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The	
  $1.25	
  billion	
  plague:	
  	
  
Educa7on	
  Lead	
  Gen	
  
Why	
  They’re	
  Evil	
  and	
  What	
  We	
  Can	
  Do	
  
The	
  Problem	
  
•  Lead	
  gen	
  sites	
  pose	
  as	
  informa7onal	
  resources,	
  but	
  
give	
  unlimited	
  exposure	
  (with	
  liKle	
  adver7sing	
  
disclosure)	
  to	
  colleges	
  that	
  are	
  usually	
  paying	
  for	
  
placement,	
  largely	
  for-­‐profits.	
  
•  These	
  sites	
  drive	
  unknowing	
  students	
  to	
  the	
  wrong	
  
schools.	
  
•  Their	
  methods	
  are	
  sneaky	
  and	
  predatory,	
  and	
  the	
  
market	
  size	
  is	
  tremendous.	
  An	
  es7mated	
  $1.25B	
  is	
  
spent	
  annually	
  on	
  educa7on	
  lead	
  gen.	
  
The	
  Problem	
  
•  For-­‐profit	
  colleges	
  have	
  terrible	
  outcomes	
  
–  6-­‐year	
  gradua7on	
  rate	
  of	
  22%,	
  compared	
  to	
  60%	
  
at	
  non-­‐profit	
  ins7tu7ons.	
  	
  	
  
–  Spend	
  23%	
  of	
  revenue	
  on	
  finding	
  and	
  enrolling	
  
new	
  students,	
  compared	
  to	
  the	
  non-­‐profits’	
  1%.	
  	
  
–  Average	
  student	
  borrows	
  $39,950.	
  
Who	
  Does	
  This	
  Hurt?	
  
•  Lead	
  gen	
  sites	
  hurt	
  the	
  
students	
  who	
  most	
  need	
  
guidance:	
  
–  First	
  genera7on	
  college	
  
students	
  
–  Veterans	
  
•  The	
  student	
  who	
  might	
  
start	
  by	
  searching	
  for	
  
“best	
  online	
  university”	
  is	
  
most	
  at	
  risk.	
  
	
  
Pay-­‐to-­‐Play	
  Sites	
  
•  Universi7es	
  pay	
  to	
  be	
  included	
  in	
  the	
  website’s	
  database.	
  
•  Users	
  search	
  for	
  colleges	
  and	
  are	
  led	
  to	
  believe	
  these	
  pay-­‐
to-­‐play	
  universi7es	
  are	
  their	
  only	
  or	
  best	
  op7ons.	
  
•  How	
  It	
  Works:	
  Users	
  input	
  their	
  desired	
  degree	
  and	
  
concentra7on	
  and	
  the	
  portal	
  yields	
  a	
  limited	
  number	
  of	
  
op7ons.	
  Instead	
  of	
  “best	
  fit”	
  search	
  results,	
  users	
  are	
  
prompted	
  to	
  fill	
  out	
  a	
  lead	
  gen	
  form	
  that	
  collects	
  personally	
  
iden7fying	
  informa7on.	
  	
  
•  These	
  websites	
  offer	
  liKle	
  or	
  no	
  informa7on	
  about	
  the	
  
actual	
  program	
  and	
  have	
  no	
  data	
  facets	
  that	
  would	
  enable	
  
matching.	
  	
  
Websites	
  that	
  pose	
  as	
  degree	
  search	
  portals	
  to	
  
match	
  users	
  to	
  the	
  right	
  degree	
  program	
  
Two	
  Types	
  of	
  Pay-­‐to-­‐Play	
  
•  Type	
  1:	
  only	
  schools	
  that	
  pay	
  show	
  up	
  in	
  search	
  
results	
  
•  Type	
  2:	
  paying	
  &	
  non-­‐paying	
  sites	
  both	
  show	
  up	
  in	
  
search	
  results,	
  but	
  the	
  site	
  ranks	
  paying	
  schools	
  
higher	
  and	
  points	
  students	
  to	
  them.	
  
