Building a Platform: Does the Traffic Belong to You or to the Stars?

Originally published 2024-07-27Robin’s commentary with a reprinted story; the passage names Liu Run and Dedao Headlines

Storage information

Bookmarks and reading positions are stored in this browser. Manage and back them up in My Reading.

Collected in Robin Shen’s Field Notes · Content type and attribution are shown above

English translation of the Chinese post originally published 2024-07-27. Translated 2026-11-05 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Robin urges platform founders to distinguish traffic brought by influencers, key opinion leaders, or teachers from traffic created by the platform. A star’s traffic can disappear as quickly as it arrives. He compares this with artist-management relationships: recording companies may continue selling recordings through their copyrights, while management contracts simply end. One early-stage approach is to offer favorable terms to attract top stars, quickly build the platform’s name, then distribute traffic to second- and third-tier creators and newcomers. Distinctiveness and a moat can create a platform flywheel. Without its own brand-driven traffic, a platform can be dominated by stars who move between platforms for better terms.

Key points

Distinguish traffic owned by the platform from traffic belonging to its stars.
Attract top stars early, then distribute traffic to smaller creators and newcomers.
Build brand-driven traffic and a moat to create a platform flywheel.

One clear path continues into the distance among several branching routes, suggesting choice and focus. — Entrepreneurship & strategyThematic illustration · AI generated

Full text — English translation

Robin: ‘Platform founders need to think clearly: does traffic come from the influencer, key opinion leader, or teacher’s own following, or from the platform? If it all comes from major influencers, it may vanish as quickly as it arrives.’ ---- Yu Minhong’s East Buy and Dong Yuhui’s 與輝同行 have formally parted ways. Liu Run discussed this on his public WeChat account. One perspective was that this split, and the earlier friction, stemmed from an inherent paradox in livestream commerce. The company invests heavily, but the resulting value does not accumulate inside the company. It concentrates in the host instead, creating unbalanced expectations. First, the company may invest in developing 1,000 hosts at once, much like a diversified portfolio. Ultimately, only one becomes a star. The company sees that star as a successful investment and wants to recover the cost of all 1,000 through that person. Second, the superstar host sees it differently: the company makes money because of them. They therefore want it to give them as much as possible. Finally, the company’s and the star’s expectations become completely misaligned. Problems naturally follow. Note that Liu Run was discussing the paradox inherent in livestream commerce, not specifically East Buy and Dong Yuhui. #Dedao Headlines 20240727 ----- Robin: ‘No partnership lasts forever. This story reminds me of the management contract between Jacky Wu and Jay Chou; something similar may apply. The same goes for S.H.E and HIM International Music. A recording company’s advantage is owning the copyrights, so it can continue selling recordings. A management contract, however, often ends when it ends. A platform is a traffic aggregator. One approach at the beginning is to offer favorable terms to gather traffic from top stars. Once that traffic arrives, build the platform’s reputation quickly. Combine traffic from stars, advertising, and the platform’s own brand recognition, then distribute it to second- and third-tier creators and newcomers. Another key is to develop distinctive features and a moat, forming a platform flywheel. Ultimately, the platform must have recognition and its own brand-driven traffic. Otherwise stars will dominate it, or move among platforms seeking the best terms for themselves.’

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

DISCUSSION

Reader comments

What did this article make you think about? Different perspectives and constructive criticism are welcome.

Comments are public immediately. Do not include personal contact details or external links. Automated checks block suspicious solicitation, prohibited transactions and spam; they can make mistakes.

Comments load when you reach this section.

Administrator sign-in