16 Rules to Turn Your Internet Product into a Market Powerhouse

Law 1: Capture the “dangsi” (underdog) audience

Successful internet products seize the needs of the so‑called “dangsi” group—users who see themselves as low‑status but secretly aspire to be affluent. By making users feel part of the product, brands like QQ, Baidu, Taobao, WeChat, YY and Xiaomi achieve dominance.

Law 2: Sell participation

Products can either be customized on demand (e.g., Haier’s bespoke refrigerators) or involve users directly in design decisions, as the “Seven Gego” brand does by letting fan groups vote on new styles, turning fans into trendsetters and loyal buyers.

Law 3: Experience first

A great user experience must start with details and exceed expectations, creating surprise throughout the brand‑consumer interaction. WeChat’s public‑account folding is a prime example of prioritising user experience.

Law 4: Focus – less is more

Apple’s 1997 turnaround illustrates the power of cutting 70% of the product line to focus on four core products. The same principle applies to niche brands like RoseOnly, which limited each buyer to a single, identity‑linked purchase, driving high‑value sales.

Law 5: Simplicity is beauty

Design should practice subtraction: clean visuals and streamlined workflows. Google’s homepage, Apple’s hardware, and Tesla’s cars exemplify minimalistic design that enhances usability.

Law 6: Build products that make users scream

Extreme thinking involves three steps: (1) pinpoint exact user pain or excitement points, (2) push development to the limits of capability, and (3) enforce tight product‑management oversight. When executed, products exceed user imagination.

Law 7: Service is marketing

Brands like Afu Essential Oil provide 24‑hour support using efficient hardware and employ a “Chief Surprise Officer” to delight potential influencers. Traditional service giants such as Hai Dian Lao must also adopt internet‑style service thinking to stay relevant.

Law 8: Micro‑innovation

Start from tiny, often overlooked user needs and iterate based on feedback. 360 Security grew from a simple protection tool into a major internet player by focusing on these micro improvements.

Law 9: Lean startup and rapid iteration

Fast response to consumer demand is crucial. Zynga updates games multiple times a week, Xiaomi’s MIUI releases weekly, and even restaurant menus can be refreshed monthly to maintain relevance.

Law 10: Free as a gateway to revenue

Offering a free product can capture market share, as 360 Security did with free antivirus. However, the “free is the most expensive” model only works when the business can later monetize the user base.

Law 11: Persist until a critical mass is reached

When active users cross a threshold, the product undergoes a qualitative shift that creates new business opportunities—QQ’s early perseverance exemplifies this principle.

Law 12: Leverage social media

Strategic use of platforms like WeChat can generate massive sales; a smartwatch brand sold 18,698 units in 11 hours through coordinated group discussions and referrals.

Law 13: Crowdsourced collaboration

Internet‑scale crowdsourcing (e.g., Wikipedia, InnoCentive) taps external talent without hiring, boosting R&D efficiency dramatically.

Law 14: Small firms need big data

Collecting information, behavior, and relationship data enables prediction and decision‑making; even small enterprises should build their own big‑data pipelines.

Law 15: Your users are everyone

Personalised, data‑driven marketing—illustrated by Yin Tai’s integration of offline Wi‑Fi with online accounts—creates a unified view of consumer preferences and drives inventory visibility.

Law 16: Build a multi‑party win‑win ecosystem

Platform models thrive by aligning the interests of multiple stakeholders. The competition among Baidu, Alibaba, and Tencent shows that future battles will be between ecosystem clusters.

Law 17: Make good use of existing platforms

When building a new ecosystem is unrealistic, leverage established platforms; Jack Ma’s advice to a post‑90s entrepreneur underscores the wisdom of not over‑reaching.

Law 18: Turn the enterprise into an employee platform

Internal platformisation—exemplified by Alibaba’s 25 business units, Tencent’s six groups, and Haier’s 2,000 autonomous teams—empowers employees to act as entrepreneurs within the company.