How can you become a star without money?

Chapter 157 No, I can't bear this pain alone [10,000-word update, please subscribe]

"Old Guo doesn't understand. This isn't an achievement in the media field, but rather a high-tech e-commerce platform that drives consumers through content and services," Wang Fan said with a smile.

"Content service driven? You mean Mulan Street and Taobao Girls, right?" Guo Guangchang raised an eyebrow slightly.

“That’s right, Xiao Wang and I came up with these two platforms back then. I never expected him to actually make them work. I still regret it a little. I should have been bolder back then and directly used the highest level of the Eagle Project to sponsor them.” Wang Fan smiled.

The Eagle Plan is another form of institutional investment. Although it is said to be launched at the original price upon maturity, most of them eventually become major shareholders.

“At the time, I wasn’t confident that we could make it work, after all, it was a new model. But fortunately, it turned out well. I’ve taken the liberty of inviting you two here today because I want to discuss the future of these two companies with my family.” Wang Yao laid out several contracts on the table.

"Alibaba and Tencent acted quickly." Wang Fan glanced at the screen and immediately understood the situation, his expression changing slightly.

“President Wang’s two companies happen to be key nodes in the upstream and downstream industrial chains of the platform, so they can’t afford to be careless. However, this valuation seems to be underestimating our Shanghai-based companies.” Guo Guangchang smiled after carefully reviewing the contract.

"I am but a humble man with little influence and limited resources, so I can only ask the two seniors for guidance," Wang Yao sighed softly.

"Don't worry about them. We have money if we're short of cash, and we have manpower if we're short of manpower. Xiao Wang, just tell us your needs." Wang Fan waved his hand.

Guo Guangchang seemed to be deep in thought.

“These two projects were both developed under the leadership’s guidance and are the fruits of my labor. I don’t trust them to be handed over to others, and I would feel even more sorry for the many users who trust the platform,” Wang Yao sighed softly.

"Don't worry, as long as you're still in Shanghai, you won't be bullied by outsiders." Wang Fan smiled and shook his head.

"The problem with Mulan Street doesn't seem like a big deal. Alibaba wouldn't make such a fuss over a social media platform, but the Taobao Girls might be a different story," Guo Guangchang said with a smile.

"Mr. Guo has a keen eye. Indeed, Alibaba is determined to get Taobao Girls. This will be a vicious competition with a huge disparity in strength." Wang Yao shook his head with a wry smile.

"What are the advantages of being a Taobao model?" Guo Guangchang asked.

"With a comprehensive agency operation system and high-quality model resources, our company's models currently have a fan base of several thousand to tens of thousands, and we have also produced outstanding artists such as Ma Ruo and Zhao Yihuan."

"The clients choosing us is essentially choosing spokespeople with a consumer base, but Alibaba has the money to back it up." Wang Yao briefly mentioned the model's contract termination that morning.

"Poaching talent is a rather underhanded tactic, but it's understandable given the free competition," Wang Fan pondered for a moment. "Will it have a significant impact?"

"I feel like this is just a warning, but I feel like fifty million US dollars is enough to hollow out my company." Wang Yao said with a bitter expression.

Based on the breach of contract penalty ratio, if Alibaba poached all the models except the top ones, Tianhuo could receive at least 2 to 3 million yuan in breach of contract penalties, which is much cheaper than an acquisition.

"If we lose the advantage of being a model, the valuation of Taobao Girls will have to be cut in half," Guo Guangchang said seriously.

“Not only.” Wang Yao shook his head.

Even if there are only merchants and no models, the merchants will still leave.

"Didn't you sign a non-compete agreement back then?" Guo Guangchang asked in confusion, as brokerage firms usually handle this aspect very thoroughly.

"No, after all, it was a small company back then. I advocated being a company with a human touch, and parting ways amicably. I never expected such a sudden situation to occur today," Wang Yao sighed.

"Xiao Wang is still too kind-hearted. Business is business; you can't disregard rules for personal relationships. This is a lesson learned," Wang Fan admonished before asking, "Will raising salaries retain employees?"

Guo Guangchang stared thoughtfully at Wang Yao's expression. Although it was only their second meeting today, he felt that Wang Yao would not make such a basic mistake.

There is weirdness.

“It should be possible, but the cost won’t be low. The reason I invited you two here today is to ask if you are interested in investing in Tianhuo.” Wang Yao handed over the previous institutional valuation report and the latest compiled data.

