---
title: "Dual Private Domains: From Deep Relationships to Deep Connections"
description: "This article introduces the concept of 'dual private domains' (brand and retailer) within the 'Six Dual System' for digital operations, emphasizing that private domains are based on relationships and deep connections, not just contact. It discusses how brand and retailer private domains can be co-operated, with retailers transferring their private domain to brands under certain conditions, and highlights the importance of user activation and density for successful digital transformation."
author: "刘春雄 刘馨忆"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-12-28"
language: "en"
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---

# Dual Private Domains: From Deep Relationships to Deep Connections

> This article introduces the concept of 'dual private domains' (brand and retailer) within the 'Six Dual System' for digital operations, emphasizing that private domains are based on relationships and deep connections, not just contact. It discusses how brand and retailer private domains can be co-operated, with retailers transferring their private domain to brands under certain conditions, and highlights the importance of user activation and density for successful digital transformation.

Source: Teacher Liu's Digital Marketing (ID: liuchunxiong1964)

The "Six Dual System" for digital operations: dual private domains, dual paths, dual scenarios, dual shelves, dual delivery, and dual middle platforms. The "Six Duals" are the institutional design ensuring bC integration, online-offline integration, and the tripartite unity of manufacturer, distributor, and store, serving as the technical and organizational guarantee for the F2B2b2C model.

******Public Domain and Commercial Domain**
Baidu Baike's explanation of public domain traffic: Public domain traffic refers to merchants directly entering platforms to achieve traffic conversion, such as Pinduoduo, JD.com, Taobao, Ele.me, as well as content payment platforms like Ximalaya, Zhihu, and Dedao.

**The above explanation is problematic, as it takes the platform's perspective. There are three points for discussion:**

**First, what is a platform?** Platforms are not only digital platforms; traditional retailers are also platforms and can be digitized. In fact, if all commercial flows and attention rates are considered as traffic volume, traditional retail and media are platforms, and after digitization, they will be even more so.

**Second, public and private domains are a matter of perspective.** Platforms view their traffic as private domain and price it for sale, but from the merchant's perspective, it is public domain. In other words, the platform's private domain is the merchant's public domain.

**Third, only traffic that is not priced and sold is truly public domain.** Many have heard of the tragedy of the commons. In 1968, American ecologist Garrett Hardin published the famous paper "The Tragedy of the Commons" in Science magazine. An unowned pasture, where everyone pursues their own profit maximization, adding one more cow, then another... leads to overall destruction. Freedom of the commons brings ruin to all.

Occasionally, there is free public domain on the internet, such as platform traffic support. **But most traffic is priced for sale, and the larger the platform's traffic, the higher the price, even higher than offline traffic. Therefore, I prefer to define free platform traffic as public domain, and priced platform traffic as 'commercial domain traffic.' Under this understanding, public domain traffic has nearly disappeared.**

******Private Domain**
Baidu Baike's explanation of private domain traffic: It refers to traffic diverted from public domains (internet), other domains (platforms, media channels, partners, etc.) to one's own private domain (official website, customer list), as well as traffic generated within the private domain itself (visitors).

This explanation clarifies two major sources of private domain traffic: **First, diversion** from public and other domains; **Second, self-generated traffic.**

Zhao Bo, founder of New Distribution, has a statement that points directly to the definitional flaw of the private domain concept: **Private domain is not contact, but relationship.**

Zhao Bo believes that **the essence of private domain is the monetization of relationships.** Through deep connections of brand relationships and interpersonal relationships with users, ultimately achieving user identification and loyalty to the brand.

Zhao Bo proposes two types of private domains:

**1. Brand private domain – brand identification + deep connection**
**2. Personal private domain – interpersonal relationships + deep connection**

I strongly agree with Zhao Bo's concept of private domain. There are two key points:

**First, establish connections.** However, establishing a connection does not mean it is a private domain; this is why many diverted and fission-based private domain traffic lacks significant commercial value. **What is a deep connection? The baseline is 'activation' with stickiness, such as interaction, rather than having a technical connection but actually 'sinking' at the user's end.**

**Second, there must be identification and relationship.** Brand private domain is identification; personal private domain is relationship.

