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Posts Tagged ‘higher education industry’

Don’t Blame For Profit’s Innovation! Blame State School’s LACK OF

July 4, 2010 7 comments

Am I one of the only people who want to say “thank you” to the for profit schools? To the online higher education market? Thank you University of Phoenix and Kaplan University and all of the other universities who had the courage almost a decade ago to take a risk. A risk that has not only provided individuals the opportunity to get their degrees even while working and taking care of families, but also paved the way and built the models that now allows state universities to offer these degrees online as well.

As congressional talks surrounding the negative impact online education has had on graduation rates and specifically loan default rates; what we are not hearing are long term solutions. We are hearing suggestions of band aids. Do I like the idea of the gainful employment laws? Yes! That said, if we are going to implement them, it should be done across the board and it needs government support to get started. What these lawmakers are failing to recognize is that it took guts, innovation, large investments; and a lot of time NOT being profitable for these for profit online education companies to get where they are today…and the model is less than TEN YEARS OLD. How can the for profit schools be expected to figure out HOW to raise their graduation rates and how to lower their default rates when most of them just recently figured out how to get students to graduate?

The disservice that has been committed in the higher education industry is not from the for profits; but rather – I blame the state universities; specifically, the marketing departments at these state universities. There are hundreds of state universities offering online programs at low to medium prices. We have seen everything from $7,000 M.Ed Programs all the way through $13,000 nursing programs. Not only are these programs far less expensive, but their graduation rates are higher. Again, as these state universities online degrees have only been around for about five years; perhaps there is not enough statistically significant data here, but it does look promising.

So instead of attempting to shut down an industry that has opened the doors for people to better their lives; why not work with the state universities to offer more of these programs that have displayed high graduation rates, low cohort default rates, and other positive statistics. The marketing teams at these schools are to blame; they are the ones not fighting for the budget or not taking the risks. If all of the for profits can run television, why can’t the state schools? It’s relatively inexpensive to run remnant television and these days, television can be run on a cost per inquiry basis. If the state universities and enrollment management companies are too “fearful” to go into the red for a couple years – maybe the government should be forcing them to hand over a portion of their revenue and allow the marketing geniuses at the for profit schools take a stab at branding and developing them.

It’s not the for profit schools that are the problem; it’s the state schools lack of motivation and understanding of how online education will better the lives of millions. The disservice is that of our state schools poor marketing, slow admissions, and fear of investment. The online for profits gave you a model to follow and then MAKE BETTER. Do it already.

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Consultants; Why Some Make it…and some CRASH

April 19, 2010 10 comments

When I stopped working FT a few months ago, I wasn’t sure what direction I was going. Three schools of thought: 1) Start my own company. 2) Be a consultant 3) Get another job.

I knew I didn’t want another FT job (at least not right away) as I’m a ‘start up ‘ junkie. I like to build businesses, departments, strategies, and ideas…and then take from conception to “LIVE”; and make them profitable. So that left me with either my own business or consulting. I realized, the two did not need be mutually exclusive. So, while building a business plan, I’ve been consulting and contracting. As higher education, specifically online higher education, is an incestuous industry; as soon as word got out, the phone calls and requests came in. It seemed that this would be easier than I thought – at first.

I quickly realized that to be successful in consulting, to be referred, and to work with numerous clients, it would take a lot more than a great past track record. It would take patience (something I don’t have much of), discipline to NOT take every job offered, and more so, this was yet another great experience where I was learning to ‘check my ego at the door’. In return, and the reason I love consulting, I was learning just as much from clients as they were learning from me. I quickly took the revenue driving sales and marketing strategies I had employed in higher ed and took them across numerous verticals.

So, why do some consultants make it? Why are there some of us that get repeat business while others may spend weeks or months marketing themselves and get nothing? Very simple answer: PAY PER PERFORMANCE CONSULTING.

So how does that work? Well, it depends on what you’re consulting on. However – there is one thing we can agree on: companies would rather YOU take the risk than them. We can also agree that if a consultant came to me and said, “I’m so confident in the strategy I lay out for you that you only have to pay me if I execute on it and execute well enough to hit the revenue goals you have set forth”. Why would a company EVER say NO? I know I wouldn’t. There are, however, many of us, that do need that “month to month” paycheck. You can look at this in 2 ways: 1) You can map out your beginning projects as if you are in a start up company. So, you map out your consulting KNOWING you will be “in the red” for 3 months; or until your projects start ‘making you money’. Who better to make an investment in than yourself? 2) You can charge a ‘small’ up front fee…maybe “min. wage” per hour…and get most of your money on the back end while still having money to live on the front end. Every project or consulting assignment is different, however by being paid on performance, you are not only showing your confidence, you are also ensuring yourself you will not take on anything you cannot handle OR if you do choose to take on something you cannot handle, you will make certain that you partner up with one of the best in the industry to learn.

It’s very simple in sales / marketing to set goals and only be paid if the goals are obtained, but what about other industries that have a large number of consultants or companies vying for the same business. Broken down below are 5 areas where I see a lot of consulting and how you can structure your pay on a performance basis.

1. Web Design / Development
– May be held accountable for a) web stats b) number of sales on site c) stickiness of site

2. Free lance copyrighting
– May be held accountable for a) Amount of time user spends on page b) Drop off rate c) CTR

3. Career Coaching
– May be held accountable to getting someone the job they can succeed and prosper in

4. SEO mapping / content development
– May be held accountable to page rank in “x” amount of time

I know there are many more, but these are ones I see the most often on the networks that I am on. As with anything else; if you need work, you need to take some risk. If you’re good, you’ll be rewarded. Consulting models such as this are good ol’ capitalism at its finest.

Biggest Mistake a Higher Education Company can make!

January 24, 2010 Leave a comment

Higher education companies – I plead you to listen; When you hire anyone who will make decisions regarding marketing and sales, anyone who can effect the revenue of your business – get them on the phones! Every manager needs to go through admissions or enrollment services (sales) training! To be a great marketer is to KNOW your audience. To be a great marketer or businessman in the higher education industry, you first must be able to SELL education. Selling education is not the same thing as selling a stock or selling a credit card. It’s not an impulse buy or a quick sale. Selling education is selling a prospect on graduating and finishing their degree. Selling education is finding a person’s dream and then helping the potential student come to the conclusion that the only way to achieve their dream is through education. How on earth can someone manage, train, or market this if they’ve never done it? It’s a process, a long sale; sometimes a 45 minute conversation; but it’s the psychology behind the sale that every manager needs to learn. Mark my words; a “good” marketer can get away with not having been on the phones and not knowing their consumers…a great marketer – one whose goal is not only to have a low CPE, but more importantly, a high graduation rate and high net tuition revenue – will understand the psychology behind the student and will know their consumer. The best marketers in the higher education industry are those who have a thorough understanding of the sales pitch and process as well as the retention model. The more a marketer knows about every aspect of the business, the more successful they will be. AND if the marketer does not want to get on the phones, get down in the ditches, and “get their hands dirty”, they likely have too big of an ego to be successful regardless!

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