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Byju's SCAM 馃敟 | How Byju's is Killing The Youth ? | Business Case Study - YouTube
Channel: Aditya Saini
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Byjus is not an ed-tech company.
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It is weird, right?
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One 18 billion-dollar company
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Which is called the biggest ed-tech company in the world,
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Is actually not an ed-tech company.
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And this question arises,
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What is the reality of Byjus?
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Is Byjus a scam?
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In India on an average,
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An urban family
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For their child's education up to 12th
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Spends around 15-20 lakhs.
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To say, In today's internet world
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Any person can learn anything new in very less amount
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Then the question arises that,
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Why so much money is spent on a child's education?
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Well, there is a very big reason.
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Today's ed-tech companies.
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That compels people,
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To spend out of the pocket on education.
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Now the question is,
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What do companies do?
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That our parents give all their savings to these companies.
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So this story starts in 2009.
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When Byju Raveendran
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Started taking online classes for the CAT exam.
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In 2011, he registered his business as "Think and learn".
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And after 4 years that is august 2015
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Byjus launched it's learning app.
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After the launch of Byjus online learning app ,
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In 3 months,they had more than 20 lakh children.
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Well,after listening this you also must have that
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They made a wonderful thing.
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So they got such big growth in less time.
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Well it is not like that.
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Reality is spmething else.
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In 2018,Byjus became a Unicorn
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Which means they crossed their valuation to 1 Billion dollars.
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But now this company's valuation is 18 Billion dollars.
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Now question is that,
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What did this company do in 3 years?
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That it increased it's valuation by 18%.
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But, before that I woud like to Thank
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"Capital.com"
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Because of whom this video is possible.
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Now those who don't know
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Capital.com is international CFD trading platform.
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Which is fully compliant of international regulation.
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Currently more than 20 lakh people are using capital.com.
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With more than 18 billion dollars in volume.
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On capital.com more than 4000 market
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Like stocks,commodities,indices,currency pair
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And also in crypto currency trading is allowed.
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This platform provides low cost trading .
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And through stock loss and take profit
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Provides you with smart risk management.
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Capital.com is one of the trusted platform.
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If you want you can go to trustpilot.com
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You can check their authenticity.
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Link is the description.
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After doing your 1st trade you will 50$ signup bonus.
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Wolf gupta
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Who is 9 years old claims that,
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By taking online coding classes on "Whitehat Jr"
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He cracked the package of 1.2 crore rupees.
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Interestingly, wolf gupta is sometimes of 9,12 or 13 years old
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Sometimes his package is of 1.2 crore
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And sometimes it is 150 crore.
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It is simple, This is a story
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Which was created by whitehat Jr for marketing camp.
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Which Byjus acquired in 300 million dollar.
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Interestingly, this all incident
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Happened after the Byjus acquistion.
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But the sad thing is that
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After watching this advertisement
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More than 20000 people enrolled in Whitehat Jr's courses
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Now, understand this caculation carefully.
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Whitehat Jr's basic entry level course price is 7200.
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7200 X 20000
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Do you know how much is this number?
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14 crore 40 lakh rupees
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Now we can understand that
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Even after knowing
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How can some child be of name wolf gupta.
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Why did people buy courses worth 14 crore ?
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Well the answer is hidden in BYJUS darkside.
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So what is Byjus darkside?
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So see ,Byjus is not an ed-tech company.
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Actually Byjus is a marketing company.
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So to undersand this,
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We have to understand Byjus very deeply.
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So in year 2019,
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Byjus did a Rs.1306 crore operating profit.
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Which in 2020 increased to Rs.2381 crore.
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Now let;s see about Byjus marketing spend.
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In 2019, Byjus marketing spend was Rs.457 crore
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Which in 2020 increased to Rs.1175 crore.
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But do you know
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Byjus major revenue does not come from this marketing
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This marketing is just to increase their brand value.
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So now the question is
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Where does Byjus revenue come from?
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So the answer is "BDA'S".
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BDA means Business development assoicates.
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In simple words, sales man.
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Byjus hire BDA on salary of 10-12 lakh per annum.
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Their base salary is 7 lakh and remaining is incentive.
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But still, they spend 10-12 lakh rupees.
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On every Business development associate.
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Currently Byjus has more 300 plus BDA's.
