Ten thousand words long article: Acquiring 200,000 customers in 70 days through MGM distribution fission

This article deeply explores the operating mechanism and implementation strategy of MGM distribution fission, and provides a set of systematic growth solutions for enterprises through case analysis and practical suggestions. The article details the origin, development and innovative application of the promoter system in the modern mobile Internet environment, helping readers to fully understand the MGM model and master how to achieve rapid customer acquisition and business growth through MGM.

I have mentioned a concept in several of my previous articles: MGM distribution fission, but due to space limitations, I have not elaborated on it in detail. This article will specifically talk about MGM distribution fission.

MGM is the abbreviation of Member Get Member (customers bring customers), commonly known as the old-to-new activity, which can also be regarded as a distribution fission activity. Pinduoduo's "Get Cash Every Day", WeChat Reading's "One Answer Every Day", Hua Xiaozhu's "Get Millions of Cash Every Day" are all typical MGM activities, which can help companies or products quickly gain user growth at a limited cost.

MGM distribution fission can be traced back to the game promoter system 20 years ago. The current MGM distribution fission can actually be seen as the product of the evolution of the early game promoter system.

1. Promoter System

If you use the manufacturer name + promoter system in Baidu, you can find that many PC and web game manufacturers have used this model in the early years, such as Shanda Network, Giant Games, Perfect World and Kingsoft, etc. 20 years have passed, and some manufacturers are still using this promoter system.

The principle of the promoter system is actually very simple. Some unions/alliances/studios (or individuals) can become promoters after applying for registration and undergoing real-name authentication in the game promoter system. They can then obtain an exclusive promotion link or identity ID. The promoter can then help platform manufacturers attract new players to register and recharge in the game through QQ groups or other channels.

As a new player : fill in the promoter's invitation code when registering, such as Mr. Zhan's invitation code zhanlaoshi (the invitation code must be verified to ensure uniqueness across the entire platform), and you can get the XX game gift package after entering the game.

As a promoter : Players Zhang San and Li Si both register through Mr. Zhan's invitation code, and then promoter Mr. Zhan can get XX yuan registration reward (similar to CPA reward). Zhang San and Li Si recharge 800 yuan/2000 yuan respectively in the game, and promoter Mr. Zhan can continue to get X% reward of the recharge amount (typical CPS model), for example 800*10%=80 yuan. This X% can be set according to the recharge amount, for example 10% for less than 1000 yuan and 12% for more than 1000 yuan.

Don't underestimate this system. According to the introduction on NetEase's official website (detailed introduction in the first search result in the above picture), the NetEase promoter system provides more than 500,000 promoters with generous commissions and rewards worth more than 40 million yuan each year, and more than 10,000 promoters have a monthly income of more than 1,000 yuan.

Even if each promoter can bring 2 new registered players to NetEase Games on average, NetEase can get at least 1 million new registered players every year.

The above promoter system can also be made into a multi-level mode. For example, Mr. Zhan has a union of 300+ people, so I can generate an invitation code for each gaming partner under me, such as zhanlaoshi001, zhanlaoshi002...zhanlaoshi300, and then they can get a 5% reward, and Mr. Zhan can get a 5% reward (the middleman makes a profit from the difference), so that the union president Mr. Zhan and union members can earn commission income.

The most critical point of the promoter system is the binding relationship between the promoter and the new player (new customer), that is, whether the player Zhang San registered through the invitation code zhanlaoshi of the promoter Mr. Zhan or the invitation code lilaoshi of the promoter Mr. Li, once the two form a binding relationship, all of Zhang San’s behaviors and contributions in the game will contribute to the income of his superior promoter Mr. Zhan or Mr. Li.

In the traditional PC Internet era, in addition to using the above-mentioned invitation code to establish the binding relationship between promoters and players, you can also use a registration link such as https://mail.163.com/register/Tgid=XXXX, where XXX is the above-mentioned invitation code, such as zhanlaoshi.

The promoter system can also set different CPS ratios for different games, such as 20% for Fantasy Westward Journey and 25% for Ni Shui Han. The refund ratio can also be increased periodically. For example, during the summer vacation, when competition is fierce, Fantasy Westward Journey adjusts the CPS ratio from 20% to 25% to prevent potential players from being attracted by competing products.

You may think that a 25% commission rate is already very high, but there is no highest CPS rate, only higher. The CPS commission for games under Glacier Network can be as high as 50%.

