The gross profit margin of CNKI is as high as 54%, which shows that CNKI is very profitable. The driving force for CNKI to make money comes from user fees and low-cost intellectual property investment.
1. CNKI’s huge profits
According to the media’s review on a certain query APP, CNKI’s parent company’s gross profit margin in one year was as high as 54%. This huge profit is simply It surpasses Apple, the most profitable company. CNKI’s huge profits are not unreasonable. CNKI itself has many universities and students as customers. These are the groups that most need to consume intellectual property. However, they also have to submit fees to CNKI, which also creates a problem for customers. The group continues to expand and income gradually increases. CNKI’s ability to make money is very strong. While many companies are still worried that their business volume does not exceed 100 million yuan, CNKI’s gross profit has exceeded 100 million yuan per unit, and its gross profit margin is also extremely high.
2. CNKI’s huge profits come from its low investment in intellectual property rights
CNKI’s success is not only due to the large number of universities it targets and the large number of customers it has. After all, the monopoly of property rights is only temporary, but low investment in intellectual property is the real source of violence in CNKI. When CNKI accepts an article, it often gives away a few hundred dollars in royalties. However, is the author's hard work really only worth a few hundred dollars? Of course, it is not the creation of the creator. It takes more time and brainpower to measure in money. CNKI’s investment in intellectual property rights is low, so the profits from charging fees will naturally be higher, because CNKI is doing a business without capital.
3. CNKI’s profit model is not sustainable
There is a great risk hidden behind CNKI’s unlimited profit. This risk stems from both the The infringement of intellectual property rights is also due to the unreality of obtaining intellectual property rights at low cost. Under the increasing protection of intellectual property rights in the future, it will become more and more difficult for CNKI to obtain articles. At the same time, due to the lawsuits of many power-awakened people, it has lost its credibility and some intellectual property rights. This means that CNKI's profit model will be broken, and CNKI will not be able to continuously obtain more articles. It must also be mentioned that CNKI’s malicious behavior may be resisted by many creators. Knowledge itself is expensive rather than cheap.