Summary of Key Points
This news article discusses two main issues: first, the highly competitive and problematic nature of the college entrance examination (Gaokao) counseling industry—high fees (up to nearly 20,000 yuan), poor quality of services (using free AI to deceive clients with fake qualifications), and substantial profits (individual practitioners can earn at least 300,000 yuan per application season); second, through this chaos, an important insight emerges: although AI can generate college application reports for free, many people are still willing to pay for professional services because they either “don’t know about such tools” or “don’t know how to use them.” This indicates that in the age of AI, the gap in information has transformed into a gap in understanding, and addressing users’ cognitive barriers is more profitable than the technology itself.
Detailed Analysis
1. Why are parents willing to spend tens of thousands of yuan?
In the past, people thought that as long as their children scored well on the exam, it would be sufficient for success. However, now it’s clear that choosing the right college and major is crucial. Applying for a less suitable program with high scores is seen as a waste of potential, while making the right choice with average scores can significantly change one’s future. This shift has turned college counseling from an optional service into a necessity. Parents are anxious about their children’s final step in the process, which creates a strong demand for such services. Decisions regarding the city to attend (e.g., between a first-tier city and their hometown), the major to pursue (e.g., between popular AI-related fields and traditional engineering majors), and the university to choose (e.g., between a prestigious 985 institution and a less well-known but strong non-985 school) are all highly uncertain, leading parents to prefer to pay for peace of mind.
2. Is the money spent worth it?
Many parents discover they’ve been deceived after making payments:
- The data is publicly available: The “exclusive score thresholds” and “internal employment data” claimed by counseling agencies can be easily found online (e.g., on the official websites of education examination boards or university employment reports).
- The services are inadequate: The simulated application results offered by these agencies are similar to those generated by free AI tools. Agencies simply create groups, send out advertisements, and the so-called “experts” rarely provide any real assistance.
- Qualifications are often fake: Certificates for college counseling can be purchased for just 300 yuan, and many counselors only need a few days of training to start working.
In essence, when parents pay thousands or even tens of thousands of yuan, they are essentially buying the agency’s help in organizing publicly available information, which could be done more effectively using free AI tools on their own.
3. How profitable is this industry?
Industry insiders reveal that last year, a single practitioner earned over 130,000 yuan from 20 consultations through private channels (such as social media groups and parent communities), at a rate of 6,980 yuan per consultation. Independently working counselors can easily earn 300,000 yuan per month—this is for just one person, not a company! The profit margins are so high that it’s considered somewhat unethical by the practitioners themselves. The reason for such high profits is the low cost of doing business: no need to rent offices or purchase equipment; all that’s required is the ability to market the service and tap into parents’ anxiety.
4. If AI can do it for free, why do agencies still make money?
Despite the availability of free AI tools like ChatGPT and free college application generators, many parents still use agencies. The reasons include:
- Lack of awareness: Many parents are unaware that AI can be used for college planning.
- Incompetence in using AI: Even if they know about AI, they don’t know how to input the right information (e.g., “For a Shandong student with 580 points in science who wants to study computer science, which schools are recommended?”) or how to filter the results.
- Doubts about AI’s reliability: Parents prefer the perceived reliability of human experts and are willing to pay for professional guidance.
Therefore, agencies don’t earn money from the technology itself but from providing a “professional service” that addresses parents’ cognitive barriers.
5. What does this case teach us about the logic of making money in the AI era?
In the past, it was believed that only those with advanced technical skills could profit from technology. However, this case shows that while AI has reduced the cost of obtaining information, the value of helping users overcome their cognitive limitations is even greater. For example, you don’t need to develop your own AI tools; you can simply sell the ability to use them to those in need. You don’t need to understand complex technology; you can help users learn how to utilize AI tools (e.g., by teaching parents how to use free ones). Anxiety will always exist, and as long as you can alleviate it (even if it’s just by providing company), there is a market for your services.
In short, AI doesn’t eliminate jobs but changes the way people make money—shifts from selling technology to selling services and knowledge.
Conclusion
The chaos in the Gaokao counseling industry is a result of anxiety and a lack of understanding. In the AI era, those who can help users overcome their limitations (by providing information, guidance, or reassurance) will be the ones who make money.
(End of article)