Xiaohongshu's monetization model and 6 types of notes

This year, Xiaohongshu became the CCTV Spring Festival Gala notes and live broadcast sharing platform. With the changes in Xiaohongshu's live broadcast e-commerce this year, it is not difficult to see the trend of Xiaohongshu in the e-commerce field. This article mainly analyzes the current situation of Xiaohongshu from three aspects. Let's take a look.

As we all know, Xiaohongshu has become the platform for sharing notes and live broadcasts of the 2024 CCTV Spring Festival Gala. Is this a wake-up call?

Last year, the scale of Xiaohongshu's live streaming e-commerce exceeded 100 million yuan, and several top anchors also achieved outstanding results. Although there is still a gap with Douyin, as the first year's attempt, it fully proves the potential development prospects of Xiaohongshu's e-commerce.

It became clear when several former Didi executives (business veterans) joined Xiaohongshu a few days ago that the platform will have to make a big push this year. After all, the potential consumption level of Xiaohongshu's main force is higher.

Let’s first review some of the major changes in Xiaohongshu over the years~

We all know that Xiaohongshu was originally engaged in cross-border e-commerce, then transformed into a grass-planting platform, and gradually began to do buyer e-commerce.

It can be seen that Xiaohongshu is now eager to transform into an interest-based e-commerce through content promotion, supporting individuals/merchants to open stores on Xiaohongshu. At the same time, "search 🔍" has become a keyword on the Xiaohongshu platform.

This article mainly analyzes the current situation of Xiaohongshu from three aspects: Xiaohongshu's content recommendation mechanism, Xiaohongshu's monetization model and note types.

1. Xiaohongshu content recommendation mechanism

Xiaohongshu platform has two core traffic sources: [referral traffic] + [search traffic].

1. Recommended traffic

The algorithm logic is similar to that of other public domain platforms. The system will score the notes based on their initial likes, collections, comments, forwarding, sharing, and attention data. The scores of comments, forwarding, and attention account for a relatively high proportion.

(*Tips: I just posted my notes, the number of small eyes is over 200, so the data is normal)

The higher the score of a note is, the more it will be recommended to the large traffic pool by the system level by level (the interaction volume of small-scale notes is 1000+, and that of big-scale notes is 10000+, but it will be different for different categories).

A popular article will also boost the data of other notes, but the following prerequisites must be met:

① The notes have been reviewed, have not violated any regulations, have not been deleted by the system or have not been deleted/hidden by the blogger;

② The notes have keywords (such as pets and skin care), which can correspond to vertical tags, can be recognized and included by the system, and recommended to the target group who likes to read under the corresponding tags (but now Xiaohongshu is promoting the inverted funnel model, which starts from the precise user group and then finds the interested group);

③The quality of the note content itself is good, which can attract tourists to interact by liking, collecting, and commenting.

2. Search traffic

This content is also the focus of Xiaohongshu's promotion this year, and currently accounts for 60% of the search results on the entire platform.

The above is only Xiaohongshu.

(The data comes from the offline 'Little Red Book Planting Season 🌳' conference staff)

Notes that rank higher in search results will receive more exposure and attention, and this part of the traffic accounts for more than 50% of the total traffic (hence why many educational companies like to play matrix notes on Xiaohongshu, which is to continuously spread keyword SEO to occupy categories).

2. Xiaohongshu’s monetization model

Based on the differences in sales attributes, Xiaohongshu's monetization is generally divided into two types: selling things and selling time.

① Selling things: You have products, supplies or services that can be sold, including physical products and virtual products, such as courses, materials, etc.

That is, the buyer bloggers that Xiaohongshu is promoting now (the threshold for individuals to open stores on Xiaohongshu has also been lowered).

② Selling time: You don’t have any products, but want to increase your income through Xiaohongshu.

This type of monetization is through taking advertisements or selling other people’s products. Most of them are mothers (if you don’t know what to do on Xiaohongshu at the beginning, you can increase the traffic first).

1. Merchant/buyer Xiaohongshu stores

A platform that focuses on content promotion and constantly attempts to achieve a closed business loop from content to monetization.

Therefore, platform traffic can be easily restricted, with warnings at the very least and account suspensions at the worst, and there are more and more merchants/buyers bloggers.

This area can be divided into two categories, one is the merchant (brand) store, and the other is the personal buyer store (with own source of goods or no source of goods)

①Merchant Store

One business license can apply for up to 3 professional numbers and 3 stores.

After review, you can upload it to open a store, and the store entrance will be displayed on the account homepage.

The corporate professional account can also be directly linked to offline stores and addresses.

②Buyer's Shop

I will write a separate article about how to run a buyer’s store. There is a lot of content in this article, so be sure to follow me first.

★How to play: Open your own store with 0 fans first, then attract users through Xiaohongshu (posting notes), and lead them to your own store to convert products.

Advice for buyers without source:

• Don’t go to PDD, you can choose 1688 to find goods for drop shipping; Don’t ship goods in large quantities, this is a direction for audit;
• Negotiate cooperation with the merchant first, then go to the store to stock the goods;
• If there is a complaint due to lack of supply, do not deduct money if it can be resolved with money.

