Coquettish Rebirth

Jia Hongjian analyzed it. The Internet bubble of this year is still a bit shadowy in later generations-although various Internet companies have been hyped in various media, they have not actually solved the problem of how to make money!This sounds funny, and it sounds like the investors who invest in these Internet companies are brain-dead, but in fact, if they really want to get involved, not everyone can see clearly!

For example, the "Jingxi" online shopping mall in later generations is big enough, right?Is this company famous enough?At least the after-sales service is good, right?Such a company feels quite promising, right?But in fact, by the end of 2012, the company hadn't made a profit yet!Has anyone noticed this?This company has been around until the end of 2012, and it is still in the stage of financing and burning money!In fact, I have always been losing money!

Such a company has not earned a net income, and has always been at a loss. Then, under such a situation, it keeps financing and brings in venture capital. This is easy to think of the 2000 Dot-com bubble!So everyone has been guessing when this Jingxi will fall!Even the boss of the same online shopping platform has questioned whether Jingxi has enough money and whether the capital chain is safe or not.Then the boss of Jingxi.com dared to come out and bet that everyone is welcome to check the accounts. If the funds in their company account are less than 60 billion, then he is willing to donate 1000 million to the designated organization!

Even if there are really 60 billion funds in the company's account, isn't it strange? A company that has never made a profit in terms of performance. Ordinary people even often go to the company's website to shop, but the company has been losing money , and then they have a lot of cash!

In fact, this model is an operating model before the Internet bubble in 2000!In fact, regardless of whether we can make money now, let’s find venture capital first, start operations first, expand the scale first, and build a better reputation first.Let's get a group of consumers to come over to cheer, and then we will use these things from bluffing, and then use them as capital to bluff venture capital or even go public to collect money!So in the end, if such a business is not profitable, it is still just a "concept".

In fact, such an operation method cannot be said to be crazy, and it can even be said to be very "creative".Because for many companies and even many industries.If money is no object, then many things are no longer an issue!And such an operation method, relying on hype first and then relying on venture capital, doesn't that solve the problem of money?When Jia Hongjian and the others were building shopping platforms in China, they needed to build express delivery channels from scratch, and they needed to cooperate with the postal service.It all costs money!

Jingxi also builds its own express channel. If people rely on earning money honestly and then work hard to build channels after adding value to themselves, then I really don’t know that the Year of the Monkey is just around the corner!However, through hype to attract venture capital, they can burn money in advance to build their own channels!Theoretically, after the establishment of one's own channel, it is very good to make money, and the profit rate is also guaranteed.But who can guarantee that the theory will come true?So this is actually venture capital, it is really risky!In comparison.It took 6 years for Tao x to start making a profit, and it took 7 years for Amazon in the United States. At least 8 years after Jingxi was established, it still didn’t make a single penny and was still burning money...

In later generations, there are still models like Jingxi, and there are even more of them today-after this new model came out, many young people in the United States simply thought it was a new way to make a fortune!It's like an online shopping platform, in just a few years.There are several platforms in the United States that imitate the Sherlock Holmes platform!There is even an online mall called "New Egg" established by Chinese Americans in Southern California that specializes in selling various electronic devices!

These online shopping platforms may be because Holmes' company is in the forefront, so don't be too excited about the venture capital investment one by one!It can be said that as long as the project has a small scale, venture capitalists will come up and ask if they want money!In this case, how could the Internet not be a bubble?

There is even a so-called ".com theory" in the United States, which refers to emerging Internet companies.Don't feel bad about burning money, the most important thing is to attract customers as quickly as possible!Even if this behavior of expanding the customer base will lead to huge losses!There is even a popular saying in the United States, which is called "getting bigger quickly, or belching"!in this case.Many Internet companies, not to mention that they have no profit or even the first operating income, even when no one knows their business model or even the feasibility, they can collect a lot of money and then burn a lot of money!

In January 2000, the "Super Bowl", the largest American football game, attracted 1 listed Internet companies to invest. On average, each company spent 17 million US dollars on a 30-second advertisement invested at halftime!Even before the dot-com bubble burst, a website called iwon, a subsidiary of CBS Television in the United States, even drew a lucky person in a prime-time program of CBS, and then gave the other party a prize of 200 million US dollars!Is your sister's money burning stupid?The Sherlock Holmes company didn't say that they would randomly draw a lottery to burn 1000 million US dollars to win popularity!These guys really feel that money is not money but paper after they have made money?

