Sunday, March 20, 2011

Don Campbell - Analyzing the sales pitch

Don Campbell wrote a blog entry last week where he makes the case to sign-up for his training seminars to take advantage of real estate momentum. Read the entire pitch here.
I would love to see you and your guests there – so you discover how long-term sustainable wealth was created in the last two economic jumps and how you can do it this time, while still dramatically reducing risks, and by investing, not speculating. You have an economic dream for yourself and your family – our job is to support you in creating it.
He distances himself from risky speculation but repeatedly implies price appreciation to help sell $587 seats to his training session.

Look at the carefully chosen wording. The phrase 'last two economic jumps' refers to how real estate appreciated during the 90s after the oil bust and the massive price hikes of the boom more recently. Then he writes you can take advantage 'this time' inferring that an 'economic jump' is happening now. Now one could say the phrase 'economic jump' is open to interpretation but I read it as a euphemism for sudden price increases. Consider the blog title.
During The 2007 Boom Days, Investors ASKED For Another Pre-boom Buying Window…

Is It Here, Or Not?
'Pre-boom buying window' means a limited period of time to act before a rapid run-up in prices. In other words enroll in the class and make boatloads of money. It's not speculating however...
This is not speculating – this is true investing. Doors like this open every so often, your job is to step through them.
See the mix of enticing readers through implying a limited opportunity of price appreciation but reassuring them that they can learn how take advantage of the situation in a less risky way by 'investing'.

There is a frantic energy here where Don just happens to stumble upon this information and he just has to share it with Albertans first.
This weekend changed me, it changed me because of the research I was doing, it changed me to the point that I had to write this unscheduled post.
...
In other words, those outside the province ate many an Albertan's cash-flow lunch. It was only after the momentum was at full speed that many did awaken to try and get into the market.
...
Those outside the province are already seeing it, and are jumping in with both feet (just like the last two times). My wish is that Albertans aren't the last to see it again.
...
Yet, those outside Alberta swooped in and got in front and the markets took off.

See the way the story is told here. He's rushing to tell you this information first before outsiders storm in and take the opportunity away. In other words act now. This is very similar to what he had to say in March 2008. link.
International investors are definitely buying. Calgary and Edmonton real estate is hot in Europe and the U.S., more than I've ever seen before in all my years involved in real estate. The top banks in Ireland, for instance, are buying here. They see it as safe, secure and good for the long-term, compared to other options.
He also loosely ties disjoint economic situations and world events to the argument generating a level of reader confusion and anxiety which to capitalize on.
So let me get to the point… as of this weekend I have not seen the Alberta economic fundamentals pointing to this strong of long term momentum in all the years I have been studying them. And this factors into the turmoil that is occurring around the world, the strong Canadian dollar, the huge debt being created in the US, and the potential for a longer term world economic doldrum.
Finally, consider the more concise deconstruction of Don's post by Calgary Realtor Mike Fotiou.

What annoys me with these pitches is:

-the blatant pandering and ego stroking. Those that listen and act on his advice are “savvy” and “sophisticated” investors.
-Limited time. Get in now.
-fear of missing out, appeal to greed “We all remember how things were going in Alberta for the years 2006- 2008″
-feigning objectivity. “I have nothing to gain from this” (except the hundreds of dollars in course and membership dues)

Exactly.

1 comment:

Leo said...

Don Cambell and Ozzie Jurrock have vested interest in selling books and their seminars. Ozzie is hypocritical because he sell real estate via a different company through his seminars. Don and Ozzie never predicted the Edmonton crash and is forever saying it is a great time to buy. I've lost about 25% on my portfolio and it will take another boom to recoup it. They also edit their websites so there are only starry-eyed comments that basically revomit what these "gurus" say.