NAFSA’s Marketing and Recruiting Network Practice Resource: Working with Agents A Cautionary Note / Introduction – Cheryl Darrup-Boychuck, Owner / C.I.E.O., USjournal.com The Benefits of Working with Agents – Diana Forman, Manager of the Americas, ICEF Inc. Developing Agent Contracts (Samples Included) – Kara Bundy, Marketing Coordinator, English Language Programs, University of Pennsylvania Additional Online Resources – Kemale Pinar, Manager of the International Recruitment Center at the University of New Brunswick in Canada

A Cautionary Note Cheryl Darrup-Boychuck is the Network Leader for NAFSA’s Marketing and Recruiting Network, 2007-09. She owns and operates USjournal.com, LLC and its family of 16 multi-lingual sites, all dedicated to encouraging non-U.S. students to learn more about studying in the USA. Darrup-Boychuck has been presenting at NAFSA Regional and Annual Conferences for more than ten years on topics such as eRecruitment and measuring Return on Investment in international student recruitment. The topic of commission-based promotion generated the most robust and passionate discussion to date on NAFSA‟s Marketing and Recruiting Network within the Recruitment, Admissions and Preparation Knowledge Community. It‟s no wonder: As demand for overseas education soars, so too does the competition to appeal to the most qualified students in the world.

One element in international education that has not increased exponentially is the marketing budget of most U.S. campuses. Colleagues are struggling to boost enrollments in cost-effective ways.

At first glance, engaging agents appears to provide the most efficient Return on Investment, as agents

are typically not paid their commission until the referred student arrives on campus. But beware: There‟s much more to the story. Seasoned colleagues know that investing in a healthy and transparent relationship upfront is critical to the success of commission-based recruitment.

A number of colleagues have expressed legitimate concern about the overall concept of commission-

based recruitment, and how it epitomizes the gross commercialization of higher education. The potential for conflicts of interest abound. Are agents working in the best interests of the students, or are they more concerned with their own financial gain? How can you be sure the agents, thousands of miles away from your campus, are not misrepresenting your institution? Who can you trust?

Engaging commission-based agents is a serious matter of international student recruitment, and should

not be taken lightly. As the practice gains popularity, particularly in the United States, NAFSA‟s Marketing and Recruiting Network will provide the very latest insight on the ever-evolving trends. While this Practice Resource lays the foundation, I invite you to review and contribute to our continuing online discussions. Stay tuned. ###

The Benefits of Working with Education Agents

Author Diana Forman is Manager of the Americas for ICEF GmbH, a global leader in student recruitment workshops. Founded in 1991, the German-based organization has successfully organized more than 60 workshops in 21 locations around the world. ICEF’s objective is to bring together quality education providers with selected study abroad agents.

Why work with education agents?

Globalization has propelled the demand for overseas education to an unprecedented level. More students than ever wish to study abroad, and the growing wealth and new emerging middle classes in many economies are allowing larger numbers of students to do so.

As the number of students is growing, so is the competition among education providers from countries such as the USA, Australia, Canada, UK and Ireland. Further competition comes from a growing number of international programs based in non-English-speaking countries, which can often offer attractive alternatives to traditional study abroad destinations. New marketing initiatives are needed to retain or grow your market share.

Educational institutions wishing to recruit foreign students are faced with the same problem as any other exporting company: How do we bring what we are offering to the attention of those interested in buying? How can we successfully penetrate a market? Outsourcing your student recruitment to education agents is a strong marketing solution. An agent will represent your institution consistently in his or her own country or region on a year-round basis. What is an education agent?

An education agent is an individual, company or organization that provides educational advice, support and placement to students in a local market who are interested in studying abroad. There are different types of education agents that you might encounter when seeking a representative abroad. ► Educational referral agents and representatives: This type of agent represents a selected number of educational institutions, often specializing in a number of programs and destinations. Usually an agreement has to be in place before agents in this category will start representing an institution. ► Study abroad advisors: These professionals work from international advising centers, providing general information about study abroad opportunities, often under the umbrella of a public organization. ► Travel agents with an education division: These agents will sell educational programs in addition to other travel packages. Although many education providers initially shy away from working with travel agents, they do make good educational representatives. Travel agents often have a solid and wealthy customer base, premises in good locations, good English skills and familiarity with visa administration and international currency transactions. Low profit margins in the competitive travel industry give them an incentive to invest in educational departments as a means of expanding their business. What can an education agent do for you?

