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Chapter 3090 The Logic of Payment
The "expected space" mentioned by Lu Qi is not easy to understand. It is not known whether it is a special term or a concept he created. Fortunately, Zhou Buqi has rich experience in relationships between men and women. He immediately understood this truth by combining it with association.
Some men will be very restrained and well-behaved in front of girls, showing great respect for girls. Without her permission, they have not even held hands. This means that the two have a huge "expected space" in the future, and can have huge imaginations in terms of holding hands, hugging, kissing and going to bed.
This is a free user.
The more a boy licks a dog like this, the lower the loyalty of the girl to him. As long as another suitor appears around her, she is very likely to leave him.
He is not even cheap, this is free.
On the contrary, some men are very wild when facing girls, and they start to touch and move like a little gangster.
When they are a little familiar, they kiss and hug.
Some people can coax, and may take them to a hotel to open a room within a day or a few hours. There is no respect or long-term emotional establishment at all. They are taken over quickly and all the "expected space" is filled.
This makes them paying users.
Holding hands, hugging, kissing, and going to bed. High-end players may also have some more embarrassing and almost humiliating intimate behaviors between men and women, even if all the "expected space" is met.
Her loyalty will be greatly improved.
At this time, if a better guy comes to pursue her, it will be difficult for her to leave. Even if you beat, scold, and cheat, she will beg you not to dump her as long as the "expected space" is filled enough.
Men do this to women, and women do the same to men.
Zhou Buqi has no interest in shameful PUA routines.
However, making products should start from human nature.
The more a product provides to users, the more users like this product; in fact, there is a more high-end product strategy. The more users provide to products, the more users will be inseparable from this product.
Paid products are a kind of support for products by users.
The longer he pays and the more money he spends, the more loyal he will be.
If he is a free user, he only enjoys the service but does not pay for the product. He will not be grateful for it, but will have no loyalty. He will kick you away like a dog, and finally leave a sentence "free is the most expensive" to mock you.
If he is a paid user, he will turn around and lick you.
After explaining this logic, Kurian showed his true colors.
He wanted to provide a shocking theory for Helo's weak position in South Korea.
"Helo can't compete with KakaoTalk in South Korea. Helo's users are decreasing year by year, and there are fewer and fewer advertisers. If you want to save this decline, you must change the concept of Helo in South Korea! Change Helo to a paid product! Only Koreans who pay can use Helo!"
Kurian's argument really broke common sense.
If it's free, people don't use it.
If you pay, people will use it?
Tang Binchen opened his eyes wide.
Lu Qi opened his eyes wide to express surprise.
Zhou Buqi was as steady as a rock, but he was also a little shaken.
You really have to say it!
Human nature is so mean in many cases!
Zhou Buqi pondered and said, "It's just like health products. If you sell it for 10 yuan, no one will buy it. If you sell it for 1,000 yuan, the sales will go up. If you want to change Helo's competitiveness in Korea, you need to change the positioning of the product."
Kurian said, "Yes, you need to change the positioning. Most Koreans are using KakaoTalk. Only a few Korean elites and young people who aspire to enter the elite class will use Helo, and they can communicate with more foreign friends through Helo. In the field of the masses, it is impossible for us to compete with KakaoTalk. Especially since KakaoTalk is actually funded by us, it is even more impossible to surpass it."
Zhou Buqi smiled, "Well, we are family. Half of the shares of the entire Kakao Group are in the hands of our related companies."
Kurian nodded, "Then there is no need to intensify the conflict. Let's take a step back and put the big Koreans in the hands of KakaoTalk. We gave up the market to KakaoTalk. Now, all we have to do is to stabilize the elite class and those young people who expect progress, work hard, and have infinite yearning for the future. We lock in this group and make Helo more in line with this group's positioning. Paying is actually a display of identity. "
Tang Binchen narrowed his eyes and said slowly: "In South Korea, Helo had more than 5 million users at its peak. However, there are only 2.4 million left now, and it is getting smaller and smaller. South Korea's culture is very special, and their nationalism makes it difficult for foreign products to compete with local products. "
Kurian said "um", "According to my estimate, if only paying can use Helo, then the number of Helo users in South Korea will drop sharply, and may drop to 1 million to 1.2 million in an instant. However, the remaining users who are willing to pay can become our loyal users. "
"It's possible. "
Tang Binchen was a little unsure. After all, they started their own business with Boss Zhou and relied on the free model. Doing free business is actually easier than doing paid business, just go all the way. Paid products are different. There are various explanations in them, which are more complicated.
Kurian's weakness is free, and what he is better at is paid products.
If he hadn't joined Ziweixing and received a full set of Internet influence, he might still sneer at the "free + paid" Internet model. What he is best at is purely paid products.
Kurian said: "Payment is just a means to improve product positioning. In fact, the cost does not need to be too high. US$0.99 per month and US$9.9 per year are enough. Payment is just an attitude, proving that Helo is a high-end product , attracting high-end people in South Korea.”
Zhou Buqi said: "In this way, Helo's user base in South Korea will have a clearer and more accurate picture."
Kurian smiled and said: "Yes, this is the benefit of making a niche product. With a clear image and accurate positioning, you can better target this high-net-worth product. Even after it becomes a paid product and the number of users drops significantly, Helo's Advertising fees may increase! Helo can be the best advertising platform for many valuable products.”
Zhou Buqi laughed and said, "Does paid software still need ads?"
"You just need to filter out good ads. Good ads will not only have no negative effects, but will also make users feel valuable." Kurian transitioned to the Internet, and he does not fully agree with the concept of "burning money" on the Internet. "In the final analysis, doing business is to make money. Since it is difficult for us to achieve outstanding results in the Korean market, it is better to stabilize our own territory and search as much as possible on this territory."
Zhou Buqi also understood what Kurian meant.
The Internet casts a wide net and catches few fish.
The cost of casting a wide net is too high.
Few fish were caught.
The income will be relatively low.
Although the revenue ratio of the Internet is high, it is not as good as traditional paid software. In the traditional paid software model, a gross profit margin of 80% is common. In the Internet industry, a gross profit margin of 40% is considered excellent.
Because the traditional model is to cast less nets and catch more fish.
Try to maximize the value of the cast net and catch the most fish.
The cost is low and the income is high, which means the benefit ratio is very high.
This is to adapt to the particularities of the Korean market and transform Helo from an Internet software into a traditional software!
Kurian said: "You just said that South Korea has local cultural protection. I only agree with half of it. It should be a free service. This is not the case with paid services. The software of Oracle, Microsoft, and Adobe have never had a share in the Korean market. It has never been reduced. The stickiness of payment and the sense of superiority brought by payment can break the cultural isolation of this special market in Korea.”
"A very novel idea."
Lu Qi is also an Internet person and has been making free products his whole life. He is actually not sure about the logic of paid products.
You can only look at Zhou Buqi. Only he can make the decision on this kind of matter.
Zhou Buqi was also very uneasy.
What Kurian said is completely different from the product philosophy he insisted on in the past. And the most critical point is that changing Helo from Internet software to traditional software is not a step backwards?
Kurian was very confident and said with a smile: "We might as well do an experiment and see the situation first. Anyway, according to the current momentum, Helo will only get worse and worse in the Korean market. In the end, it is very likely that Helo will be unable to make ends meet, leaving Helo business Completely move away from the Korean market, just like Yahoo, MSN, and eBay. While we still have some breath, why not do an experiment? What if it succeeds? Thailand is also following the Korean trend, and Russia is also very competitive. For Helo, these are all troubles in the future. It is better to use South Korea as a test field to find a way out for Helo in the face of extreme competition and disadvantage. "
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