Even looking at the "explosive news" in the newspaper, the Internet companies before the Internet bubble burst were really lavish!Some of them elaborately customize commercial facilities, provide employees with luxurious vacations, etc., and some of them give employees and executives not cash, but stock options.Then after the company goes public, ordinary employees in the company may suddenly become millionaires!As for these millionaires, some of them quickly grabbed their stocks and sought future appreciation.Some of them quickly cashed out, and instead of saving or seeking to preserve value, they quickly invested in other Internet stocks... If you do this, you can't stop it!

This sub-network "fever" has even affected many local governments in the United States!Many local governments, especially various satellite cities, plan and approve and build office buildings with highly developed and complete network facilities in order to attract various Internet companies to come and start businesses!There are even various tax cuts or subsidies offered by some local governments, wanting to turn their small satellite city into a second Silicon Valley!You must know that Silicon Valley used to be a small satellite city, just a small town next to San Francisco.The result is that because of the past of various IT industries, it is called a high-tech!The annual tax is so cool!

Ever since, these local governments have also invested in the process of burning money.Even with basic operators like AT&T, after seeing the rapid development of Internet companies, they all feel that the starting point of the new economy in the future is that every household must have a network interface, and the speed must be very fast!So even with these companies, large sums of money have been burned in for new infrastructure!This even made Cisco and other network infrastructure companies make a lot of money, and then the stocks soared in a mess!

Then, now that the myth of Internet stocks has been shattered, isn't it a tragedy with these companies?Even some European companies have been tricked into it-the so-called 3G has been developed at this time.But there is still some time before it is actually put into the market.After all, the base station at this time is still the 2nd generation base station of gs-m. If you want to use 3G, it will still be in cdma format. It must be said that a large number of base stations will be built!This is the same as the initial installation fee charged by China Telecom before, because the base station is not fully established and the network is not laid well.The entire network service is relatively poor, but to build a complete network, the investment is too large!Therefore, China Telecom chose the initial installation fee and asked the common people to help bear it.As for some communication companies in Europe, they think that the 3G format can access the Internet. Seeing the popularity of the desktop Internet, they think that the mobile Internet must be awesome!So n European communication operators hurriedly spent money to apply for 3G photography.Once the application arrives, spend money to lay all kinds of 3G base stations!The results of it?As a result, the Internet on the desktop here collapsed! 3G mobile Internet access is estimated to take three or four years to gradually become popular...so the money of these companies is equivalent to being wasted all at once!

Under such circumstances, the world's No. 01 Internet service provider, Worldcom, or WorldCom for short, has already been rumored to have suffered huge losses. Maybe a few months later, the US Securities Regulatory Commission and the like will Will intervene in the investigation, whether this WorldCom will go bankrupt like Enron in [-].I don't know...

Speaking of Enron, this company is basically one of the companies that were brought down by the dot-com bubble. Although they haven't gone down yet, Jia Hongjian knows that this company will go down by 2001!This Enron company is known by later generations as a huge financial fraud, but Jia Hongjian, as a person of this era, especially a person who has gone deep into Nasdaq, after he analyzed Enron's various financial reports.But there is a very strange rush - this company with 21000 employees has won the title of "Most Innovative Company" in the United States for several consecutive years, and it was awarded by Fortune magazine.But when such a company claimed to be the world's largest electric power, natural gas and communication company, Jia Hongjian found that he couldn't understand how the turnover of nearly [-] billion U.S. dollars that Enron claimed was profitable!in other words.On the surface, it seems that the turnover is so high, but in fact, can they really earn as much as they say?At least Jia Hongjian couldn't see how they made money!

From this point of view, Enron is actually a bit similar to Jingxi's method-by burning money to attract customers, and then continue to burn money while increasing the turnover.It's just that Jingxi at least clearly told everyone that he is not profitable, and An Ran is making a false claim that he is making a lot of profits even though he is not profitable all the time!

And when these companies began to suffer tragedies one by one, they had to lay off employees or even go bankrupt, and the various professionals who were laid off, including various senior programmers, etc., had to be because the United States gradually The open skilled immigration policy is facing more ic people robbing jobs - don't forget that Silicon Valley says ic represents Chinese and Indians!From this perspective, the wave of unemployment in the United States is probably not small...