Guo Guangchang was somewhat surprised after reading it. "Why put Taobao Girls under this company? They should be completely independent."

"At the time, we wanted to use Taobao models to transform Tianhuo Company into an internet company, but we didn't expect it to backfire," Wang Yao sighed.

"It's not your fault, it's just that you lack perspective and don't know enough about those big companies. I'll show you around more when I have the chance," Wang Fan said with a smile.

"You also have offline theater business? Are you planning to generate over 100 million yuan in revenue this year? Is that also part of e-commerce?" Guo Guangchang asked again.

“Offline theater troupes have a relatively precise audience, making them a great channel for attracting customers. Theater actors can earn commissions by selling products. I’m trying to create a fan economy, which, if successful, may develop into a trendy brand or a collaboration model,” Wang Yao explained.

"That's very original." Guo Guangchang's eyes lit up, finding it quite interesting.

Assuming a theater can reach hundreds of thousands or even millions of viewers annually, these viewers have a higher level of trust in the actors due to their in-person interaction, resulting in a higher conversion rate. Indeed, young people are quick-witted, and it seems that small-circle fan economy is easier to achieve.

Guo Guangchang has been a professional investor for the past few years. In his view, the core assets of Wang Yao's Tianhuo Media are not very solid, and the company operates within a three-segment system of artist management, content creation, and e-commerce services.

But whether it's artist management or anything else, there's no real competitive advantage. Taobao Girls also operate on a heavy model, but with serious drawbacks. It's not a particularly high-quality company, but it has a bright future.

Guo Guangchang ultimately gave a complex assessment.

This assessment is actually not good; it's even a synonym for high risk. It's a bit like Le's, which seems to have everything but isn't good at anything and lacks a core.

However, the equity structure is quite clear.

"But it lacks prospects," Guo Guangchang commented after much thought.

"I think it's alright." Wang Fan glanced at him.

"The prospect I'm referring to is one that is more stable and capable of suppressing the company's core," Guo Guangchang explained.

"Is what Mr. Guo is talking about—a core principle that allows the company to continue operating profitably even after stripping away everything else?" Wang Yao countered.

"Pretty much, because all your industries now are low-barrier and easily replicable, without any competitive advantages." Guo Guangchang nodded.

"Take a look at these, you two." Wang Yao took out two more project proposals and handed them over.

"Paid knowledge?" Guo Guangchang was taken aback after reading it.

"According to statistics, there were over 10,000 e-commerce companies in my country last year, and this number is expected to grow to over 20,000 this year. There were over 10 million individual online stores last year, and this number is projected to grow to 14 million, indirectly creating over 1 million direct jobs and over 3 million indirect jobs."
Currently, the e-commerce industry has only tapped into less than one-tenth of its consumer base. This means that in the next ten years, at least tens of millions more individual online stores will emerge, making this market much larger than we imagine.
Xingdian has a complete e-commerce operation service, which can be summarized into a teaching material and passed on to all potential people who are willing and interested in doing e-commerce. I will be holding a conference of 100 people next week, specifically to recruit e-commerce operation clients.
If it's feasible, then Taobao Girls will hold an e-commerce teaching conference for a thousand people, with tickets priced at 1988 yuan per person. The three-day course will clearly teach the basics of e-commerce. Those who want to continue their studies can enroll in a refresher course for 19888 yuan per person, with full-service support. Moreover, we can expand our agency operation business. What do you think?" Wang Yao stared intently at Guo Guangchang.

Guo Guangchang adjusted his glasses and began to make plans in his mind.

This alternative education and training market is absolutely rare in China. It's like an e-commerce version of an MBA program. One advantage of this model is that it can integrate resources.

If tens of thousands or even hundreds of thousands of "Taobao bosses" are trained by Taobao models in the future, the cluster effect will have a significant impact on all e-commerce platforms. More importantly, knowledge-based paid education and training is a business with strong cash flow.

Even considering the existing market of merchants, if we consider only one percent of the 10 million merchants, there would still be 100,000 people willing to learn from Wang Yao how to do e-commerce.
The initial tuition alone generated 200 million in revenue this year, and there's an advanced class with 2 per person. Perhaps Wang Yao will even create a CEO class with 20 per person and a board member class with 2 million per person.

Moreover, apart from human resources and venues, the education and training industry is almost entirely profitable. Once the student body is stable, the net profit is at least 70-80%. Even if Tianhuo Media's other businesses are divested, it can survive for at least ten years and make a fortune just by relying on this one business line.

