The fundamental survival of enterprises is profit, and the source of profit is to reduce costs and increase efficiency. If you want to help enterprises reduce costs and increase efficiency, you must understand the cost structure of enterprises.

Figure 1- Three cost mountains of China enterprises: product cost+labor cost+marketing cost.

Cost reduction is subject to core factors such as rising raw materials. It is more difficult to reduce product costs and labor costs, and it is more likely to reduce marketing costs. Marketing cost usually accounts for more than 15% of an enterprise, and the key to reducing marketing cost is to reduce customer acquisition cost.

What is most likely to improve efficiency is the promotion effect of everyone, especially the promotion times of everyone.

Therefore, the core purpose of creating private domain traffic is to help enterprises effectively reduce the cost of obtaining customers, increase the promotion efficiency of everyone, and finally bring profit growth to enterprises.

Figure 2- Significance of Building Private Domain Traffic