My stepmother forced me to donate bone marrow, so I retaliated by slapping my scumbag father in the
Chapter 113 Live Streaming E-commerce, Billion-Dollar Advertising Budget
This is also their biggest concern.
If a profitable business model cannot be found, Douxin will still lose 40 million yuan every month.
That amounts to nearly 500 million in a year.
Even if Shen Ze had billions in cash, he couldn't fill this bottomless pit indefinitely.
Shen Ze didn't answer directly, but instead asked, "Have you considered letting users buy things on Douxin?"
Wang Xiaolong frowned: "E-commerce?"
"Traditional e-commerce requires users to actively search for products, but Douyin is different."
Shen Ze said, "Our advantage lies in short videos and traffic recommendations, which allow users to see the content first and then stimulate their desire to buy."
"But short videos can only showcase, lacking trust and real-time interaction."
"Therefore, we need to join the live streaming."
Wang Xiaolong sat up straight instinctively: "Live-streaming sales?"
"right."
Shen Ze picked up a bottle of water from the table: "Even though we're selling the same bottle of water, the product page can only display a picture, the price, and a few lines of description."
"But if it's a celebrity or an internet influencer with a large following who personally tries and explains the product in the live stream, and then offers a limited-time discount, the effect is completely different."
"Celebrities bring their own fame, and fans are willing to believe them."
"Influencers interact with users over a long period of time, which naturally fosters a strong relationship of trust."
"They showcase products, answer questions, and create a limited-time flash sale atmosphere in the live stream, which can directly convert viewership into orders."
Wang Xiaolong's breathing became increasingly rapid.
Shen Ze continued, "The platform doesn't need to produce its own products."
"Brands provide the goods, celebrities and influencers are responsible for sales, and Douyin provides traffic, live streaming tools and transaction access."
"After the product is sold, the livestreamer gets a commission, the brand gets the sales revenue, and the platform takes a service fee."
"Live streaming can be used to sell not only daily necessities, but also cosmetics, clothing, food, and home appliances."
"As long as there are enough users, any product can find buyers in the live streaming room."
"Short videos are responsible for attracting traffic, live streaming is responsible for building trust, and e-commerce is responsible for completing transactions."
"This is live-streaming e-commerce."
Wang Xiaolong sat there in a daze, as if a completely new door had been opened in his mind.
The combination of celebrity fame, influencer trust, Douyin's recommended traffic, and the brand's products.
The originally separate links are completely connected by this model.
Seven million daily active users are no longer just users who consume server costs every day.
That's seven million potential consumers!
As long as some of them place orders in the live stream, the platform can earn a steady stream of revenue.
GG will bother users, and membership requires users to pay actively.
It's different from live-streaming e-commerce.
The content itself is a sales process; users complete their purchase while watching, interacting, and being entertained.
Wang Xiaolong abruptly stood up, his hands gripping the table, his voice trembling: "Live-streaming e-commerce... I can't believe it can be done like this!"
He stood in front of his desk, completely excited.
Since starting Douyin, his biggest problem has been the inability to monetize users.
Seven million daily active users seem impressive, but for every minute a user stays on the platform, the platform has to bear more bandwidth and server costs.
The more users, the greater the losses.
Those investors who were optimistic about Douxin chose to withdraw their investment for this very reason.
But now, Shen Ze has connected celebrities, internet celebrities, brands, short videos, live streaming, and e-commerce all in just a few words.
Traffic is no longer just a cost.
Every user has the potential to become a consumer.
Every view has the potential to generate an order!
"Chairman Shen, I'm convinced."
Wang Xiaolong sat down again, and his gaze toward Shen Ze completely changed.
"I've been doing Douyin for so long, and all I've ever thought about is how to add guys and how to collect membership fees. I've never thought about combining short videos, live streaming, and e-commerce."
"If live-streaming e-commerce really works, Douyin can not only get rid of losses, but also form its own closed business loop."
"Your acquisition of Douxin for 200 million yuan was not an impulsive decision at all."
Wang Xiaolong gave a wry smile: "When we were signing the contract just now, I was a little reluctant. Now I understand that only when Douxin is in your hands will it have a chance to truly grow."
The secretary in the office and the hotel manager were equally shaken.
Before this, they only thought that Douxin was a short video platform on the verge of bankruptcy.
Seven million daily active users is indeed a lot, but with monthly losses of forty million, even a large user base is just a pretty-looking report card.
However, after Shen Ze said that, the value of Douxin completely changed.
GG can only earn money from brands once, but it can take a cut from every order placed through live-streaming e-commerce.
If the transaction volume is large enough, the platform's daily revenue can reach an astonishing figure.
The hotel manager couldn't help but ask, "Chairman Shen, with this model, won't Douxin be able to turn a profit very quickly?"
"Not that fast."
Shen Ze shook his head: "We have a business model, but we also need a large enough user base."
"Douyin currently only has seven million daily active users, which is far from enough."
Wang Xiaolong quickly asked, "So what's the next step?"
"Download GG".
"How much should we invest?"
"One billion."
The office fell silent the moment the two simple words were uttered.
Wang Xiaolong's excitement froze: "How...how much?"
"One billion."
Shen Ze's tone remained unchanged: "Set aside one billion as the first phase of the GG budget, to be distributed across all channels."
"Short video platforms target ordinary users, so the wider the coverage, the better."
"App stores, social media platforms, portal websites, offline shopping districts—anything that can bring in users is worth investing in."
"GG content shouldn't be limited to just one set; different versions should be made based on age, region, and interests."
Wang Xiaolong felt a chill run down his spine.
A billion-dollar budget!
When he was looking for investors before, he only dared to ask for 300 million.
These 300 million yuan not only need to keep the servers running, but also pay employee salaries, develop products, and deploy Google Play.
Less than half of the money could actually be used for promotion.
Shen Zegang just completed a full acquisition, and now he's going to spend 1 billion yuan to buy traffic.
Wang Xiaolong would never have dared to imagine such a feat in the past.
The secretary couldn't help but remind him, "Chairman Shen, isn't a one-time investment of 1 billion too large?"
"One-time use is definitely not an option."
Shen Ze said, "We will deploy the budget in batches according to user growth, retention, and acquisition costs. Once the data meets the requirements, we will gradually increase the budget."
"But the total amount remains unchanged."
"One billion, not a single penny needs to be saved."
The secretary's heart skipped a beat, and she immediately nodded: "Understood."
Wang Xiaolong took a deep breath: "Chairman Shen, what daily active users would you like to achieve?"
"Sixty million."
Wang Xiaolong's hand suddenly trembled.
Douyin (TikTok) has only seven million daily active users to date.
Sixty million, almost nine times the current amount!
Moreover, downloads, registered users, and daily active users are three completely different things.
Many apps are paid for downloads, but users uninstall them after opening them only once.
Keeping 60 million people on the platform long-term is far more difficult than simply doing Google Ads promotion.
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