Moreover, Wang Yao himself is currently the most awesome and reliable 'Taobao boss' in the country.

With online store sales reaching tens of millions in just four months, the results are undeniable and solid.

There are online stores with higher sales than him, but none of them are as famous as him.

If he were to call for action in his name, there would be no shortage of applicants. He could easily organize a conference of thousands, or even tens of thousands.

"President Wang is personally overseeing things?" Guo Guangchang said in a deep voice.

“Initially, I will definitely be the one to handle it, but my ability and energy are limited, so I plan to recruit a group of Taobao staff or high-quality customer service representatives as instructors,” Wang Yao said with a smile.

Taobao customer service representative?

They are undoubtedly the group of people who understand Taobao's rules best. With Wang Yao's experience and systematic training, they are definitely the most suitable group to be lecturers.

Taobao poachs your models, and you poach their customer service staff.

As expected, this kid is no pushover.

“Interesting, this is very interesting. Moreover, the Taobao bosses cultivated can cooperate with local enterprises and factories for mutual benefit.” Wang Fan’s thoughts were more tangible.

"How does Mr. Wang plan to raise funds for his company?" Guo Guangchang thought it was worth a try.

Even if Taobao can completely ban Taobao models through various means, can it still ban Wang Yao, a living advertisement?
Wang Yao's high-profile appearance this time is actually a kind of open strategy, because Wang Yao's success is built on Taobao. This indirectly forces Taobao to let him be used as a living billboard to promote e-commerce. As long as Lao Ma (Jack Ma) doesn't lose his mind, he won't easily ruin this once-in-a-lifetime billboard.

Moreover, if he wants to destroy something, he needs to see if others are willing to do so.

After all, e-commerce is the most important industry for future development, and it urgently needs a 'representative' like Wang Yao.

Guo Guangchang found it increasingly interesting that although Wang Yao's company was in dire straits, he himself was remarkably safe.

No wonder he comes from a media background; he knows how to use his influence to protect his own interests.

"My personal expectation is 30 billion," Wang Yao said solemnly.

Upon hearing the price, Guo Guangchang and Wang Fan both frowned.

Although Tencent gave it a valuation of $200 million (15 billion RMB), the valuation of Tianhuo Media's other segments is probably no more than 1 billion RMB. Even with the cash flow from the new business "Taolaoban", this valuation is somewhat inflated.

Moreover, Tianhuo is now facing an impending attack from Alibaba.

"It's a bit too high," Wang Fan said, frowning first.

"If it weren't for the pressure from Alibaba, Tianhuo would actually be operating quite smoothly right now, with over ten million yuan in cash flow on its books. And the main reason I invited you two was to help us before the company goes public in the future."
"I can dedicate myself to running the company. If it operates smoothly, I'm confident it can reach a market value of 10 billion within three years and go public. However, I only understand company operations; I'm really weak in other areas. If no one helps me, I would indeed prefer to sell it." Wang Yao said, his eyes lowered and his expression somber.

Seeing that Wang Yao was considering giving up on the company, Wang Fan quickly said, "Xiao Wang, you can't give up so easily because of a little setback. That's irresponsible to your employees and customers."

I know you're young and not very resilient, but when the sky falls, there are tall people to hold it up. Lao Guo, this is our rising star in Shanghai.

Regardless of whether Wang Yao can turn Tianhuo into a company worth tens of billions, it is currently an e-commerce company valued at two billion, and Wang Fan will not let it fall easily.

“A valuation of 30 billion is not too outrageous, but I have one condition: you must personally assume the position of CEO before the IPO. Otherwise, we have an exit mechanism, and the company will redeem our invested shares at the original price,” Guo Guangchang demanded.

Because he knew very well that the company's real core resource was actually Wang Yao himself, especially the new business of 'Tao Laoban', which could not operate without him.

The shareholder exit mechanism is another way to protect shareholder rights. It anchors Wang Yao as the core asset. If he leaves, the investment will automatically become invalid. However, if the development goes smoothly, their investment will benefit.

“No problem, but I would like to hold the shares on your behalf to ensure my decision-making power.” Wang Yao readily agreed. Tianhuo was his core business; how could he easily give it up?

"Is there any risk associated with the major shareholder, Meishe?" Wang Fan was very sensitive.

"They are preparing to go public after all, so it's hard to say." Wang Yao shook his head with a smile.

