From selling data packages and APIs to WeChat distribution, and why online customer acquisition keeps getting costlier
Zong Peng · Lions Associates
Published September 6, 2024Explore the lesson. Sign in to access the slide download.
Zong Peng describes evolving a data business from packages and APIs toward a broader product and distribution model in China. He covers mobile-platform distribution, product utility, and the rising cost of acquiring customers online.
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“[Applause] good afternoon can I do a quick poll um how many people use zoom info for your Leen and how much do you spend on it can I ask what how much do you spend with zoom info by the way 6000 6,000 per year well okay um in short hand we are we were by”
“2016 what were we doing we're selling data packages and apis to um you know typical small business partners and Enterprises and that is a very sell driven approach and average ticket is not that large and but it kept the lights on and you know but around 2016 and 2017 2018 we made a very bold leap and very big”
“right the other half is distribution and marketing and we we really capitalized on the proliferation of mobile phones and mobile internet in China it's happening at the time you think about the US and the China it's all happening at the same time but it's two it's two parallel universes and one of the unique things happening in China was the growth of super platforms WeChat you all know WhatsApp right WhatsApp well WhatsApp WeChat has a feature called WeChat official account which is you you as”
“such a useful app like it is an app that you open up you do a couple searches you quickly realize it its value and then um you you may only use it for few times a month but you never delete it because it's a utility app second is because online traffic is becoming more and more expensive um acquiring customers online through SEO through ASO were becoming”
“B2B and DTC 1st and 2nd Growth Curve API & Data Package for: Banks Insurance Firms PE/VCs Sales Orgs Other Biz Entities App for: Lawyers Investors Bank Loan Officers Sales Professionals Students etc.”
“Building Data Advantage and Killer Features Freemium & PLG Model 2014 2015 2017 2018+ Business Registry Data 2016 Trade Marks Patents Copyrights Legal Enforcement Investment and financing Judicial documents Job postings News Publicly listed companies Import and export credit Bidding and tendering Judicial auction”
“Catching the Mobile Distribution Wave: WeChat the Everything App 2m+ followers”
“Efficient Unit Economics Cash Flow Positive and Healthy Engagement Avg. Daily Usage 6 times Avg. Daily Usage 7-9 mins 60%+ M1 Retention 5%+ paying conversion 1-Yr Subscription ~$50 Other Pricing Tiers (2、3yr) Corporate bundles CAC ~$0.2 per Registered User Pricing & CAC Engagement & Conversion”
“Brand Building - Nationwide Ad Campaign ROI Focused Test-Run Four Tier 1 Cities with 60m population 34,000 Office Building Elevator Screens Running Time: Two-weeks Cost: $600,000 （Deep Discount） ROI: 3Xed our monthly revenue post campaign”
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Building the ZoomInfo of China: How We Scaled to $100M Revenue - Slide Deck
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SaaSOpen, September 2024 Building the ZoomInfo of China: How We Scaled to $100M Revenue Zong Peng Founding Partner, Lions Associates Ex-CEO, QCC.com
The talk connects product strategy and pricing with mobile and offline distribution, then ties growth to cash flow and reinvestment. Its throughline is to stay focused on the core business and profitable growth.
Over the next 20 minutes I’m going to show you Product Product Strategy 1st and 2nd Growth Curve Pricing & UE Go-to-Market Capital Allocation Mobile Distribution Offline Media & Partnerships ROI Focused Generate Free Cash Flow Stay Focused on Core Business Re-invest in Profitable Growth
Qichacha combines a mobile app with broad, frequently updated company data as its first-mover product advantage. The slide lists 500,000,000+ global entities, 8,000+ industries, and 30,000,000+ daily records updated.
Commercial Database in an App First Mover Advantage
Annual revenue climbs from near zero in 2014 to about $100 million in 2022. The chart marks an angel round of ~$300K, a pre-A round of ~$1m, an A round of ~$2m, and a B round of ~$10m+ along the growth curve.
Our Revenue Growth Pre-A Round ~$1m Angel Round ~$300K A Round ~$2m B round of ~$10m+
The company pairs data and API packages for organizations with an app for individual professionals. The business audience includes banks, insurers, investors, sales organizations, and other entities; the app is aimed at lawyers, investors, loan officers, sales professionals, and students.
