Do electricity providers need to understand the basic logic of business

traffic logic

to do business, both online and offline, we must solve the problem of getting customers, who can bring customers, can be seen as traffic. This channel can bring much traffic, the cost of obtaining a single user is how much is a single account for each businessman.

if you open a malatang. Open in the area of the day requires 100 booth fee, access to 50 customers, a single cost of $2. Opened in the subway mouth, booth fees may be 1000, can get 400 users, a single cost of 2.5. As the owner, you can choose to open 100 small stalls, make full use of low cost flow, to take into consideration the cost management. You can also choose to engage in a large booth in the subway, and more to engage in a string of types and drinks, to enhance the profitability of individual users, in order to make full use of high cost flow.


traffic logic contains three basic rules.

trend dividend

The earlier

enters a channel, the lower the cost.

10 years to open Taobao shop, make money easier. 12 years to open, you may have to open a Taobao train, buy ppc. With the growing number of sellers, Taobao’s traffic more and more expensive, and ultimately will rise to the same cost as the line. So Taobao is not cheap, cheap Taobao just emerging trend dividend.

two days ago unfamiliar street people said that this year the biggest feeling is that the flow is really expensive, and must be bought. This year they have to invest money to buy the head of each application market rankings, in order to get traffic, which is unprecedented. Mobile terminal traffic is more expensive, more and more difficult to get users. In fact, the user is not cheap, just the rise of smart phones, the user’s online time suddenly got a great release. Cheap, but the trend of the rise of the mobile terminal bonus.

business scale boundary

the same channel, want to get a larger order, the cost will increase

first said two concepts, CAC refers to the cost of each user you get. LTV refers to the user’s contribution to your life cycle. So long as a company’s CAC

for example you sell durian. If you write your own soft, in the circle of friends advertising, CAC=0, but can only sell 2. Want to sell a little more can be considered a public number, find a fruit shop to help suck powder, the cost may become CAC=3, selling 50 per day. Continue to expand, only to cast wide point, CAC=20, every day can sell 1000. Also want to expand, increase the fans through delivery order, every day to burn hundreds of thousands, you will find the cost finally rose to durian profit cover them, this is your business boundary.

PS: the company size also has a similar border, the company is the management cost of the border = outsourcing cost >

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