At the same time, in order to attract the enthusiasm of promoters, game manufacturers will make additional bonuses, such as increasing the CPA reward from 5 yuan/person to 8 yuan/person after players register (create characters) during the event, and giving extra 300 yuan or 500 yuan when the cumulative number of registered CPAs reaches different numbers during the event. Or, when the CPS recharge rebate reaches 2,000 yuan or 3,000 yuan during the event, an extra 200 yuan or 400 yuan will be given, etc.

The promoter system will also provide a visual query page for each promoter, where they can view the current level of the game players they invited, the amount of recharge, and the CPS rebate they should receive. At the same time, the promoter system will also open withdrawals at fixed times every month, such as from the 1st to the 15th of each month, and the financial staff will regularly review and issue commissions to promoters every month.

The above CPS theory was born more than 20 years ago and is still very popular today. Those who have worked on WeChat mini-games should have seen the CPS cooperation page shown below. The operation mode is almost the same as the promoter system in the early years, and the commission rate is as high as 30%-45%.

Some people may ask, with such a high commission rate for promoters, how can games make money? Little do people know that marketing and promotion expenses account for the bulk of the operating costs of game companies. Interested readers can look at the financial reports of game companies such as 37 Interactive Entertainment and Perfect World. The following content is from the screenshot of the financial report of 37 Interactive Entertainment.

As long as the game company's financial department calculates that after paying XX% of the promotion commission and other operating costs, the overall net profit of the game product is positive, this will work. Alternatively, the financial department can also deduct the total cost expenditure from the total revenue forecast to derive a commission threshold or critical value, and as long as it is below this critical value, it can be made.

The promoter model has made great contributions to the development or listing of many PC game companies such as Kingsoft, Changyou and Giant. More than 20 years have passed, and these seemingly outdated game operation and promotion models are still shining in game marketing and promotion.

2. Universal Distribution Fission

In the traditional PC Internet era, promoters in the game promoter system would use both online and offline methods to promote games and recruit new players.

Online method : The most common method is that promoters will create various QQ groups and post promotional content with invitation codes on Baidu Tieba/Baidu Knows/Baidu Q&A. They will also post on various game websites and forums such as Duowan and 17173.

Offline methods : The most common method is to put up large posters outside the Internet cafes, and the other method is to negotiate with the Internet cafe owners to pre-install the machines, make default computer wallpapers, and hold Internet cafe game competitions. This is a low-investment and high-return method for Internet cafe owners, and some Internet cafe owners are even promoters themselves.

In the era of mobile Internet, with the great simplification of sharing paths and processes in the WeChat ecosystem, invitation codes and invitation models have become easier. The game promoter system that used to have a certain threshold has become the current national distribution system.

Promoters no longer need to post advertisements or posters with invitation codes in QQ groups/Baidu Tieba/Baidu Knows/Baidu Q&A and forum communities. They can easily use this promoter system in the WeChat ecosystem.

Take the Xianhuo go applet of New Hope Dairy's DTC platform as an example. It has a built-in Xiaoyou Tiantianzhuan function module, which is essentially an evolved version of the game promoter system. However, its operation convenience and low threshold are much better than the early game promoter system. For the convenience of description, Xiaoyou Tiantianzhuan will be referred to as Xiaoyou below.

The application threshold for Xiaoyou promoters is extremely simple. You can apply with one click by clicking the application button on the page, eliminating the need to fill out complicated forms in the early game promoter system.

Xiaoyou provides a visual statistical report. After entering this module, you can see the number of friends I invited, the number of my distribution orders, and my revenue data.

Three modes of inviting friends are provided: WeChat/WeChat group mini-program card invitation mode, invitation poster mode, and face-to-face QR code scanning mode.

In order to increase its attractiveness to potential and existing promoters, Xiaoyou displays a promoter ranking list, which can greatly attract other promoters.

On Xiaoyou’s product list page, promoters can view the distribution commission for each product or each SKU in real time, which is similar to the different CPS ratios for different games in the game promoter system.

Each commission-bearing product also provides three sharing modes: WeChat/WeChat group mini program card mode, invitation poster mode, and face-to-face QR code scanning. In this way, if the person being shared clicks on the sharing card or poster sent by the sharer and makes a purchase on the platform, the sharer can get the distribution commission.

