Reborn since 1993

Chapter 1340 Money moves people’s hearts

Shen Chenglin spoke to Li Dongling about Dongxin Company's cooperation model with the product inventors, emphasizing that patent licensing was key; without patents, everything else was just a mirage.

The premise for Dongxin Company to cooperate with the product inventor is that the inventor grants Dongxin Company the patent, and Dongxin Company will pay the inventor a licensing fee. After obtaining the patent, the two parties will start cooperating.

Of course, this is not mandatory. If the product inventor is unwilling to cooperate with Dongxin Company or to license the patent, Dongxin Company will not force them. After all, there are more than just one or two geniuses in China with wildly creative ideas. Can't we eat meat without Wang the Butcher?

Furthermore, the process of developing those products from a novel idea on television to mass production, promotion, and sales cannot be accomplished in a single sentence.

You need to find parts suppliers, advertisers, sales channels, warehousing, customer service, after-sales service, etc., and Dongxin Company can provide all of these.

Backed by Dongling High-Tech, Dongxin Company can leverage Dongling High-Tech's parts supply chain, as well as its advertising and sales channels.

Building such a system from scratch is not impossible, but for product inventors, probably only one in a hundred could do it, because the cost is simply too great.

But if we cooperate with Dongxin, we'll have access to parts, promotional channels, and sales channels.

From production to promotion, operation and after-sales service, Dongxin Company takes care of everything. As long as there is market demand for the product and it can be sold, the inventor of the product can just sit back and collect money.

So, if a product is sold, is it expensive for Dongxin Company to take 45% of the profits? Did they take even a penny more?

As for the 20% commission each received by Focus Media and CCTV, Dongxin Company has no say in that.

To put it bluntly, if you feel that these two companies are asking for too much, then you don't have to appear on the show "I Love Invention".

Without the central media platform reaching hundreds of millions of users nationwide, and without the funding provided by Focus Media, this program wouldn't have been possible. That idea might have remained just an idea forever, never becoming a reality and being seen by the world.

Focus Media, state-run media, and Dongxin Company essentially provided an opportunity for those with creative ideas to showcase themselves.

Dongxin Company goes a step further, helping to mass-produce imaginative inventions and giving inventors the opportunity to achieve financial freedom!
"Currently, among the products that Dongxin has collaborated with on the 'I Love Invention' program, three have achieved annual revenue exceeding five million yuan. The most famous product is the Yuema lock, which is currently one of the safest lock brands on the domestic market!"

"In the future, Dongxin plans to incubate two to three products per year and bring them to mass production!"

Hearing Shen Chenglin's words, Li Dongling looked at the water.

After a moment, Li Dongling said, "As for Dongxin Company, there's no need to rush to make a profit. As long as it can break even and keep operating, that's enough!"

"For brands that are already in mass production, we should try our best to keep them alive and help them become one of the well-known brand companies in the local area!"

Li Dongling didn't even need to think about how much money he could make from Dongxin Company; he would be content as long as he lost as little as possible.

The inventors of the products incubated by Dongxin come from all over the country, and Li Dongling has no intention of relocating these brands to one place. Instead, he will continue to support the development of these brands in their local areas.

Establishing a company locally, setting up a research and development team, production workshop, marketing department, etc., just this one brand can basically bring dozens or even hundreds of jobs to the local area!
It may seem insignificant, but its scale can be continuously expanded. Dongxin Company uses Dongling High-Tech's transportation and sales channels to sell its products to all parts of China and even overseas.

Such companies, once they establish themselves in the local area, become local tyrants.

Dongling Hi-Tech doesn't need to make much money from it, but as long as this brand becomes a local power, Dongling Hi-Tech's products can enter the local market without any hindrance!

Similarly, these brand companies will also become part of the Dongke Group's efforts to extend its influence.

One brand may seem insignificant, but what about ten, twenty, or even hundreds of companies incubated by Dongxin Company across the country?

These companies together are essential to the livelihoods of millions of migrant workers, and will also increase the influence of Dongling Hi-Tech. More and more places will become Dongling Hi-Tech's base!

Having a strong local base is not only advantageous because it allows you to sell your goods smoothly in the local market, but it also provides leverage.

Over the years, Mr. Li has spared no effort in building his base of support, which can not only be defended, but also used for offense at times!

If Dongling Hi-Tech's products encounter obstacles in overseas markets, such as America, then it will be a pipe dream for certain American brands, which are Dongling Hi-Tech's competitors, to try to sell their products into Dongling Hi-Tech's core market!

Hearing that Li Dongling wasn't in a hurry to cash out from Dongke Company, Shen Chenglin breathed a sigh of relief. At present, Dongxin Company was still too weak and far from becoming a cash cow.

If they rush to draw blood now, they might drain Dongxin Company dry.

"President Li, I believe that the products promoted by Dongxin Company have a future market. They just need time to be developed, to mature, and to be accepted by users!"

Shen Chenglin said to Li Dongling that he dared not predict how much money Dongxin Company would make in the future.

