Chapter 350

Chapter 350: Materials Can Be Sold Like This?

In the cultivation world, many factions, including the former Heavenly Origin Sacred Land, have sold the raw materials they controlled.

However, this was quite different from the licensed production model Ye Chen proposed.

Traditional material sales always had a fixed price.

Even if the materials were expensive, they still had a set selling price.

But the Heavenly Origin-certified Iron Essence Ye Chen was offering was different.

In Ye Chen’s vision, the Iron Essence from the Heavenly Origin Sacred Land would not have a fixed price.

Instead, it would be sold to various factions, and after they refined it into products, the revenue would be split based on the product’s selling price.

Simply put, the material cost would be a percentage of the product’s price.

This payment model was not uncommon in Ye Chen’s previous life.

For example, Qualcomm charged a licensing fee for its smartphone chips not only for the chip itself but also as a percentage of the phone’s selling price.

This is why many smartphone manufacturers deeply resented Qualcomm and even took it to court.

However, the licensing of Heavenly Origin-certified Iron Essence wouldn’t be so ruthless.

The Iron Essence itself would not require upfront payment.

Instead, the factions purchasing it would need to share 50% of the revenue after making and selling Heavenly Origin Little Spirit Communicator.

That’s right, 50%.

This pricing model would allow Heavenly Origin Sacred Land to focus solely on selling Iron Essence with the Heavenly Origin Immortal Scroll.

This approach would save vast amounts of manpower and resources, which could then be redirected to the burgeoning Mingwang Province market.

Meanwhile, factions purchasing the Iron Essence would be motivated to produce Little Spirit Communicator in large quantities to earn spirit stones, thereby doubling the supply of Little Spirit Communicator in the market and making them accessible to more cultivators.

It was a win-win situation.

When the Foreign Affairs Elder heard about the revenue-sharing model Ye Chen proposed, his eyes lit up.

The Iron Essence wouldn’t have a fixed price but would instead generate revenue based on the final product’s price?

And at a 50% revenue share?

He had never imagined that materials could be sold like this.

Upon further thought, it seemed quite suitable.

After all, other factions’ materials were neither unique nor irreplaceable.

If they attempted to sell their materials this way, they’d likely fail to sell anything and end up stuck with inventory.

But the Sacred Land’s Iron Essence was entirely different.

It was truly unique and indispensable for crafting the Heavenly Origin Little Spirit Communicator.

There were no substitutes.

One had to admit that the Saint Master’s talent for earning spirit stones was even more impressive than his cultivation speed.

The Foreign Affairs Elder began calculating aloud:

“Previously, our profit margin was around 70% of the selling price.

“With a 50% share, our margin would drop by 20%.

“But we would no longer be responsible for producing or selling the Little Spirit Communicator.

“This would free up a tremendous amount of manpower, which could then be deployed to the Mingwang Province market. That market is vast and in constant need of personnel. With enough manpower, our development speed would significantly increase.

“While we may earn slightly less in the short term, in the long run, this change wouldn’t result in any major losses.

“Saint Master, you are truly a genius!”

After thinking it through, the Foreign Affairs elder sincerely praised Ye Chen.

Ye Chen smiled.

Having followed him for so long, the elder was becoming increasingly adept at understanding business logic. He grasped it almost immediately without much explanation.

However, Ye Chen still said, “Elder, you’re mostly correct.

“But there’s one thing you got wrong.

“While our revenue share is only 50%, the amount of spirit stones we’ll earn in the future will not decrease. In fact, it will increase.”

The Foreign Affairs Elder was completely puzzled.

If the revenue share decreased, how could they earn more?

It didn’t make sense!

Ye Chen could sense the elder’s confusion through the Heavenly Origin Little Spirit Communicator and smiled faintly.

That’s right.

Even though the revenue share was lower, the Sacred Land would earn more.

Previously, to quickly popularize the Heavenly Origin Little Spirit Communicator in the cultivation world, their selling price was kept affordable.

It was a price that the general population could accept.

However, this wasn’t the most profitable approach.

