Hi all,
I wish to discuss an issue on a topic that is close to us. That is the flaws in current commission based marketing and media.
Media - Too much subjective representations?
Today I heard on the radio about a medical professor on the radio speaking about health problems and recommending a product claiming that it will help in prevention of certain medical conditions.
I stopped and wondered. Is the information he shared really objective? Or is it tinted by his own subjective opinions and biases? Probably his paycheck next month will depend on the sales of this product?
My mind wandered again. This time I thought of the numerous shows on TV between 8 to 9pm, showing true cases of people who succeeded in slimming or hair treatment. Are all these successful cases accurate representations of all clients? Or is the company highly selective in the programme? Can we, from these few highly selective cases, generalise that all people who go for slimming programme will achieve similar results?
It is widely known that media is a very influential, and influence is like a double edged sword. When used correctly, it can help keep society in order and thrive. When abused, it can sway the opinions of the masses to the advantage of its wielder. Many people listened to the radio and watched TV in the evening after a hard day's work, continuously being bombarded by information made by company with motive of maximising profit. With no one to remind them that the objectivity of the information is debatable.
Commission Based Marketing
What about companies (eg. financial and health supplement) using commission based model?
As the old Chinese saying goes:
“老王卖瓜，自卖自夸”
"Old Wang's selling melons, praising the melons as he sells"
Obviously, the seller's advice is definitely subjective, and that his next paycheck is 100% depended on his sales.
Well I'm ok with commission based model is used to sell melons. It is because most people understand melon. And they can expect how the melon will look like (unless it is rotten) inside, and how they can benefit from the melon. However, many commission based model today are being used to sell complicated financial instruments and health supplements.
Some of the people who joined these systems have inadequate training, and mainly motivated by financial rewards. A deadly combination.
Common sense tells us not to totally trust salesman. But in today's world, almost all information available on the Internet, TV, radios, newspaper, books, flyers, magazine are created by people who wants to make profit. Not much places where can we find objective, third-party, not-for-profit knowledge. Even doctors who owned their own private clinics have their income linked to the sales of medicine.
Vision of a Perfect Solution
I think the perfect and idealistic way is to have a publicly funded solution provider that is third party and not for profit. They back claims with accurate, objective statistics. Publishes their advices online,for the good of consumer, as though they are the consumer, and take responsibilities for the decisions made by the customer. The performance of this body is judged by customer satisfaction as well as a regulatory body (possibly from academic statisticians) that ensures their information for consumers are accurate and objective.
CASE is a good example of such regulatory body. However, CASE is more passive and response to complaints. Also they charge a high fee(in my opinion) making them unsuitable to help customers on small items. But, it is a good start.
At the same time, commission sales team and media advertisements should be transparent and regulated to avoid misrepresentations. Sales force should be well educated on the product. Presents benefits as well as drawbacks during sales pitch.
Consumer should get advice from the expert group, and do thorough research before purchasing products. As well as research of the company's previous lawsuit and complaints. Have a cooling off period before purchasing any item pitched. Have the courage to say no. Never buy anything that you don't understand fully.
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Alright, wow, that's a long entry. Do give me your comments, or share any experiences that you may have. Thanks.
Sincerely,
Lam
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