Webnovel.Forum

Daoist2017 LOL, it is shortchanging revenue is all I'm saying.

Most systems like this factor in bonus stones as part of the revenue model. It's built into the rate that authors are paid regardless of where the bonus spirit stones are spent. Instead, what QI is saying is that bonus stones don't count AT ALL towards authors revenue regardless if they generate revenue.

There is a lot of hidden revenue that QI isn't showing.
For example,
Daily Video Check-In ads for Mobile
CPM (per 1000 views) rates for Rewarded video ads for Android and iOS is around $13 and $16 respectively. This is direct revenue yet is treated as the same 'bonus' as when users do other daily check-ins (like power stone & energy voting which are not direct revenue generators).

Bonus Stones from purchased Spirit Stones.
When a user makes a purchase of spirit stones they get a bonus amount. Example 600SS (500purchased+100bonus). This means that bonus spirit stones are ~16% the total value in the spirit stone purchase. Since those bonus spirit stones aren't a part of what is counted towards what authors are paid it allows QI to skim off the top the 16% revenue.

Why QI is saying that ads are not a way to make money I don't know. Rewarded Video Ads are a huge revenue generator for companies. If they threw the option of a15-30 second fullscreen video ad in front of most chapters they stand to make a ton of money especially from all the people who are complaining about the cost.

https://blognife.com/2018/04/29/mobile-cpm-rates-in-the-us-2018/

bachingchung it's true that most freemium apps' revenue were generated through Ads, but most ads nowadays are fixed on it's pricing and not based on the number of clicks.

That's mostly true except for Reward Video Ads AKA Full-screen video ads. The link I posted above was based on April 2018 pricing. In addition, 57% of webnovel.com traffic comes from 5 English speaking countries US, UK, CA, AUS, and India (4th largest English speaking population). All of which have Reward Video Ad programs.

Just those countries is a pretty large amount of potential Ad-Revenue, It could even be designed further to ensure that SS is still viable revenue model: For example, only allow a certain # of chapters to be unlocked via Video Reward Ads. People who can afford it will still prefer to skip ads.

It's also worth noting that I am talking about 15-30 second non-skippable video ads. In that way, revenue could be maximized. I'm also not talking video ads for only the last two chapters as it was implemented, which would only give you a day of revenue per chapter. I'm talking about all premium chapters.

And now we are back to the OP
It all comes down to maximizing revenue. As it stands now it appears that QI is only focused on SS purchases which ignores a primary segment of webnovel readers. Those who are cash-strapped and can't afford the $50-100/month it costs to read the current amount of premium novels on webnovel. Like college students.

Reward Advertising would tap into that market. The more options a company has to gain revenue the greater a chance of turning a profit. Cash-strapped users aren't going to stop reading Webnovel stories, they just read them elsewhere! This doesn't help the translator or the author OR China Literature.

Reward Video advertising might not bring in as much revenue as a pure spirit stones per chapter per reader but it certainly brings in more revenue then when someone reads the translation on another website.

This also brings us to one of the biggest problems QI has that comes from translations and trying to maximize revenue:

Speed of release
This isn't something that would have been much of a problem in China because authors have a limited release speed of 1-3 chapters per day. There is a natural limiter. Usually, it's one long chapter, two medium length chapters or three short chapters per day at most. WIth translation teams, it's possible to push out 3-4 medium length chapters per day OR MORE. This drives the monthly costs considerably higher than what is found in China! A great example is Immortal Mortal which runs ~$25 a month for 84+ chapters. Vastly more than the original work's monthly cost of 6 CNY (~$1) per month for 60 chapters.

This is especially true now that Patreon model is removed. Previously the increase in translation speed was primarily funded by a limited amount of readers who were paying for advanced chapters. This has now been removed and the costs are being pushed onto readers on webnovel. These costs aren't going to be sustainable for growth. Readers will simply read elsewhere.

Original Works
Of course, once Original English works go premium this will be cheaper for readers for that same reason (although I doubt they will be $1 for 60 chapters when they go premium). A single writer takes time to write, very few of them will be able to exceed even one chapter per day. It will make the cost much more affordable for readers. Of course, this also begs the questions. What about patreon for writers? Will Qidian be as heavy-handed as they are being with translators? I somehow doubt that.

Obviously, the discussion is just about maximizing revenue. Most readers want more chapters and they want them to be released quicker, but once the cost exceeds what they can afford, they just read the chapters elsewhere.

Millman97 I really like this idea, at least this can increase the percentage of royalties to the author or translator.

checkm8 Qidian doesn't believe in Google, who knows when Qidian become so famous and get blocked from using Google ads with a talk from a president? That would be a total destroy in a day. Qidian doesn't want to depend on others.

