What is the business model of MCN? How did it work with KOL?

Posted by zaiwu 03/09/2019 0 Comment(s) China Social Media Marketing, WeChat & QQ, Digital Marketing in China,

There has an important operation channel in self-media industry which is called MCN (Multi-Channel Network).


They are docking with web celebrity, docking with traffic side and brand side.4A companies used to do this in traditional industries.This is the use of information asymmetry to buy low and sell high.Compared with traditional 4A companies, MCN actually creates more value.


MCN has three ways of cooperation as below:





The first is that it cooperates with big KOLs. KOL(Key Opinion Leader) is actually an abbreviation invented by the Chinese.The word in English is "influencer".In China, KOL mainly refers to web celebrity, traffic stars, influential people and so on.The cooperation mode of MCN is that if it looks for large KOLs, it will help big Internet celebrities connect with merchants, provide them with products in line with their tonality, and then lower the purchase price to give these KOLs enough profit space, so as to help KOL improve the efficiency of its operation.


These big KOLs are powerful in their own right, and they have countless businesses waiting to connect with them.So they don't expect or rely on MCN.If MCN cooperates with big KOL, their share ratio is about 1:9, and MCN gets very low.However, MCN still has many channels and advantages, which can help KOL improve its efficiency.Some big KOLs are willing to work with it.


The second is to dock with small kols.The smaller KOL also has a few fans, a certain amount of fans, but it's not as strong as these big kols.And these small kols still have some space to grow fans.They came up with a methodology.MCN can dock with a lot of web celebrity and KOL.So it can help KOL guide their work.For example, MCN can teach them how to grow fans, how to improve their live broadcasting, how to make the live broadcasting better and so on.It also gives them a set of things to do with their business, such as how to receive advertisements, how to sell goods, and how to connect them.For small KOL, this is also a win-win cooperation.Because of the cooperation with KOL, MCN provides more help, so the proportion of MCN will be more, about 6:4 or 5:5.


Third, the MCN raises some of its own person.For example, the pretty little sister who is not famous yet, MCN will sign up with her first, and then instruct and cultivate her to learn to be a KOL.MCN will give these people who is not famous yet a guaranteed minimum wage.And then the people who sell the goods get another share.In this case, the proportion of MCN shares is relatively high, such as 2:8 and 1:9.Or according to a certain percentage of profits can be divided.And it signs contracts with people for some years at the time.If the man becomes famous, the MCN will be able to keep a relatively high share for the next few years.For the people that is not famous,she or he has a salary and has the hope to become web celebrity.Naturally they can cooperate happily.So MCN can create a lot of value.Of course, the cultivation of the people still depends on the field.If it is pure dry goods output video class, you can not let the people do.Because people can't do it.If it is beauty makeup, basically as long as the people look good, sound good, there are certain characteristics can be.It can be copied.The core capability of MCN is scale effect.It has enough KOL on hand, enough quantity.It has strong bargaining power in terms of channels.With more kols on hand, it has a strong carrying capacity.Its bargaining power is strong.It will be able to find the best channels and pick up the goods at the lowest price.It will be much better at integrating the supply chain.Competition for MCN is fierce.The barriers to entry are low and many people can do it.And big kols are hard to control.If you signed a mid-sized KOL, later on when he grew into a big KOL, he probably left you.MCN's business is not so good right now.





At present, the choose in the platforms of self-media are mainly WeChat, weibo which is Chinese version of Twitter and douyin.The value of WeChat is definitely greater than weibo and douyin.For example, if you have 1 million followers, if you have 1 million WeChat fans, that's really, really cool.It's not so good if you have a million followers on Microblog.With 1 million douyin fans, it's even worse.WeChat has now passed the dividend period, and the rally is slow.You wrote an article of 100 thousand +, the likelihood rises pink to rise 2000 only.Weibo cannot do video class.


Douyin has to produce content specifically for it.A lot of long video do douting sound is to move their own content in the past to break down into many to send or simply summarize a send, domatters think these are not good.Long video has to be divided into several short films to play really not so good.Let's say you have a topic to talk about and you force it to be within a minute or two.That actually can not express, you can not understand so deep.So douyin is better to produce content with a faster tempo and a smaller topic for it.Douyin algorithm is the best of several platforms.For example, the first three video posts you send are particularly important.These are very important,such as whether users have finished watching, how is the completion rate,how is the thumb up rate, how the proportion of fans.If you do well in video in the first three, douyin's algorithm will probably judge that your channel is not bad.And then it's willing to push more traffic to you.If your first three video's don't do well, it puts you on a list of channels that aren't particularly good.Then you want to go fire later, that will be more difficult.And all your video in douyin should make a unified style.Because it has a machine recommendation that will tag you as a person or video.For example, if you do business, entrepreneurship related video, you can't talk about other things.It will constantly push businesses and entrepreneurs to you.Otherwise, the machine doesn't know who to send you.You may end up not getting one.You should pay attention to the problem of ‘fans zanbi’ .Fan likes are how many compliments get one fan.In other words, see how many of your fans praise you.Do douyin also have to follow hot spots.In fact, doing any platform is to catch up with hot spots.A hot spot comes, when everybody searches, your flow rises very fast.And content is best to achieve full platform coverage.For example, your long video since made,it is best to pass the whole platform,like tencent video, youku and other platforms and so on.If you produce a short video, it is better to douyin, fast short videos, even Red, etc., it can also cover the whole platform.


Finally, there is the question of private traffic.Private traffic is relative to public traffic.Douyin, for example, is a typical common traffic platform.Because most of douyin's users don't follow "we media" people, he follows the video stream on his mobile phone.What platform recommends him to see, what he brushes, what he will see.Therefore, your video fire, the next video if the platform did not give the recommendation may not fire.So the common domain traffic is not yours, it belongs to the platform.These traffic it both look at you and look at others.Public domain traffic is certainly not much friendly to self-media people.Private traffic refers to their own traffic can be repeatedly used, can be reached at any time.For example, he added you to WeChat that he can contact you at any time and no cost, this is the private domain traffic.If you are a "we media" person of douyin, you can direct your users to weibo, which is actually very satisfactory for you, and this is the private domain traffic.Because weibo users can reach it at any time.However, for the we-media of weibo, weibo is also a kind of public traffic.Because it has to direct users to WeChat before it can move to its own private traffic.For WeChat, some people may want to direct users to the knowledge planet to be considered private domain traffic.


We hope it is helpful to you and we also wish you can give us your precious advice to help us to serve you better.Please feel free to contact Domatters.


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