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I know, now you must be thinking
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How can 300 employees togetherly
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Generate 2400 crore revenue
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And what does Byjus do,
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That people are ready to spend their life savings.
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So anyone comes in Byjus touch
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Comes form one of the three ways.
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Number 1, "Cold Calling".
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Byjus salesman
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Randomly to your parents or infact sometimes to you itself
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Will call you and ask.
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What are your future aspirations?
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Where do you see yourself?
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What do you actually wish to become?
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How do you see studies?
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They will discuss all this things with you.
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Number 2, "Advertising".
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Either you will see shahrukh khan doing the endorsement,
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Or on Instagram, Facebook, and in fact on Youtube
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You will see the Byjus advertisement.
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And enquire about Byjus.
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Number 3, "Doubt solving".
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In todays date when kids has doubt
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Then they go on internet and search.
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When you search on Internet,
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Then they are many chances you will land up on Byjus website.
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Why?
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Because Byjus on their website
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Already provide answers to the kids.
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Now, you may come in contact with Byjus by any one of the way
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You will definitely get one thing.
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That is 15 day free trial.
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Whether it may be cold calling,
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Or whether you may come through an advertisement.
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Or by through doubt solving you landed on Byjus website
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You will be offered a 15-day free trial.
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Now the question is that,
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Why 15 day free trial?
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So reason behind it is "Behavioural economics".
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As soon as any kid takes a Byjus free trial,
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Byjus track the kid's behavioural data.
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And after ,that create a strong profile.
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For example, there is a kid named Rohan.
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Rohan studies in 9th class.
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Rohan will get 2 things from Byjus in 15 days
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Number 1, "Study material".
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Which will be in the form of videos.
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Number 2, "Quizzes".
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So the study material
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From that Byjus will calculate
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What is the average view time of the kid on that study material?
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How often does he revisit?
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Which means ,how many times is revisited the video?
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At what speed does he watch the video?
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Apart from this,
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Byjus also noticeses,
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What is his average view time on the platform?
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That means, how much times does he spend on platform?
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And not only this,
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They also monitor the kids consistency.
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This means, a kid in 15 days
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Regularly uses the Byjus app or not.
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That means , what is his login activity?
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And number 2, Quizzes
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Quizzes show's the kids performance.
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And in performance there are 2 very important things.
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Number 1, "Accuracy".
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How well he does?
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Number 2, "Time taken"
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How long does he take to solve the question?
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Now, when Byjus learns all this things about rohan,
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They create a profile of rohan.
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So after the free trial is finished,
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Infact before finishing the trial,
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Byjus sales executive have to contact the kid's parents.
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And depending on which category the kid falls under,
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Sales pitch is ccustomized accordingly.
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So Byjus divide these kids into 3 categories.
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Number 1,"Underacheivers"
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These are those kids who are very weak in their studies.
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There performance is not that much.
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Chances are if they are not paid attention to,
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Then they will fail.
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Number 2, "Average".
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These are those kids who are average in their studies.
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So their parents are told that ,
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If you don't take Byjus course
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Then your kid will remain an average kid.
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He will never be able to outshine in this world.
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And Number 3, "Overachievers"
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This are those kids who always top in studies.
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Byjus sells their premium courses to this kids.
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Byjus salesman talk to this kids parents,
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And ask what does their child want to become?
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Lets assume, If the kid says "Doctor",
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Then the Byjus salesman
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Tell their parents that their kid needs "Neet course" very badly.
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If the kid says "Engineer"
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Then he is recommended "JEE course".
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If the kid says he wants to be a "Lawyer"
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Then he is recommended the "CLAT Coaching".
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And consider if the kid says he want to do startup,
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Or he wants to do business or do a normal corporate job,
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Then he is recommended the "IPMAT" or "CAT" Coaching.
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And this is planned very startegically.
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Executives tells the parents that
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In today's date competition has increased very much.
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As competition is so high,
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Then the chances of your kid getting a job is very tough.
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If he does not go to IIT or IIM.
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After executive's sales pitch 70% of customers are converted.
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I know.
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Now you must be thinking,
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How is 70% conversion possible in any industry?
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Even ecommerce website which has a traffic of lakhs of people,
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Even there the conversion rate is 3-5 %.
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So what does Byjus do,
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That they are able to convert 70% customers.
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The answer to this is hidden behind one line.
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"Insecure people purchase convenience to feel secure."