******Whose Private Domain Are Users?**
Because the definition of private domain is relatively narrow, I raise this question.

**Users are the platform's private domain.** The reason large platforms become large is that more users identify with the platform, and through user tags and algorithmic AI, users gain greater benefits. Even if users are "sold" as traffic by the platform, it doesn't matter.

**As mentioned earlier, from the platform's perspective, users are its private domain. From the platform's merchants' perspective, users are public (commercial) domain. Thus, public and private domains are a matter of perspective.**

**Users are the brand's private domain.** Traditionally, there has been brand identification and brand loyalty; now there is also the concept of user stickiness. The difference is that digitization establishes deep connections. In the past, brand loyalty was not empirically verified; now user stickiness is supported by data.

**Users are the retailer's private domain.** The relationship between retailers and users: KA stores are based on trade areas and locations, with transaction convenience advantages within the trade area; small stores mainly rely on relationships. That is, the overlap of life radius and business radius, turning acquaintances into regular customers. In the past, there were offline relationships (frequent meetings, interactions), then community interactions were added, and after digitization, digital interactions were added. In three-dimensional space, retailers can interact with users.

**Users are everyone's private domain.** Everyone has a strong interpersonal circle, is influenced by others, and influences others. In the past, influence was word-of-mouth; now there are many ways, such as communities, blogs, etc. This is why user fission has some market. **But the truly commercially valuable are the private domains of KOLs and KOCs.**

KOL private domains are similar to platform private domains, priced for sale. Only KOC private domains have both concealment and commercial value. However, KOCs are highly dispersed, making commercial utilization difficult.

**As long as the two conditions proposed by Zhao Bo are met – deep connection, establishing identification and relationship – it is a private domain. So, there are many private domains. But only when they reach scale can they become the main battlefield for digitization.**

Platform private domains have scale, and retailers can easily form scale. Of course, retailers have relationships with users, but they lack deep connections.

**Personal private domains lack scale.** Therefore, whether it is micro-commerce or social e-commerce, they often only flourish for a while. Because they lack organizational systems and scale, they place special emphasis on fission. And at each stage, cases of rapid short-term fission can be found, giving great hope. In fact, this hope is illusory.

**Brands, especially industry leaders, have a large number of users who identify with them. Now, through digitization, they need to turn hidden identification into deep-connected stickiness for targeted commercialization.**

******Private Domain Transfer**
Can private domains be transferred? That is, can an organization's or individual's private domain be transferred to other organizations or individuals?

**Under specific conditions, private domains can be transferred.**

**There are three ways of private domain transfer:**

**First, implicit transfer.** For example, e-commerce platforms selling traffic is essentially transferring the platform's private domain into the merchant's "commercial domain." The transfer process is covert, and users are unaware. Of course, the transfer process is also highly technical, ensuring matching based on user tags.

The platform's transfer model is one-time sale – traffic fees.

**Second, transfer through cooperative user operation.** For example, community group buying is where the "group leader's" private domain is transferred to the platform for operation, and then benefits are distributed in the background (group leader commission).

Of course, "community e-commerce" like Meituan Select and Duoduo Maicai do not rely on private domain traffic but on the platform's own traffic. Only platforms like Xingsheng Youxuan, which truly obtain traffic from community group leaders, use the cooperative transfer model.

**Third, user fission.** A user transfers their private domain to an organization or individual. User fission is difficult to control organizationally and managerially.

******Where Does Brand Private Domain Come From?**
Where does a brand's private domain traffic come from? According to the two major requirements of private domain: **First, identification and relationship; Second, deep connection.** If it is a well-known brand (e.g., FMCG industry leader), only one problem needs to be solved – deep connection. If it is a common or new brand, both problems need to be solved simultaneously.

The following only discusses the issue of deep connection. **How can brands establish connections with users?**

**First, users come to you.** For example, official accounts and mini-programs. Almost all major FMCG brands do this, but the scale is insufficient.

**Second, divert from platforms.** This diversion is not the "transfer" mentioned earlier, but "smuggling." Without paying traffic fees, secretly diverting platform traffic to the brand's platform. This approach is fine for small-scale operations, but large-scale will definitely not work.

