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Three Chinese Proverbs on How YOU Can Adapt to the Growth of the AM Industry in China (4)

12-07-2014 02:00 AM #1 cmdeal (Veteran Member)
Three Chinese Proverbs on How YOU Can Adapt to the Growth of the AM Industry in China

On my flight back from Appflood's Affiliate Meetup in Shenzhen, China, I cam across a good Businessweek article about China, and I thought it was worth adapting here for anyone interested in doing more AM business related to China

Three Chinese Proverbs on How YOU Can Adapt to the Growth of the AM Industry in China

Most Western affiliate marketers (even those on STM) have little insight into the mindset of an economic power that is on a path to surpass the U.S. in the near future.

The growth of the affiliate marketing industry in China has been nothing short of spectacular. Five years ago, no one has heard of Chinese affiliate networks and Internet companies. Now they are starting to dominate the global landscape.

Here are three Chinese proverbs that may help YOU and the next generation of affiliate marketers understand better what they will face to grow their AM business with China, in China, and even against competitors from China.

1. Time: “You won’t help the new plants grow by pulling them up higher.”

Many Western affiliates think primarily about the short term, the next offer, the quick win, the "drug money". In China, time is more polychromic. The emphasis is on long-term goals and relationships. This is the case in affiliate marketing and in they way their business and political leaders view the world.

How long will the Chinese wait for “the plants to grow?” In the early 1990s, they realized the need to invest in high–speed rail to accelerate economic growth. They upgraded tracks and entered into joint ventures with Alstom, Bombardier, and Siemens. Government policy then shifted to developing trains capable of going 800 kilometers per hour by 2018 (current speeds average around 350 kph, already faster than U.S. trains).

In the U.S., plans for high-speed rail have been buffeted by political and economic tides and have run up against powerful road and airline lobbies. High speed rail in U.S. has gone nowhere as the players have all been looking at short term gains instead of what can grow the industry in the long term.

2. Education: “If you want one hundred years of prosperity, grow people.”

One of the most striking elements of Chinese society is the heavy emphasis on education at all levels, from primary to postgraduate and even executive-level training. Chinese families may skimp on housing, cars, luxuries, travel. But they will almost never skimp on education. Chinese students are justly famous for being able to focus on learning with an intensity that cannot be imagined in the West.

I often see on STM newbies that have not taken the time to teach themselves even the basics of conversion math before launching campaigns. All the content is there on STM, but these newbies avoid the hard work of learning and investment in knowledge.

3. Networking: “With guanxi, nothing matters; without guanxi, everything matters.”

Guanxi is a complex concept founded on the notion of mutual obligation among family, relatives, school alumni, co-workers, etc., as well as those who might be introduced through these contacts. It goes far, far deeper than the Western notion of an old boys’ network and certainly a LinkedIn contact.

These relationships are considered lifelong. In business, the guanxi bond does not have to be based on money and often starts with establishing the trustworthiness of individuals involved.

Here is a quote from a business school professor from the Businessweek article that I read:

"For five years, I taught an MBA class, and on every visit to China since then, a group of my former students invite me to an informal dinner. On my last visit, I was asked to write a college recommendation for one of my student’s children. I had met and mentored the child over the years, but even had that not been the case, the recommendation would have been expected. Not because I had been taken to dinner, but because of the quanxi that had developed over the years.

While most U.S. universities and particularly business schools have built great endowments and networks among the alumni, faculty, and students, the elements of trust and reciprocity are missing. That is the secret of guanxi. While it may be impossible to duplicate in the U.S., understanding how deeply rooted quanxi is in the Chinese culture is essential to understand the competitive landscape."


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So, what can YOU learn from these three proverbs and start doing that will help YOU better grow your AM business with China, in China, and even against competitors from China?

1. Start adopting a longer-term orientation to achieve goals. Don't just think about the next campaign. Think about how you can create a long term business and sustainable assets.

2. Invest in yourself. If you have an STM membership, there is no excuse for not investing in educating yourself on the fundamentals of affiliate marketing. All the knowledge is there.

3. Push yourself to invest in more personal relationships so that business dealings are built more on trust than a legally binding contract. Abraham Lincoln once said, “Give me six hours to chop down a tree, and I will spend the first four sharpening the ax.”

We would all be wise to think about sharpening our axes. This will take time, education, and trust, three ingredients of Chinese culture that perhaps we should all embrace much more as affiliate marketers as we all seek to adapt to the stunning rise of China in the global affiliate marketing industry.

12-07-2014 12:00 PM #2 Mr Green (Administrator)

Super post! I had a long conversation with a local about quanxi, I definitely admire that way of building relationships as opposed to the Western way.

12-07-2014 12:25 PM #3 newyorkheart2000 (Member)

Ha, Nice article.
I know exactly what you are saying.
It seems that you are observing things deeply.
It's really a pity,I don't even say hello to you at the party.

12-08-2014 10:33 AM #4 solaris (Member)

Another excellent post cmdeal. Thank you.

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