Posted by Mike Massie on March 5, 2010
Facing Down Hard Times In Your School?
If you're facing hard times in your martial art school, you're not alone. Here are some tips to help you make it through until things improve.
Facing down hard times? You’re not alone. I’ve heard from more than a few school owners who are feeling the crunch during this recession.
Here are some tips for those of you who may be struggling to keep your school open in the down economy.
The Mental Side – Survival Strategies
First off, focus on the positives – it’s the only way you’ll get through. Just keep doing that – your attitude is what will bring people into your school.
People are attracted to upbeat personalities. If you’re happy and energetic, it will really make you stand out and people will be drawn to it. Remember, your energy drives your school.
The Financial Side – Making It Through
First off, cut back on everything EXCEPT your marketing budget. Anything you don’t need to operate or survive should be cut from your budget.
However, it is imperative that you step-up your marketing activities, rather than slow them down. Those school owners that I coach who are growing in this economy are not doing so because they are lucky, located in “good” areas, or because they are martial arts superstars…
They are growing because they spend 80% of their work hours outside of class on their marketing – and they do this consistently, every single month.
Even so, you still need to make sure you’re spending your marketing dollars wisely. So, go through your marketing expenditures with a fine-tooth comb. If any marketing method is costing you more than it’s bringing in, cancel it and shift those funds to something that is actually giving you a good return on your investment.
A good rule of thumb here is that every dollar you spend on marketing should return $1 in revenue during the same marketing cycle (in out industry, 30 days).
However, I like to get $2 back on every dollar I spend within a 30-day time frame. You need those fast profits and high rates of return on your marketing dollars, because a martial arts school relies on cash flow for survival. So, your every marketing promotion should bring back a return of 200% within 30 days of running it.
Focus your efforts and resources only on those promotions that meet that criteria. And if you’re broke, focus on low-cost and high-return marketing activities like online marketing and door-to-door flier distribution. They take more time to implement, but they’re cheap and effective when done properly.
Keep Your Head In The Game
Finally, be present! If you check out on your school and students because things are not going so well, guess what? They’ll sense it and you’ll only be making the situation worse.
Remain fully invested in your students, regardless of what happens. Loyalty breeds loyalty, and you’ll be surprised at how many of them will be cheering for you and will stick with you, even if things don’t work out…
The Longview – What If Things Don’t Work Out?
“A mistake is a future benefit, the full value of which is yet to be realized.”
- Edwin Land, inventor of the Polaroid camera
First off, it’s not the end of the world if you have to go back to teaching part-time. So, don’t be ashamed of finding a part-time teaching location, ending your lease, and moving your classes somewhere without all the overhead and high rent.
Also, know when to call it quits on having a full-time location. Is it worth it to force yourself into major debt or bankruptcy, just so you don’t feel like a failure?
Well, guess what? All entrepreneurs fail at some point in their careers as business owners. It’s part and parcel for the game. Don’t feel bad if things don’t work out this time around. Just roll with it, regroup, and the next time around you’ll be wiser for your experience.
Remember, there’s ALWAYS another opportunity waiting just around the corner. The past is just a memory, and come tomorrow today will be the past.
You will recover and you will be able to start over again. So, stay positive and just keep looking for those opportunities as you move forward.
Posted by Mike Massie on February 10, 2010
Setting A Marketing Budget When You’re Just Starting Out…
You probably don't have a lot of money to throw at your marketing... but that doesn't mean you shouldn't set a reasonable marketing budget.
Early on (when I taught part-time), I spent all my profit on advertising. ALL of it.
I just figured if I wanted to be a full-time school owner, I had to act like one.
So, if I profited $500 or $800 in a month, I spent it on ads (and later, on equipment and saving to move into a full-time location).
Once I hit the point where I was getting enough students and leads, and I knew what it took to get those leads each month, I budgeted that amount.
No Hard And Fast Rule On What To Spend On Your Marketing Budget
There’s no hard and fast rule for what to allot to your marketing budget. The 10% figure I give in Small Dojo Big Profits is just a guideline. And, I actually had someone from another industry giving me a hard time about that figure at one point.
My response was that if you don’t set a guideline, you’ll either overspend or underspend. Then again, 10% is a good figure once you’re up and running, but 10% of nothing, or 10% of a few hundred bucks is not enough to get your business off the ground and make it grow.
Just Make Sure You Spend It On What Works
Just remember, a lot of what you spend on advertising early on will be to find out what works and what doesn’t in your area. To save you some money, things that are working well for instructors right now are:
- Internet/SEO
- signage (permanent/building, snipe signs, banners, vehicles)
- door-to-door fliers and door hangers
- direct mail (postcards are cheapest – but this takes a sharp marketer to do right)
- social media marketing
And remember, getting press coverage is free. Hire someone to write your press releases if writing isn’t your forte, or trade service for service.
Posted by Mike Massie on February 2, 2010
“But I Can’t Do That In My School Because Of…”
Your services are likely worth much more than you think they are. So long as you set your prices lower than your value, you will never experience the true potential of your success.
Last week I sent out an email that listed actual enrollment numbers for three members of the Martial Art School Alliance website.
These are three instructors who are kicking tail despite the down economy. And, one of them actually lives in an area where the unemployment level is 15%.
It just goes to show you can succeed in this economy, and that most of the things we think are holding us back from being successful are internal and self-imposed.
Which bring me to today’s topic…
What To Charge, What To Charge
Earlier today, I received the following question from a reader regarding that email:
“Even with their below average facilities, do you recommend them charging $99 a month?”
People quote me on that $99 a month figure all the time (and the 10% of your gross for marketing – it’s a guideline, people, not an unbreakable rule) and I have to remind them that was the absolute lowest I thought a school should charge…
Back in 2003.