"It seems that President Wang is not very optimistic about the development of Meishe?" Guo Guangchang keenly sensed the problem.

"No, I'm very optimistic. However, if Alibaba really wants to target Taobao's models, Meishe's tens of thousands of models and photographers will be their top priority for cooperation." Wang Yao's smile was gloomy, and it was hard to tell whether it was bitterness or heartache.

Wang Fan and Guo Guangchang were both taken aback, then suddenly realized what was going on.

Yes, Meishe, as one of the largest model agencies in China, is definitely a priority partner for Alibaba, and they may have already partnered.

The relationship between Meishe and Tianhuo is indeed prone to rifts.

“If the two of them invest 10%, and I receive their shares on their behalf, my shareholding will reach 55% (Guo and Wang 10%, Zhou 4.5%, and Wang Yao 40.5%), which is relatively safe. Of course, it would also be possible if they were willing to invest as well.” Wang Yao smiled.

"In other words, if the other party doesn't follow suit, we have to invest at least 10%, which is 3 million. That's no small amount. Fuxing's money for the first half of the year was all invested in Minsheng Bank." Guo Guangchang turned to look at Wang Fan.

This kid drew the lines out beforehand; he was clearly prepared.

“You can borrow from Pufa first, and then pay it back later.” Wang Fan hesitated for a moment. “In any case, let’s spread the word and see how everyone reacts.”

"Won't you two reconsider?" Wang Yao asked.

"It's rare to nurture a promising e-commerce company like this; we can't let it die so easily," Wang Fan chuckled.

"Or we could lead the investment and see if any other peers are interested?" Guo Guangchang still wanted to play it safe.

"The Taobao Boss model cannot be made public in advance; this is to catch Alibaba off guard," Wang Yao said in a deep voice.

“I understand, you don’t need to get involved, we’ll settle it ourselves,” Guo Guangchang said, waving his hand.

“That works too. More friends mean more options.” Wang Fan nodded in agreement after a moment’s thought.

Guo Guangchang smiled and touched the Montblanc pen that Wang Yao had given him at the banquet, which was in his breast pocket.

Sure enough, it's a hot potato.

Beijing, headquarters of Meishe Photography.

Xu Chen has been extremely busy lately with the IPO, meeting with various institutional investors and securities firms during the day and reporting to shareholders at night.

I'm so busy I don't even have time to eat melon seeds (gossip).

He learned about Wang Yao's overnight fame from Cai Chongxin, the second-in-command at Alibaba.

Xu Chen has contacted at least 80 to 100 investment institutions/people during this period, from all walks of life and with all sorts of backgrounds.

However, receiving a call from Alibaba's investors really gave him a big shock.

Has Meishe's influence now caught the attention of e-commerce industry giants?

After a brief phone call with Cai Chongxin, I learned the whole story.

After hanging up, Xu Chen thought he was just too tired and his memory was confused in his dream.

When did Tianhuo Media become an internet e-commerce platform?
It even caught the attention of a behemoth like Alibaba.

Isn't that Taobao Girl just an intermediary website that imitates Meishe.com?

How come they gave it a valuation of nearly $1 million?
Why?
There are only a few hundred models on the platform, while Meishe.com has tens of thousands of models/photographers and 300 million paid members, yet its valuation is less than one billion.

Furthermore, what is the purpose of Alibaba, an e-commerce platform, investing in their company? Is there any necessary connection between the two?

When Xu Chen learned about the Taobao Girl platform, it had not yet officially launched. This was because Wang Yao deliberately chose that time period to have an agency evaluate the platform, thus underestimating its capabilities.

Xu Chen also did not realize that Taobao Girls would quickly acquire so many customers and achieve such commercial monetization results through Wang Yao's agency operation and recruitment in a short period of time.

Taobao's online photography companies are also doing this, and it's still the main channel for providing basic necessities for low-level models, but they've never promoted it as a major monetization path because they never thought this market was that big.

For the same photo, a model can earn at least 200 yuan from a private photoshoot, while a photo taken on Taobao can earn at most 30 yuan, which has to be split with the photographer. Therefore, those willing to do this are mostly honest and hardworking young models.

But to everyone's surprise, Wang Yao was able to expand his business so much through this 'unremarkable' little track.

Xu Chen spent an afternoon finally figuring out the online auction market.

This kid was definitely hiding his true abilities!

Xu Chen was somewhat annoyed, but he had no reason to retaliate, since they were two different companies.

