Reborn As The Billionaire National Husband, The Boss Of Populus Euphratica!

No matter how stupid you are, as long as you are in business, you will know that many businesses on the Internet do not actually depend on how much money your company can make, but on how many users your product has.

This matter is actually not difficult to understand at all.

Generally speaking, valuation represents the potential value of a company and is one of the judgment criteria for investors.

At present, many new economy companies no longer attach so much importance to short-term profits, and it is difficult to use profitability to measure their development prospects, so valuation is even more important for these new economy companies.

In addition, valuation can also determine the equity that the company needs to hand over to investors in exchange for investment.

There are many specific valuation methods, such as the five million yuan upper limit method, Box method, three-point method, price-earnings ratio method, multiple method, venture capital investor-specific evaluation method, etc. The focus is also different, and each investment bank and buyer , The seller’s financial advisor will have his or her own choice.

However, in these estimation processes, four points are very important.

The number of users, node distance, liquidity, and monopoly premium determine the value of Internet companies to a large extent.

This is why Lin Yuanfang and others were surprised when Wang Cong talked about users.

Because they all know how significant the number of users of an Internet company is.

For Internet companies, there are two most important assets, one is the team, and the other is users.

Team quality is usually difficult to quantify and has large variables, but we can directly see the number of users. Therefore, when measuring the value of an Internet company, the user base has the greatest impact.

Computer network pioneer Robert Metcalfe proposed Metcalfe's Law in the 1970s: the value of a network grows at the rate of the square of the number of users.

Simply put, Metcalfe's Law believes that the value of the Internet lies in the links of nodes. The more nodes there are, the greater the number of potentially linkable nodes.

In other words, the more users a company has, the more nodes and links it has, and the value of the company will be greater.

"understand?"

Wang Cong looked at Lin Yuanfang and others and said seriously.

After all, he wanted to invest tens of millions in business, and he knew very well that the other party would not agree just because of his few words.

He simply patiently explained it to a few people.

Although Lin Yuanfang and others didn't quite understand what Wang Cong meant, they still listened carefully.

"According to your statement, if the number of nodes is greater, wouldn't it mean that the value of the enterprise will be higher?

Lin Yuanfang thought for a while and asked Wang Cong.

Wang Cong nodded: "There is indeed such a statement.

Lin Yuanfang's question is actually not wrong at all.

The number of nodes also has a critical point. When an enterprise's user scale or number of nodes reaches a critical point, its value will grow explosively.

To take the simplest example, one phone has no value, and a few phones have very limited value. But when thousands of phones appear, a communication network will be formed. "Then the value of communication technology can be maximized.

This is why many Internet companies now desire "user growth" more than "short-term profits", such as JD.com.

Wang Cong continued with a smile: "Actually, there is another problem, which is the node distance."

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His words made Lin Yuanfang and others frown again.

no way.

These things Wang Cong said are all blind spots in their knowledge.

Looking at their looks, Wang Cong couldn't help but smile secretly in his heart.

To know.

In fact, he didn't know much about these things, but before his rebirth, he happened to be filming a movie about Internet companies, and he actually read some information on this aspect.

Now it is just enough to fool Lin Yuanfang and his friends.

"Node distance. The distance between two nodes is usually affected by external and internal factors. The external factors include science and technology, infrastructure, etc., while the internal factors are more reflected in the creativity of the enterprise. Some people believe that if there is only one The network center connects many users, and there is no connection between nodes, so the value of this kind of network is not high."

Wang Cong faced Lin Yuanfang and others and talked eloquently: "To put it simply, Internet companies now are pursuing a keyword ecosystem, that is, after users form a certain scale, they will create a one-stop service platform for users. For example, Penguin Group has many products, and users of these products can achieve effective connections. The ecosystem created by Penguin Group shortens the distance between nodes, thereby maximizing value."

Everyone nodded one after another. I have to say that what Wang Cong said is right and makes sense.

Of course.

Wang Cong actually wanted to give them an example of Ant Financial, but unfortunately, Ma Xiaoyun has not yet started to develop Ant Financial, so he can only give up.

However, there are actually similar companies in China.

That's Xiaomi.

It is famous for its mobile phones, but the biggest difference between it and other mobile phone hardware manufacturers is that Xiaomi has built an ecosystem composed of hundreds of companies. This ecosystem can shorten the distance between nodes and maximize user value.

"According to you, how can a company like Sohu and Weibo monetize?"

At this moment.

A man sitting across from Wang Cong asked.

His name is Zhao Yang, he is one of Lin Yuanfang's best friends, and his family is from the Yanjing Municipal Bureau.

I ask this not because I don’t believe Wang Cong, but because they don’t quite understand how Internet companies operate.

Naturally, I am very curious about this issue.

Wang Cong smiled slightly: "It's actually very simple. The stronger a company's ability to monetize its assets, the higher its quality. Combined with user scale and node distance, the monetization ability of Internet companies also varies.

"To put it simply, if an Internet company has enough users, it does not need to rely on advertising to monetize, it only needs to collect membership fees. You know, the more users a company has, the higher its monetization ability, and its market value will naturally be higher. The higher it is.”

"Analysed from a professional perspective, the specific calculation method of a company's liquidity involves financial indicators such as current ratio, quick ratio, cash ratio, capital turnover rate, liquidation value ratio and interest payment multiple."

Wang Cong said this.

After looking at a few people, he said calmly: "This aspect is too professional. I suggest that if you want to know more, you might as well find a professional to ask."

wipe!

Several people looked at each other, obviously understanding what Wang Cong meant.

People are afraid that what you say is too profound and they won't understand.

Seeing their thoughtful expressions, Wang Cong laughed.

In fact, there was one thing he hadn't made clear to them.

That is, the Internet is an industry with the most obvious head effect. The rich get richer and the poor get poorer.

Every field of the Internet is composed of many companies, but everyone is familiar with those companies that stand at the top.

Another interesting thing (from Zhao) is that the more companies enter this field, the stronger people's preference for leading companies will be.

But they don't need to understand this, and Wang Cong doesn't intend to tell them.

"By the way, what's the new company?"

Lin Yuanfang remembered something and asked Chuang curiously.

Others were also curious.

After all, they already recognized Wang Cong's abilities.

The lessons learned from Sohu Weibo's mistakes are there. No one will think that the young man in front of them is not good enough.

Everyone is just worried about whether Wang Cong has the ability to create another miracle like Sohu Weibo.

"ByteDance."

Wang Cong heard Lin Yuanfang's question, thought for a while, and said casually: "Bytes are the most basic thing in Internet programs. I hope we can use the constantly beating bytes to attract more and more users to pay attention to our company!"

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