Selecting And Using Education Agents

All materials strictly copyright © iE&D Solutions® BVENZ Workshops, Auckland & Christchurch March 2009

Selecting & using agents Thijs van Vugt

iE&D Solutions BV / [email protected]

All materials strictly copyright © iE&D Solutions® BV

Agents: the pros and cons? Selection of agents – the good , the bad and the ugly Legal and financial aspects Managing and motivating agents Agents and your strategy Examples

Set-up


Who or what are agents?


Over 35,000 agencies operating worldwide, offering a comprehensive portfolio of services

Undoubtedly a minefield, with education specialists, language, migration, visa & travel agents all vying for your business Institution representatives Outsourced IO tasks Individuals Private companies Government bodies Others

Agencies are now a commonly accepted form of promotion & recruitment – some agencies in Asia have been established for 25 years

Who or what are agents?


Advantages of agents

Penetration into new markets Local market knowledge on demand, language and

culture Local presence: 24/7 Specialised student counselling Added value: follow up of enquiries (also after fair

attendance) Measurable results Increase in student numbers 90% of something is more than 100% of nothing

(Price, 2005)


Disadvantages of agents

No direct control Lower income Your institution’s reputation may be at stake Ethics: mixing the public function of an institution with

the recruitment of students on a commercial basis by the agent

Agents are one of the most cost effective methods of local representation, but not simply on the basis of “no cure, no pay”


Some remarks

Agents are only one of many channels to reach and recruit students: Education Fairs Advertising: internet, printed media, radio & TV Direct mail Seminars Scholarships, fee waivers, etc. Etc.

Agents must form an integral part of an integrated strategy

How many agents do I need? Spread your risks, more then one agent per market … but not too many either, because of time

management, and possible tensions between your partners


Selection of agents:the good, the bad and the

ugly Crucial to match Agents with markets – they are not

appropriate everywhere Locating an Agent is easy – they come to you!

From: KATHMANDU [mailto:[email protected]]Subject: Enquiry about the Tilburg University

CONSULTANCY CENTRE FOR OVERSEAS EDUCATION Kamalpokhari, Post Box No. 2000, Kathmandu, Nepal.

Phone: 4422888 / 4426888, Fax: 00977-1-4423456 / 4420000, E-mail: [email protected]

Dear Sirs,

We are very glad to inform you that we are one of the educational consultancies based in Kathmandu-the capital city of Nepal.

It would be very appreciable if we could get detail information regarding the university and the other procedures or the admissions. We definitely hope the positive cooperation from your side.

Thank you.

Yours truly,

Sarita GurungSecretary


Selection of agents:the good, the bad and the

ugly (2) An ever increasing supply of so-called agent

workshops (ICEF, ALPHE, Langton, WEBA, etc.) Finding a good & reliable agent is less easy & is

reliant on a range of factors references & existing clients quality of communication quality of marketing material the numbers of student using the agent’s services the agent’s professionalism etc.


Which other (NZ or comparable) school does the agent

work for? How successful?

Why does an agent want to work with your institution?

English proficiency? Professional communication?

Good website & corporate communication?

Transparent methods, procedures, fees?

Access to the ultimate decision maker?

Are expectations realistic, consistent with your strategy?

Does it click?

The right match?


What makes a good agent?Dos and don’ts

Knowledge of local market Knowledge of local education system or willingness to

acquire that knowledge Willingness to accept the Code of Practice Good contacts with local schools, institutions, relevant

government, embassies, etc Knowledge of & expertise in marketing &

communication Years experience Honest & open


False or misleading comparisons between programmes of various providers

False or misleading promotion of recruitment activities Incorrect presentation of connections with other

institutions Incorrect or unfair advice concerning admission to certain

programmes Promises concerning permanent residence in your country

or pointing out illegal actions to achieve permanent residence (e.g. fake marriage)

Suggest that the status of fulltime student may serve as cover for other activities or to help people wanting to undertake activities other than study

What makes a bad agent? Dos and don’ts


Various modi operandi

Direct:

The institution determines the plan of activities

The agent supports the activities and strategy of the institution

Indirect:

The agent gets own marketing budget and the freedom to spend it - need for clear agreement on results, etc.


Finance

How much an agent costs depends on your objectives Most agents work on a commission fee basis (10-20%) And/or a fixed fee, or a service fee from the student In exchange they promote your institution as part of their

portfolio, nothing more: you’re on the shelf! To get noticed, you need more:

Be willing to give your agents a marketing budget so they can advertise, organise seminars, visit fairs, etc.

Direct control vs indirect control (retainer) Payment: after the student has paid tuition fees


Finance (2)

Marketing fees: Fixed amount per year Per activity (advertisement, fair, seminar, etc.) Package of services


Legal aspects

Make clear what you expect of the agent: Role, rights & duties of BOTH parties Finance and payments Monitoring & evaluation What are the criteria for success

How to deal if things go bad and how to terminate the contract

Duration of the contract Conditions Exclusivity (NOT!)


Legal aspects (2)

Signatories must advise recruitment agents that their agreement may be terminated for breach of the Code by the agent. This must be stated in any written agreement between a signatory and an agent.

The institution remains responsible for the admission of the student.

In case recruitment or service fees are owed to the agent, the agreement should clearly stipulate by whom these costs are to be paid to the agent.