Examples	
  of	
  Pay-­‐to-­‐Play	
  (Type	
  1)	
  
•  Military.com’s	
  School	
  
Finder	
  
–  Poses	
  as	
  an	
  
innocuous,	
  student-­‐
centered	
  search	
  portal	
  
•  eLearners	
  
–  Does	
  include	
  a	
  
disclosure	
  to	
  users	
  
about	
  how	
  their	
  info	
  
will	
  be	
  shared,	
  which	
  
many	
  lead	
  gen	
  portals	
  
do	
  not	
  
	
  
	
  
Examples	
  of	
  Pay-­‐to-­‐Play	
  (Type	
  2)	
  
•  AllNursingSchools.com	
  
–  shows	
  the	
  paying	
  universi7es	
  as	
  the	
  learner’s	
  top	
  
three	
  matches	
  instead	
  of	
  lis7ng	
  them	
  as	
  
sponsored	
  search	
  results.	
  
	
  
Why	
  Pay-­‐to-­‐Play	
  Sites	
  Are	
  Bad	
  
•  These	
  sites	
  don’t	
  help	
  the	
  user	
  make	
  beKer	
  decisions	
  
or	
  deliver	
  on	
  the	
  “matching”	
  they	
  claim	
  to	
  offer.	
  	
  
•  Users	
  are	
  led	
  to	
  believe	
  that	
  the	
  six	
  results	
  are	
  the	
  
only	
  universi7es	
  that	
  offer	
  their	
  intended	
  major	
  -­‐	
  but	
  
those	
  universi7es	
  are	
  paying	
  customers.	
  
Content	
  Marke7ng	
  
•  Lead	
  gen	
  websites	
  expend	
  a	
  lot	
  of	
  effort	
  to	
  drive	
  
traffic	
  to	
  their	
  websites.	
  Content	
  marke7ng	
  has	
  
become	
  a	
  popular	
  tool	
  to	
  drive	
  learners	
  down	
  the	
  
conversion	
  funnel	
  into	
  filling	
  out	
  a	
  lead	
  form.	
  	
  
•  A	
  student	
  will	
  start	
  conduc7ng	
  a	
  search	
  and	
  be	
  
drawn	
  to	
  baity,	
  ohen	
  low-­‐quality,	
  content.	
  
•  Unbeknownst	
  to	
  the	
  student,	
  he	
  or	
  she	
  is	
  falling	
  
into	
  a	
  pay-­‐to-­‐play	
  scheme	
  rather	
  than	
  gejng	
  real	
  
info	
  about	
  colleges.	
  
Examples	
  of	
  Content	
  Marke7ng	
  
•  Infographics	
  
•  Syndicated	
  
content	
  from	
  
agencies	
  like	
  
Vantage	
  
Media	
  appear	
  
as	
  actual	
  
news,	
  but	
  are	
  
really	
  ads	
  for	
  
for-­‐profit	
  
colleges.	
  
	
  
Examples	
  of	
  Content	
  Marke7ng	
  
•  Yahoo!	
  Educa7on	
  
posts	
  syndicated	
  
content	
  and	
  
includes	
  content	
  
marke7ng	
  on	
  the	
  
main	
  slider	
  on	
  its	
  
homepage.	
  
Why	
  Content	
  Marke7ng	
  Sites	
  Are	
  Bad	
  
•  Some	
  of	
  these	
  sites	
  will	
  direct	
  a	
  student	
  to	
  fill	
  
out	
  a	
  lead	
  form	
  before	
  even	
  showing	
  the	
  user	
  
his	
  or	
  her	
  top	
  op7ons.	
  	
  
•  All	
  these	
  websites	
  do	
  is	
  create	
  informa7on	
  to	
  
get	
  people	
  to	
  come	
  to	
  their	
  website.	
  
	
  

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Education Lead Gen: The $1.25B Plague

