profile

How to Make Money in China

With over 1.3 billion inhabitants, about one-fifth of the world's population, China is the world's most populous nation and is experiencing exponential growth in practically all areas – including Internet usage. Some 137m people, about 10 percent of the overall population, are already online, and this figure is expected to grow rapidly in the next few years – making it arguably the world's most attractive market in the long term.

The sheer size and potential afforded by this vast market are simply too big to ignore. One study recently concluded that China is already the world's largest consumer of (offline) porn.

When it comes to online, your entire business model will need to be adjusted to accommodate the unique characteristics of this market.

For starters, porn is technically illegal in China. The Chinese authorities do their best to censor the Internet, a task which can never be realized due to its organic growth. To check if you have been blocked, go to www.greatfirewallofchina.org – if so, Chinese surfers are taken to a decidedly un-sexy page of the "Ministry of Fisheries and Agriculture."

Despite a growing Internet-savvy middle class, online purchases in China have been slow to take off with traditional payment systems. Credit card-based payment systems that succeeded in North America and Europe have proven ineffective in China, where credit card usage remains low. Even more important than credit card penetration rates, is the issue of trust between buyers and sellers in a business environment where personal relationships and cash-based transactions have served as the traditional means of securing and settling a deal.

Furthermore, wages in China are low. A white collar Manager can expect to earn about $500 a month. Thus, selling a $29.90 monthly credit card subscription to him is futile on two counts: It is very unlikely he has one and even if he did, the subscription would represent an enormous proportion of his overall disposable income.

Clearly, cash is not suitable for web transactions. However, there is one payment device that practically all Chinese have access to – the phone. Indeed, cellphone penetration in China is beginning to rival those of more developed markets.

Since the payouts available via such billing are less, you simply give them less time. After all, a monthly subscription usually equates to about a cost of about a dollar a day. So give them (say) 24 hours access if they pay you this way.

Another important consideration is that of language. Only about a quarter of Chinese learn English at high school, so it is imperative that you communicate with your new prospective clients in a language they understand – theirs!

Your phone processor should be able to provide you with geo-IP tools that will enable you to easily accomplish this. If not, you should consider switching to one that does.

Then, and only then, can you start to make money "Made in China."

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

'Traffic Captain' Andy Wullmer Braves the High Seas as Spirited Exec

Wullmer networked and hobnobbed, gaining expertise in everything from ecommerce to SEO and traffic, making connections and over time rising through the ranks of several companies to become CEO of the mobile business arm of TrafficPartner.

Alejandro Freixes ·
opinion

To Cloud or Not to Cloud, That Is the Question

Let’s be honest. It just sounds way cooler to say your business is “in the cloud,” right? Buzzwords make everything sound chic and relevant. In fact, someone uninformed might even assume that any hosting that is not in the cloud is inferior. So what’s the truth?

Brad Mitchell ·
opinion

Upcoming Visa Price Changes to Registration, Transaction Fees

Visa is updating its fee structure. Effective April 1, both the card brand’s initial nonrefundable application fee and annual renewal fee will increase from $500 to $950. Visa is also introducing a fee of 10 cents for each settled transaction, and 10 basis points — 0.1% — on the payment volume of certain merchant accounts.

Jonathan Corona ·
opinion

Unpacking the New Digital Services Act

Do you hear the word “regulation” and get nervous? When it comes to the EU’s Digital Services Act (DSA), you shouldn’t worry. If you’re complying with the most up-to-date card brand regulations, you can breathe a sigh of relief.

Cathy Beardsley ·
opinion

The Perils of Relying on ChatGPT for Legal Advice

It surprised me how many people admitted that they had used ChatGPT or similar services either to draft legal documents or to provide legal advice. “Surprised” is probably an understatement of my reaction to learning about this, as “horrified” more accurately describes my emotional response.

Corey D. Silverstein ·
profile

WIA Profile: Holly Randall

If you’re one of the many regular listeners to Holly Randall’s celebrated podcast, you are already familiar with her charming intro spiel: “Hi, I’m Holly Randall and welcome to my podcast, ‘Holly Randall Unfiltered.’ This is the show about sex, the adult industry and the people in it.

Women In Adult ·
trends

What's Hot Now: Leading Content Players on Trending Genres, Monetization Strategies

The juggernaut creator economy hurtles along, fueled by ever-ascendant demand for personality-based authenticity and intimacy — yet any reports of the demise of the traditional paysite are greatly exaggerated.

Alejandro Freixes ·
opinion

An Ethical Approach to Global Tech Staffing

One thing my 24-year career as a technologist working to support the online adult entertainment industry has taught me about is the power of global staffing. Without a doubt, I have achieved significantly more business success as a direct result of hiring abroad.

Brad Mitchell ·
opinion

Finding the Right Payment Partner

Whenever I am talking with businesses that are just getting started, one particular question comes up a lot: “How do I get a merchant account?” It’s a simple question, but it has a complicated answer.

Jonathan Corona ·
opinion

The Taxman Cometh for Every Business

February may be the month of romance, but it is also a time when we need to think about something that inspires very little love: taxes. April is not far away, and the taxman is always waiting. This year, federal and most state income taxes are due Monday, April 15.

Cathy Beardsley ·
Show More