Reboot 2003

Chapter 63 063: Up and Down
Gu Wenjie's skill in painting cakes is very ordinary. Of course, Chen Qin can see that his actions are a bit reckless, but...it's not incomprehensible.

Just as Chen Qin had planned in advance, the development direction he provided Gu Wenjie was to develop towards the upstream of the industry, but what Gu Wenjie saw was the downstream of the industry.

Traffic is the provider of advertisements, while games are the consumers of advertisements. Today's industry environment is that traffic is easy to obtain, but there are few ways to monetize it, so everyone is running downstream with their heads sharpened. Gu Wenjie is in this environment. Although he has monetization channels, he still wants to go downstream... This is a completely understandable idea.

Of course, Chen Qin also had his own ideas, so he rejected this matter... and the reason why Chen Qin didn't support it was simply because he was worried that his steps would be too big.

But as Gu Wenjie's good entrepreneurial partner, although Boss Chen occasionally engages in some innocuous jokes, but most of the time, he will seriously give Gu Wenjie advice--one-third of Kuaikan's company is his own assets, of course, this kind of thing can't be completely ignored.

So Chen Qin thought about it, and said to Gu Wenjie:

"It's not that serious... In fact, the game market does have great prospects, but I mean it is difficult to make a lot of money in this field. Compared with advertising, it needs too many things."

Gu Wenjie humbly asked for advice: "Then what do you think should be done?"

"You are the CEO. If you ask me what to do, then I don't know." Chen Qin thought for a while and said, "If you have to ask, I will give you three strategies. In short, I am just giving you an idea. In the end, you can decide for yourself."

Gu Wenjie became excited: "Okay, let's have a voice!"

After speaking, he rushed to call, and Chen Qin quickly hung up: "The child at home is going to bed soon."

Looking back, although Xu Lingling wasn't sleeping, she was packing up those mountain goods with her grandma.

Gu Wenjie quickly suppressed his excitement, and asked humbly: "Okay, then speak slowly, and listen to the best policy first."

Chen Qin typed for him: "The best policy, do you know the story of the San Francisco Gold Rush? When gold mines were discovered, the ones who made the most money were not the gold diggers, but the ones who sold hoes to the gold diggers."

Gu Wenjie replied: "I know. In fact, it was your idea to cooperate with the Internet cafe at the beginning. Now it seems that this decision is really right."

Chen Qin continued: "The reason why we can contact Internet cafes is because we have a pricing platform. The cost of contacting Internet cafes for ordinary advertisers is too high, not to mention that the advertising effect is unpredictable. Even if the advertisement banners are sent to them, the store will not know whether they have been played. But we automatically calculate the price by click. The more Internet cafes promote advertisements, the higher their own income.

"Yes, yes, yes, I know!" Gu Wenjie became excited, "And the traffic is really high-quality, it's like pushing whoever can get it, so I think this can really make money, and we can definitely make it by building an online game..."

Gu Wenjie was so excited that he seemed to jump up from the opposite side of the screen, Chen Qin quickly steadied him: "Don't worry."

"The reason why you think Internet cafe traffic is a loss to ordinary customers is because Internet cafe clicks have more conversion value than ordinary clicks, and many network administrators can even directly promote games to users, so our current billing method based on clicks is no longer suitable for Internet cafes."

"My suggestion is to further establish a billing method related to Internet cafes. We can use new billing methods such as registration billing and even commission billing to cooperate with physical occasions such as Internet cafes."

"This will strengthen our cooperative relationship with Internet cafes and further strengthen our position in the field of game advertising. It is the best strategy to serve multiple purposes."

"Excellent, why didn't I think of it!" Gu Wenjie seemed to jump up again, "Then what is the middle strategy?"

"The medium policy is of course not as good as the best policy, but the best policy is a win-win and harmonious development route for all parties. However, if we have to monopolize the benefits, it is not impossible to operate, but it may seem more independent..."

"You mean we charge commissions for customers, but pay per click for Internet cafes?"

"No, if this is the case, it will definitely be exposed. But we can set up a channel, such as an Internet cafe system." Chen Qin said, "At that time, we can use our monopoly position to only allow games that pass through our system to use the new billing method, and then charge channel fees in our system based on a percentage."

Gu Wenjieqi asked: "You mean a point card sales platform like Shanda? Can this work?"

"Sure, the current point card income, and other value-added prop income are fine."

"Oh... I see," Gu Wenjie asked, "We can charge them for advertising, and at the same time take a commission from their point cards!"

"That's right." Chen Qin said, "What's more important is to create a closed-loop ecosystem. Games that don't join this system will not be provided with Internet cafe advertisements. In this way, we can collect money from both ends, which is the choice to maximize revenue. This is the middle strategy."

"It's a good strategy, it really is a poisonous strategy!" Gu Wenjie asked again, "Then what's the worst strategy?"

"It's a bad idea..." Chen Qin said, "That is to say, if you insist on representing a game, you won't be able to represent a big hit like World of Warcraft. In fact, it is not impossible, but as I reminded you, this market is now highly competitive. You have to think about what advantages we have."

"Promote." Gu Wenjie immediately replied, "Those games with poor quality can be successful with promotion. If our quality reaches the passing line, and we go back and do it again, I think it is quite easy to make money."

But Chen Qin said to him: "No, Wen Jie, you only see them making money, but it is very likely that they will go bankrupt in two or three months. This is the case in our Internet industry. How many websites are alive three years ago? You see, 8848 and fm365 were so beautiful back then, and they disappeared in a blink of an eye."

Gu Wenjie also calmed down: "Okay, I know you're right..."

"So if you want to do it, you have to be the leading one in the industry. QQ was so successful in the first wave of online social networking. Legendary is so successful by relying on offline point card sales channels. Now that you want to make games, do you know what the direction of the game industry is?"

Gu Wenjie hesitated: "Is it a new pricing advertisement?"

"That's where the advertising industry is going, and I'm talking about where the gaming industry is going."

Gu Wenjie was frank: "I can't see it."

"It's free." Chen Qin taught him, "Since you know how to represent South Korean games, then you should know that NEXON's most popular game recently is B&B. This game is a casual game, completely free, and is charged by props. At first, it was mainly for the youth market, but the income is not lower than that of ordinary card games."

"Oh...but how do free games make money?" Gu Wenjie didn't turn the corner, "How much income can I get from charging items?"

"I guess it should be possible. Nowadays, many private servers are free games, but they can still make a lot of money, because players think that private servers are more enjoyable, and relying on props to compare with each other can make them spend dozens or hundreds of people's card money."

Chen Qin said, but he didn’t get entangled in this subjective issue, and said: “In addition, the general trend of the Internet is free. You should be more aware of this. Freedom can seize users. In the past, IE defeated Netscape with free, Google defeated Infoseek with free, and now Ali is fighting against eBay with free. We also rely on free platforms. We can’t lose this strategy. Free is the trend of everything.”

He also warned him: "If you want to catch up from behind in the mature market, free is the best opportunity to seize the corner overtaking opportunity. Our current qualifications should not be able to get a good agency list, and it is unlikely that we will develop a super game all at once. If we want it to occupy more market share, we can only go for free."

"Okay... I understand, this is the best strategy, and everything has been considered."

"So, which one do you think should be used?"

"What do you think?"

"I'm only in charge of being a dog-headed military adviser, and you are the CEO. But even though I said so, I have marked the top, middle and bottom, do you want to choose the bottom?"

"No, I mean, can I have it all...haha!"

"It depends on how much money you are willing to invest!"

(End of this chapter)