B2B and DTC 1st and 2nd Growth Curve API & Data Package for: Banks Insurance Firms PE/VCs Sales Orgs Other Biz Entities App for: Lawyers Investors Bank Loan Officers Sales Professionals Students etc.
API commoditization cut unit prices by 90% while copycats and two other major players challenged the first mover. The paired visuals contrast the falling price trend with a crowded competitive product market.
What was Going On in the Market? Commoditization of API 90% drop in unit price First mover but many copycats Two other major players
A freemium and product-led model adds new data sources and features over time, deepening the database beyond business registry records. The timeline progresses from intellectual property and legal data to financing, jobs, news, public company, trade, and auction information.
Building Data Advantage and Killer Features Freemium & PLG Model 2014 2015 2017 2018+ Business Registry Data 2016 Trade Marks Patents Copyrights Legal Enforcement Investment and financing Judicial documents Job postings News Publicly listed companies Import and export credit Bidding and tendering Judicial auction
WeChat's expanding user base offers a large distribution channel, and the slide highlights 2m+ followers. The chart rises from 50 million users in 2012 to 1,270 million in 2021, while the adjacent graphic explains official accounts as a way for brands to publish and gather followers.
Catching the Mobile Distribution Wave: WeChat the Everything App 2m+ followers
Mobile distribution also depends on app-store and search visibility. The app-store screenshot highlights Qichacha at number 6 in a business app chart, alongside a diagram comparing several Chinese apps' shares.
Catching the Mobile Distribution Wave ASO/ASM & SEM/SEO
The stated model combines low acquisition cost with repeat use, retention, and paid conversion. It lists a ~$50 one-year subscription, CAC of ~$0.2 per registered user, six daily uses lasting 7-9 minutes, 60%+ M1 retention, and 5%+ paying conversion.
Efficient Unit Economics Cash Flow Positive and Healthy Engagement Avg. Daily Usage 6 times Avg. Daily Usage 7-9 mins 60%+ M1 Retention 5%+ paying conversion 1-Yr Subscription ~$50 Other Pricing Tiers (2、3yr) Corporate bundles CAC ~$0.2 per Registered User Pricing & CAC Engagement & Conversion
A two-week elevator-screen campaign was treated as an ROI-focused test across four Tier 1 cities with a 60m population. The slide reports 34,000 screens, a $600,000 cost, and monthly revenue 3Xed after the campaign.
Brand Building - Nationwide Ad Campaign ROI Focused Test-Run Four Tier 1 Cities with 60m population 34,000 Office Building Elevator Screens Running Time: Two-weeks Cost: $600,000 （Deep Discount） ROI: 3Xed our monthly revenue post campaign
A press clipping places Qichacha's company data in a news story about manufacturing closures. The highlighted passage says nearly 11,000 chip-related firms went out of business in 2023, illustrating how the company's data appeared in media coverage.
Brand Building - Earned Media
A Qichacha-branded Nasdaq billboard in Times Square illustrates a high-visibility brand placement. The slide presents this as brand vanity rather than a performance result.
Brand Building - Vanity
The team section frames company building as moving from 0 to 1 and then from 1 to 100. Photos of a rowing crew and a large team gathering emphasize coordinated effort as the organization grows.
Team - 0 to 1, and 1 to 100
The recap links product strategy, growth curves, and pricing with mobile distribution, partnerships, and ROI-focused go-to-market work. It closes on generating free cash flow, protecting focus on the core business, and reinvesting in profitable growth.
Over the last 20 minutes I showed you Product Product Strategy 1st and 2nd Growth Curve Pricing & UE Go-to-Market Capital Allocation Mobile Distribution Offline Media & Partnerships ROI Focused Generate Free Cash Flow Stay Focused on Core Business Re-invest in Profitable Growth
Zong Peng thanks the audience and closes the talk. The closing card identifies him with Lions Associates and QCC.
SaaSOpen, September 2024 Thank you! [redacted email] Zong Peng Founding Partner, Lions Associates Ex-CEO, QCC.com