**Third, divert through personal private domains.** For example, through KOLs and KOCs, this method still requires payment. Although diversion efficiency is higher than ordinary individuals, the scale is still insufficient.

The above diversion methods are all feasible, but the user scale is far from sufficient and cannot become the mainstream method.

**Fourth, divert through retail ends.** Retail end diversion has been demonstrated by community group buying, which can quickly form scale in a short period. However, community group buying is platform diversion; we propose brand diversion. The dual paths in the "Six Dual System" regard the retail end as the main diversion method to reach users and acquire hundreds of millions of users.

******Dual Private Domains**
Traditional enterprise digitization cannot be primarily F2C; it must be F2Bb2C. Because only F2B2b allows traditional enterprises to reach users in an organized and systematic manner, forming large-scale users.

The F2B2b2C model means that the retailer's private domain is transferred to the manufacturer (brand), and both parties share user resources. Then, a new question arises: **Why should the retail end transfer traffic to the brand?**

One method is one-time purchase. Platform companies widely used this method in the past for "ground promotion." Early platform "ground promotion" sometimes did not even pay. One-time purchase is definitely an F2C model.

Another is cooperative operation, dual private domains. **Dual private domains mean brand private domain + retailer private domain, operated cooperatively. Dual private domains must be the F2B2b2C model or F2b2C model (applicable to direct distribution channels).**

Dual private domains is a brand-new concept I propose. Dual private domain operation must solve three problems: **First, what kind of manufacturer (brand) has the conditions to implement dual private domains; Second, solve the deep connection problem of dual private domains through technical means; Third, persuade retailers to implement private domain transfer.**

**First, conditions for implementing dual private domains.** As mentioned earlier, retail store private domain is "relationship + deep connection," while manufacturer private domain is "brand (product) identification + deep connection."

Private domain transfer, retail store private domain transfer, requires users to identify with the manufacturer's (brand's) brand or product. Enterprises with high brand awareness have an advantage. So, are enterprises with low brand awareness unable to do it? As long as offline transactions are completed, it can be regarded as short-term identification. **Therefore, during the offline transaction process, if deep connection is also completed, the private domain transfer process is also completed.**

**Second, technical means for private domain transfer.** E-commerce purchasing traffic is also private domain transfer; do users feel it? No. Platforms sell traffic through "user profiling," which is highly covert.

The private domain transfer in the digitization process is also achieved through technical means, and users are equally unaware. The premise of bC integration is bC technical binding. As long as b and C are technically bound, and the manufacturer, store, and three parties share user resources, private domain transfer has already been completed.

The technical means for dual private domains, as mentioned in previous articles, mainly include **bC dual codes and bC mini-programs.**

**Third, whether the retail end is willing to transfer private domain.** Private domain transfer is bidirectional. bC integration is the retail store transferring private domain to the manufacturer (brand), and it also provides a technical path for the manufacturer to transfer private domain to the retailer.

For example, Duoduo Maicai and Meituan Select give platform traffic to "group leaders" as pickup points. If the platform can establish relationships with users, private domain transfer is completed. If the "group leader" only fulfills the "pickup point" function, the transfer is invalid. Because as a "pickup point," users are geographically close, and establishing relationships helps future business operations.

**Whether retail stores are willing to transfer private domain depends on interests. We emphasize traffic entry as a channel distribution principle, which is exactly this.**

Dual private domains can be transferred bidirectionally, so which private domain is more important? **Dual private domain operation means both are indispensable. But in actual operation, the importance of the retail end is first reflected.**

There are two key words in channel digital operation: **user activation and user density.** The previous F2C digital model had problems in these two aspects.

******User Activation and User Sinking**
Private domain means deep connection. The F2C digital model is a one-time diversion of users. The terminal's value is "use and discard," with only tool value.

**Technical connection, plus user activation, is the true deep connection.**

To discuss user activation, first discuss its antonym: user sinking.

Currently, there are two major technical means to connect users: **First, APP; Second, mini-programs.** It is difficult for a single brand to operate an APP, so mini-programs are mainly used.

