For a product aimed at the mass market, it is very difficult to go directly from the manufacturer to the 4th, 5th, and 6th line and the village canteen, and it also requires extremely high costs. Therefore, only by giving full play to the subjective initiative of the people, using the localized network of dealers and human organization capabilities, and deeply distributing the products, can the brand be made deeper and deeper, and it can be done for a longer period of time. The second is how other companies do performance management. You can find the assessment documents from Baidu Wenku, and you can view the design schemes of other products from Renren. When I searched for this part of the information before, I clearly felt that the performance management I was doing was not the same as everyone's plan.
From another point of view, why it is easier to make money offline. To put it simply, online channels, because of the marketing model and traffic model, lead to a very limited decrease in the marginal cost brought about by the growth of brand revenue. Online channel/marketing expenses are closer to the variable cost model, that is, the proportion of expenses to revenue remains at a certain level, revenue increases, and the proportion declines to a limited extent. If the cost is not spent, there will be no traffic, so the paid traffic medicine cannot be stopped to special leads be like Ruixing in the future, from mutual SB to now turning around against the wind, and also teach investors a good lesson.
In the offline channel, the cost is closer to fixed cost, and the sales increase, but the proportion of the cost tends to decrease, and the profit space is larger. Offline channels, with their own natural traffic, can become bigger and stronger depending on brands and products. A normal business operation rule is that each party involved in business activities must be profitable, or should make their own portion of the money. Only such a business model can continue to operate and develop. The new brand is not profitable, more than is not the choice of the company or the founder. Not profitable, of course, for many reasons. From Gary's personal point of view, the most important factor is that new brands generally lack here has two meanings.