  • 1. The  $1.25  billion  plague:     Educa7on  Lead  Gen   Why  They’re  Evil  and  What  We  Can  Do  
  • 2. The  Problem   •  Lead  gen  sites  pose  as  informa7onal  resources,  but   give  unlimited  exposure  (with  liKle  adver7sing   disclosure)  to  colleges  that  are  usually  paying  for   placement,  largely  for-­‐profits.   •  These  sites  drive  unknowing  students  to  the  wrong   schools.   •  Their  methods  are  sneaky  and  predatory,  and  the   market  size  is  tremendous.  An  es7mated  $1.25B  is   spent  annually  on  educa7on  lead  gen.  
  • 3. The  Problem   •  For-­‐profit  colleges  have  terrible  outcomes   –  6-­‐year  gradua7on  rate  of  22%,  compared  to  60%   at  non-­‐profit  ins7tu7ons.       –  Spend  23%  of  revenue  on  finding  and  enrolling   new  students,  compared  to  the  non-­‐profits’  1%.     –  Average  student  borrows  $39,950.  
  • 4. Who  Does  This  Hurt?   •  Lead  gen  sites  hurt  the   students  who  most  need   guidance:   –  First  genera7on  college   students   –  Veterans   •  The  student  who  might   start  by  searching  for   “best  online  university”  is   most  at  risk.    
  • 5. Pay-­‐to-­‐Play  Sites   •  Universi7es  pay  to  be  included  in  the  website’s  database.   •  Users  search  for  colleges  and  are  led  to  believe  these  pay-­‐ to-­‐play  universi7es  are  their  only  or  best  op7ons.   •  How  It  Works:  Users  input  their  desired  degree  and   concentra7on  and  the  portal  yields  a  limited  number  of   op7ons.  Instead  of  “best  fit”  search  results,  users  are   prompted  to  fill  out  a  lead  gen  form  that  collects  personally   iden7fying  informa7on.     •  These  websites  offer  liKle  or  no  informa7on  about  the   actual  program  and  have  no  data  facets  that  would  enable   matching.     Websites  that  pose  as  degree  search  portals  to   match  users  to  the  right  degree  program  
  • 6. Two  Types  of  Pay-­‐to-­‐Play   •  Type  1:  only  schools  that  pay  show  up  in  search   results   •  Type  2:  paying  &  non-­‐paying  sites  both  show  up  in   search  results,  but  the  site  ranks  paying  schools   higher  and  points  students  to  them.  
  • 7. Examples  of  Pay-­‐to-­‐Play  (Type  1)   •  Military.com’s  School   Finder   –  Poses  as  an   innocuous,  student-­‐ centered  search  portal   •  eLearners   –  Does  include  a   disclosure  to  users   about  how  their  info   will  be  shared,  which   many  lead  gen  portals   do  not      
  • 8. Examples  of  Pay-­‐to-­‐Play  (Type  2)   •  AllNursingSchools.com   –  shows  the  paying  universi7es  as  the  learner’s  top   three  matches  instead  of  lis7ng  them  as   sponsored  search  results.    
  • 9. Why  Pay-­‐to-­‐Play  Sites  Are  Bad   •  These  sites  don’t  help  the  user  make  beKer  decisions   or  deliver  on  the  “matching”  they  claim  to  offer.     •  Users  are  led  to  believe  that  the  six  results  are  the   only  universi7es  that  offer  their  intended  major  -­‐  but   those  universi7es  are  paying  customers.  
  • 10. Content  Marke7ng   •  Lead  gen  websites  expend  a  lot  of  effort  to  drive   traffic  to  their  websites.  Content  marke7ng  has   become  a  popular  tool  to  drive  learners  down  the   conversion  funnel  into  filling  out  a  lead  form.     •  A  student  will  start  conduc7ng  a  search  and  be   drawn  to  baity,  ohen  low-­‐quality,  content.   •  Unbeknownst  to  the  student,  he  or  she  is  falling   into  a  pay-­‐to-­‐play  scheme  rather  than  gejng  real   info  about  colleges.  
  • 11. Examples  of  Content  Marke7ng   •  Infographics   •  Syndicated   content  from   agencies  like   Vantage   Media  appear   as  actual   news,  but  are   really  ads  for   for-­‐profit   colleges.    
  • 12. Examples  of  Content  Marke7ng   •  Yahoo!  Educa7on   posts  syndicated   content  and   includes  content   marke7ng  on  the   main  slider  on  its   homepage.  
  • 13. Why  Content  Marke7ng  Sites  Are  Bad   •  Some  of  these  sites  will  direct  a  student  to  fill   out  a  lead  form  before  even  showing  the  user   his  or  her  top  op7ons.     •  All  these  websites  do  is  create  informa7on  to   get  people  to  come  to  their  website.