Many people look at the problem very one-sidedly.

For example, when you see a store doing well, you think that the owner must have made a lot of money, but in fact, it is likely that the store has just kept its capital and even can't make ends meet.

For another example, when you see a thing for five cents and sell it for a piece of five, you feel that the boss has a 200% terrifying profit.

In fact, all businesses have a lot of sunk costs.

Why are there not many video sites, and most of them die halfway through?

It is because the bandwidth cost of video websites is almost incredibly expensive, the bandwidth is not broadband, not the 100 megabytes of broadband opened at the user's home, 500 megabytes of broadband, and the bandwidth is the total amount of data transmission per unit time of the server.

It is equivalent to the water main line of a community.

If there are only 1,000 households in the community, and the peak water consumption is 50 milliliters per second per household, then the carrying capacity of the water supply pipeline cannot be less than 50,000 milliliters per second, that is, 50 liters of water should be supplied per second.

If the supply capacity is higher than this number, it is fine, but if it is lower than this number, the water consumption of all users will be affected, and there will be less water, slow water, and unstable water output.

It's the same as a website card.

Sometimes, your own internet speed is fast, but when you visit a certain website or a certain app, you are stuck to death.

At this time, don't think that there is a problem with your network and router, it is very likely that the water supply line over there exceeds the carrying capacity, Rao is that your pipeline can enter a ton of water per second, and the other party can only share a drop per second in your hand, then you can only watch dryly.

Therefore, if a website wants to provide stable services and experience, it must ensure that its bandwidth is greater than the user's needs.

If it is one MB of bandwidth, it means that the server can transfer one MB of data per second.

If it is a station, the average bandwidth occupancy per second per person may be a few kilobytes, so 1 MB of bandwidth can carry hundreds of visits.

However, if it is a video website, a user may occupy 1MB in one second, and if there are one million people, the bandwidth demand is about 1TB, that is, the bandwidth must support the transmission of 1024G data in one second.

This cost is so high that it is beyond imagination, less than 20 or 30 million a month.

Switching to sites like Youku and iQiyi will cost more bandwidth.

iQIYI's financial report shows that since 2018, their annual cost of bandwidth has exceeded 2 billion yuan, and it is still increasing.

In addition to the bandwidth cost of 2 billion yuan, there are also 4 or 5 billion or more content procurement and production costs behind it, plus the operation of a huge team, the cost alone may be tens of billions of dollars a year.

A large part of the cost of tens of billions of dollars is the cost of sinking, just like a cross-sea bridge, the piers of dozens of meters high are sunk in the seawater, and ordinary people ignore the cost of the project under the seawater.

Just like people who don't understand the Internet, they may not be able to see the huge sunk cost behind a video site like iQiyi, but they will jump on the street because membership content needs to be paid, and feel that such a company is too unconscionable, Lao Tzu watches a drama on your platform, and you let Lao Tzu fill up as a member.

In fact, the sunk cost of the Internet industry is far higher than ordinary people imagine.

Otherwise, how could Wang Sicong's Panda die?

Ordinary people looking at Panda's business model may not think at all how this thing can lose money?

Wang Sicong has its own traffic, so you can save a lot of money on advertising;

The anchor's income should be shared with the platform, and when the anchor earns five cents, the platform will also earn at least five cents;

A small number of top celebrities need a high signing fee, but most of them not only bring their own traffic, but also can drive user consumption, so the platform as a whole will not lose, or not lose much.

So why is a huge company still cool?

It is because the cost of bandwidth costs tens of millions a month, hundreds of millions a year, and they are losing money every year, and they need to constantly find new capital to invest in blood supply.

The reason why Xu Yiyang said so much to his roommates was so that they could understand this truth.

Don't feel bad because you see that website ads can be sold for money, and feel that you didn't take them to play and made a lot of money yourself.

In fact, this ghost thing, it's too early to make money, and the early stage is to keep burning money until the scale is large enough.

Fortunately, everyone can understand this truth, and they all have a heart that knows gratitude.

Subsequently, Xu Yiyang received the restaurant address from the other party, and said to a few people: "Let's go to this restaurant after class in the afternoon, let's go to this restaurant to have a look, take a field trip, and try how they taste by the way, if the taste is good, the ingredients are good, and the environment is also good, then I will advertise him, if not, I will not accept this advertisement, so as not to pit users." ”

Xu Yiyang feels that making a website is like doing training, and you must have a conscience.

A training institution with a conscience, while making money, will definitely do everything possible to let its students learn something, and a training institution without a conscience, just make money, it is best not to come to class after you pay the money;

A conscientious website should also be considered for its own users while advertising.

Not to mention that everything is for their sake, at least they can't be harmed.