Seven years later, your cost of doing business has increased significantly. You need to be charging at least 20 – 30 % more today than you were seven years ago. That is, you should if you want to have something left over after overhead, taxes, inflation, and the sinking value of the dollar are done with your revenues.
They Are Doing What With What?
For the record, two of those guys have nice schools. Jim is the one teaching out of a warehouse facility, and he is doing phenomenal at it due to having the right mindset and being an awesome teacher and coach. (And actually, I kind of like his school… it takes me back to when I first started training. Who needs heat and AC, anyway?)
But here’s the kicker – all three of these guys charge about $150 a month average in tuition.
Now, I know for some of you out there this isn’t a shocker. You’re already charging that much or more.
But for many of you, you’re thinking that’s an impossible figure to charge your students for lessons.
Some of you are outraged, thinking these guys are ripping their students off (baloney – every one of them is worth that and more). Others of you think they must have something you don’t in order to demand those rates. Still others of you are wondering if I’m even telling the truth.
And that’s why you’re always broke.
You Can Lead A Horse To Water…
I’ve argued and argued this point for years. Well, I’m finally sick of arguing and fighting with instructors about how much to charge.
For those of you who are willing to believe your value merits charging a premium for your services, outstanding. You deserve to be successful and well-respected. Just keep adding value to your services and bringing value to your communities and you’ll continue to be rewarded for it.
But for those of you who don’t want to believe you can charge a premium for your services, for whatever reason, that’s fine by me as well. You can stay broke, while instructors who know their value will have nicer schools, better equipment, higher salaries, and a better quality of living.
Not because they have something you don’t.
No, it’s because they have the proper mindset for success.
Until next time,
Michael D. Massie
P.S.: I am inundated with requests for “free” advice these days. I am simply too busy to give away my valuable time and knowledge for free, as it’s a disservice to my paying clients.
Remember, if you are a MASAI member you can almost always get your questions answered at no additional cost in the member forums. However, if you need to correspond with me by phone or email for help with a pressing business issue, please visit the MASAI online store and order phone or email coaching with me.
Thanks for your understanding!
Posted by Mike Massie on January 25, 2010
When you know how to get publicity, it's easy to get your business in the news...
One of the best things I ever did for my school was to learn how to get publicity.
In fact, I credit it with much of my early success, since I had almost no money or credit when I started my first school.
And, that’s a lot of the reason why I was able to go from ZERO students in a town where I knew NO ONE…
To over 150 students in under two years.
The Best Things In Marketing Are FREE… Or $10 In This Case
And the best thing is – it’s FREE… and anyone can do the same thing, if they know how.
Well with the economy being what it is, I’ve decided to start releasing a series of killer reports at the low, low cost of just $10.
And, the first one tells you how to do exactly what I did to get all that publicity…
Not only that – it also explains how to leverage the internet to get even MORE media attention for your school.
Don’t wait – the price is going up at the end of the week.
Get it here for just $10:
http://thepressreleasetemplate.com/
Posted by Mike Massie on January 23, 2010
Why It Pays To Hire A Professional SEO
All this stuff may be confusing to you, but you still need to get a high search ranking in Google for your business.
So, Gary is one of our Fighting Fit and Self Defense program instructors who is starting a school right now. He’s hired me to do some additional online marketing for him, first to create a custom blog, and now most recently he took me up on the SEO offer I sent out yesterday…
So, yesterday afternoon I went to work on his SEO campaign.
As of this morning, he has 4 of the top ten listings in Google for two of his most important keyword phrases in Google. Not only that, but the main site we’re driving traffic to went up about 2 – 3 spots in the rankings for those keywords as well.
Of course, there’s a lot more work to do… I won’t be satisfied until he has three of the top five spots for his keywords.
The Importance of Having A High Search Ranking In Google
Why is this so important?
Because, here’s the breakdown of the average clickthrough rates for the top ten listings for any search engine results page in Google:
Spot #1: 42.3% of clicks…
Spot #2: 11.92% of clicks…
Spot #3: 8.44% of clicks…
Spot #4: 6.03% of clicks…
Spot #5: 4.86% of clicks…
Spot #6: 3.99% of clicks…
Spot #7: 3.37% of clicks…
Spot #8: 2.98% of clicks…
Spot #9: 2.83% of clicks…
Spot #10: 2.97% of clicks (not a typo)
Obviously, it pays to have the higher search ranking spots in Google for the most important keywords in your local market.
And, the results schools get when they do bear this out. In a mid-size market (a town of about 100,000 in the Midwest) one school owner I know of gets 60 leads a month from his website…
And wouldn’t you know it, he has the number one spot in Google for “(his town) martial arts”. I know this because one of his close friends is thinking of hiring me to do the same thing for him in his own town.
So, imagine what it could do for your business to dominate the top five spots in Google for “(your city) martial arts” in a large metropolitan area?
Or, even in a smaller town – even ten leads a month (actually, I was getting 5 – 10 leads a week in a town of 10,000) could make a huge difference in your bottom line.
If You Want To Dominate The Search Engines In Your Area…
I still have one spot left for a school who wants to achieve multiple top ten rankings for their school in the next 90 days. Call me at 512-535-6858 if you’d like to get started (leave a message on my voice mail if it’s over the weekend). Remember, I guarantee my work – packages start at $399 per month, and if you don’t get results in 90 days I keep working for free until you do.
- Mike Massie
P.S. - No lie, that’s a deep discount off my “real” rates because I know the martial arts market so well. It makes it easier for me because there’s less research involved. So I can charge martial arts school owners less for the same results. But the downside is, I have to limit how many packages I sell at that rate. Sorry, but I can only take so many clients at that deep of a discount.
P.S.S. – If you want to know more about my internet marketing firm, check out http://moderndigitalmarketing.com.
