'Creative' Marketing

Sorry if i dissappointed you guys because i don't update so often. I think rule of thumbs will be checking this blog once every week =p

Today we gonna talk about 'creative' marketing. *dedicated to anyone who took marketing*

Last weekend, i was dragged by my father to attend a business opportunity presentation by Acescube Sdn Bhd, a 'consulting' company based in KL. My father's friend told him that the firm can help ppl to save interest on mortgage loan by as much as 50%. Sounds good?

At first, i wasn't that skeptical since it was introduced by the friend. A little background of this friend of my father. He run a business which help to reduce interest on your credit card from 18% p.a (that's if you can't settle your monthly payment) to only 5% or 6%. How he able to do it? Through loopholes. What loopholes? Installments plan usually offered by the likes of Sen Heng, Courts Mammoth.

How it works? They will clear your credit card balance with the bank first. Then, you will be issued an invoice by the same amount (buying TV, fridge etc..which of course didn't take place) and again, swipe your credit card. Ta~Da~ Interest reduced.

Back to the presentation, it was very very very very misleading. Some important facts was omitted, only the one that contributes to their cause are shown and their reasoning are flawed (but most ppl don't noticed it if you didn't give a deep thought)

1. Abuse of graph presentation
2. Emphasizing the 50% interest saving you can make, repayment period will be halved while omitting the important thing, monthly repayment amount ! Common sense tell that if your repayment period is shorter, total interest on your loan will be lesser, isn't it? But they portrayed it as if with their methods, they can achieve 'both benefits'. And of course, if they put in that the method requires higher monthly repayment, ppl will actually knew that any Tom, Dick and Harry can do it by themselves.

So how much they charged for their 'methodology'? 1% of the total loan amount, which means a few thousand dollars. What do you get from the service? You get a schedule that ask you to pay a certain amount every month, and in the end, you will see that u actually save 50% interest and repayment period is halved !!

What is really their 'methodology'? Nothing involving loopholes. It's a matter of calculation and formula to re-adjust the loan, which can be easily be done through programs or even Excel. In short, the 'methodology' does not do any shit for you.

But still, u can actually see ppl are amazed and got confidence in this 'product' after going through the brainwashing presentation. It's a lucractive business after all. Lots of potentials customers (which not as smart as me..hoho). Who don't have loans from banks nowadays?

In the end, should also give credits to the people who figured this out because he's a bloody damn good marketer. This thing original form should be 1) tips and tricks to manage your loan from personal finance books and/or 2) financial planning services offered by consulting firm. He repackaged the whole thing into a 'product' and sell it through MLM structure. His firm take 70%, sales agent 30%. What his firm do? Just calculate the schedule and recruit mislead more sales agent to sign up.

I hope they can sleep well at night