Profit is the result of traffic acquisition
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Whether high traffic can bring the final profit is a problem that everyone often discusses. We must first understand that profits are not raised by consumers, and they are proposed by enterprises for their own sustainable development. As a consumer, he himself will not consider whether your business earns money. But the profits of the company come from consumers. Without the consumers, the company can’t make money. Therefore, profit can be said to be a by-product of consumers.
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Drucker said that the purpose of the business is to create the users with the greatest degree. And creating users is not just getting traffic? So it can be said that the purpose of the enterprise is never to make money, the purpose of the enterprise is to obtain the users to the greatest extent. Profit is a result of getting a user, not a cause.
And now, due to the promotion of capital, the point of gaining profits has moved backward. When the past profit is high, it is to open a shop and earn another money to open a shop. Now, WeChat doesn’t make money, but it connects billions of traffic, and when it wants to cash out, it can be realized.
In the period of the outbreak of Weishang University in 2014, through the simple introduction of people, many micro-business brands can achieve more than one billion in just one or two years. After that, taking the gathering as an example, through a layer of distribution, reducing the price of the product, it also achieved great success.
Nowadays, there are a lot of fires, which is actually the beneficiary of WeChat traffic. They all attract traffic that has not been absorbed by traditional e-commerce by connecting WeChat’s huge traffic and selling at low prices. The space that has risen a lot is the 400 million idle traffic.
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