs with over 100 million revenues have mostly established their own KOL matrix. Due to the accidental creation of head KOL, the incubation of waist and tail KOL has become the core of the major MCNs to expand their business scale.

The total number of MCN network-wide KOL accounts with revenue of more than 100 million yuan usually exceeds one hundred, but the head KOL is usually only single digits.

The main reason is that “people” have typical non-standardized properties. In addition to the company’s operation, the incubation of head net red requires unique personal temperament and opportunities, and it is hardly reproducible. Therefore, major institutions will focus on Net red at the waist and tail of the hatching.

Taking listed company Ruhan as an example, its online celebrity incubation strategy is: select amateurs with basic fans of 2000-3000 for screening, and after formal signing, invest resources within 6-8 months to create KOL design and production The content and delivery platform have prompted it to quickly grow into a waist-end celebrity with 300,000-500,000 fans.

Subsequent commercial monetization through advertising, e-commerce, etc., this strategy has a high success rate of waist red person incubation, which can help the company continue to expand its business scale.

The “big pits” of the brand and MCN cooperation

Of course, due to the large number of MCN organizations and the complex format,Live broadcast e-commerce is also in the air, so there are some “big pits” in the cooperation between MCN and brand vendors. Let’s make a simple inventory:

The first kind: use your money to buy your goods.

First of all, the MCN organization reapplyed its old tricks and used the “beautiful” live broadcast data to attract the attention of the brands. However, due to the emergence of false data in recent years, many brands have begun to be cautious.

In order to reduce the concerns of the brand, the MCN agency generally states in the contract that a live broadcast can reach an order rate of XX%, but the brand must first pay a non-refundable deposit.

In the live broadcast, MCN organizations will use a large number of zombie accounts to place orders frantically. Seeing the soaring sales volume, the brand owners will naturally be happy to raise the pit fee and sales with both hands.

However, when the pit fees and commissions are paid to the account, a large number of zombie accounts apply for a refund, and the order rate supported by the zombie fans is converted to the refund rate.

When the brands responded and sought their theory first, those MCN agencies had already fled and changed their names.

Of course, many people in the industry said that adding a refund rate to the contract should not exceed XX% to avoid such tragedies. Although the idea is good, it can’t stand “the road is one foot high and the devil is high one foot”.

1. When the MCN agency brushes the order, it only purchases the single value within the pit fee + sales commission. Even if all returns are requested by the brand to be fully compensated, there is also a “non-refundable deposit” guarantee.

2. After the MCN agency brushes the order, with the guarantee of the highest refund rate, apply for a refund, and the remaining goods will be resold at a lower price than the normal channel, not only robbing the brand In the limelight, they also earned their pit fees.

The second kind: small profits but quick turnover.

For anyone who knows the live broadcast industry, you must know the pits of anchors like Li Jiaqi, Luo Yonghao, Wei Ya, etc.