tonight, our partner High German company announced today that the original pay high German navigation mobile phone application is free. This makes me and my little friends are shocked! This is a high German self revolution, the first professional mobile navigation applications into the free era. I think this is a very great move, not only give us these buddies a good product for free, the most important is that this means high German from a traditional software vendors, for a real transformation of the spirit of the Internet and Internet vendors gene.
I think that many people forget the thrill of the first contact the Internet: there are so many rich and colorful information and software, most of them are free, free, free chat search, free e-mail, we build a variety of database website that is used in a variety of programming languages, not only free and open source.
why is the Internet economy free of charge? This is because the cost of Internet development products is generally fixed, and the cost of the product delivered to the user through the Internet is very low, close to zero. Therefore, the greater the user base of an Internet product or service, the lower the cost to each user, and it is close to zero. For example, I developed a product, if there are 100 million users, sharing the cost of each user is a piece of money, then there are 400 million users, the cost of sharing to each user is only $25 fen.
all business models of Internet companies, based on the massive user base, through the design of value-added services to a part of the user fees, or design advertising model, so that most users see. From the marketing point of view, you spend 25 Fen on each user, so that he will be able to see you every day, if done well, he also volunteered to give you publicity, which is very low marketing costs.
so, I think free is the best marketing tool, because it does not need to spend a lot of advertising to do promotion, itself can form a word of mouth. You think, if you have ten million yuan, in China playing an ad even to also have no, I don’t like this ten million to do a free product, really to tens of millions of users more value. The tens of millions of users to use my products, set up on my brand awareness and loyalty, trust, it is much more effective than advertising. You know, the biggest barrier is the brand, rather than technology or patent. Microsoft has launched a search blind test, trying to prove that the search results should not be worse than Google, but because there is no sharp difference, we talk about the search, the first thought of Google.
free is also an effective means of competition. Now we talk about the Internet free of charge, are taken for granted. However, five years ago, when I was advocating free, the vast majority of people in the eyes of the questioning of the 360 free security. We launched the 360 free antivirus, competitors have suggested that the state authorities find out Zhou Hongyi is engaged in dumping.
as an independent director of High German, I contact the opportunity to compare High German