Summary of the Key Points
This news report exposes a high-priced training industry chain that revolves around the concept of “embellishing the reputation of prestigious universities.” intermediaries take advantage of entrepreneurs’ desire for the prestige of these institutions, as well as their access to elite circles and international resources. They package fake or inflated training programs (such as Oxford’s “Global CEO Program”) and sell them to business owners for hundreds of thousands to millions of yuan. These programs may seem impressive on the surface but are actually full of tricks: they create artificial barriers (such as reserved spots through insider connections and staged interviews), and exaggerate the value of the courses (by using the names of prestigious universities, hiring nominal professors, and organizing superficial visits). Despite knowing the truth about the low quality of the courses, entrepreneurs are willing to pay because they want to associate with alumni from these universities and expand their networks. The scam was only exposed when the Oxford program faced a series of complaints due to fraudulent marketing, but the industry continues to thrive due to ongoing demand.
Detailed Explanation
Why Are Entrepreneurs Willing to Spend Millions on “Presidential University Programs?”
The real motivation for business owners to pay is not to acquire knowledge, but to address two main issues:
- Anxiety about Their Competence: Many owners have lower educational backgrounds (such as adult college degrees) and have built their businesses through policy reforms. As their companies grow, they realize that their knowledge is inadequate for dealing with new business models or international partners. They feel both envious and anxious about their younger, more educated employees and see “presidential university training” as a way to bridge this gap.
- Desire for Prestige and Networking: Titles like “Oxford Alumnus” or “Harvard Visiting Scholar” serve as powerful social badges. These can enhance their credibility when networking with clients and provide opportunities to connect with other business leaders. For example, when enrolling in a program, owners often ask who else will be attending, not what the course content is.
In essence, they are paying for “access cards to elite circles” and “social status.”
The Intermediaries’ Tricks: From the Barriers to the Courses, Everything Is Planned
Intermediaries can charge exorbitant prices for these programs by employing a sophisticated set of tactics:
- Creating Artificial Barriers: They set high requirements (such as requiring a master’s or doctoral degree) to create anxiety among potential participants, then offer “special channels” (like reserved spots or recommendations from mentors) to make them feel that their success is due to their own merit, not just their financial means. The interviews are also staged, with foreign friends pretending to be professors and entrepreneurs being asked to share their business stories in formal attire, ensuring a sense of acceptance.
- Exaggerating the Value of the Courses: They use a combination of prestigious university names, renowned teachers, access to elite circles, and field trips as selling points:
- Prestigious Universities: They use the names of Oxford, Harvard, etc., even if they are only collaborating with lower-tier institutions.
- Teachers: The brochures may list “deans” or “professors,” but in reality, these could be surgeons or ordinary employees.
- Elites: They include the names of CEO’s from listed companies to suggest a network of contacts.
- Field Trips: Simple activities like visiting factories are presented as “international benchmark company visits,” and group meals are described as “closed-door discussions.”
- Identity Fraud: The intermediaries themselves create fake identities; for example, someone named Wang Lei (a pseudonym) claims to be a graduate of Durham University in the UK, but is actually from an Anhui college, and the “professors” might just be temporary foreign hires.
How Profitable Is This Business?
The costs of these high-priced programs are incredibly low, while the profits are astronomical:
- Cost Breakdown:
- University Partnerships: Renting a classroom at Oxford costs less than 100,000 yuan per day, with an additional 10,000 yuan for the graduation certificate; domestic universities charge 30%-35% as fees.
- Teacher Fees: Regular professors earn 30,000 yuan per class, deans 50,000 yuan, and nominal professors are paid on a per-visit basis.
- Marketing: Creating an English website and printing brochures is very inexpensive.
- Profit Calculation: For a “Presidential Visiting Scholar Program” costing 400,000 yuan per person, with 20 participants, the agency earns 800,000 yuan. After deducting 20% for overseas partners (160,000 yuan), 10% for sales commissions (80,000 yuan), and 10% for teacher fees (80,000 yuan), the agency makes a profit of 400,000 yuan. With two sessions per year, they could afford to buy a house in Shanghai.
An intermediary frankly stated, “This business is extremely profitable; you can just change the company name and start over.”
The Unspoken Understanding Between Entrepreneurs and Intermediaries
There is a tacit agreement between both parties:
- Entrepreneurs are aware that the courses are of poor quality but are still willing to pay because they get a book card from the prestigious university, photos with fellow participants, and the opportunity to show off their status on social media.
- Intermediaries know that the real value is not in the knowledge but in the prestige and networking opportunities, so they focus on creating these aspects. They even offer free domestic training to the entrepreneurs’ secretaries to help promote the programs.
- Even if they are deceived, entrepreneurs are unlikely to report the intermediaries, as they feel embarrassed about having spent millions on a fake program.
After the Oxford controversy, some intermediaries saw it as a positive opportunity: “That program turned out to be unreliable, which makes our own programs seem more valuable and gives us free publicity.”
The Current State of the Industry
The industry is mixed, with both legitimate and fraudulent offerings. While this incident has exposed some scams, the demand for “prestigious university training” will not disappear:
- There are genuine programs that deliver what they promise, but many others are just inflated. It’s difficult for entrepreneurs to distinguish between the two.
- As long as there is a demand for elite status and networking opportunities, intermediaries can find new prestigious partners (e.g., switching to a different G5 university or an Ivy League school) and start over.
In essence, it’s a situation where both parties are willing to participate: intermediaries sell illusions, and entrepreneurs buy them, until the next scandal emerges.
Conclusion
The high-priced training programs for prestigious universities are driven by entrepreneurs’ anxiety about their competence and a lack of information. For entrepreneurs, it would be better to invest in courses that truly enhance their skills. The industry needs more transparent regulations to distinguish legitimate from fraudulent offerings. As long as there is a demand for these status-enhancing services, the industry will continue to thrive.
(Note: All names in this article are pseudonyms.)