Red Book Is Changing Radically.

The little red book is "very red" recently.

Recently, it is reported that Xiao Hong is negotiating to raise up to 500 million dollars, and the company's valuation will sprint $6 billion.

But it was not long ago that it issued a number of new community rules and a $200 thousand deposit for MCN agencies.

Since its establishment in 2013, Xiao Hong has gradually entered the fast lane since 2018, after the first 5 years of slow rhythm. In particular, this year, users broke through 200 million, but also experienced the disturbance of grass planting, data fraud, and electricity providers being criticized. Xiao Hong was anxious and began to straighten out.

However, its recent series of rules and measures are considered too strong and radical by MCN institutions and users. Some of the bloggers at the bottom and even the waist complain incessantly. The industry has said that "KOL on the rooftop is full of little red books overnight".

According to the official caliber, the introduction of the new regulation is to standardize the platform, improve the quality of the partners, increase the efficiency of MCN, and severely punish unprepared advertising notes and data fraud.

But in fact, the new regulations are not friendly to small KOL and MCN. They are faced with difficulties in surviving difficulties, limited cash flow, and even will be excluded. Even ordinary users complain that normal grass is being misjudged.

Is the change of red book "right" right?

　　 Little red book to make money

Total user number 250 million, monthly live user 85 million, daily community notes exposure 3 billion times, this is the early June this year, Xiao Hong Book 6th anniversary, its founder Qu Fang and Mao Wenchao in the internal letter of the data disclosed.

It is undeniable that after 6 years of exploration, operation and adjustment, Xiaohong book has entered a stage of rapid development, from the small and vertical communities to a more general direction.

Reviewing its development process, there are several key transformation nodes:

At the beginning of its establishment in June 2013, it was located in shopping strategy sharing. It is a basic shopping guide for users at the entry-level level. It is known as "Hai Tao Zhi Zhi", but relatively limited, users can not interact with each other.

In December 2013, upgrading to overseas shopping and sharing communities increased interaction.

In December 2014, the mode of community and electricity providers began to be adopted. This is also the keynote of today's growth of Xiao Hong's book.

In 2018, when the "idol trainee" and "create 101" exploded, Xiao Hong and its slogan "marking my life" also left many young people's impressions.

But now, Xiao Hong's slogan has quietly become "finding the life you want". If the former is more biased towards UGC content and behavior, the latter is much more inclined to PGC and PUGC content and behavior.

The little red book was originally developed by UGC (original user content). Today, this content still accounts for a large proportion, and the exposure is 70%. Growth has also been fast. Over the past year, the UGC content of digital lifestyle, home wedding and other lifestyle has increased by more than 10 times.

In addition to UGC, Xiao Hong set up PGC (professional production content) and PUGC (professional user production content), on the one hand, through the platform's own pendant account, producing professional content and running hot topics; on the other hand, attracting three party content such as KOL and MCN to enter, producing professional content.

For the platform, because of the brand recognition and trust, the PGC and PUGC produced by KOL and MCN become a more profitable part and a bigger commercial space. The main way of content realisation is advertising and electricity providers. In the market, this part of the resources is in the hands of most of the head and waist KOL. Today's Little Red Book planting grass has become a marketing method pursued by the brand.

In February this year, Mao Wenchao and Qu Fang's internal letter indicated that 2019 is the critical year for user growth and commercialization of Xiaohong book and will be upgraded in a comprehensive way. And in the context of seeking commercialization, this year, Xiao Hong has made numerous adjustments in content and user operation level to explore traffic transformation.

On the one hand, a series of management measures are launched for KOL.

Xiao Hong's book was first launched on the line of brand cooperation platform in January when users broke through 200 million. It is reported that the brand partner is that the small red book has a certain fan foundation and influence, and should be invited by the brand side (the owner and provider of a well-known product, service), with official recognition of the business promotion qualification. Brand partners enjoy exclusive rights such as business flow realisation, data analysis tools, brand traffic sharing, and brand business cooperation.

