There are people who say that you can make money by starting a platform business. But who doesn't know that? If you just jump in without thinking about the three basic steps mentioned earlier, it's only natural that you'll fail. 

Hello, I'm Yoon from the Colorful Company. Today, I want to talk about the topic: Please don't bring platform business ideas when starting a business. More than half of the people who come to me for consultation or mentoring are thinking about starting a platform business. Many platform businesses, like KakaoTalk, Baedal Minjok, or Kmong, are making enormous profits, with valuations ranging from hundreds of millions to billions. People see these aspects and think, If I just create something without considering the backend, it will surely be a hit. However, I believe...

When people come to consult, they always ask three things first. First, is your home somewhat well-off? Can you afford the costs associated with attracting users to the platform? Many people who come for consultation about starting a platform business tend to underestimate these costs. This is especially true for students; when I attend idea evaluations or mentoring sessions, the most common misconception is regarding these aspects. A platform cannot simply become active with just 30 to 40 million won. It absolutely cannot be activated that way. To operate a platform that can truly generate revenue, you need an astronomical amount of advertising costs to attract users. Some people think they can cover these costs with government support funds, but if you don't already have a platform created, just the cost of developing the platform itself will be substantial.

You should consider around 50 to 60 million won. Few people come with detailed plans or ideas for the platform; most simply say they want to create a service or site similar to Baedal Minjok, Kakao, or Kmong. However, those sites have already been developed by large corporations. If you're thinking of creating something similar, you really need to be very wealthy because you will have to invest significantly in platform development and spend enormous amounts on advertising every year to achieve profitability. 

Okay, as I asked earlier, it's fine if your household isn’t well-off. The next question I ask is whether you have any social media channels or any channels that you can consistently operate. I ask this because, as I mentioned, advertising costs for attracting users to the platform are...

If I were not here, it would be enough for you to have a personal social media channel where you could promote such advertisements. However, if you do have such a channel, the situation changes. Even if you don't spend much on advertising, you can promote it through your own social media channel. Recently, many people around me are trying to start platforms that sell pet products, such as items for dogs and cats. For those individuals to maintain their platforms, the first thing they believe is needed is good products. However, that is incorrect. What new platforms actually need is not necessarily good products, but rather the means to promote even average products effectively. Therefore, for new platforms or those starting a business, the focus should be on how to create good products and how to promote them effectively.

It's not about worrying about what to supply; even if you make ordinary products, you should first think about how to create a story around these products and how to promote them to people. Next, the third revenue model is not just to act as an intermediary; you know that having only a commission as a revenue model is not sufficient, right? Finally, the most common question I get is, Okay, let's think without advertising. How do you plan to make a profit? When I ask this, many people seem to become confused. The idea of simply connecting products or services and taking a commission is too simplistic. I mentioned that it takes a lot of time and astronomical effort to properly complete a platform. Therefore, the input you put in should be proportional to the effort invested.

I must be able to generate a significant output as profit. Of course, once you gather people in a platform business, there are many ways to monetize within that community. However, there is a huge difference between planning and considering these aspects in advance and operating in a haphazard manner without any thought, just gathering people and figuring things out later. Lastly, I recently watched a video that was trending, where someone claimed that you need to start a platform business to make money. But who doesn't know that? If you don't even consider the three basic steps I mentioned earlier and just jump in without a plan, it's only natural that it will fail. Moreover, a business cannot be approached with a mediocre mindset. Why do people seek employment in companies? Before coming to consult with me, I ask them to think as much as possible.

Even if I provide guidance, the consultation fee is 100,000 to 200,000 won per hour. Since I paid that, just think about it and handle it accordingly. There are actually a lot of people who come with a mindset of just getting it done. You can think of it as donating money to me when they come in. Regarding their own business ideas, they need to understand their concepts better than anyone else for the business to succeed. However, if they haven't properly thought about how to promote their business idea or how to monetize it, wanting to run a platform business is almost equivalent to just doing good for others while going bankrupt in the red. I hope you don't forget that. Running a business is not something that can be done with a simple or easy mindset. If you want to do that, you might as well consider side jobs like smart stores or e-books. Running a business means putting everything on the line for something new.

You should think of it as taking on challenges and receiving high risk, high return in proportion. The discussion about this platform business will continue in the upcoming series on government support projects. If you found this content helpful, I would really appreciate it if you could subscribe and give a like. Then, see you next time.

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재미로 보거나 해당 아이디어를 활용해서 합법화 하시는 것을 추천 드립니다^^

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