47: Chapter 47: A mind-blowing half-sheet of A4 paper

"If we really want to go head-to-head, we need to prepare at least another hundred million in capital to keep burning."

At this point, General Manager Chen Shengqiang gave a bitter smile and voiced his hidden concerns:

"To be honest, from the perspective of financial investment, this battle... is not worth fighting."

Because this is a blind spot for monetization in this era.

In 2011, there was a consensus in the internet circle: building a social platform is extremely capital-intensive and incredibly difficult to monetize directly.

As for live streaming and Short Video, they were simply too novel and too advanced for this era.

Even the infrastructure was still feeling its way across the river; ordinary people couldn't see any way to make money from it.

"I have carefully deduced all the product logic of 'Spark'..."

In General Manager Chen Shengqiang's tone, there was a sense of helplessness limited by the vision of the era:

"Apart from traditional page banner ads, I still can't think of any highly profitable revenue channels that can support this rate of cash burn."

General Manager Chen Shengqiang candidly stated his own limitations.

He understood corporate management and financial leverage, but he was, after all, a man of 2011.

He could not imagine an era where monetization could be achieved solely through a mobile phone.

After listening to General Manager Chen Shengqiang's well-reasoned analysis, Shen Du put down the financial statements in his hand.

He raised his head and looked at the man before him, who was supposed to be the future founder of the JD.com financial arm.

A faint smile curled at the corners of his mouth.

Facing his top general's doubts and confusion, Shen Du was neither displeased nor reproachful.

He knew very well that every word General Manager Chen Shengqiang said was a golden rule in 2011.

That social platforms are hard to monetize was the consensus among the big players at the time.

General Manager Chen Shengqiang could not see the future, not because of mediocre ability, but because he was limited by the cognitive ceiling of the text-and-image era.

Shen Du leaned back against his chair, watching General Manager Chen Shengqiang's tense expression, and chuckled.

He didn't offer much explanation, calmly pulling open the drawer beside him and taking out a fountain pen and a sheet of A4 paper.

"Shengqiang, you are an excellent financial operator."

Shen Du uncapped the pen, his tone calm:

"But you have underestimated the desires of human nature, and you have also underestimated the traffic that the 'Spark' product can command."

As the nib of the pen glided across the paper, it made a "swishing" sound.

Shen Du wrote down monetization rules that were ten years ahead of this era on this A4 sheet of paper.

General Manager Chen Shengqiang's eyes were fixed on the terms rapidly taking shape under Shen Du's pen.

After glancing at them a few times, his pupils, originally as steady as Mount Tai, constricted.

First line: Live streaming tipping and revenue-sharing mechanisms.

"As long as the netizens' desire for exhibitionism is satisfied, they will open their wallets."

Shen Du wrote the annotation without even raising his head:

"Set up virtual gifts in the live streaming room, from flowers worth a few cents to virtual yachts worth thousands.

The streamer earns the tips, and the platform takes a fifty percent cut directly.

What we are selling is emotional value and dopamine."

Second line: Short Video influencer marketing and the prototype of e-commerce.

"When a user has millions of followers,

even if they are just eating a bowl of instant noodles in a video, it will trigger thousands of people to follow suit and make purchases.

We provide product links, cutting directly into e-commerce transaction commissions."

Third line: Traffic support and precision targeted advertising.

"Stop doing floating banner ads.

Use big data algorithms to disguise ads as normal Short Videos and precisely push them to the target audience."

"Merchants want more exposure?

Sure, pay the platform to buy 'traffic packages,' and charge based on click-through rates and impressions."

Fourth line: Tiered VIP privilege value-added services.

"Use cool profile decorations, entry special effects, and exclusive red usernames to further widen the sense of class distinction among users.

As long as the base is large enough, this trickle of revenue, just over a dozen yuan per month, will converge into a vast ocean."

Half an A4 sheet of paper, filled with money-making schemes.

Each one precisely pierced the weaknesses of human nature;

each one was forcibly converting traffic into heavy gold.

General Manager Chen Shengqiang stood there.

As someone with a background in finance, he only needed one look to see through the money-making potential behind this logical closed loop.

How is this just building a social app?

This is clearly creating an uncapped money-printing machine.

Once this model is up and running,

what cash burn?

What war of attrition?

As soon as the floodgates of traffic are opened, money will pour into Jiyuan Technology's accounts!

Shen Du stopped writing, threw the fountain pen onto the desktop, making a crisp sound.

He used two fingers to press down on that A4 sheet of paper filled with future internet business rules.

Along the obsidian desktop, he slowly pushed it in front of General Manager Chen Shengqiang.

Shen Du leaned forward slightly, his deep eyes shining with intensity.

He said, enunciating every word:

"Don't worry about Tencent, and don't worry about the front line stretching too thin."

"You just focus on burning money and grabbing market share.

As long as the user base is large enough, and you execute according to what is written on this paper..."

"I guarantee we will be profitable."

As the heavy double doors were closed by General Manager Chen Shengqiang, this "Skymap Command Center" returned to silence.

Shen Du leaned back in his boss chair, his gaze sweeping across the huge floor-to-ceiling window.

Outside the window, the water of the Huangpu River was still surging endlessly under the gloomy sky.

Although he had just used an A4 sheet of paper filled with business rules to paint a monetization blueprint and steady General Manager Chen Shengqiang,

as an operator, Shen Du would not be carried away by the pie in the sky he had drawn.

Insufficient budget was the sharp blade currently hanging over his head.

He did not shelve the immediate financial risks because of future expected benefits.

Those ninety million in real cash had already been thrown as fuel into the Jiyuan Technology machine.

At this moment, on Shen Du's personal accounts, there was only a few million in cash left at most.

In a vanity fair like Magic City.

In the future, there were still too many places where he would need money to pave the way and grease the wheels.

A few million was simply not enough.

Before the 'Spark' ecosystem could fully generate its own blood, he had to make another move to pry open a cash flow gap.

Shen Du withdrew his gaze and fished out that Nokia phone from the inside pocket of his suit.

He skillfully flipped through to a number and pressed the dial button.

The phone rang for only half a ring before it was answered.

"Do you have time recently? Let's meet up?" Shen Du's tone was calm.

From the other end of the line came Red Phoenix's respectful voice:

"I have time... I have time!"

Since the reshuffle before the New Year, up until now in early March, Shen Du had not contacted her.

If it weren't for Chen Fei, who was now working under him,

Red Phoenix would have even thought that this Young Master Shen had forgotten about her, this chess piece.

At this moment, receiving Shen Du's summons,

this big sister who once commanded the wind and rain in the gray areas had a slightly tight voice:

"Recently, I have followed your instructions and transferred all the underground affairs in my hands to Chen Fei."

"I have nothing on my hands now, and I am at your disposal at any time."

Shen Du was very satisfied with her attitude.

An obedient hunting dog that knows its place is valuable.

He didn't waste words and gave the order directly:

"Come to Lujiazui, IFC International Finance Centre, 55th floor."

Shen Du's gaze was cold: "After you arrive, someone will receive you at the door."

"Yes! Young Master Shen, I'll be there right away!"