On the other hand, there are also requirements for brand dealers.

In March, the little red book launched the brand number, which is intended to help brands connect consumers and complete one-stop closed loop marketing within the platform. Prior to February, the letter from Xiaohong Book station announced the adjustment of the organizational structure: upgrading the original community business department to "brand number" department.

The brand name is the brand account of Xiao Hong's book. The brand number on-line means that the brand business should promote the marketing within Xiaohong, and get the official identification mark before it can have more display entries.

After these two steps are completed, Xiao Hong book can better excavate commercialization value between the brand side and KOL. According to the community code of brand number, only after the certification brand can the brand can cooperate with the brand collaborator in the community, and all the promotional actions of the brand without the certification brand in the community will be regarded as a violation.

But soon, the adjustment and requirements of Xiao Hong's brand number and brand collaborators aroused many users and KOL's questions and complaints.

New regulations trigger complaints

In fact, after the online platform of the brand collaborator, Xiao Hong set a certain threshold for bloggers: during the trial operation of the brand partners, the owners of small red books can become brand partners if they satisfy the fans more than 1000. Being a brand partner means that you can connect to the advertisement and cash in the flow.

However, in May 10th this year, Xiao Hong published the "brand cooperation platform upgrade instructions". After the new regulation was issued, the threshold of brand cooperation was raised to more than 5000 fans, and the average exposure of the notebook in the past month needs to be more than 10000.

There are mainly two kinds of content in Xiao Hong's book: notes and videos, which are simple and easy to operate. Users can share their physical stores and good products by sharing. But after the implementation of the new rules, this behavior has become a violation of platform rules. Ordinary users will have many restrictions on promoting their products in Xiao Hong book.

"Can I promote my products in Xiaohong book?" this is the query of many users, especially after accumulating to some fans, they want to be a blogger for their shops or commodities through grass planting notes.

The new regulations clearly stipulate that advertisements such as advertising or WeChat can not be found in the notes issued by Xiao Hong book. Once such a situation is discovered by the platform, notes and accounts will be deemed to be irregularities, unless the small red book investment cooperation channel is adopted according to the way of the third party merchants or brands.

That is to say, more ordinary users who are not qualified to become brand partners, and brands that have not been certified as brand names, can not carry out brand exposure and promotion on Xiaohong books as before.

These changes drew a howl. Some users say that they are not brand partners, but the notes carefully written are also limited, and the reading volume is extremely low. One data is that after the new regulation, more than 20 thousand of the brand partners on Xiaohong book have only about 5000 compliance. Sina technology has proved to several people in the industry that this is true.

At present, non cooperative people are no longer allowed to publish business notes. However, there are no clear rules governing the definition of business notes.

A KOL Xiaowen (a pseudonym) with 370 thousand fans on Xiaohong book tells sina technology that many of his own or KOL's own sharing may also be classified as "business notes". Another MCN official also admitted that the current rules of Xiao Hong's book are easy to accidentally injure.

More KOL also complain about it. They are trapped by 5000 fans, 10000 average monthly exposure of notebooks, and the conditions of signing MCN, and even many MCN agencies are also limited.

"Prince" Hongwen

In addition to the number of fans and the demand for exposure, there is another requirement for Xiaohong Book Brand collaborators to sign MCN.

In the new regulations, Xiao Hong pointed out:

In order to protect the legal compliance of the brand partner transactions, the brand partners who have not completed the real name system or signed the content cooperation agency without the platform certification before June 10th 24:00 will no longer be a brand collaborator. Only bloggers can apply for real name authentication and signing.

Sina Technology confirmed to KOL, Xiaowen said that after the issuance of the new rules, neither signed the official MCN Hongwen of Xiao Hong's book, nor signed any other independent KOL to MCN, it could not continue to make business notes as brand partners.

That is to say, unlike platforms such as fast hands, jitter, and micro vision, it will be very difficult to survive on the little red book without signing KOL or other MCN agencies.

