6 months to achieve profitability, the company did this study on what

When the first half of 2015, with cis studying ways to cut the Internet market study,play Elsa Games studying traditional institutions too big to fail. By playing the stock market model innovation, cis study with more than six months to five industry market share and achieve profitability. Last June, cis future study to get a good $ 18 million A round of financing, has all paying the money lying on the accounts, nothing intact. Feng Shui in the Capital founding partner Li Feng opinion, cis study has been able to quickly acquire a dominant position in the industry to study, do not burn and burn from the transition to the short, mainly for two reasons: it does not significantly change the original user's spending habits, simply means using the Internet has changed the method of distribution of benefits industry chain; it is a medium-sized industry, does not have much competition, not because of excessive competition on price. In a medium industry entrepreneurs it means it is difficult to do much business. CEO Zhang Yang Shun studying abroad industry also saw the ceiling. He said, "Our goal from day one not only in the education market." It is not necessary to subsidize the market Li Feng: The theme is "Do not burn the O2O", now studying in cis burn it? How to prove cis study through development during this period has to date not burn? Zhang Yang: We have A $ 18 million round of financing and financing of $ 2 million peak of the Swiss capital, now lying account, penny did not move, but on our account more than a very large sum of cash. Why not burn, first, because studying the industry's cash flow is very good. Secondly, we have done a lot of cost structure optimization. We created 6 month (December) after the payment of income to achieve a positive. Studying the industry is generally 24 months payment run-flat, flat run 36 months mandate. We speeded up, not only did not burn, but came in more money. Li Feng: cis abroad spent more than six months to achieve the market share of the top five. You quickly crossed the breakeven point What is the most critical factor? Zhang Yang: We are studying the rules of the industry was modified for rent, labor costs and market three big optimized. The most important point is that the interests of the distribution mechanism of improvement. Studying human-oriented industry sectors, the teacher is very important. Let return to full service value service providers, service providers will give provide equivalent service. High profit margins of traditional institutions to study, up to 30% -45%. Figuratively, the teacher prevailing market commission is play Baby Hazel Games 4-8%, admits speaking teachers only provide services worth the money he got corresponding. We reduce the company's profit margin to about 15%, to ensure the company has a healthy level of profitability of the premise of improving the sharing ratio teacher, they naturally make every effort to serve. The company paid too little, and the teacher take much more, we will have to work to get the teachers feel more respected, in turn, will better serve our customers. Moreover, the cis study will be set into the mechanism based on customer satisfaction, which I learned early from the new East. In addition to customer satisfaction, our grading interest distribution mechanism, but also consider the qualifications of the teacher in the past, trading activity and other factors. After the teacher's revenue model is no longer one size fits all, some teachers have divided into nearly 30-fold increase. Li Feng: You have not been used in the payment of subsidies to achieve positive before? Both for consumers and service providers. Zhang Yang: We really used in the first three months, when the main supply-side subsidies teacher. The teacher in the traditional mode steady income, but does not correspond to a high income. Let the teachers to accept the new distribution mechanism before interest, it must make them feel secure enough. So the first three months, our first teacher provides the equivalent of a basic salary guarantee. However, because almost all the teachers are excellent, they are often divided into income subsidies several times, and soon not care subsidies. So, slowly we cancel subsidies. After almost did not use excessive subsidies, because there is no need. Low frequency high off the unit price, in fact, a disguised form of high-frequency Li Feng: low-frequency high industry on whether the customer price can be engineered O2O, O2O suitability for subversion, have so much to discuss. Cis studying in the process of exploring, which draw conclusions? Zhang Yang: Many people think O2O not suitable for low frequency high off the price, I have also had this idea. However, after studying cis run, I discovered that in fact is also very suitable, to see how cost and revenue structure of the control rhythm. I feel more and more low-frequency high customer unit is a disguised form of high frequency, but it charges very fast paced, disposable income. For example, the other day I was talking with a friend and a good future, that future students may well be a lifetime renewals 12, from elementary school to middle and high school, the annual fees may be more than 10,000 pieces. Cis studying the average customer price more than 30,000, some value-added services can reach 67 million or even higher. We though the bass, but once we have received the equivalent of the cost of those services low customer price paid many times. Figuratively, we may be equivalent to a one-time charge for months or even a year man playing taxi. This model will form a good cash flow, especially in the industry is studying pre-paid model, the equivalent of a large number of income coming in, but a lot of the cost of the post, which