In the Internet era, payment for knowledge has always been considered a profiteering industry.
And Fan Deng also relied on knowledge payment to earn 5 billion in 2 years.
But the payment for his knowledge is not just about selling books, but also about the profit model behind it.
Fan Deng started
Fan Deng, who was born in Xi'an, Shaanxi Province in 1976, is a simple and honest fat man.
He completed his master's degree at Xi'an Jiaotong University and his Ph.D. at Beijing Normal University.
During his studies, he won many championships in debate tournaments with his eloquence and ability.
He also worked as a host on CCTV.
When he was in college, Fan Deng found that many people didn't like to read, and he especially liked reading, so he often asked his classmates to recommend him to buy books.
Despite this, the books bought by the classmates were still left to ashes.
So Fan Deng wanted to start a book club at that time.
In 2013, he recruited three of his friends and founded the "Fan Deng Reading Club".
Fan Deng reads about 50 books a year, and he records the essence of each of his books on the PPT.
Each book is condensed into 40 to 60-minute stories to help people who don't have time to read and don't know what to read to pay the annual fee to read.
At that time, WeChat was just starting, and the WeChat community group became Fan Deng's promotion method.
With an interesting plot and a sharp point of view, Fan Deng soon harvested a large wave of like-minded fan members.
This also fulfilled his dream in college, and it was also the prototype of Fan Deng's beginning.
But can he make 5 billion just by selling the annual fee? This is obviously impossible.
Build a closed business loop
After having a loyal group of the community, Fan Deng began to create an APP to achieve multi-layer profitability.
The reason why knowledge payment can explode is because there is no backend.
You can record your knowledge, experience, skills, etc. into courses, and then monetize them through videos, live broadcasts, etc.
This not only saves the traditional offline physical stores and large expenses, but also allows those who want to learn to choose their study time freely.
Such a profitable way has led to a sharp expansion of knowledge payment.
Even so, no matter how good the personal IP created by Fan Deng alone, it is impossible for him to win 5 billion in two years.
But Fan Deng really did it, so how did he make himself so big?
Business model shifts
And Fan Deng understands that there are far more people who want to make money than those who want to study.
So he began to change his business model.
Fan Deng packaged his experience and annual fee collection method into a complete project and began to sell to those agents.
In this way, the business model has changed substantially.
A membership sells for a few hundred dollars, while a project can sell for hundreds of thousands.
In this way, it can not only attract the members of the reading club, but also use the agent to make a matrix to achieve the fission effect.
That's why Fan Deng can have hundreds, if not thousands, of accounts.
According to a data in 2021, the overall market volume of knowledge payment is expected to reach 70 billion, of which 30 billion is the sales volume of a certain sound.
This shows that the market for knowledge payment is so huge.
When most people are still following ordinary promotion methods such as selling courses, Fan Deng uses knowledge payment as a tool, allowing him to make 5 billion in two years.
This transformation of business model must of course also adapt to the market environment.
And Fan Deng keenly smelled the opportunities brought by the market environment.
Reading books can make our minds more active.
A few hundred dollars a year can allow us to read the essence of 50 books, which is more time-saving and efficient than buying 50 books to read by ourselves, and of course, more people are willing to join "Fan Deng Reading".
Disclaimer: This article does not sell any products and business models, only normal analysis, and only expresses personal views throughout
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