And a website without conscience only makes money by advertising.

Even if he knows that a private hospital that treats cancer may not even cure a cold, as long as he gives more money, he will still recommend this hospital to cancer patients.

Even if he knows that a certain board game is a money pit and may bankrupt the player, as long as he gives more money, he will advertise the game.

But Xu Yiyang will never let himself embark on such a mercenary path.

Therefore, he thinks that he must go to this restaurant to see and taste it first, and if it is really good, he will recommend it to users on the forum.

In these days, there are not many people who can afford to spend 30 yuan on a buffet, and if they watch an advertisement to try, most of them are also couples dating, classmates having dinners, or simply want to have a good meal, and it is unlikely that they just find a place to pay for a meal.

If the restaurant is doing poorly in all aspects, it will not only cause them a psychological gap, but also additional psychological damage.

......

After class in the afternoon, the seven of them came to the old John's Western-style cafeteria near Jiaotong University, and Xu Yiyang specially brought the digital camera with a low resolution.

From the outside, the restaurant is indeed very large, and the decoration is relatively high-grade, and the scale can accommodate at least 100 people at the same time.

But it's almost six o'clock now, and it's dinner time, but the business is very average.

Xu Yiyang counted through the window, and there were not as many people as waiters.

With this number of customers, this store depreciates the rent with labor and equipment a day, not to mention the loss of one or two thousand yuan.

A middle-aged man who looked like a restaurant manager saw seven college students at the door, looking in through the window, and was immediately overjoyed, trotting all the way out, and said with a smile: "Several, do you want to eat? You can try our family's buffet, Orleans grilled chicken wings and chicken thighs, American fried chicken ......"

Xu Yiyang smiled and said, "I'm sorry, we are from the New Century Forum, let's find Manager Liu." ”

"You're Mr. Xu, right?" the other party hurriedly greeted with a smile, and then suddenly felt a little disappointed, probably because he realized that the seven of them were not customers who came to eat.

Xu Yiyang smiled slightly and said, "That's right, I'm the person in charge of the website." ”

As he spoke, he added: "Actually, we came here to try your food first, and if the overall is good, we will take your advertisement." ”

The other party immediately said: "Come on, come inside, please, I'll treat you today." ”

Xu Yiyang smiled: "No, we will pay for it today." ”

After entering the store, Xu Yiyang went to the bar to pay first, and Manager Liu was about to stop him, but Xu Yiyang had already handed the cashier exactly 210 yuan.

Manager Liu said embarrassedly: "Look at you, how can you come to the store and ask you to pay for your own food." ”

Xu Yiyang said with a smile: "If we cooperate happily, you can invite us to eat again." ”

Saying that, Xu Yiyang said again: "Manager Liu, you go and get busy first, don't worry about us." ”

Manager Liu hurriedly said: "That's okay, the food area and the drink and fruit area are all inside, you can do it yourself!"

Xu Yiyang and a few people chose a big table, and then he beckoned everyone to pick up the meal, to his surprise, the six people had never eaten the buffet, and they didn't know how to go through the follow-up process.

So Xu Yiyang said: "The buffet is to eat and drink as much as you want, everyone goes directly over there, and when you see what you want to eat, you can take a plate and bring it over, anything." ”

Saying that, Xu Yiyang added: "Although it is casual to eat, but don't waste it, you can take a little less first, and then take it if you don't eat enough." ”

Chen Meng asked, "Brother Xu, can you just take it?"

Xu Yiyang nodded: "Take what you eat!"

"Okay!" a few boys rushed out at once.

This restaurant is mostly American fast food, and has a wide range of chicken products, as well as pork chops, American barbecue, various pizzas, sausages, breads, and desserts.

In addition, the variety of fruits is also relatively rich, Xu Yiyang deliberately got a little bit of each one, and found that they were all quite fresh.

The drinks are all made by the beverage machine, and the taste is no different from KFC and McDonald's, but it is normal to be lighter than the bottled.

Everyone took some food and piled it on the table, which looked very rich, Xu Yiyang deliberately took a few photos, and then everyone began to wreak havoc.

After tasting many kinds of food, Xu Yiyang felt that the taste of this restaurant was quite good, at least worthy of the price of 30 yuan.

As for why the business is not good, it may be because the publicity is not in place, or it may be because consumers do not see what specific types are in it, but are simply scared away by the price and feel that the price of 30 yuan is too expensive.

Therefore, at this time, it is necessary to make a more detailed advertisement on a powerful channel, and once consumers understand what the 30 yuan can be exchanged for, they will be willing to try.

Thinking of this, Xu Yiyang decided to take over the advertisement of this restaurant and use it to try his hand to see how strong the conversion ability of the New Century Forum is.