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Chapter 41: Development

Chu Han thought for a while and said, "Uncle, do you know Yahoo.com?"

"Yahoo.com? The one from the United States made $500 million just after it went public in 1995. I know this."

"Do you know that the founder of Yahoo.com is actually two Chinese? Do you know that Yahoo.com's total revenue in 1995 is only 1.3 million US dollars?"

"Uh...is this way? It seems that the Internet doesn't seem to make money."

"Uncle, do you think all capitalists are fools? Why is Yahoo.com so poorly, but the total stock price after listing directly reached 500 million US dollars? Capitalists are not fools. On the contrary, they are the most profitable people in the world. Because of this group of people, they have seen the future development of Yahoo.com website." Chu Han always feels confident when talking about the areas he is familiar with.

This confident rhetoric attracted Zhou Peng and Tao Xiaoyao, who were not sure what to talk about.

"Yahoo.com is a portal website. The function of a portal website is to provide users with comprehensive Internet information resources and application systems for information services. It is easy to understand, which means that you need resources or data from a certain industry. You can check it on the portal website and you can view it. With a search engine, these two functions will directly facilitate the billions of people who will go online in the future. As long as you have a computer at home, you can view everything on the Internet. Without subscribing to newspapers, you can know any news, what products you need, what exhibitions you want, and what industry recruitment information you want, just open a website and you can have everything."

"Convenience is the greatest potential for the development of the portal website." Chu Han said.

"...I still don't understand. I know what you said. You can know what information you want to know by opening the website. But a computer is so expensive, so you can't have it in every household, right? Internet cafes are not cheap either. How could there be hundreds of millions of people online?" Ge Tianwen shook his head and said.

Computers are definitely a luxury today. Ge Tianwen never understood what this thing makes money by making it, which led to the influx of so much capital.

Chu Han, who was at this age in his previous life, also thought the same way, so Chu Han in his previous life was just an ordinary person.

"Uncle, think about the problem from another perspective. Suppose that one day in the future, every household will have a computer, and Internet cafes will become extremely cheap. Eighty percent of the people in the world are netizens. How useful do you think the portal will be?"

Ge Tianwen scratched his head and said in surprise: "If this is the case, then the people who browse the website every day must be an astronomical figure. So many people want to find jobs, watch news, and even read some entertainment information every day. These needs are all urgent needs. After all, it is too troublesome and tiring to go to the recruitment market. TV can only wait for entertainment programs to see. With such a website, it is really much more convenient... But the question is, how to make money?"

“Advertise.”

Chu Han only said three words, but Ge Tianwen's pupils contracted a little.

If there are 80% of netizens in the world, this will be a terrifying traffic. How strong is the conversion rate of TV advertising? As a person who comes into contact with emerging things, Ge Tianwen naturally understands it.

Why is the effect of TV advertising good? Because there are many people watching and more people watching, the advertisement will be effective. But if there are many people watching a portal website and advertising is placed on it, the effect will definitely not be as good as TV plugins. Moreover, with so many people, the advertising space will probably be sold at a sky-high price.

"Then the question is back to the beginning. Computers are luxury goods. It is impossible for so many people to access the Internet." Ge Tianwen scratched his head, never understanding why capitalists were willing to attract so much investment in the portal.

Chu Han just smiled and said, "So, a problem needs to be viewed from multiple perspectives. If you just look at the future traffic of the Internet, then the above assumptions are valid. But if you look at the Internet carrier computer, the problem will fall into a vicious cycle. Because computers are very expensive, it is impossible for every household to use them. But uncle, do you know how much money has been reduced by a computer's processor and graphics card this year?"

Ge Tianwen really shook his head. To him, the Internet was heard from him, let alone luxury goods like computers.

Many people are talking about the Internet now, but not many people focus on the Internet carrier computer. Now a computer can often cost thousands or tens of thousands, but now the per capita income is only 5,000 yuan even in a big city like the Magic City, not to mention small cities.

A computer is Chu Han’s family’s income for a year.

But there is a very important point. Computers are reducing prices. Many people may not have noticed that they have very little knowledge of the Internet, but they know very little about computers. The price of a whole computer is still tens of thousands of thousands, but the price of processors and graphics cards last year has been reduced by 30%.

According to this range, computers will become popular in less than ten years.

Like TV, computers will become a necessity for every household. By then, the network derivatives portal website on the computer carrier will become a necessity for tens of millions of people.

In the future, the Internet products derived through the Internet will be diverse, ever-changing, and even more subdivided, resulting in the decline of portal websites.

But in this era when the Internet was only beginning to sprout, portals are definitely one of the most promising products in the future.

Therefore, regarding the computer thing, Chu Han talked about the latest CPU graphics card he originally brought to this year, and based on their price drop, he calculated the price of a computer in the next five years.

When the price of carriers drops, the Internet will become a product of the public, and a tool that facilitates service to the public is destined to make money.

Ultimately, the Internet can only be regarded as a tool for serving the public, so it must be integrated into the public, so the price of computers will definitely drop.

After Chu Han's explanation, Ge Tianwen suddenly realized it.

"So that's it. You think that computers will definitely reduce prices in the future, and the Internet will become a tool for the public. The portal website is a convenient and convenient small function derived from this tool. There will be a huge influx of traffic in the future. As long as you find a way to monetize huge traffic, you will make a lot of money. Is that what it means?"

"That's right, that's what it means, but it won't be that simple. The Internet is ever-changing, and the future will definitely be more than just a portal." Chu Han said confidently.

"Then do we have such a portal website in China?" Ge Tianwen asked with some temptation.

“As far as I know, there is.”

"Do you have it? What's the name? I'll go to the Internet cafe to look for it."
Chapter completed!
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