The above is just the basic framework of this distribution fission system. In order to make the system run more robustly and more attractive, Xiaoyou has also added many other special features :

• After the commission is received (i.e. the delivery is completed), you can withdraw it when it reaches X yuan. The withdrawal uses the salary-traveling interface, and the commission can be withdrawn to the WeChat wallet.
• The promoter’s reward consists of the invitation reward (similar to the CPA above) + the commission income from the distribution orders (similar to the CPS above).
• Provide a variety of operational activities, such as distribution order rewards, new customer acquisition rewards and ranking rewards.
• Commissions for orders that are missed in the commission calculation can be reissued manually, and a reissue record query page will be provided.

Like the game promoter system, Xiaoyou also supports the entry of channel models. That is, XXX Bank is a channel, which can be regarded as Xiaoyou's distribution channel, and each employee under the bank can be regarded as a distributor. The sum of the performance of each distributor is the distribution performance of XXX Bank.

When querying by XXX Bank, you can query the total number of friends invited, the number of distribution orders, and the amount of distribution commissions for this channel. When querying by XXX Bank employee Zhang San or Li Si, you can query the above data of Zhang San or Li Si's individual promoters. When settling, you can settle with Zhang San or Li Si individually, or you can settle with the XXX Bank channel as a whole.

After the launch of Xiaoyou Distribution Fission function, the operation effect has been very good. Due to data confidentiality reasons, the relevant data will not be shared here.

Lianlian Tours also has a similar distribution fission function, and their invitation posters and copywriting are quite good.

3. MGM fission in the financial industry

The Xiaoyou model mentioned above is relatively simple and easy to understand. The Internet finance industry is the one that really does it in depth and for a long time. Currently, almost all Internet finance companies and products, whether they are consumer finance companies, small loan companies, traditional banks or insurance institutions, are deeply engaged in MGM. It is difficult to find a company that has not done MGM.

For example, companies such as Zhaolian Finance and 360 Jietiao have been doing MGM since around 2018. The following are screenshots of the homepages of several MGM distribution fission activities in the 360 ​​Jietiao applet.

In the 360 ​​IOU applet, the display and exposure of MGM activities can be described as pervasive. First, there will be a pop-up window of the MGM activity homepage (as shown in the right picture below, and the MGM activities that pop up each time are different). Secondly, there are 8 areas on the first screen of the homepage (as shown in the left picture below), and 3 of them are MGM activity pages for old and new users. Then, after jumping to the 3 carousel pictures, they are all MGM activity pages.

Although the pages displayed after the 7 entrances are different, the essence is that MGM old customers bring in new customers, which makes people hard to guard against. However, in order to do a good job of MGM old customers bring in new customers, it is necessary to systematize and process these fission gameplays, sort out the entire link of old customers bringing in new customers, formulate operation strategies for each key link, and improve the data of each link to the best.

Let's first briefly sort out the key process points of the MGM distribution fission activity, as shown in the figure below. First, the MGM activity must have some front-end activity page entrances, which can be based on a specific scenario, such as "my" 360 loan limit is very low and I want to increase it, which leads to the "daily increase of large amounts" scenario as shown in the left picture above, or it can be not based on any scenario.

The following flowchart is very important, and this chapter will focus on this diagram. This diagram has two terms or concepts, M1 and M2. Readers will often see the terms M1 and M2 when reading MGM articles. Here we will briefly explain these two concepts.

1. Origin of M1 and M2

The M1 and M2 here are not the M1 narrow money and M2 broad money in the statistical money supply hierarchy division principle. You can understand M1 and M2 by combining the full name of MGM, Member Get Member. M1 is the first Member in Member Get Member, and M2 is the second Member in it.

Of course, you can also understand it in combination with Laozi's "Tao Te Ching" "Tao begets one, one begets two , two begets three , and three begets all things". M1 begets M2, which fits the old member M1 bringing the new member M2. No matter how you understand M1 and M2, in the end you just need to remember that M1 is the page that the inviter sees, and M2 is the page that the invitee sees.

The following are the M1 and M2 pages of a MGM event on 360 Lottery. Some people may ask, why do we have two pages? Can't the invitee also see the M1 page? Or can't the inviter also see the M2 page?

