Profit Model Innovation Based On Product Stickiness For Internet Companies

As a young business entity, Internet company in its early stage of development. Compared to traditional industry, the financial barriers to entry Internet industry is relatively low, meanwhile, the methods to gain profit in this industry is full of uncertainty and ambiguity. Though there are thousands of internet companies in China, there are few of them can achieve sustained profitability. After the period of Internet bubble crisis, more and more internet practitioners and researchers began to realize that the cause of this crisis is the unclearness of the profit model and the method of profit should be based on a rational and practical theory.This paper analyzed and researched a number of internet issues related to profit models, including theoretical discussion and practical exploration in the basis of the actual situation of Internet companies.In the basis of profit model literature and taking the characteristics of Internet economy into consideration, the author put forward the Internet profit model from the aspect of product stickiness which will promote the study of Internet profit model application in depth.This paper redefined Internet profit model, analyzed Internet industry characteristics and product stickiness and constructed an Internet channel profit model. By discussing this model, the author showed the great value of building a sticky channel product and the importance of the relationship between new products and the channel product. The paper also indicated that in order to achieve the value conversion effect, a clear value transmission channel must be established by the way of free strategy of basic functions. In the following stages, product development must enhance user's participation and increase the resistance level of user's escape, therefore, the effect of product stickiness can be fully achieved.Finally, taking Tencent as an example, the paper introduced its development process based on the IM product-QQ. Then, it analyzed QQ game and QQ.com to indicate the specific functions of profitable product and channel product and research their contribution to profit model. In the end of this case, the author discussed and summarized a piece of Tencent's current news from the aspect of product stickiness.