Also, sorry for bringing politic, but if I was the big company, I would not rely on gaining all my revenues with services from another big company. This is another way of conducting business, it's not about maximizing revenue without protecting your interest.

This might be crazy or won't happen, but Qidian is under one of the most powerful company Tencent.

checkm8 Qidian can change to another bank while you can't change completely and adapt from ads to spirit stones so fast.

Seriously, changing to another way of transactions is easier that having the 100% of your revenues cut and trying all from zero.

EDIT: Amigo, business isn't about maximizing revenues, remember this line. You are thinking in short term, but I'm thinking in long term which is better. If Qidian depends on Google ads, then I only can say that it's just another stupid ZTE company.

EDIT2: Sorry, I forget to say this, there are too many wire transfer and also, those wire transfer doesn't follow USA laws which obviously doesn't affect Qidian if they change.

Fine, I'll bite:

China Literature is incorporated in the Cayman Islands, it's attempting to enter the international market. Qidian International (QI) is under China Literature.

Huangdi Qidian can change to another bank while you can't change completely and adapt from ads to spirit stones so fast.

This whole discussion was alternate or supplemental forms of revenue so that QI wouldn't solely rely on one primary source of revenue like they currently do. In case you are blind, their main source of revenue from readers is Spirit Stones.

Only 5.9% of readers actually spend money on chapters. That's according to the 2017 Annual Earnings report for China Literature.

So to dumb it down for you:
94% of readers spend nothing. That's a pretty large percentage, wouldn't you agree? Yes? Why not leverage that 94% of non-paying readers to gain additional revenue?

How do you gain a slice of that 94% of non-paying readers?
One option is Reward Video Ads to gain a slice of that 94% non-paying readers.

Understand that non-paying does not mean non-reading, they simply read VIP(Premium) chapters on other websites. Websites that are not generating any revenue for China Literature.

If you had bothered to read my earlier posts, you would have seen that I also suggested possibly limiting the amount of reward video ads that are possible to ensure that spirit stone microtransactions were still the primary method.

Huangdi If Qidian depend on Google ads

Once again pay attention. I was suggesting Reward Video ads as a supplement to micro-transactional purchases (Spirit Stones) on Apple and Google platforms.

Not to mention:

31% of all webnovel.com traffic comes from the US. If things go so far south that the US puts a block on QI it would basically kill it. Obviously, I'm not talking about China LIterature as a whole, it would survive just fine.

And: They are already doing Reward Video ads for their Daily Video Check-In. The code is already incorporated into their apps!

RIP ZTE (1985-2018) In your next life don't illegally export U.S. technology to Iran and North Korea

checkm8 Ok, this whole discussion is about alternative or supplemental, but it obviously doesn't work well for a long term which most big company works for.

And this is why I pointed it for you.

Qidian isn't using an one source of revenue, can't you see they are using Google Ads too? This might already tell you that this problem is already resolved

Or you consider that Qidian should use 50% of Google Ads? See below to see the problem of it.

China Literature is attempting to enter the global market, but this doesn't mean that they are obligated to follow other people's business methods. I pointed it in other thread and I will post it here.

The 5.8% is about China Literature inside of PRC, there are too many piracy sites. And as you see, it says 4.000 sites took down and still getting up.

This doesn't work well in the western for the piracy sites because it will takes down easily and neither you know how much Qidian International is already earning right now. Also it might not happens at all and if it happens you should still consider this:

Once Qidian become famous enough and still using Google Ads as they main source of revenue, then they should prepare to get a completely downfall like how ZTE is struggling right now. I think, you know the news about the Trade War, right?

Even using 50% of Google Ads as another alternative source of revenue, it will still cause a downfall, after all, who will want to buy that much of Spirit Stone when most chapter is free? (The explanation)

In the end, isn't Qidian still paying to the webnovels by each chapter? This mean that even if the free spirit stone used for the premium novels, the translator is still getting paid. This is about your other post saying that popular novels get shortchanged.

EDIT: To respond to your edit, since maybe I didn't read or you just edited it.

1.ZTE is part of the Trade War, only naives people think this is just because of illegally exports, also this is happening to Huawei when obviously they have nothing to do with against the U.S security.

2.Look, I think you are too later for the party. This Reward Video was already implemented long time ago just like how I stated above.

3.I agree with you, if U.S. puts a block on Qidian, it would basically kill completely Qidian, BUT if they use more than 50% Google ads. The world doesn't revolve on U.S. just like how Huawei is still surviving outside of their domestic market with U.S. not letting them get into their market.

EDIT2: Also I apologize to everybody, this isn't an intent to hate U.S. but since Google is part of U.S. and seeing what's happening currently to a company, it shows the true face of the business.