Let me first give you the answer: No, let me explain why. I have said before that "MGM activities should sort out the entire link of bringing in new customers and formulate operation strategies for each key link." Assuming that M1 and M2 see the same page, there will be the following problems:

How can this M1 or M2 page explain the value of the product or activity within a limited space (e.g. within 2-3 screens of page height) so that both the inviter and the invitee can clearly know how your product can help them solve their problems and what concrete value it can bring. The above are the contents of M1 and M2 respectively. Each page has almost 2+ screens of content. If combined into 1 page, there will be at least 3+ screens of content. With so much content, how can we highlight the key points and improve the conversion rate?

The official or platform product's appeal is that M1 can help the product complete new members, M1's appeal is to increase the credit limit or get various cash or coupon rewards, and M2's appeal is to help M1 complete tasks or obtain credit limits on the platform to get loans. The appeals of the three roles are different. How to reasonably present them in a limited page space?

If the contents of M1 and M2 are mixed together, M2 will think that I treat you as my friend, and you treat me as a tool to increase your credit limit and a leek to make money from me (get a credit limit reward of 50 yuan for the inviter + 2.8% for the first loan of the invitee). The friendship between M1 and M2 can be overturned at any time. How can you still expect M1 to help you attract new customers?

At a time when traffic is so expensive, it is not advisable to mix the contents of M1 and M2 on one page. Platform or operator personnel need to design and produce M1 and M2 pages separately, design their expected action routes separately for the inviters and invitees, and do corresponding data point statistics separately.

This will help you better analyze and solve problems. Otherwise, it will be difficult for you to figure out whether M2’s low conversion rate is because the prize is not attractive enough, the click button is located too far back, the conversion threshold is too high, or for other reasons.

Some people may not believe in it, thinking that just because they can't do it doesn't mean I can't do it, I can make the page flow and content layout flawless and perfect. Don't argue, if you look at 90% of the MGM activities on the market, the M1 and M2 pages are different. This is the law that the martyrs have run with data and money. Don't think about going against the grain.

The M1 and M2 pages actually have a professional name called landing page, which is translated into Chinese as landing page or landing page. The purpose of this page is to inform users more about the product and let them get your UPS (unique selling point).

So the question is: How can we use this landing page to impress users and promote conversions within a limited area and within a limited time? I mentioned the following 8 points in another article "Ten Thousand Words of Practical Knowledge: The Simplest Way, Growth Can Be So Simple". If you are interested, you can jump over to check it out.

2. Rewards attract M1

The first step of the MGM activity is to reward and attract M1, the inviter. So how can we attract M1? The answer given by various Internet financial companies is surprisingly consistent, that is cash. As shown in the figure below, you can earn 650 yuan by inviting 1 person, so wouldn’t you earn 6,500 yuan by inviting 10 people?

6,500 yuan may not seem like a big deal to most Internet practitioners, but for the target customers of financial lending products, 6,500 yuan exceeds the monthly income of more than 80% of users.

650 yuan per person seems to be quite profitable. As long as the friend's credit line is approved, he can get 50 yuan. If the friend borrows money, he can get CPS commission, which is 2.8% of the loan amount, up to 600 yuan. These three eye-catching numbers stimulate the heart of every M1, but the fact is not so. It is difficult to get this 650 yuan per person reward. If you don't believe it, I will show you.

First, assuming that the inviter M1 has 5,000 friends, 500 people will choose to open the page M2 he shared (a 10% opening rate is already high), and 30% of them will choose to enter their mobile phone numbers. At this point, only 150 people will enter the application page as shown below.

Secondly, do you think you can get a 50 yuan reward by entering your mobile phone number on the M2 page? Too young, too naive. Entering your mobile phone number on the M2 page is just the first step. To complete the quota approval, the M2 invitee needs to open the 9 pages in the first row as shown in the figure below, upload the front and back of the ID card, verify the mobile phone number, and perform liveness recognition. Once you quit or give up halfway, you will not be able to get the quota, and the 50 yuan reward of M1 will be gone. How many of the above 150 people can make it to the last step? 10% should be considered high, that's 15 people.

Finally, even if a small number of people make it to the end and complete the credit approval and get the credit line, the initial credit line of most people will not be too high (6,000 yuan per person is considered high). We estimate the credit line of 10,000 yuan per person. Assuming that the first loan is fully borrowed, the M1 inviter can get a reward of 10,000*2.8%=280 yuan. If you want to get the full reward of 600 yuan, you need to borrow 21,428 yuan for the first time. Many people think that not many customers will borrow money at such a high interest rate after seeing the annualized interest rate close to 24% on the loan page, but the actual data shows that more than 50% of people borrow money after obtaining the credit line.