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I repeat
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"Insecure people purchase convenience to feel secure."
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Now this line consists of 3 important elements.
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"Insecurity, Security and convenience".
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Now understand this thing very carefully.
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First , "Insecurity".
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Among us many of our parents
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Has a very big insecurity in their mind.
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And this insecurity is because of these 3 factors.
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Number one , "Career".
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Our parents are worried about our careers.
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That the child's career should not be spoiled in the future.
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He/she should get a good career.
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Number 2, "Competition".
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How can my kid perform better than sharma's son or daughter?
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Number 3, "Society".
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What will I say in my society?
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Which face I will show in society?
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And the most important,
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What will I tell relatives?What does my kid do?
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Second word, "Security".
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When will any parent feel secure?
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When their kid is scoring good marks.
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When their kid gets admission to a good college.
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And most important,
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When their kid is doing a good job,
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Or is doing anything bu earning good amount.
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So see
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People want to go from an insecure to secure environment.
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But if in the middle of this journey,
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If you are offered convenience, wouldn't you take it?
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And this thing is done by Byjus.
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In middle of this journey, Byjus offer you convenience.
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To take Byjus Classes where you can learn online.
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Which are good.
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When you take Byjus classes,
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Then by taking Byjus classes you will score well.
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If you get good marks you will get admission to a good college.
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Which means you will do a good job.
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It means Byjus doesn't sell you intellect but convenience.
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In simple words,
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It sells a dream of security to secure people.
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So basically,
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People do not buy Byjus education but
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They purchase Byjus convenience.
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This is a pyschological fact,
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That people don't take good decisions.
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They take convenient decisions.
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Because in good decisions,
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"Time, Effort and Intellect"
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All of this three are required.
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And in between if anyone offers convenience,
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Then chances are you will choose an easy option.
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By the way by knowing this you will shocked,
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Those who can't afford Byjus courses,
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Byjus sell their course to them also.
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The question is , How?
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The answer behind it is in Byjus strategic partnerships.
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Byjus has
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Capital float
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Bajaj Finserv
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Cash care
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Has partnerships with all this companies.
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All this companies,
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Actually are loan companies.
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Through these companies,
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Byjus salesman by targeting people's insecurity
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Let people buy Byjus course on EMI.
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Interestingly, many of the people don't even know
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While purchasing the Byjus course they sign up for the loan.
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Because Byjus executives,
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Don't use words like loan or installment.
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But before Byjus future plans
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Their today's dark activities are nothing.
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See, Byjus focus is not on selling courses and getting profit.
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Their main focus is,
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To make people part of Byjus world.
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Now , what is this Byjus world?
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So see,
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Until now Byjus has acquired 14 educational companies.
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Have you ever thought why they did it?
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So understand this flowcart very carefully.
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Firstly any person buys a Byjus course.
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And as the kid grow
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Consider that kid wants to be Doctor or Engineer.
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Byjus will recommend him to go to "Aakash institute".
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Learn from "Aakash institute".
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Which is owned by Byjus.
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If the kids want to learn coding,
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Then Byjus will recommend
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Learn coding on "#Hashlearn" or "WhiteHat Jr".
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Which is owned by Byjus.
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And if any kid have any doubts
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Then Byjus will recommend using "Topper" or "Great Learning"
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Which is owned by Byjus.
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Now that kid is grown up by learning through Byjus.
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Now either that kid will do a job in Byjus only,
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Or else will do the job in some good company.
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But in coming future that person will also have kids.
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When he has his own kids,
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Then chances are he will tell his kid to learn from Byjus.
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Because he has done all his education through Byjus.
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And there will be only one result of all this.
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"Intellectual Bankrupcy"
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People will be blank Intellectually.
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This is because Byjus will dominate this systm.
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And will provide so much convenience to people
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That people will stop working hard.
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Ultimately only Byjus will earn money
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But loss will be of normal people.
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And there is only one solution about this.
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Continuous self-learning.
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You keep on doing self-learning.
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Because in the upcoming time
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The whole world's economy will be skill-based.
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If you have degree then it is good.
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Even if you don't have then also having skills is most important.
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Because the one who doesn't have any skills,
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In the upcoming time,
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Any company or any person will not entertain them.
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And if you have to take your learning to next level
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Then we have made a private community for you.
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Link to the discord server is in description.
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You can also be the part of that community.
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