Chapter Thirty-Seven: 600 Million Business!
Many people don't understand how a mobile phone system can make money, such as Android. Android has always been free, but why does Google make a lot of money? In fact, most of their income comes from advertising.
"Hey, I've decided on the advertising fee for the pre-installed software on the mobile phone!" Qin Hailang felt happy in his heart at this time. He's done his homework on this one.
Many years ago, there was a saying in the domestic mobile phone market: "The mobile phone has not been sold, and the cost has been recovered".
It is said that mobile phone manufacturers make money by pre-installed software. First of all, the market has this demand, in the era of mobile Internet, APP manufacturers or Internet companies are aware that pre-installation is an advertising channel for distribution and promotion; in addition, pre-installed software has become a part of the income of mobile phone manufacturers, and mobile phone manufacturers will not easily let go of this field.
Large sales players like Huawei, OPPO, and vivo have billions of yuan in advertising revenue every year in terms of APP distribution. Xiaomi has its own system, of course there will be more.
According to public media reports, in addition to the mobile phone manufacturers themselves in the battle of mobile phone pre-installed software, there are two channels, one of which is the pre-installation of mobile phone system software.
Now Qin Hailang is planning to use this piece to make a lot of money. He believes that as long as the number of users of his Xingchen mobile phone system has been huge, then his advertising fee will not be broken!
He checked that for each software pre-installed on a single mobile phone, you can charge a certain fee to the mobile phone software vendor, and the software vendor promotes the software through pre-installed installation, increases the number of users, and then realizes its economic benefits. According to public information, in recent years, as the pre-installation demand of APP operators is greater than the pre-installation capacity of flashing manufacturers, the installation cost has also risen all the way, from the initial 0.5 yuan per software to more than 1.5 yuan per software!
And the price of 1.5 yuan per software is still the price in 2015, and now in 2017, it has risen to 3 yuan!
Sure enough, a week later, five powerful companies came to the door.
Because now the number of users of Xingchen mobile phone system has exceeded 40 million!
These five companies are Seele Company, Sosou Company, Fox Search Company, Xindian Company and Qichuan Game Company.
These five companies want to promote their software, such as the Video App, the Sosou Dating App, the Fox News App, the Xindian Payment App, and the Qichuan Mobile Game. They also saw that there were 40 million users of Xingchen's mobile phone system, so they came to find it.
This meeting was in a conference room of Xingchen Technology Co., Ltd.
Qin Xianhe, Qin Hailang and several employees met with the CEOs of these five companies.
When they came in and saw Qin Xianhe, they all felt that the boss here must be Qin Xianhe, and they didn't expect that the young Qin Hailang was the real boss here.
"Boss Qin, I have admired the name for a long time! The contemptible person is Qian Weiyan, the manager of the Sight Music Company. Qian Weiyan was still a little surprised when he saw Qin Xianhe. Although he didn't have Qin Xianhe, he had seen Qin Xianhe's name on the news. He is the owner of a well-known investment company in Yangcheng. Unfortunately, it went bankrupt last year. I didn't expect to make a comeback in less than a year now. And it's still a network technology type company!
"Hello. Qin Xianhe smiled and nodded. Because it had been discussed before, Qin Hailang didn't want to come out for an interview, so he just let his father.
At the beginning, the people from these companies did not cut to the chase, but constantly wanted to inquire about the Xingchen mobile phone system.
After all, this thing has a lot of potential at the moment, and of course they want to know something.
However, Qin Xianhe is not a fool, and of course he will not reveal anything.
"Ladies and gentlemen, I believe you have seen the strength of our Xingchen mobile phone system! It currently has 40 million users. "Qin Xian River Road.
"Yes, your Xingchen mobile phone system is really powerful, and I am using your mobile phone system now. Sun Dahai, the boss of the search company, nodded very approvingly.
"In that case, I don't have to brag about anything, all five of you want to pre-install your own software APP in our mobile phone system. If you find it interesting, then let's get straight to the point. At present, the price of a pre-installed software is 3 yuan a piece! The current users of our Xingchen mobile phone system are 40 million, and each of you only needs to give us 120 million advertising fees, so we have a place in the pre-installed software of our mobile phone system. "Qin Xian River Road.
According to the 3 yuan of a software pre-installed on the consumer's mobile phone, 40 million users are 120 million.
Five companies, that's 600 million!
Qin Hailang can earn 600 million yuan in this advertising fee alone, and it scares people to death when he says it.
But don't think that this 600 million yuan is a lot, and it is still a lot less than the advertising expenses mentioned above that people earn billions a year.
"Now, as long as you sign a contract with us, the money arrives, and we upgrade the new mobile phone system, then the 40 million mobile phone users will have more software apps from your five companies in their mobile phones. Qin Hailang played the role of secretary at this time and spoke.
"3 yuan a piece, the current market price is so, we all accept it. Next, it seems that we need to talk about the little details. Sun Dahai said.
"Absolutely!"
Anyway, the CEOs of these companies know that the current "brush dealers" have become the most critical hubs. Whether the swiped mobile phone is activated or not, the channel provider can get a profit of about 3 to 10 yuan per phone. This is unavoidable.
Instead of throwing tens of millions or even hundreds of millions of dollars to TV stations to advertise, it is better to throw these third-party advertising fees. Because other people's users are real, once you give money, your software will appear in the phones of those mobile phone users.
But advertising on TV is different, and those viewers who see your ad don't necessarily buy your stuff.
So this is also the reason why the advertising fee of mobile phone pre-installed software has been so hot in recent years!
After two days of negotiations, all the contract details were finalized, and Xingchen Technology Co., Ltd. finally signed the contract with these five companies.
Since Qin Hailang has 40 million users here, that is to say, each of them needs to pay 120 million in advertising costs, and five are 600 million!
As for the new customers in the future, that's a new problem!
None of these five companies paid 120 million at one time, they all paid a deposit of 5%, and after Qin Hailang's side updated the system, they would pay the rest of the money.
This business was negotiated, and Qin Hailang and Qin Xianhe were both happy!
This business alone made their family make a comeback in an instant!