The international student needs to be clearly informed about this


Agents management

Start with a training of your agents Produce a so-called agent’s manual Visit your agent regularly (= min. 1 x per year) Make an agent feel wanted and special: respond quickly

to emails, etc. Frequent communication, e.g. agents e-news Annual evaluation If you have many agents: develop a loyalty programme

(gold, silver, bronze) Above all: don’t sit back and wait for the students to

come!


Agents management (2)


Agents management (3)


Agents training

Knowledge of the institution (history, structure, facilities, etc.)

Knowledge of the products/programmes Knowledge of the admissions requirements Knowledge of the admissions procedures

(deadlines, documents needed, etc.) Tour of facilities and environment Updating on new developments (for existing agents) How would you like your institution presented,

positioned and represented

NB: pay for travel & subsistence!!


Agents & your strategy

Be willing to see agents as partners Let the agent develop or assist in the development

of a strategy in country X and make them responsible for the implementation, e.g.: Market analysis: trends & developments,

competitor analysis, student surveys, etc. Advise on communication channels (web,

printed, fairs), timing


How to become the agent’s priority: Respond quickly to agent’s questions Sufficient supply of RELEVANT marketing material Frequent visits Speedy processing of applications Timely payment of commissions Joint marketing efforts: willingness to pay

Agents & you


Example 1: agent

2006 2007 2008 2009*0

20

40

60

80

100

120

140

91 94 88120

1 0 6

10

OthersNew ZealandUSA & CanadaAustralia

Mainly Study AbroadMarket research & analysis


Example 2: HEI 1

NZ HEI recruiting in Holland. Aim: 5 students/year; 1-2 in year 1

Sample budget: StudyWorld Vermeer marketing package: € 500 per

year A basic institution profile on the StudyWorld website Inclusion in the StudyWorld brochure

Travel / subsistence in Europe: € 500 StudyWorld seminar in Holland: € 500 Participation in Scope on the Globe with ENZ: free Total costs Dutch market: € 1,500 (excl

commissions)


Example 3: HEI 2

AUS HEI recruiting in Holland. Aim: 3-5 students/year

Sample budget: StudyWorld Rembrandt marketing package: € 2,000

per year An extensive institution profile** on the StudyWorld website Inclusion in the StudyWorld brochure A one-time logo in the StudyWorld E-Newsletter (each

month) A one time item in the StudyWorld E-Newsletter (each

month) A one-time news item on the StudyWorld website (for three

months)

Travel / subsistence in Europe: € 2,000 Total costs Dutch market: € 4,000 (excl

commissions)


Example 4: HEI 3

Summary of Marketing Expenses (excl commission)

7-8 students from Holland

InternetRegistrati

onTravel Costs Freight Total

Studyworld (Rembrandt Package)

€ 1.261,52

€ 1.261,52

Masterbeurs 1

€ 1.513,83

€ 756,91

€ 403,69

€ 2.674,43

PEC (Scope on the Globe) 2 € 908,30

€ 176,61

€ 151,38

€ 1.236,29

€ 1.261,52

€ 2.422,12

€ 933,53

€ 555,07

€ 5.172,24

Avg cost/student: AUD 1,350 / EUR 6701 Travel costs based on 4 days accommodation & expenses for a 2-week European trip & & 29% of a European Airfare2 Expected costs based on shared arrangement between 4 WA Universities. Costs include internet advertising.


Example 5: Agent markets for boarding

school

Korea, China: Full programme to enter top universities in US

and UK Building a network takes at least a year Price: US$ 35k and upwards Commission: 10-15% (of which 5% for

subcontracted agents) Visit at least once a year China:

• provide good ESL• Shanghai completely different from Beijing

(open vs more political and poor English)


Example 5 continued

Brazil: ½ -1 year experience abroad, w/ host family Price: US$ 30k max. Commission: 10-15% (of which 5% for

subcontracted agents) Ecuador, Colombia:

Normally go to Canada since much cheaper, yet too cold

Price US$ 20k – US$ 30k Underdeveloped markets, so initially low

numbers


Agent markets for boarding school (cont.)

Expenses: Attendance @ ICEF workshops for 1 year: > EUR

15,000 Travel: & subsistence EUR 15,000 Preparation of workshops: EUR 25,000 Initial aim: 130 students @ US$ 38,000 (US$

4,940,000; EUR 3,800,000) Commissions (15%): EUR 570,000 Revenue -/- expenses:


Conclusions: 10 golden rules

Ensure that the use of agents will integrate and complement your wider marketing and recruitment strategy.

Brief all those members of staff whose work will be affected by the actions of the agents: admissions staff, international office staff and other support staff.

Due diligence: ensure that any agent you contract is reliable, reputable and responsive. Gather references and peer reviews for each agent you are considering to sign on.

Sign a contract with your agent, specifying the rights and obligations of both parties, ensuring that you eventually are in control, i.e. able to terminate the contract whenever the agent has crossed the line

Build a lasting relationship with your agent by investing time and money in the agent: visit your agents, invite them to your campus for familiarisation and training


Conclusions: 10 golden rules (2)

Ensure that you are able to spend more than just the commission, i.e. marketing money for specific marketing activities.

Provide your agent with a manual about your institution, the admissions process, student accommodation, etc.

Be willing to (re)direct enquirers to your agent, since they are much better at following-up than you.

Follow-up accurately and as quickly as possible on any applications that your agent provides you with.

Remember: 90% of something is a lot more than 100% of nothing (Price, 2005)


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Selecting And Using Education Agents

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