What's more, Wang Yao also owns an e-commerce company, which was something he hadn't expected. He thought the media industry had already taken up enough of his energy, but he didn't expect that he would still have time to do a side business, and even succeed in it.

And there's also a Mulan Street property of unknown value?
Just how many good things is this kid hiding?!
Damn it!

Xu Chen felt a mixture of envy and jealousy, but also a sense of relief.

The more valuable Tianhuo becomes, the more Meishe will benefit. It seems that the previous estimate of 20 billion was indeed a bit conservative. No wonder Wang Yao said he would do his best to support Meishe's listing.

So that's where their confidence comes from.

Just as Xu Chen was caught in a mix of anxiety, relief, and jealousy, he suddenly received a call from Wang Yao.

"Mr. Wang, congratulations! I was so busy yesterday that I only saw the news about you today," Xu Chen cleared his throat and tried to adjust his attitude as he offered his compliments.

"What's there to be happy about? Even giants like Alibaba are going to launch a devastating attack on me. I'm here to ask Mr. Xu for help." Wang Yao's tone sounded like a wry smile.

"Oh? What's going on?" Xu Chen pretended not to have spoken to Cai Chongxin.

After Wang Yao explained the background, Xu Chen compared the information and confirmed that it was all true, so he felt relieved.

"It seems your Taobao model really hit a nerve, otherwise Alibaba wouldn't be paying so much attention. But, did Tencent really give it a valuation of 2 million US dollars?" Xu Chen's shock was genuine.

I thought Alibaba's prices were already exorbitant, but I didn't expect there were still experts out there.

“Yes, but I refused them all. I’m going to raise funds myself. I found two local Shanghai institutions, Shanghai Commercial Investment and Fuxing, to lead the investment. I’m raising 3 million yuan for a 10% stake,” Wang Yao said.

Xu Chen remained silent for a long time before slowly exhaling. "How much?"

“10%, 3 million,” Wang Yao repeated.

"Total valuation of 30 billion?" Xu Chen's voice was somewhat hoarse.

His mind was a bit confused, and he only had one thought in mind.

Why?
“Yes, I’m here to ask Meishe if they want to co-invest. If they don’t, their shares will be diluted to 45% after the financing is successful,” Wang Yao said in a deep voice.

You're already valued at 30 billion, how am I supposed to co-invest?

With Meishe valued at 20 billion, investors and institutions are still arguing.

“Meishe doesn’t have that much working capital right now, but I’ll pass it on to the board and see if anyone’s willing to invest,” Xu Chen said, forcing a smile. “Congratulations, Mr. Wang! You’ve surpassed Meishe’s development in the blink of an eye; it’s truly unexpected.”

But thinking about it, it makes sense. When I first met you, I felt that you lived up to your name, which means bright and radiant; it's no wonder you've achieved what you have today.

"Thanks to the guidance of President Xu and President He, otherwise I wouldn't be where I am today. I estimate there will be news about it tomorrow. President Xu can take this opportunity to raise the valuation of Meishe again," Wang Yao kindly reminded him.

"Don't worry, Meishe will never forget President Wang's support," Xu Chen joked with a smile.

The two exchanged a few tacit words of greeting and then ended the call.

Xu Chen naturally knew that Wang Yao's call was to inform him to be prepared.

As for whether Meishe will invest more, they don't care at all.

But the speed at which Tianhuo developed did indeed break his defenses.

Is this a case of choice being more important than effort? If only he had discovered earlier that Taobao online shopping had such a large market.

The success of others is more painful than one's own failure.

Moreover, the thought that he had personally handed over 45% of the shares to Wang Yao made him even more distressed.

That's nearly a billion!
No, I can't bear this pain alone.

Xu Chen took a deep breath and picked up his phone.

"Hey? Mr. Wu, I have great news for you! Meishe's valuation is about to see a major boost!"

"Hello? Mr. Yang?"

Xu Chen made a round of phone calls, and after hearing the equally suffocating silence on the other end, he felt much better.

But he did not call Cai Chongxin of Alibaba.

Jealousy is one thing, envy is another, but the increase in Tianhuo's value is entirely beneficial to Meishe.

Before things have settled down, he won't be able to distinguish between friend and foe. If Alibaba interferes with Wang Yao's financing plan, he will also suffer losses.

This is the dilemma of major shareholders: they're both their own flesh and blood.

He was also curious about how a giant like Alibaba would react if it found itself being provoked by a small company.

(End of this chapter)