An An, a frequent user who wrote notes on Xiaohong book, told Sina technology that he had not joined MCN before, and would consider joining it later. "It is said that adding MCN traffic will not be robbed or restricted." She admitted that after the new rules came out, she felt that her content flow was not as good as before. However, "I haven't reached the stage of liquidation yet, or I want to share quality content."

An An at the same time Tucao, "now hear a lot of is to seriously share the content of the foundation grass is not enough, but after performance or backing institutions will have, of course, I think there are many reasons. For example: the performance of the back will continue to output the same type of content, is also through the editing and packaging, ordinary number may not be able to do, but it is sincere planting grass. She believes that this series of changes may be the inevitable result of the platform to a certain stage.

It is worth noting that the new regulations also set many conditions for MCN:

The MCN institutions that require the brand partners to enter the platform must meet at least 10 or more brand partners, and the company has been established for more than one year. Institutions that fail to reach the terms of entry will have one month's growth period, and they will not be able to meet the standards as yet.

This will shut out some small and new MCN institutions.

As for Hong Wen, this is the official MCN of the little red book. The public presentation is: the appearance of Hongwen is to provide platform support for individual content creators without signing agencies.

This naturally attracted the industry's doubts about the flow of small red books to MCN. Even bloggers said that after signing the contract, it was found that the contract stipulates that once a brand partner has been established, a settlement application can be filed every month, and the Signing company Hongwen culture media (Shanghai) Limited will deduct 10% fees and statutory taxes and fees.

In response to numerous queries, Xiao Hong's ecological cooperation director responded in response to a live broadcast that he did not have any traffic slant for Wang Wen. The existence of Hongwen was intended to provide a legal and compliance channel for individual bloggers who grew up to a certain stage. Bloggers want to sign other MCN at any time. They are all OK.

What is the value of Hong Wen?

Li Lin (alias), who is responsible for the operation of Xiaohong book in a MCN institution, revealed to Sina technology that Hongwen would receive a commission. But for KOL, it was only in the name of the company. Wang Wen did not give support to the content. At present, there was no commitment to support the flow.

She said that if the KOL signed a contract with other MCN, the Commission might be almost the same, but in addition to helping them to receive advertisements, it would also help them in content operation and training, as well as other work.

At present, Hong Wen and other third party MCN will not have too much competition, only to provide bloggers a choice during the transition period.

But not long ago, the emergence of new terms raised a new round of complaints and dissatisfaction.

"Xiao Hong passed the risk on to us."

In June 19th, Xiao Hong issued a "detailed rules for the management of the cooperative organization of Xiaohong book" to MCN. This document details the criteria for the establishment of the small red book institution, the deposit system, the rights and obligations, the punishment measures and the institution KPI. Among them, the business deposit margin system mentioned that agencies need to complete 200 thousand margin payment before entering the small red book brand collaborators. The use of margin is in accordance with the punishment measures of the small red book cooperative institution. If the agency involves "private purchase orders, not through the small red book brand cooperation platform", "false partnership with the bloggers" and "data cheating and cheating" during the cooperation period, the deposit will be deducted and the cooperation will be terminated for one year.

The penalty for "private orders" is the most serious. It will deduct 200 thousand deposit directly, while the other two will deduct 100 thousand yuan.

"The terms are too harsh. If our bloggers are careless, we may lose more than 200 thousand of the money, maybe 200 thousand times." Li Lin said.

She disclosed that this contract is very harsh, especially involving the margin and the compensation part, combined with some new regulations, "the impact on us is actually very large, or even unmindful, on this platform, our organization can not do it."

Li Lin believes that if the bloggers have a few problems (such as bypassing the signboards and platforms), they will be fined 100 thousand and the 200 thousand deposit will be confiscated. If you want to continue to cooperate with Xiaohong book, you will have to make up 200 thousand of the deposit. In addition, some of the money earned through Xiaohong book will also be recovered, and other bloggers will also be affected, such as current restriction.

