Saturday, December 26, 2009

Some more of those Stephen Tave Comments

It was a pretty compelling interview, so I've dug back through stuff to pull out the fun comments that might mean something to education investors and entrepreneurs. Here's just a little bit more Tave love.

Question from EIIFOperators of schools have complained in the past about the costs of marketing and it's a true that marketing is not easy. It can be expensive and it can be cumbersome, and not to mention completely ineffective if the right media are not leveraged. What out there is compelling to you as a marketing solution and how do you think it will be managed, purchased, or built?

Tave responds

The whole marketing thing has to be looked at. Google has to look at the way they are doing business too. It's bait and switch the way Google does business. Nobody brings this up. It used to be a nickel a click. Today, if they [a content reader] clicks on culinary school it's probably 25 to 35 dollars a click. This happened in ten years.

Why has it done that? It's done that because people have created companies that bid on that, but they are not in the industry. They collect the leads. I sell that lead that I paid 20 dollars for for 20 dollars to a hundred schools. Those leads are not focused leads. They are getting a huge amount of them and they are working their admissions people at levels that are very frustrating to them.

So, then EIIF asked if using students to leverage a different marketing strategy is a more compelling business idea.

If you have a good school, it sells itself. They talk about their results
and they talk to their friends, and it's word of mouth, and it's huge. At the culinary school, more than half of the students came by referrals. Getting that message out there is important. If your operation is not right for that area you are training in, then you will have a tough time no matter what. You will pay a lot to get the wrong students, and your results are not going to be acceptable to the accreditation bodies. We have to do a lot of self-monitoring.

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Unknown said...

any luck posting the whole interview?

DBCHongkong said...

The post before this on this blog has some interview comments, as well as a link to the Fast Company interview, as well. Those should pretty much give you the flavor of the comments.