According to the above algorithm, after M1, the inviter, has consumed all the trust of his 5,000 friends on WeChat, 15 people can finally get the loan quota and 5 people complete the loan. Then the profit that M1 can get is 15*50+7.5*280=2850 yuan, which is far from the 6,500 yuan that M1, the inviter, originally expected.

But the M1 inviter will not be able to find this out at the beginning, and they may not find it out even after the event is over. They will just think that no one has seen my invitation link, so they will go to their Moments to post it, or try to forward it to more WeChat groups.

Above we calculated the account from the perspective of M1, here we calculate the account from the perspective of the company or platform. First of all, the CPS cost (the final loan) of the Internet financial company is 2,500 yuan (data source >>), but how much did the company spend through the above MGM activities? How much did the company earn in the whole process?

Assume that a customer borrows 10,000 yuan with an annual interest rate of 16% (many companies are running at the 24% red line), and a capital cost of 6%. The company can charge 1,600 yuan in interest, and pay 50+280=330 yuan to M1. The company can earn 1,600-330-600=670 yuan from this customer.

The CPS cost of acquiring customers through the MGM method is 330 yuan, while the CPS cost of acquiring customers through the information flow of Douyin and Kuaishou is 2,500 yuan. It is not difficult to find out why MGM fission customer acquisition has won the attention and favor of many Internet financial lending platforms. Of course, the above conversion rate data are all estimated by me, and it is not convenient for me to give the specific value.

To get back to the point, the 650 yuan on the M1 page is enough to attract the M1 inviter, and M1 has the motivation and willingness to forward. In addition, the M1 page also highlights the rewards that the invitee M2 can get: 15 days of interest-free and 20 yuan in cash.

This income is paid by the company or platform, so neither M1 nor M2 will work in vain, which is a typical win-win situation. M2 will be more willing and M1 will be more motivated to share.

3. M1 Share Link

On the M1 page, M1 sees its own income and M2's income, so it wants to share. 360 Borrowing provides different ways of sharing in different product forms. For example, the 360 ​​Borrowing applet only has two ways: WeChat and posters, while the 360 ​​Borrowing APP has an additional way of sharing links.

WeChat invitation : When sharing to WeChat on the mini program side, you can share to WeChat single chat or group chat. The style after sharing is shown in the mini program card on the left above. The invited person will enter the mini program after opening it. When sharing to WeChat single chat or group chat on the APP side, the display style is shown in the link method on the left above, and it will be an H5 page after opening.

Poster invitation : After clicking the poster invitation on the mini program, a poster image is generated, which can only be saved by long pressing or taking a screenshot. The APP provides a way to directly share the poster image to WeChat single chat, group chat or WeChat Moments (as shown in the right picture above). After these poster images are recognized, the H5 page will be opened.

When I was working on MGM, our operations colleagues came up with a cool idea. When sharing, you can directly choose to invite people from the address book. After clicking M1, the activity will request the user to authorize address book permissions. After agreeing, you can batch check the friends you want to invite. After confirming, the system will automatically call the short message interface and send a marketing text message to each of these invitees.

The latter plan was suppressed by the compliance colleagues. This approach seems to be very aggressive, but it actually has great compliance risks. If this activity was carried out according to the expectations of the operations colleagues, you can imagine what serious consequences would occur.

Of course, many banks’ credit card business departments used to do this in the early years. I wonder if they still do this now? Finally, I would like to share another piece of data: about 30% of M1 users will choose to share in various ways.

Additional note : M1's sharing can actually be seen as user recommendation, that is, how much willingness M1 has to share this activity page. I have read a book called "Silicon Valley Growth Hacker Practical Notes" which mentioned a user recommendation formula that can help you break down the steps of user recommendation and quantify the indicators of each step, as shown in the figure below.

Those who are interested can look at chapter 3.4.3 of the book, the universal formula for measuring user recommendations. The book is available on WeChat Reading, or you can buy a paper copy on JD.com. The book has large-scale company cases, theoretical summaries, and practical applications. It should be the best book in the field of growth.