Someone once raised a sharp question: If all enterprises do mini-programs, what will happen?

This question is not hypothetical; it is already reality.

The reality is that on WeChat's pull-down "menu," the homepage can only accommodate 8 mini-programs. Other mini-programs "sink."

**If users are not activated, then it may be "connect and sink."**

Is this phenomenon rare?

Below is my mini-program menu; high-frequency mini-programs are on the homepage. Because there are too many mini-programs, it is difficult to occupy the "homepage." If you cannot occupy the "homepage," you have to search or look among many mini-programs.

In the dual paths, there are two hidden paths: **First, activation path; Second, distribution path.**

In user activation, which private domain is more important in dual private domains?

User activation is divided into two steps: **First, high-frequency activation; Second, forming user stickiness.**

**High-frequency activation mainly relies on the retail end's private domain, while user stickiness mainly relies on user operation capability.**

Any digital model has user activation, but the means of activation differ greatly. In B2C and F2C models, user activation is nothing more than two means: one is distributing coupons to induce activation; the other is online reminders on specific holidays and time nodes.

**The above activation models are passive activation; if users don't find you, you can't find users.**

Compared to the brand's single online means of activation, the retail end can use offline (on-site), community, and online diversified means.

**Generally, for new user activation, offline and community means are more effective. Online tools' "personalized recommendations" are only effective after users have stickiness; offline activation, on-site means, and one-on-one familiar relationships may be more effective.**

First, because offline and community means have more interaction, especially since the retail end often has strong relationships with users. With additional policy means, activation is not difficult.

Second, offline and community activation often creates momentum at the user end. Because users of retailers also have strong relationships among themselves, activating a batch will influence more users, and users may even activate each other.

******Density is Momentum**
**Density refers to user density.** User density is a very important concept in channel digitization. As long as it is related to offline, density must be discussed.

**Determining user density requires a density boundary,** for example, national user density, provincial user density. In the early stage, when the number of users is small, the most sticky user density boundary is the community. And communities and retail stores are an ecosystem.

User density has two major functions: **First, mutual penetration among users; Second, density is momentum, and momentum is influence.**

**When the retail end reaches a certain density, it in turn activates retailers and strengthens the retail end. That is, b and C are each other's leverage points.**

******Dual Private Domains and Distribution Paths**
What if the retail end does not cooperate in dual private domains?

Initially, of course, there will be non-cooperative retail ends. But as long as dual private domains solve the retail end's benefit distribution from the institutional design, why would the retail end not cooperate?

**If the private domain transfer is "use and discard," it is normal for the retail end not to cooperate. This is also why I oppose the F2C model.**

Solving retailers' concerns requires benefit guarantees, and more importantly, solving the retail end's core interests. This can be solved from two aspects: **First, under the situation of declining traffic, solve the retail store's incremental problem through bidirectional private domains.** In the "Five Steps of Digital Operation," this is summarized as **"perceived increment"** , making retailers feel the increment is obvious; **Second, digital benefit distribution methods.** This is an institutional guarantee.

**The core concept of dual private domains is not to use channel transactions as the benefit distribution method, but to use traffic entry as the benefit distribution method.**

Because channel digitization is long-path reach, short-path operation. Short paths are the three major operating entities: F2C, B2C, b2C. In B2C operation, retailers have transaction benefits, but in F2C and B2C operations, the retail end (small b) has no transaction benefits.

However, without the retail end (small b) providing traffic entry, F2C and B2C transactions would not exist. **Therefore, channel benefits must be distributed according to traffic entry. That is, even if the retail end does not participate in the transaction, as long as the traffic entry is provided by the retail end (small b), channel benefits must be distributed as agreed.**

In practice, it has been found that as long as there is a transaction, profits are immediately credited to the retailer's account, and retailers are very excited.

To summarize, there are four ways to activate retailers:

**1. User C's density activates b; b and C activate each other;**
**2. Traffic entry distribution method of dual private domains;**
**3. Brand's own traffic diversion creates increments for the retail end;**
**4. Cross-dispatch users within the trade area, then reconfigure users.**

**Are you "watching" me?**


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