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"The Internet has changed our lives, online shopping is on the rise, and people are...

It can be said that the Internet is full of opportunities and opportunities. Some people have even established pet websites to sell dogs online, but I hope you can calm down and think about whether the income and investment are directly proportional.

Especially those friends who plan to give up their studies. "

Wang Lei’s remarks made the students think deeply.

Originally, they thought that Wang Lei would encourage them to start their own business impassionedly, but what they didn't expect was that Wang Lei unusually asked them to stay calm.

Wang Lei didn't care what they thought and continued:

"People are insensitive when it comes to investing. They even took Pet.com as an example. In my opinion, judging from the current situation, it is difficult for their project to succeed. They have not thought through how to make a profit from the beginning."

As soon as he finished speaking, people began to chatter below.

Because Pet.com is a very famous website nowadays. They sell pet supplies and pet food through the Internet.

In order to attract people to spend money on their website, they invest a lot of money in advertising. As far as Wang Lei knows, its annual advertising fee is 20 times the sales!

But in the eyes of Stanford students, Pet.com is the most shining star in Silicon Valley today. They have received US$8000 million in financing, merged with competitors, and even heard that they have started a countdown to going public.

Some students wanted to retort to Wang Lei, but it was Wang Lei who was standing on the podium, and they lacked the courage to argue with him.

Page was very distressed as he sat in his seat. Every word Wang Lei said seemed to be directed at him.

He couldn't help but stood up and retorted:

"But they have received 8000 million yuan in financing and have tens of millions of users. The investment will pay off sooner or later, right?"

"You asked a good question, classmate. Let's carefully analyze whether they can be profitable in the future."

“Suppose I buy a bag of cat food now, and it will take me several days or even half a month to receive the canned food from Australia, so why don’t I just go to the supermarket and buy it?

From the company's perspective, Pet.com needs a large number of warehouses to stock up on supplies they think will be sold, which will inflate their unnecessary costs. In order to gain customers, they even offered free shipping, trying to use shipping costs in exchange for sales.

Think about it, a company with such a single business scope uses Amazon’s style of play, can it succeed in the end? "

Page fell into silence. He knew that Wang Lei was right. Pet food and pet toys were not necessities, and the demand was very unstable. Perhaps it was a false proposition that the pet network could be profitable from the beginning.

The top students at Stanford are all people with high IQs, and they have almost figured out the joints.

Comprehensive online shopping sites such as Amazon and eBay may be profitable, but Pet.com certainly cannot.

"Everyone, before starting a business, you must understand one thing: you must make more money than you spend, so that you can continue to do it for a long time. If you violate this premise, I advise you to stop as soon as possible."

Page nodded, understanding Wang Lei's good intentions.

Just when Wang Lei was about to get up and leave, Page caught up with Wang Lei:

"Senior Wang Lei, can I spare a few minutes of your time?"

"Of course. The question you just asked is very pointed and your courage is commendable."

Page and Sergey smiled happily.

"We have built an intelligent search engine that can search for web pages that people need through keywords, filter out irrelevant information, and provide users with content that is most relevant to them."

Following Page's demonstration, Wang Lei couldn't help but widen his eyes. This interface was all too familiar to him. It was Google's search interface.

Compared with the high-quality products on the market, the biggest advantage of Google's search engine is that it can identify which websites will be valuable to users and optimize search result options through algorithms.

This kind of screening is fast and accurate, which is inferior to the existence of the same industry.

What this means is that Google can deliver relevant advertising products through precise algorithms. For advertisers, what they need is precise targeting of users, reducing delivery costs while increasing customer acquisition rates.

"Page and Sergey, how much financing do you want?"

Hearing Wang Lei's question, Page himself was a little surprised. You must know that Yahoo is not the only search engine product on the market. They originally just wanted to become a subsidiary of Yahoo.

"We want a startup fund of 100 million."

Wang Lei nodded and mentioned that in the original history, Principal Hannis was the angel investor of the two and gave them a start-up capital.

Unexpectedly, he accidentally hit me and took the lead.

Google did not go very smoothly at the beginning of its business. It relied on Yahoo's subcontracting business to survive, so that the two once wanted to sell Google to Yahoo for US$100 million.

Yahoo may have looked down upon the two's "advanced algorithms" and decisively rejected this proposal.

Four years later, Yahoo's market value plummeted during the Internet bubble, but Google's valuation continued to rise, and its commercial value began to emerge.

Yahoo also realized the power of its little brother and actively proposed to acquire Google.

However, Yahoo was still a little short-sighted and only offered an offer of 30 billion US dollars, while Google wanted a mere US$50 billion.

What’s ridiculous is that 14 years later, Yahoo was acquired for less than $50 billion and disappeared from public view.

Google's market value reached one trillion U.S. dollars in 2020, making it the fourth largest technology company.

Perhaps one night, Yahoo's decision-makers will feel deep regret for their original decision.

"But I want 50% of your company's shares. Can you accept it?"

Page and Sergey didn't think too much. They just wanted to get investment and then expand the company and really run it.

They didn't realize that this project would make more money in the future. It seemed reasonable that Wang Lei was willing to pay 100 million US dollars to take 50% of the shares.

"Thank you, senior, for your trust. We will not let you down."

Page and Sergey are well-known model workers in Internet companies. In order to keep themselves in the company, they even moved the canteen into the campus.

Wang Lei was relieved to hand over the company to the two of them.

What he didn't know was that his speech at Stanford had caused an uproar through publicity through newspapers, the Internet, TV stations and other media.

Pet.com is a rising star in Silicon Valley. Wang Lei’s public criticism has made Animal.com the subject of heated discussion.