The most profitable strategy would be to introduce multiple tiers of Little Spirit Communicator based on users’ purchasing power, allowing them to maximize profits from every customer.

Smartphone manufacturers in Ye Chen’s previous life did this all the time, offering everything from budget models to premium flagship devices.

The segmentation allowed them to cater to different consumer groups and maximize revenue.

The Sacred Land had also once released a high-end version of the Heavenly Origin Smart Ring called the Supreme Edition.

It was highly successful and extremely profitable.

However, compared to the revenue from apps, the profits from selling the Supreme Edition Rings seemed almost negligible.

Coupled with the rapid expansion of Heavenly Origin Sacred Land’s app offerings, Ye Chen simply didn’t have the time to develop other versions of the Little Spirit Communicator.

But now, by selling raw materials and authorizing other factions to produce the rings, the situation was entirely different.

Different factions had access to varying resources and specialized in different areas.

They could create Little Spirit Communicator with distinct styles, features, and price points, tailored to their strengths.

This would give cultivators more options to choose from.

It was like the smartphone market in Ye Chen’s previous life. If there had been only one type of phone available, the market would’ve been incredibly dull.

Nobody had a choice.

But when a hundred flowers bloom, naturally, greater consumer potential was unleashed.

The same was true for the Heavenly Origin Little Spirit Communicator.

When there were more options for Heavenly Origin Little Spirit Communicators in the market, cultivators could choose the most suitable one based on their financial capacity.

The wealthy would buy the more expensive, feature-rich models, while those with less money would opt for the most basic and affordable versions.

Moreover, with more choices, cultivators might feel the urge to upgrade their Little Spirit Communicators.

For example, someone using a basic Little Spirit Communicator, which only supported communication and browsing, might be tempted to upgrade when they see a Heavenly Origin Little Spirit Communicator that comes with the Vajra Shield life-saving technique.

This stimulated consumption.

Additionally, the major factions could release new models every year, continuously introducing fresh and enticing features to spark the desire to buy.

This would make the entire Heavenly Origin Little Spirit Communicator market even more vibrant.

As for Heavenly Origin Sacred Land?

They wouldn’t need to do anything.

They would simply export Iron Essence continuously and still make more profits than before.

It could be said that every faction producing Heavenly Origin Little Spirit Communicators was effectively working for the Sacred Land.

And for the Sacred Land itself, earning spirit stones while “lying down” wouldn’t be an exaggeration.

When Ye Chen explained this market logic to the Foreign Affairs Elder, the elder, still stationed in Mingwang Province, took a deep breath.

The Saint Master always managed to astonish him.

Even something as simple as selling raw materials, in the hands of the Saint Master, could be turned into a masterpiece.

He managed to make countless factions willingly work for the Sacred Land, all while earning more than before.

It was simply outrageous.

The Foreign Affairs Elder felt as though he had exhausted his entire year’s worth of shock in just one day.

Ye Chen knew the elder was digesting what he had just said, so he waited a moment before continuing, “Of course, it’s not just the Little Spirit Communicator. The production and sales of the Immortal Net Image Stones will also be fully licensed out.

“However, not just anyone will qualify to purchase our raw materials.

“Only factions with the appropriate crafting expertise and scale will be authorized to purchase and use our materials.

“Otherwise, if even a minor sect with only Foundation Establishment cultivators attempts to produce Heavenly Origin Little Spirit Communicators, the quality will be impossible to control, damaging our reputation.

“Furthermore, we’ll need to implement strict quality inspections.

“If an authorized faction produces Little Spirit Communicators of extremely poor quality, their authorization will be revoked, and we’ll stop exporting Iron Essence to them.

“Once the production lines of the authorized manufacturers are stable, we can shut down the Heavenly Origin Pavilions in Great Yan Province, Penglai Island, and Mingwang Province, stopping direct sales.

“All resources can then be fully allocated to offline services, which will also alleviate manpower shortages significantly.”

The Foreign Affairs Elder nodded repeatedly as he listened, carefully noting everything the Saint Master said.

“Saint Master, I understand,” he replied.

