ELI5: How RTOs Lose Students
Explained like you're 5: It's like a lemonade stand that sneaks in extra fees for the cup
The Lemonade Stand Problem
Here's how it works in kid language:
The Setup
Imagine a lemonade stand with a big sign: "Fresh Lemonade - $2!"You're thirsty, so you walk over with your $2.
The Sneaky Part
But when you order, they say "Oh, that'll be $2 for the lemonade... plus $1 for the cup, $0.50 for the straw, and $1 for premium ice."Now it's $4.50!
What Happens
You feel tricked and walk away. You tell your friends, "Don't go to that lemonade stand - they're sneaky!" Soon, no one buys their lemonade anymore.
👉 In grown-up terms: RTOs do this with add-on fees and hidden units. Students walk away and tell everyone to avoid that RTO.
How This Actually Happens to Real Estate Students
Based on real student experiences from CPP41419.com.au's fee transparency research:
What RTOs Advertise
The Hidden Reality
Total: $4,600 (65% more than advertised!)
What Our Data Shows
RTOs with hidden fees have 3x higher dropout rates. Students feel deceived and often leave negative reviews, warning others away from these providers.
Why This Matters
"If the crowd boos, the game doesn't last long."
When students feel tricked by hidden fees, they don't just leave - they warn everyone else. In today's connected world, word spreads fast through reviews, social media, and forums like Reddit.
Smart RTOs know this. They're transparent about pricing upfront because they want students who stay, succeed, and recommend them to others.
Who Needs to Know This
Students
Always ask for a complete written fee breakdown before enrolling. If they won't provide one, that's your first red flag. Use our fee transparency tools to compare real costs.
Check Fee Transparency Guide →RTO Executives
Hidden fees might boost short-term revenue, but they destroy your reputation and long-term success. Transparent pricing attracts students who complete courses and refer others.
Parents & Partners
If your family member is considering real estate training, help them research the total cost. Many students get surprised by fees they didn't expect.
Industry Observers
The RTOs with sustainable business models are the ones being honest about pricing. The "lemonade stand" operators don't last long in competitive markets.
How to Spot the "Lemonade Stand" RTOs
Ask for Everything in Writing
Get a complete fee breakdown before you pay anything. If they say "we'll discuss other fees later," run away!
Use Our Comparison Tools
Compare the real total costs of different RTOs using our transparent fee analysis
Compare RTO Fees →Read Student Reviews
Look for reviews mentioning "surprise fees" or "hidden charges" - these are your warning signs
Don't Get Fooled by "Lemonade Stand" RTOs
Use our tools to find RTOs with honest, transparent pricing