While most of the products incubated by Dongxin are imaginative ideas, they are all developed by inventors based on local needs. Even if only 10% of these incubated products actually become commercially viable, it will be more than enough for Dongxin to profit from. Coupled with its vast patent portfolio, Dongxin could very well become a quietly successful giant, a prime example of making a fortune in silence, with revenue likely far exceeding external estimates!

Li Dongling nodded. "I'll leave Dongxin to Professor Shen. I believe Dongxin will not disappoint the headquarters of Dongke in the future!"

Li the philanthropist's attitude towards Dongxin was basically to let it run its course, since there really weren't many other good options.

Whether or not the products featured in the "I Love Invention" program can be successfully developed and promoted really depends on luck. It's a matter of fate; what's meant to be will be, and what's not meant to be, you can't force.

Just like in a past life, some things are unknown in their own industry and can't sell a single order, but they sell like hotcakes in another industry.

For example, a curtain seller might switch to selling Hanfu (traditional Han clothing), a JK uniform seller might switch to selling four-piece bedding sets, a rice noodle seller might not sell many rice noodles, but their iron pots might attract attention, and a chestnut seller might sell chestnuts for ten years without anyone asking, but suddenly everyone knows about their chestnut opening tool. Who can they complain to?

These sellers who listened to advice all became incredibly successful after changing careers, so sometimes luck is also necessary, and the same applies to Dongxin Company.

"These two products will be sold by Dongxin. Focus Media can promote them through Dongling High-Tech's sales channels!"

As Shen Chenglin was about to get up, Li Dongling glanced at the three-in-one sterilizer and formula dispenser that the Innovation Lab and Dongxin had jointly developed for Xiaozhiyuan, as well as the electronic rocking chair, and said to Shen Chenglin, "Consider this a great gift for Dongxin."

These two products will definitely have a market once they go on sale. In fact, they might even sell better overseas than in China, perhaps due to their price.

While I wouldn't say we'd sell hundreds of thousands of orders a month, I'd conservatively estimate that selling tens of thousands is definitely achievable. These two products will bring Dongxin a lot of cash flow!
"Thank you very much, Mr. Li!"

Shen Chenglin was also aware that Li Dongling was supporting Dongxin Company, and he was equally aware that both of these products had a market.

Shen Chenglin and Zhang Bing left together, no longer wanting to disturb Li Dashan's fishing pleasure; in fact, they also had quite a few things to do.

Inside the fishing pond, only Li Dongling and Xiao Zhiyuan remained, along with a nanny and bodyguards.

First, the philanthropist Li checked on Xiao Zhiyuan to make sure the little guy hadn't "done anything bad" before continuing to fish.

For the time being, the fish in the fishing grounds had not yet offered up the young boys and girls as sacrifices, so the benevolent Li could only wait.

Li Dongling picked up a laptop and started browsing the news, naturally starting with China.com.

In today's world, before the explosion of internet information, these portal websites are still the fastest-flowing channels for information dissemination.

China.com collaborates with media outlets in mainland China, Hong Kong, and overseas, and its news updates are currently the fastest among domestic portal websites.

"Major global tech news: Yahoo CEO Jerry Yang will embark on an Asian tour, with his first stop being mainland China!"

Today, the front page of China.com features Yahoo and Jerry Yang, making it the most significant news in Asia's technology industry today.

Given Yahoo's current fame, Silicon Valley and Wall Street have also portrayed Jerry Yang as the world's number one internet figure!
Yang Zhiyuan's visit to the mainland will undoubtedly cause a huge stir in the Asian internet industry. Countless internet professionals will probably be hoping to meet him as if on a pilgrimage.

However, Li Dongling knew that Yang Zhiyuan's trip to Asia was partly to promote Yahoo and attract more investment institutions and wealthy people in Asia to take over Yahoo's stock, but on the other hand, he was probably also after Dongling High-Tech.

The message that Li Dongling had previously sent to Yahoo was clearly received by Yahoo's management. Not wanting to miss out on the conditions Li Dongling had proposed, they hurriedly had Yang Zhiyuan launch this trip to Asia.

Looking at the news on the computer screen, Li Dongling's eyes flickered. This trip by Yang Zhiyuan might just lead to the birth of the largest transaction in the history of the global Internet!

Dongling High-Tech doesn't need to make any special preparations; Li Dashan only needs to wait for Yang Zhiyuan's arrival.

Just as he was thinking, Li Dongling saw the fishing line start to move. Li Dashanren felt that the fish in this fishing pond did know the rules!
Just as Li Dongling was about to reel in his fishing rod, he heard a crying sound behind him. It was Xiao Zhiyuan who had woken up.

Looking at his eldest son, then at the fishing rod, the benevolent Li stamped his foot and picked up little Zhiyuan first...

……

"Wow!"

Inside the main conference room of Chitu Quancheng Company's headquarters in Qilu Provincial Government, a banner for a rally was hanging on the wall.

Several large sacks were opened at the same time, and stacks of maroon hundred-yuan bills fell onto the table, creating a mountain of money in front of everyone in the conference room.

(End of this chapter)