Chapter 7

During this period, the number of domestic mobile phone users increased year by year, and SMS became a lucrative business. In order to promote SMS and wireless value-added services, Mobile borrowed from foreign practices and came up with something:

  Mobile DreamNet!

  Simply put, it was a platform where users could subscribe to various services from websites through Mobile DreamNet.

  For example, if you subscribed to Sohu’s news updates for 5 yuan a month, you’d receive one message a day. Sohu would send the daily content to Mobile, which would then forward it to your phone as an SMS.

  It was officially launched at the end of last year, and the first batch of contracted content providers (known as SPs) included more than a dozen companies, among them QQ.

  QQ launched a service where you could send a QQ message from your computer, and it would be relayed through the Mobile platform so you could receive it on your phone. In the era of smartphones, this is commonplace, but back then it was astonishing, and QQ managed to survive thanks to this service.

  In the early days, Mobile offered huge profit concessions to expand the market, with a profit split of 15:85—Mobile took 15%.

  This led to a boom in the SP industry: in 2001 there were a few dozen companies, by 2002 it had grown to 800, and by 2003 there were 2,000. All earnings were calculated monthly, with some making tens of millions, millions, or hundreds of thousands per month, supporting a large number of unambitious, opportunistic web companies.

  The reasons were, first, the explosive growth of SMS: in 2000, only 1 billion messages were sent nationwide, but in 2001 it soared to 18.9 billion, and in 2002 reached 90 billion.

  Second, users found a convenient and relatively secure payment method: direct deduction from their phone bill.

  Of course, there were certain entry requirements to become an SP. First, you had to be a legitimate company with an office, equipment, and staff. Second, your product needed a certain traffic base.

  But what about those small websites and personal sites that also wanted a piece of the pie?

  That’s where SMS alliances came in.

  ……

  Brian Clark took William Clark’s valuable information home and mulled it over all night.

  When faced with an entrepreneurial opportunity, aggressive people dive in, conservative people back out, and Brian Clark was somewhere in between, so he was very conflicted.

  The next day, the two met again, still at the internet café.

  William Clark showed him NetEase and TOM.com, saying, “To put it simply, it’s distribution. You know what distribution is, right? We put SP ads on our own website, users click the ads to subscribe, and we share the revenue. That’s what an SMS alliance is.”

  “There are only two companies doing this now?”

  “Yeah, NetEase started in the first half of the year, TOM just started. It’s a new business, few people, and everyone’s still naive—it’s the perfect time to stake a claim. Once we have some scale, we can apply to be an SP ourselves, and then the cash flow will pour in!”

  “Really???”

  Brian Clark was still skeptical, but William Clark didn’t explain further and just added the TOM SMS alliance’s contact QQ.

  This was his first QQ number, seven digits. If not for the memory of this body, he would’ve long forgotten the password. The username was “A Man Like the Wind.”

  “Hello, I’d like to ask how to join TOM’s SMS alliance?”

  “Do you have a website?”

  “No, but I study computer science and am about to make one.”

  “Here’s how it works: you need to create a content website, then we’ll review it. As long as it’s not in violation, you can join. Our revenue share is 30%—that’s after deducting Mobile’s cut, you get 30%.”

  “Is there a contract?”

  “We’ll send an email, but there’s no paper contract. But don’t worry, we have a good reputation and won’t shortchange our partners.”

  Normal!

  William Clark shrugged. SMS alliances were always a gray area, so there was no way to sign a formal contract—it all depended on the SP’s reputation, and TOM’s reputation was number one.

  “Can I join other SMS alliances at the same time?”

  “Yes, we don’t prohibit it.”

  “Okay, I’ll get things ready on my end and contact you later.”

  “Alright, 886!”

  “886!”

  Right after, William Clark also communicated with NetEase, and it was basically the same deal, with a 30% revenue share.

  Finally, he asked Brian Clark, “So, what do you think?”

  “……”

  Brian Clark was silent for a while, then said, “We need to make a small website, and then get users to click the ads.”

  “Smart, straight to the point!”

  The key to SMS alliances was getting users to click ads to subscribe, but why would netizens click your ads? You had to offer something to make it more attractive.

  So in 2002–2003, at the peak of SMS alliances, adult content was everywhere.

  Things like “Desperate housewives looking for a one-night stand,” “Want to know my body’s secrets?” “Subscribe to see beauties bathing,” “Send a text to see subway upskirt photos,” and so on. Some were genuinely explicit, some were just clickbait. Everyone let loose, without restraint.

  Right now, things were still relatively innocent—or maybe just timid.

  Brian Clark fell silent again, then asked, “Are you sure your passionate dating idea will work?”

  “Like I said, until Spring Festival, if we make money, we split the profits; if we lose, I’ll sell my blood to pay you back your principal. So, are we doing this or not?”

  “……”

  Brian Clark’s inner struggle was written all over his face, but in the end he nodded. “Let’s give it a try.”

  “Great! I’ll handle the content, you handle the tech, and we’ll start with 5,700 yuan in capital. If you have any difficulties, say so now.”

  “I’m fine on my end. Building a small website doesn’t cost much.”