From: alexhormozi
Legitimate education and online programs can be distinguished from scam businesses by adhering to high standards and exclusivity. While some online courses promise quick riches, established institutions like Harvard make minimal promises, focusing instead on long-term brand endorsement and student experience [00:00:07]. The fundamental differences between a clearly fraudulent business and a legitimate, century-old institution can be distilled into four key principles [00:00:15].
Pillar 1: Customer Qualification and Exclusivity
A defining characteristic of a legitimate educational institution is its selectivity. Harvard, for example, “turns people down” [00:00:51], having rejected applicants multiple times [00:00:55].
In contrast, a significant red flag for a scam is when the only prerequisites for becoming a customer are “a credit card and a pulse” [00:01:00]. If nearly everyone who applies is accepted, it’s likely that most individuals are not truly qualified to succeed with the program [00:01:05].
To establish legitimacy and prevent negative feedback (e.g., bad reviews, accusations of being a scam), it is crucial to implement “screening metrics for who is not a good fit” [00:01:16]. A “qualified lead” is defined as someone with the “highest likelihood of success” in the program [00:01:10]. By limiting enrollment to only qualified customers, businesses can avoid dissatisfaction and maintain a positive reputation [00:01:24].
Pillar 2: Data-Driven Expectations and Credibility
Legitimate educational providers, such as Harvard, refrain from making explicit income expectations or promising immediate financial returns [00:01:29]. There is an inherent delay between enrollment and graduation, and the primary value Harvard sells is its brand endorsement [00:01:37].
Instead of income testimonials, institutions like Harvard publish quantifiable data [00:01:58]. This includes tracking “customer success metrics” such as the percentage of students who succeed at various intervals (e.g., 30, 60, 90, 12 months) and the average outcomes for graduates [00:02:05]. By focusing on data, rather than sensationalized income claims, businesses can establish credibility [00:02:17]. Harvard, for example, reports on the top 20%, average, and median outcomes of its graduates, as well as the industries they enter, without setting false expectations [00:02:22]. The highlights emphasized are the experience, network, relationships, and character development, not income [00:02:48].
Pillar 3: Giving Away Content, Selling Implementation
A key strategy for establishing legitimacy is to provide “tons of content away for free” [00:03:32]. This involves monetizing the implementation or application of education rather than the education itself [00:03:36]. The smart approach is to “give away the secrets” (the course content) and sell the hands-on “implementation” [00:03:42].
For example, in a sales school context, the course material would be freely available across various platforms. The paid component would then involve personalized feedback, real-time monitoring of performance, and direct coaching to ensure students become proficient salespeople [00:03:51].
This approach helps establish “thought leadership” [00:05:41] and allows the marketplace to naturally conclude that if the free content is superior, the paid offerings must be even better [00:05:46]. By generating more content that surpasses competitors’ paid offerings, a business can maintain high prices due to increased demand [00:05:27].
Pillar 4: Not Graduating Everyone to Maintain Brand Integrity
Harvard does not graduate every student; some individuals fail [00:04:11]. This policy is essential for maintaining the institution’s brand integrity [00:04:17]. The refusal to endorse students who do not meet standards, even if they initially qualify for entry, reinforces the brand’s value [00:04:21].
To achieve long-term brand maintenance and ensure that graduates are top-tier, an educational program should:
- Select naturally talented individuals: Recruit those who already possess an aptitude for the subject [00:05:12].
- Filter out unqualified individuals: Cut those who are not a good fit [00:05:15].
- Set data-based expectations: Base all expectations on factual data rather than income promises [00:05:18].
- Base testimonials on experience: Focus testimonials and stories on the overall experience within the program or system [00:05:22].
- Withhold endorsement when necessary: Even if a student pays, there should be a possibility that they do not receive the program’s endorsement if they fail to meet the standards [00:05:00].
By upholding these high standards, even a relatively new program can develop a powerful reputation. For instance, if a program graduates only 25 “killer” students in a year, those graduates will create immense demand from companies seeking their skills [00:06:06]. Their success, earning significantly more than industry averages, will also attract their friends and colleagues, further increasing demand for the education [00:06:19]. This level of demonstrated value and exclusivity allows for high pricing, validated by data on admissions and graduate ranking [00:06:46]. This confirms that such a model constitutes a legitimate education business, in “no possible way” a scam [00:06:53].