Relying on the database, the company buys the author's papers at a low price, establishes a huge paper data system, and then makes a profit by paying for downloading. Because of low cost and high profit, the company's gross profit margin can reach 54%.

I. Operation Mode of HowNet HowNet is a platform jointly established by Tsinghua University and Tsinghua Tongfang. Because of its strong background, HowNet has a lot of paper data from the beginning. From this, it gradually developed and established its head position in the field of paper data. If an ordinary person with no background builds such a platform, it will be very difficult to develop and expand, and HowNet has taken many detours because it is backed by Tsinghua.

HowNet's main profit depends on downloading and university fees, which requires him to have enough paper data. The main paper sources of HowNet are magazines, as well as master's and doctoral papers, and undergraduates will also choose them. HowNet relies on more than 90% share and 95% share resources, and can get high profits by paying users to download.

Second, the high profit of HowNet is related to cost and sales. The cost of HowNet is very low, and the main expenses are paper income and platform operating costs. However, the magazine source of the paper income does not need to pay too much from HowNet, because HowNet is in a monopoly position. If magazine articles are not included in HowNet, it is magazines that are affected, so it is magazines that give money to HowNet. For some students' papers, HowNet can solve the problem only by paying a manuscript fee. The profit of this network is accumulated by the download volume, but the author can't get the share of the download volume, so HowNet can rely on its huge user group to make a profit without paying too much cost.

Second, the monopoly of HowNet is in an absolute monopoly position in the whole industry. Both students and universities choose to use HowNet. Colleges and universities need the database of HowNet to check students' papers, and students also need the database of HowNet. Although there are other databases in China, none of them exist, and HowNet is comprehensive. Some schools choose to give up HowNet because the fees of HowNet are increasing year by year. However, in a few years, I will continue to choose HowNet, because I can't do it without it.