2. Traffic diversion and monetization

Although the official platform has a special cooperation method (payment) to obtain user information, notes to place effective advertising, etc., for self-employed or small and medium-sized businesses, it is unlikely to pay an additional fee! !

So I will use various tricks to lead users from the Xiaohongshu platform to my private domain for product sales conversion in a free form. Although there are some risks, it’s fine as long as I can make money (I just wrote an article last month on "10 Xiaohongshu Traffic Generation Techniques", you can take a look, it’s super useful).

3. Product monetization (live streaming or small list sales)

Selling other people's products and making money through commissions requires completing professional account certification and having more than 1,000 fans before it can be activated.

The product selection center has goods of different categories. The commission rate is marked next to each product. You can choose the goods you need. The "Buyer Era" was promoted in August last year, so many products can also be viewed first from the selected alliance.

4. Knowledge Monetization

This monetization method is aimed at knowledge bloggers and is also the first choice for those who want to become self-employed in recent years.

For example: logical thinking, parenting, fitness, fat loss, skin care, operations, etc.

★Monetization form:

① Private domain: Set hooks in the form of homepage, 1V1, Xiaohongshu group chat, etc. to lead users to their own WeChat, and then convert them through Xiaoetong or other products. The products that can be converted are courses, consultations, memberships, etc.

② Column: To open a column, you need to have more than 10,000 fans (you can also try even if you only have a few thousand fans).

③Shop: Notes are relatively vertical. Users know what you mainly do or what they can learn from you, and then order courses directly in the store.

There are actually many ways for Xiaohongshu to monetize, such as: finding bloggers to distribute (merchants), live streaming, soft advertising monetization, experiencing good products (getting free deals), store visits/travel experts, etc.

3. 6 types of Xiaohongshu notes

There are various popular notes on the platform, and many people who want to create Xiaohongshu don’t know where to start. Here are 6 types of notes that can be used as a reference.

1. Collection Notes

Applicable people: It is applicable to all product categories and can be used for store visits, good products or knowledge IP, especially good product recommendation, TOP good product recommendation and other forms.

This is a very easy way to create an account on Xiaohongshu. It is like a puzzle, with text or products in the middle.

Features: large and complete quantity, high volume, and user interest.

Advantages of the first picture: multiple products are photographed together (or as a puzzle), and the title often uses numbers to impact the user, which makes it easy for users to click in.

Difficulty: ⭐

2. Popular Science Notes

Applicable people: All categories of products

Good things can't all be sold to newbies, but should be mainly recommended.

Features: Lightweight and intuitive, get all knowledge points at a glance

Advantages of the first picture: One picture summarizes all the knowledge analysis, or reflects a dense list of knowledge points

Difficulty: ⭐⭐

3. Evaluation Notes

Applicable people: It applies to all product categories, and is mainly used for evaluation of games, technology, commodities, etc.

It is a bit similar to a collection, but a collection tends to recommend everything at once, while a review usually has a TOP list or ratings to test the waters for users who want to buy first.

Features: Give users priority and provide more valuable products/locations.

Advantages of the first picture: Use the red and black list comparison as the first picture or add a logo to distinguish different product ratings (briefly introduce product attributes).

Difficulty: ⭐⭐⭐

4. Notes on avoiding pitfalls

Applicable people: Applicable to all categories, both good product promotion and knowledge blogger IP can be used.

The avoidance information can be pure text or with pictures and text. The content structure is as follows:

① Directly take stock of the pitfalls you have encountered;

② Discuss the potential risks first and then provide solutions.

(For this type of notes, you will find: the number of collections > the number of likes)

Features: Solve problems quickly and understand advantages and disadvantages at a glance.

Advantages of the first picture: solid color picture/real photo/internet picture/logical framework picture are all acceptable. Just add a title or fancy words to the picture to highlight the theme.

Difficulty: ⭐⭐

5. Tutorial Notes

Applicable people: Applicable to all categories, both product promotion and knowledge IP can be embedded in the tutorial "advertisements".

The core of the content is to reflect the "steps", clearly indicating how many steps there are and what to do in each step (can be pure text or video explanation).

Features: clear process, reducing time and providing value.

Advantages of the first picture: Display all tutorial steps or part of the steps.

Difficulty: ⭐⭐⭐

6. Strategy notes

Applicable people: All categories can be applied, and "advertisements" or services can be soft-implanted in the strategy.

Summarize from multiple dimensions, and describe each dimension clearly and in detail how to operate and the corresponding precautions. The more practical content the better (because it is comprehensive, it takes a lot of time).

Features: clear process, reducing time and providing value.

Advantages of the first picture: It presents some strategy information and uses subheadings and fancy words to mark each dimension involved.

(Commonly used copywriting such as [Recommended Collection], [The Strongest Strategy], [The Most Complete Strategy], and [Must-Read Strategy] to retain customers)

Difficulty: ⭐⭐⭐⭐

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See you next week~ my friends.

Author: Original flavor's operation notes, WeChat public account: Original flavor and his friends