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.

Stephen Tave Interview: The Fast Economy and Career Colleges

Interview with Stephen Tave, one of the speakers at the 2010 Education Industry Investment Forum.

Practitioners in for-profit higher education administration tend to be off on the side, compared to how education in this country is viewed generally. Focused on growing companies and creating value for students, it's quite often that you get a good deal of skepticism about the role of for-profit education. That's because of the relative newness of the for-profit school in a hundreds of years tradition of socially-driven education.

These are some of the most interesting points that I have found in Tave's interview with me in New York City last week. I had come to his offices at 2 Penn Plaza to ask him about the future of education. His focus: structure and offering students what they need to survive in the marketplace.

What can a school do to prepare itself and its students for the future?

Schools should have think tanks that focus on what to offer students for the future.

What's going to be popular five or ten years from now? You have to have a certain part of your organization that just focuses on that. You have to have a think tank working on the green opportunities coming on down the line.

Tave points out that the Wind Energy Association just made an agreement with some career colleges to provide education support and job training. Taking a risk like that, without proven return, is a necessary risk and could help your organization in the long run.

You are jumping curves, but it shouldn't stop you from putting the infrastructure in place and constantly testing if that is going to be the case.

Taht constant testing, if accreditation limits didn't stand too much in the way, would enable a career college to do more than be competitive against traditional four-year institutions. In fact, that is not so much the point as it is to just be as flexible as the real marketplace. The marketplace is filled with people who are testing limits, creating new ideas, and immediately putting them out there in the market to test and to generate a return on investment.

The career college vertical is synonymous with that marketplace rigor. In the past, we have talked on this blog about the Ivory Tower mentality of education. Tave went a little further and said that he saw that kind of flexibility in place already, even though it needed to be tweaked and assisted to perform faster and more rigorously:

Our schools are very precise in what they train for, and the rate of return on what you invest in is measured every day. The way we have the ability to efficiently to bring new curriculum is that we have to be able to do the "here-and-now" when it occurs, and not have it in some committee for ten years, and then its all antiquated and isn't necessary for the actual job market that is out there. It's exciting to work in that type of environment.

Stephen Tave, American Higher Education Development Corporation

This interview was conducted in New York City. This is a brief end-of-interview exit video giving Stephen the chance to give us his assessment of the future of higher education. Stay tuned for the longer interview write-up, to come out later today.



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