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Mini revolt at Russ Whitney' King of Prussia, PA Cash Flow Generator seminar? I get a steady stream of calls from Russ Whitney' unhappy customers. Generally, I would estimate it' one person or less per seminar. I believe they have more unhappy customers, but only a few call me. Based on my experience and stuff I have read over the years, I figure about 1% or 2% of people take positive or negative action after receiving a product or service. For example, for every 100 satisfied customers you have, you will hear from one or two of them. Same is probably true for unhappy customers, although I remember one study that said unhappy customers are more likely to complain publicly or to the company than happy customers are to compliment the company. So it was unusual for me to talk to four different people from Whitney' 3/24-26/05 Cash Flow Generator seminar in King of Prussia, PA. One of them said there was another guy at the seminar who almost had to be physically restrained he was so angry. I did not talk to him. Other comments: "¢ It was freezing in the meeting room"”air conditioning on in March (See my What happens to you at Whitney' free seminar for more on the temperature that Whitney prefers.) "¢ After saying his name, the instructor tried to write it on a white board or overhead-projector slide. I say "tried" because he got it wrong. That is, he started to write, then caught himself, erased what he had written, and started over. The second written version matched what he said his name was. Hmmmm. "¢ The speaker told the audience they could not exchange business cards, phone numbers, or addresses. When some tried, a Whitney staffer came up and told them to stop. The speaker said this was for the protection of the attendees. Bull! It' to protect Whitney. If they could have rosters of all

attendees, some would probably call all the others and pool their resources to hire an attorney to try to get them a refund. Reputable seminars often give attendees a roster of all the attendees at that seminar with name, address, email and phone number. I did when I did seminars. I also touted that meeting the other attendees as one of the main benefits of attending my seminar. I said that previous seminar attendees had met employers, employees, business partners, persons from whom they bought property, and persons to whom they sold property at my seminar. "¢ The speaker told the audience that some audience members were unlabeled Whitney staff to make sure the attendees followed the many rules. I had heard from many attendees that many in the room seemed suspicious. I had never before heard that they brag about that to try to intimidate the audience. "¢ One guy I talked to said he found himself in the elevator after the training ended. Another guy in the elevator was wearing sunglasses, had a hat pulled down, and his collar up. Just before the doors opened, the guy who called me recognized that it was the speaker he had just been listening to for the last three days. He started to speak to him, but the doors opened and the guy hurried to a waiting van and drove away. Why does it appear that there were more unhappy customers than usual at the March 24-26, 2005 Whitney Cash Flow Generator seminar? I don"t know. One thought that comes to mind is that the instructor may have been new and "NFL," to paraphrase former Atlanta Falcons coach Jerry Glanville. As in NFL means "not for long" if you keep antagonizing audiences like that. Here' another theory. Whitney has apparently slashed prices from around $1,790 to $300 to $500 for the three-day real estate investment seminar. Very interesting. There is something about prices that Whitney may not know. Changing them significantly has unintended consequences. When you charge $1,790, the resulting audience is relatively small. Lord, that' a lot of money! But when you lower the price to $300 to $500, you get a larger audience. You probably knew that. If the incremental number of students is big enough, you can make the same or more profit with a $400 seminar that you made with a $1,790 one. However, here is the part Whitney may not have considered. When you change prices dramatically, you get a different group of people. At $1,790, you get a relatively dumb group. Who else would pay so much for a three-day seminar from a company run by a high-school dropout and mass marketed in spite of the subject being one as narrow and technical as the real estate investment industry? But when you drop the price to $300 to $500, you are going to draw smarter, more knowledgeable, more experienced real estate investors to your meeting. They would have been turned off by a $1,790 price. If you try to peddle the same bull to that audience as you peddled to the relatively dumber $1,790 audience, you may find yourself facing an angry mob. That appears to have been what happened in King of Prussia. I heard from another guy who attended such a $500 three-day seminar in New Orleans the weekend of April 15-17 that many in the audience there were angry as well. Sounds like Whitney may have to redesign his seminars if he is going to stick with the new price. However, I do not think that' possible for him. I used to do seminars for extremely sophisticated audiences like the National Apartment Association national convention and my newsletter subscribers who are typically millionaires with 16 years of education and 12 years of real estate investment experience. There is no way you could get away with any version of Whitney' teachings to reasonably experienced, educated, knowledgeable audiences. For example, a $400 price may draw attorneys and real estate brokers. Start spouting nonsense about "weasel clauses" or nothing-down deals to them and you are liable to get a vehement argument right in the middle of the seminar. Such an argument between an experienced attorney or broker and a commissioned Whitney "trainer" would undoubtedly be devastating to the credibility of the "trainer," and therefore to the success of the seminar at signing people up for the next "advanced" seminar. If the $300 to $500 price is, indeed, drawing smarter audiences, I suspect Whitney will have to stop using that price. Parting fools from their money requires fools. John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, www.johntreed.com

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