4. Operation path of M2

The invitee, that is, M2, saw the shared content of M1 in M1’s WeChat chat, WeChat group and Moments. Whether these shared contents, that is, the picture on the far left as shown below (whether it is a mini-program card or an H5 sharing link), can impress M2 and then make the invitee of M2 click to enter the M2 page, depends on whether the short 3-4 lines of copy or pictures are attractive.

360 IOU used key figures such as 150, 200, 20,000, and 200,000, and also used two key words: interest-free and cash red envelope. As a result, some of the M2 invitees chose to click on this mini program or H5 page.

Then the invitee came to the M2 page, as shown in the middle and right pictures below. The content of this page is carefully designed and produced, and it uses a lot of marketing and psychology knowledge (to deepen the impression and avoid climbing stairs, I quoted the picture below again). For example:

The page title displays the brand name 360 ​​and the product name IOU, which increases customer trust through 360 brand endorsement.

The 360 ​​IOU in the upper left corner uses the logo and text to evoke the invitee's cognition and memory again. It turns out that the 360 ​​in this 360 IOU is produced by the same company as 360 Browser and 360 Security Guard.

The first line of content emphasizes that this is a gift from your friend, not advertising or telecom fraud, but there is also a disadvantage here, the invited person can't even associate who 158****7097 is. Pinduoduo does this very well, it directly reads the WeChat avatar and nickname, so the trust of the invited person can be at least increased by an order of magnitude.

The maximum credit limit is 200,000 yuan, and the 200,000 yuan in the second line is bolded for special emphasis. You should know that the credit limit of ordinary people's credit cards is generally around 50,000 yuan (newly issued credit cards may only have a few thousand yuan, and I have also seen credit limits of a few hundred yuan). This 200,000 yuan is very generous.

Next is the combination of 20,000 + 15 days of interest-free + 20 yuan cash red envelope. The amount here actually hides a mystery. It is not as outrageously high as Pinduoduo's red envelopes of 200 yuan or 600 yuan. Here it is only 20 yuan, which is neither too low to appear unattractive nor too high to appear fake and unreal. The amount of 20 yuan is just right.

The next step is to enter the mobile phone number to receive the credit limit and cash red envelope. The operator here is very cunning. There are not many form items for users to fill in. You only need to fill in the mobile phone number, so a group of people who don't know the truth will enter their mobile phone numbers. After entering the mobile phone number, there is a verification code, and then it comes to the 9 pages of 4-factor verification. Here is a data to share. From M1's sharing to M2's registration, the conversion rate is about 1%-2%.

In order to further allay the concerns of the invitees, the key data of the product is displayed at the bottom of the first screen of the M2 page, such as the maximum amount, the minimum interest rate starting from 7.2%, and the loan term of 3/6/12/18/24 periods.

This is not enough. The M2 page also uses some big numbers such as 200 million+ registered users, 100+ industry awards, 141 banks, ISO27001 international guarantees and other elements to enhance the product's sense of security and build product trust (customers' biggest concern about financial products is trust).

The next step is to highlight the quickness of the product: 10 seconds to register, 3 minutes to apply for a credit line, and 5 minutes to disburse the loan. This is in contrast to traditional banks and lending institutions, highlighting their speed through numbers.

Finally, through user stories, through stories of real people using 360 IOU, users of different roles and age groups are all using 360 IOU, and a scenario-based approach is used to build customer trust.

What followed was that M1 and M2 received corresponding rewards respectively. Some M2 users entered the mini program or APP and found the entrance to the MGM activity, so M2 transformed itself into the new M1 and started the above activities.

Here are two more data to share. About 6%-10% of registered users eventually completed the credit approval steps on those 9 pages (as shown in the figure below) and obtained credit limits. Ultimately, more than 50% of these users who obtained credit limits would choose to borrow money. At high times, this figure can soar to around 75%.

If you look at the pages of several MGM activities, you will find that the page structure and content similarity of 360 IOU, China Merchants Bank Finance, Mashang Finance Anyihua, Du Xiaoman and the like can reach more than 80%.

5. Can the credit granting process be simplified?

In order to facilitate the description of the content and reduce the tedious operation of readers going back to the previous page to find pictures, I have reposted the key pages of the credit + loan process of financial products here, which can also help readers deepen their impression.

There are many key steps/pages in the above picture. Some readers may ask: With so many pages and processes, the credit conversion rate must be low. Can't these processes and steps be simplified and some can be omitted? The answer is: Definitely not. Here are the specific reasons.