Ye Chen was pleased with the elder’s comprehension, smiling as he instructed, “Over the next couple of days, select suitable factions, compile a list, and send them authorization invitations.”

Ye Chen had no concerns about whether the factions would accept the invitations.

After all, while the Heavenly Origin Little Spirit Communicator might not be extremely lucrative for the Sacred Land — more of a side project — but the profit margins were substantial for the factions in the cultivation world, particularly in Mingwang Province.

For example, most Sacred Lands in Mingwang Province had an annual income of around one million high-grade spirit stones.

Only a few, like the Yaoguang Sacred Land, Dao De Sect, or Feathering Sect, earned more, but even then, it wasn’t an astronomical difference.

Given that Mingwang Province had a population of over a billion cultivators, the market potential was immense.

For an item like the Little Spirit Communicator, with proper execution, earning a million high-grade spirit stones annually wouldn’t be difficult.

For most Sacred Lands, this could double their income, making it hard to refuse.

Let alone the factions below the Sacred Lands.

Thus, there weren’t many factions who could afford to reject the offer, and Ye Chen had no reason to worry.

In Mingwang Province’s Yaoguang Immortal City, the entrance to the Heavenly Origin Pavilion remained crowded with countless cultivators queuing up.

Even though a whole day had passed, the queue showed no signs of shrinking. Instead, it seemed to grow longer.

This scene left the shopkeepers of Yaoguang Immortal City’s various stores green with envy.

Look at how their business is thriving, it’s practically like printing money.

—

Meanwhile, in a renowned crafting Sacred Land in Mingwang Province, the Heartforge Sacred Land…

The Heartforge Sacred Land’s Saint Master sat staring at photos of the lines in Yaoguang Immortal City on Immortal Net Weibo.

“To think a mere low-grade magic artifact could spark such fervor among cultivators in Mingwang Province… It’s a miracle,” he sighed.

The other elders around him also chimed in.

“The Heavenly Origin Little Spirit Communicator’s materials are so ordinary, and its production cost is extremely low. It’s just a basic low-grade magic artifact. But its miraculous functionality is truly mind-boggling.”

“Low-grade magic artifacts being sold for the price of a mid-grade spirit stone? Although the price isn’t high, even a novice craftsman could make them. If we calculate the profits, it’s far more lucrative than refining Dao Artifacts through painstaking effort.”

“It’s outrageous. We’re supposed to be the premier crafting Sacred Land, yet we can’t produce such treasures?”

“I’ve disassembled a Heavenly Origin Little Spirit Communicator before. The materials are as ordinary as can be, and I can even replicate it perfectly. But the imitation Little Spirit Communicators I create have no functionality whatsoever.”

“I’ve heard it’s because the Iron Essence from Heavenly Origin Sacred Land possesses some profound mystery. Without it, the Little Spirit Communicator simply won’t work.”

“Let’s not even think about it. Even if we could replicate them, would you dare compete with Heavenly Origin Sacred Land?”

At these words, the group of crafting masters fell silent.

Indeed.

Ye Chen had slain three peak experts and was now considered one of the three strongest cultivators in Mingwang Province.

While the Heartforge Sacred Land also had Great Advancement experts, they weren’t on the same level as the Heavenly Origin Saint Master.

Who would dare provoke him?

Still, their envy remained.

The idea of earning so much spirit stone wealth with artifacts crafted by mere apprentices was a dream for any crafting faction.

Unfortunately, they couldn’t unravel the mystery of the Heavenly Origin Little Spirit Communicator and were thus unable to replicate it.

As everyone in the hall lamented, the Saint Master’s Heavenly Origin Little Spirit Communicator suddenly buzzed.

Looking at the call request showing the number “10086,” the Saint Master was momentarily stunned.

A number this short?

Aren’t everyone’s contact numbers supposed to be over 20 digits?

Could it be some kind of premium service number?

But aside from the sect’s elders, no one should know his contact information.

Who could this be?

After a moment of hesitation, the Saint Master accepted the call.

The next moment, a stranger’s voice echoed in his mind.

When the caller revealed their identity, the Saint Master’s brows raised in surprise…