is the advantage of studying the industry. Li Feng: low-frequency high-priced brand-driven industry is very heavy, repeated consumption rate and customer decisions carefully, will lead off the eligible costs will be very high. Cis studying how to solve the problem of the high cost of eligible customer? Zhang Yang: Yes, the high cost of education trust industry, the demand is always greater than the supply. Our first brand magnetic field is formed by the polymerization good teachers and excellent students through the formation of a subsequent polymerization continued to attract customers. We will change the interest distribution mechanism, teacher income, and own our enrollment abundant resources, strong IT and operations support systems, a lot of good teachers willing to join. There are a good teacher is not a phenomenon on the internet, but when the 1000 good teacher chose a platform, which itself is a great brand halo, the equivalent of a huge magnetic field. Customers as to which agencies have good teachers and bad teachers, and if he came to a platform and found the vast majority of teachers are very good, the platform itself has a strong brand. And the conversion of these teachers is very strong, even if it is the same as the cost of eligible customer, we can produce faster and higher incomes. Meanwhile, the study emphasized the cis result of the application first, because this is the most valued customers. Thus, we strictly play Girl Games control the application process and the results of the first batch of applications success has brought us more customers. We attach importance to word of mouth, word of mouth if the customer, whether teacher or customers, we will provide a very good return mechanism. After the formation of brand and reputation, eligible costs will be substantially reduced passenger. Li Feng: In the cis study, does not currently run fast and burn occur simultaneously, cis O2O innovative models to study, replication value? Zhang Yang: I think this model is more suitable for high passenger unit rely deep industry production tool. This industry has one characteristic: low frequency, heavy decision-making, requires heavy production tools. For example, to study, it needs to experience the heart of the center to match the transaction. It takes a good team to back-end services, otherwise after the sales, service can not guarantee. At the same time, it needs adequate support products and operations and technical systems. Yellow Sea: As an educational services company O2O, online part (IT systems) for the core of the model with the help of Where? Zhang Yang: I think the Internet's biggest advantage is that it increases efficiency, including the efficiency of matching and matching accuracy. Our study management system to collect customer information in the full fast match, more importantly, we give our customers the right to choose the teacher. Traditional model is customer choice mechanism, institutional arrangements teacher, but the teacher may not be the most suitable for the customer service. We changed the customer can choose the teacher directly, one to improve customer satisfaction, and secondly to improve the matching accuracy. Customers first in our official online research these teachers, including past success stories, word of mouth, etc., we will have to put up the customer evaluation, all of which enhance the customer's trust and understanding teacher. Teacher will cherish customers, because they are admiring, and teachers met before sufficient research has been done, not pure strangers, which can significantly improve the efficiency of the transaction. In addition, we are extremely concerned about the customer hear from cis to study the entire path to the application is successful, our study of the entire service management system links a comprehensive tracking. Cost Optimization Methodology Li Feng: If the platform has been profitable, the platform is bound charges brokered transactions. From the experience of studying in cis, the platform should be charged when to begin? How reasonable income? Zhang Yang: operating cost platform has three major items, rental costs, management costs, marketing costs. These costs can probably be counted out, the establishment of a cost-sharing mechanism between us and the teacher. Teacher, he himself bay studio to pay a high cost. Instead, he chose to join us, to open his own studio gains may be two to three times,play Barbie Games but also more stable. Thus, the teacher is willing to come up with a small portion of revenue sharing and the platform together with the rent, management and marketing costs. That is part of the fees charged platform. We are charged from the fifth month (November) began. At that time, the supply side of the first teacher income has been very high, they are very reassuring to the platform. Secondly, the teachers also want the company for a long time, we are willing to contribute a portion of the value to the achievements of the value of the platform. Yellow Sea: O2O certainly involves geographic expansion, the need to open branches in each city, venue rental. This is a cis is how to save money to do it? In the middle of urban sprawl and how to balance not burn? Zhang Yang: the traditional model, the line agencies to study the site carries everything, including not only meet, dealmakers, including follow-up services. We combine the advantages of online and offline, parents dealmaking when the line is needed to meet the site, but at the end of dealmakers, follow-up services can be online. In fact we study service broken down into 17 modules, 417 application operation, in addition to the first phase match to meet outside the back can be carried out online, parents can link to the online service supervision, thus reducing our of the site area requirements.