From the perspective of the product or the company, they have the willingness and ability to do this, but they ultimately did not do it. The problem is definitely not with them.

From the user's perspective, they also feel that this process has many steps and is long. After using Internet products for so many years, they have never seen a product that requires filling out so many content items. They actually hope that this step can be simplified.

Since both the platform and the user have this intention, why is the final credit approval process still so long and has so many pages? The ultimate reason lies with the regulator, who still requires the product to do so from the perspective of financial security and compliance.

We have basically all gone to offline branches of banks to apply for bank cards, and some people have also gone to offline institutions to apply for loans. The credit granting process of Internet finance is basically to move the existing traditional process from offline to online, but the steps are basically the same.

Some people will say that we should change the offline process as well. So the question is, which steps in the offline process can be saved? Needless to say, the four-factor authentication requires you to prove that you applied for this bank card or loan in person. Offline, you need to verify your ID card and your identity, and online, it requires liveness recognition.

The regulatory agency, the China Banking and Insurance Regulatory Commission, must not only guarantee the legitimate rights and interests of the people, but also provide convenience in business processes for banking institutions and these lending institutions and non-bank institutions. Otherwise, what if the loans cannot be recovered after they are issued?

Even if the platform secretly simplifies the process, once the regulatory authorities discover it or are reported by competitors, they will be given a warning and fined at the least, or ordered to suspend business and conduct self-correction and self-inspection at the most serious. In a word: compliance is paramount .

Internet financial products can be said to be dancing with shackles. You can only move your business online under the premise of security and compliance. However, this does not mean that these processes have no room for optimization and improvement. For example, the ID card upload page can use technologies such as OCR and AI to save users the steps of manually filling in their name, ID card number, address, and ID card validity period.

6. MGM event background design

From the above content, it is not difficult to find that the entire MGM event can actually be broken down. For example:

Role: This system contains two roles, the inviter M1 and the invitee M2. The inviter M1 can be further divided according to whether there is a loan contract, which is similar to whether an e-commerce product can be divided into completed orders.

Nodes/Events: The user chain of financial products is relatively long, so we break it down into M1 and M2. The key node of M1 is sharing, which is the key to the entire MGM activity. The key nodes or events of M2 are mainly registration, credit, contract signing, successful loan, etc. Each node can set a corresponding reward event. Analogously to e-commerce products, there can be multiple scenarios or nodes such as invitee registration, order placement, and store pick-up. Different rewards are provided to the inviter and invitee according to different nodes.

Pages: We mentioned above that M1 and M2 need to have their own independent front-end pages. These pages can be visually configured by the backend and generate links for publication. Otherwise, developers have to write activity pages manually every time, which is difficult to guarantee in terms of timeliness and unnecessary. We have previously made modular components that can freely configure the levels and elements of M1 and M2 pages, such as invitation records, marquee announcements, countdowns, etc. on the M1 page, and activity rules, product details, security, three-step quick loans, and TAs are using them on the M2 page.

Rules: Basically, the rules are as follows: "Inviter (role) - No contract (user type) - Participation in activities (events) - Event attributes (multiple levels correspond to different rewards) - Reward strategy (maximum 1 time or calculated based on statistical intervals) - Reward items (corresponding to 6 types of grand prizes) - Collection method (automatic distribution, manual collection) - Activities are mutually exclusive, as shown in the figure below.

The final front-end display is as shown below. M2 invitees can get a 28-day interest-free coupon when registering, a 20-yuan cash bonus when granting credit, and another 20-yuan cash bonus when borrowing. Someone may ask, aren't you afraid that users will fleece you? To be honest, we are not afraid. If you don't believe me, let me analyze it for you.

28-day interest-free coupon: It looks impressive, but if you don’t borrow money, this thing is just paper gold and has no meaning to the user.

20 yuan cash bonus for credit: After going through so much trouble to fill in so much information and finally getting the credit limit, what's wrong with giving him a 20 yuan cash bonus? He just doesn't borrow money now, and he will come back when he needs it later. And the key is that the platform has the customer's mobile phone number, and the user is a potential borrower with a credit limit. The platform can conduct precision marketing for him to promote his conversion to borrowing. As mentioned above, more than 50% of credit customers will borrow money.

20 yuan cash bonus for borrowing: We have talked about this before. The CPS cost of the platform to obtain a borrowing customer through other means is about 2,500 yuan, and this 20 yuan reward is almost a drop in the bucket.

