Chapter 67 The Internet Giants with Black Faces

On the morning of January 2014, 1, on the third floor of Lin Feng’s home in Xiaohe Town.

On this day, the negotiation teams of major Internet giants finally waited for a meeting with Lin Feng.

The Internet giants that came to negotiate at this time were mainly divided into the social media industry, online shopping industry, video industry, and news industry.

Of course, there are also hodgepodge types, such as Penguin, which does everything, and other companies are more or less involved in other industries.

Although their business cannot compete with other companies in the industry, they can still manage to operate.

As for which companies are coming?
Those in the video industry include YouTube, Netflix, Youku, Penguin, iQiyi, A站, and N站.

The online shopping industry includes Taobao, Tmall, Jingdong, and Amazon.

The social media industry includes Penguin Chat, Weibo, Facebook, and Twitter.

There are more people in the news industry. The four major domestic Internet portals, Penguin, NewLang, Souhu, and Wangxun, are all here, as well as six foreign portals including Yahoo, Weiruan, and MSN.

At this time, they and their affiliated personnel directly filled Lin Feng's house. Of course, in fact, there will be even more companies that want to obtain the recommendation algorithm.

But Lin Feng did not inform them that the companies that could come now were those that Lin Feng liked. Companies that he did not like were not qualified to participate in the negotiations at all.

At this time, the negotiating representatives of various companies were also surprised when they saw so many well-known domestic and foreign companies.

What was shocking was that so many well-known companies were interested in licensing Lin Feng's recommendation algorithm, and they couldn't help but attach more importance to the recommendation algorithm.

The second is that he was shocked by Lin Feng’s boldness in convening so many companies at the same time. Isn’t Lin Feng worried that they will unite to put pressure on Xingtu Technology?
Facing the different gazes from people, Lin Feng calmly looked at Qu Qiongying on the side, and then Qu Qiongying stepped forward and handed a document to the negotiation leaders of various industries.

Upon seeing this, the negotiators all started to look at the contents of the document, and then their faces all turned unhappy.

This document is mainly divided into two parts.

The first part is the profit sharing portion of the recommendation algorithm participating in the project, and the other part is Lin Feng’s recommended advertising resources.

The first part is the recommended advertising resources part, which mainly uses a contract to confirm that Lin Feng owns the advertising recommendation resources.

The main model of this advertising recommendation resource is to refer to the strongest recommendation position previously given by Bilibili.

However, because each industry has different advertising methods, the recommendation methods are also different, and naturally the content seen by each industry is also different.

But no matter what, the ultimate goal is to ensure that one of Lin Feng’s videos or articles gets top-level traffic push every month.

This traffic push can be accumulated. If it is not used in the current month, it can be used again in the second month, but it should not exceed twice in the current month to ensure their stable order.

Next comes the profit sharing part, which refers to all the actions that the company makes profit by relying on the recommendation algorithm.

For example, if the company accepts an advertising contract with an advertising fee of 100 million, it needs to push the advertisement accurately to users who are interested in this product, then Xingtu Technology will take 10% of the profit!
In addition, there are other ways to calculate profit sharing. After all, even if the Taobao platform wants to push video ads and article ads, it is not very feasible.

In short, as long as they make a profit through the recommendation algorithm, Xingtu Technology will take a commission of about 10% of the profit.

This profit sharing made the people at the scene look unhappy immediately, because no one wants a third party to interfere when they make money.

What’s more, this third party actually does nothing and can just sit back and collect money based on a recommendation algorithm, which makes them even more unhappy.

So the most confident penguin representative said coldly:
"Mr. Lin Feng, are you sure you don't want to change the contract? 10% of the profit share is too high. It's so high that we can't accept it at all."

At this time, Yahoo's negotiator also echoed:
"Indeed, 10% seems low, but it is actually a very large number. Take Yahoo for example. Last year, Yahoo made $19.5 billion in profit from advertising. If you want to take 10% of the profit share, it is equivalent to taking $1.95 million, although our advertising business is not entirely Internet advertising.

But even if that is the case, if the profit sharing is really 10%, then Xingtu Technology can at least get $1.5 million in pre-tax royalties. I think such a high amount of royalties is totally unreasonable."

After hearing the words of the Yahoo negotiator, the other negotiators at the scene all nodded, thinking that Lin Feng’s request was simply outrageous.

At this time, Weibo's negotiating representative, Wang Gaoyuan, said in a cold voice:

"Mr. Lin Feng, you really think your recommendation algorithm is a unique treasure. We have analyzed your 'first generation of Douyin recommendation algorithm system program'.

This thing is actually a culmination of the current advanced recommendation algorithms.

Although you have indeed developed some exclusive recommendation algorithms, they are also built on other algorithms such as collaborative filtering algorithms, matrix decomposition algorithms, FM algorithms, FFM algorithms, etc.

So your 'first generation Tik Tok recommendation algorithm system program' is actually equivalent to the smartphone invented by Apple Steve Jobs.

The smartphone may seem like an invention of Jobs, but it was built on top-notch mobile accessories developed by other companies.

Pingguo Mobile Phone simply integrated the top mobile phone components developed by other companies and invented the Pingguo smartphone.

You know the final result. Although Pingguo Company invented the smartphone, they had no way to prevent other companies from developing smartphones.

At this time, the same goes for your 'first generation Tik Tok recommendation algorithm system program' if you do not authorize it to us at a low price.

Then we can also develop our own Android mobile phone system, and you Xingtu Technology can't stop us at all!"

After hearing the words of Weibo negotiator Wang Gaoyuan, all the negotiators at the scene nodded, and then showed confident expressions on their faces.

This is their strongest confidence. The companies that can come here are all powerful companies, and naturally they also have the ability to develop their own recommendation algorithm system programs.

The reason why they came here at this time was that they wanted to take a shortcut and directly obtain Lin Feng’s recommendation algorithm instead of developing it slowly by themselves.

After all, even if you can develop it yourself, it will inevitably take two or three months.

In the meantime, it would be bad if other companies rose up because of recommendation algorithms and took a large piece of the market.

But at this time, Lin Feng asked for a 10% profit share, which obviously exceeded their psychological limit.

In their opinion, they would have to pay at most several million or tens of millions in patent licensing fees, and then the money would be cleared when they leave.

But who could have thought that Xingtu Technology was so greedy that it actually asked for a 10% profit share, which was naturally unacceptable to them.

It can be said that if Lin Feng does not lower his requirements, they will definitely leave.

At this time, Facebook's Daxia District negotiator stepped forward and said:
"Mr. Lin Feng, I think you should stop joking.

If you want licensing fees, that's fine, but profit sharing is unacceptable. Even if it's 1% or even 0.5%, we can't accept it.

I think you should be more realistic and stop daydreaming. Discuss the licensing fee honestly. That’s what you should do.”

Hearing this, the people at the scene all turned their eyes to Raymond Lam, waiting for his reply.

(End of this chapter)