This will make Li Lin's company have to terminate some bloggers who can't fully control or at the bottom.

"If the bloggers who signed MCN Hongwen signed a violation, how do you deal with Xiao Hong's book? Will they also make such a severe punishment?" Li Lin questioned.

In her view, the little red book is to transfer the risks to the bloggers on the platform, such as data fraud and writing, and so on to MCN. Once the bloggers are guilty of fraud and private theft, MCN will be severely punished, including deducting points, fines 100 thousand, current limits, etc., and may also ask bloggers to terminate contracts with the agencies.

In response to the practice of collecting deposits, Xiao Hong responded that it was "industry access" and unified management of institutions based on the community norms of Xiaohong book, in order to make cooperation sustainable development, to be responsible for community users and ecology. It requires all cooperative content cooperative organizations to have the qualification, responsibility and risk tolerance ability of managing content creators.

It is understood that the small red book is indeed not the first case. Li Lin disclosed that the small red book was the first, but the amount reached 200 thousand, and it was twice as high as that of other platforms, and the other platform conditions were not so harsh.

At present, Li Lin's company, like many MCN, has got the contract, but it has not signed yet, and is still on the sidelines. "Xiao Hong said that he would have a meeting with the security deposit, but he did not see anything. We are all waiting to see what solutions and mitigation methods will be given after seeing the meeting.

In fact, in order to receive advertisements on Xiaohong book, institutions only pay a margin option, and the purpose of their choice is to consider whether they should continue to operate on Xiaohong book. "If you can't make money, you won't be able to play."

The value of Xiao Hong Shu

"Xiaohong book is currently the most stringent entry platform in all platforms, but its advertising price is the lowest among all platforms, and it is difficult to collect statistics on goods," he said. In an interview with Sina Technology, Zheng Yun, a MCN director, said that the advertising value of Xiao Hong's book is the lowest compared with other platforms such as jitter and B station.

Zheng Yun disclosed that, on the one hand, the platform only got up in the last year, and there was no other platform for dissemination and traffic. On the other hand, the little red book was mainly made up of graphics and text. Other platforms were mainly video based, and the content of advertisements was presented through video. It was definitely higher than that of graphics and text. Therefore, the price was higher, and the transmission of video was more intense. The traffic of some video platforms was also very large. The advertising price of Xiao Hong's book was several times worse than that of shaking.

Of course, at present, Xiao Hong book is also encouraging content developers to develop videos. The platform has already opened live broadcast.

However, picture and text are the content advantages of Xiao Hong's book. For MCN institutions, the relative threshold of pictures and texts is lower than that of videos. The growth of users of small red books is also very fast, which is a flow pool that can not be abandoned.

"Little Red Book standardizing the community, our MCN agency fully agrees. If the bloggers are breaches of the regulations, we can accept the restriction or even the title. But we only pass the risk to the institution. If we make a mistake, we will directly impose a penalty to 100 thousand. "Li Lin said.

When it comes to the new rules of Xiao Hong's book, people in the industry say that the current test is the ability of the institution to control the people. The revenue will definitely be affected. All the daring orders will be transparent, but this will also help the existing brand partners. If there is only 4000+ on the existing platform, the price of advertising will rise.

Another industry believes that a platform wants to do well, and MCN agencies should help each other and complement each other. In addition, he said, in fact, in addition to MCN agencies, there are plenty of advertising marketing companies on the little red book. Radical strategies will exclude these resources.

"The brand cooperation platform upgrade instructions" is still in the testing stage, and the later stage will gradually improve the corresponding rules. The new regulation is to ensure the quality of the content rather than to clean the KOL. Qu Fang, the founder of Xiaohong book, has said that upgrading the brand cooperation platform is one of the content ecological measures of Xiao Hong Shu.

But judging from various feedbacks, the operation of Xiao Hong's book may be too radical. If you can't get the benefits or satisfy the needs, will users, KOL and MCN continue to produce sticky little red books? Everything will take time.