You have to believe that the values ​​and proportions of these rewards given to M1 and M2 are calculated by operations and financial personnel, and have been repeatedly revised and iterated after multiple rounds of activity data. The platform or company will definitely not suffer any loss, and at worst it will be much lower than the 2,500 yuan information flow customer acquisition cost.

The following is a list of features for an iterative version of MGM that I made. It is for readers’ reference only so that they can have a general impression of MGM activities.

7. Data collection and statistical analysis

If a company or operator wants to use MGM as a core system or important project for long-term iteration, data collection and statistical analysis are essential. Otherwise, you will not be able to evaluate the overall effect and ROI of each old-to-new activity from registration to the final loan. Failure to evaluate means that it is impossible to iterate and optimize, and it is impossible to improve the conversion rate of each step to a better level.

For example, how many yuan is the reward for M1 registration and credit? Is it suitable for a 28-day or 50,000 yuan financial coupon, or is it more attractive for a 30-yuan cash red envelope? Is it suitable for a first loan of M1 to be given a fixed cash red envelope such as 200 yuan or 3% of the loan amount? Should I give a reward after registering M2? Is it appropriate for a 20-yuan cash red envelope after credit? Or is it more pleasant to give a 15-day interest-free coupon?

These are inseparable from data burial and statistical analysis. In some cases, A/B tests may also require verification of the effect. As for how to do data burial and statistical analysis, it needs to be analyzed based on the actual situation of the product. The indicator values ​​I focused on when doing MGM were:

• M1: Page UV, key button clicks, share button clicks
• M2: Page UV, number of registered people, registration conversion rate, number of applicants, number of credit recipients, approval (credit) pass rate, number of borrowers, withdrawal (borrow) rate, per capita withdrawal amount, cumulative withdrawal amount.
• Reward distribution: the number of people who are given M1 prizes, the amount of people who are given M2 prizes, the amount of people who are given M2 prizes, the amount of people who are given M2 prizes, and the overall ROI.

I will share another MGM activity data of China Merchants Finance for reference only. This product has launched an MGM activity, which lasts for 70 days, with a total of 205,000 applicants, a credit of 48,000, and a loan of 219 million yuan. The number of applicants per day is about 2,928, and the approval rate is 23.4%, and the average (per capita loan) is about 4,562 yuan.

Finally, MGM is a project that needs to be optimized and iterated for a long time. It needs to be calm and constantly learn from friendly companies.

4. Distribution fission common to the industry

The above-mentioned MGM distribution and fission gameplay in the financial industry is quite deep and complex, but in fact, most of the Internet product business chains are not that long and there are not so many key nodes, so they don’t need to be so complicated.

Although almost 99% of Internet products (whether it is APP or mini-program) and offline products or services currently have the above-mentioned ways to distribute fission and bring new developments, more than 80% of them adopt the following simple model.

That is, old users (the definition standards of each product or platform are inconsistent, some are registered and some are consumed) invite new users to enter the platform or product through various methods, and new and old users will receive part of the profit, and this income will be different based on the product. The following is the solidified invitation event front-end page of JD.com, Didi and Luckin.

The corresponding management backend configuration logic is also very simple. Set up the reward mechanism and rules for the inviter, such as what is the corresponding reward or prize content when the number of invitees reaches XX people, it can be a coupon, a cash red envelope, a point or other, and the same applies to the reward content of the invitee.

After configuring the event of bringing new ones, there is also a corresponding statistics summary page, that is, when the invitee invites friends to complete the registration, when the friend receives the new customer gift package content, and where the node the old customer receives the reward content.

This time is mostly delayed. Some products will pay rewards for old customers after new customers use new customers’ gift packages, or receive rewards for old customers after new customers complete a task or event such as taking a taxi or placing an order.

The following figure is the reward detailed data. The company or product can generate corresponding statistical report data based on the actual situation to better understand and monitor the overall situation of old and new activities. If you have spare time, you can also make the statistical report more detailed and track the path deeper, such as the activity and consumption after registering for new customers.

Of course, there are more than these related backend function pages for distribution fission old and new, but there should also be some front-end Landing page activity page configuration functions, so that students in operation and market can independently complete the configuration and release of activity pages.

To sum up: MGM is something worth doing for a long time.

Author: Mr. Zhan, public account: Mr. Zhan