Professional educational advising is increasingly seen as a must-have service. In many countries, it is common practice for prospective students to use an education agent when seeking placement in a university or college abroad. In some countries 60 – 80% of international students are assisted by education agencies and advisors. An education agent will be able to: ► Represent you to potential students on a year-round basis.

► Provide you with up-to-date and reliable market information and tell you which programs local students are currently seeking. ► Distribute your promotional materials on a regular basis. ► Advertise in targeted local student media on your behalf. ► Represent you at local student fairs and exhibitions. ► Pre-arrange appointments and speaking opportunities for you. ► Provide you with a local office infrastructure when you visit the area.

With their local knowledge, education agents can help you plan and streamline local marketing such as advertising or mail shots, which will make your marketing in a specific country or region more successful and cost-effective. Advantages of recruiting students through education agents

As well as realizing greater marketing efficiencies and cost-effectiveness, there are many other advantages of outsourcing student recruitment to education agents: ► An agent is a trustworthy and accountable local person in whom students and their parents can confide and contact easily in their own country and language. This is especially important to students who are choosing a long-term study program. ► The agent will be familiar with both the education provider‟s course offerings and strengths, as well as the student‟s profile, needs, expectations and abilities, and should thus be able to suggest a good match. ► Agents provide useful value-added services to students. For instance, they can help with student application forms, taking care of travel arrangements, insurance, accommodation or exam preparation. ► Visa assistance: If a visa is needed it is usually easier for the agent to apply to the respective consul section, as they will likely have developed a good rapport and reputation with this office. They can help students fill in application forms and guide them through the interview process. ► Agents also give valuable counseling, saving students‟ time and helping them make their decision by providing useful information (e.g., about the study location, local transport, the cost of living, weather, social etiquette, cultural and social life, food, etc.). ► If needed, agents can provide telephone and email support to students once they are overseas.

These counseling and value-added services greatly assist prospective students and improve your institution‟s “application/admission” conversion rate, as well as considerably reducing your admissions department‟s workload.

At the same time, agents will help you diversify your enrollments. Building up an agency network lets you recruit students from a number of countries without having to market your programs in these countries individually, which can be very costly. Agents can provide fast and direct access to specific local markets, helping you recruit large numbers of students quickly and efficiently, at comparably low cost and risk. Once a network of agents is established, it will cost relatively little to service.

Building successful and productive relationships with education agents

You will achieve best results by building solid and long-term partnerships with the agents you choose to work with. They should feel an affinity with your institution and you should be prepared to provide guidance and marketing tools (such as brochures, posters, promotional videos, DVDs or CD-ROMs) whenever needed. Best practices include: ► Ensuring that the agent‟s promotional materials are regularly updated, and if possible, produced in the representative‟s own language. ► Encouraging the agent to visit your premises, as they will find it much easier to market an institution they have seen for themselves. Receiving an agent will also help to build rapport between your staff and the agent, facilitating day-to-day relations once the agent has returned to his or her home country. ► Responding promptly to the agent‟s enquiries. ► Producing an agents‟ manual containing relevant contact information, program descriptions, accommodation options, details of student services, financial aspects (fees, payment, cancellation procedures, bank account information, etc.). ► Keeping your institution‟s profile high with the agent by sending regular updates or a newsletter.

Outsourcing your student recruitment to education agents is one of the most cost-effective ways of establishing your institution in specific markets on a long-term basis. The agent‟s knowledge will help you penetrate the market, find new student sources and help you increase your student intake from these areas quickly and effectively. If agents and education providers work hand in hand then both parties win – education providers and agents alike will grow their student enrollments. The student also ultimately gains through being placed in an appropriate institution with a minimum of administrative effort. ###

Developing Agent Contracts (Samples Included)

Author Kara Bundy is the Marketing Coordinator for the University of Pennsylvania English Language Programs in Philadelphia. She is an active member of AAIEP: American Association of Intensive English Programs and UCIEP: A Consortium of University and College Intensive English Programs. Bundy extends her appreciation to Allison Cavopol of the International English Institute in Nashville, TN for her contribution the resource.

Once a program has properly vetted an agent, the program must work with the agent to develop a mutual understanding of the nature of the relationship. Though some programs choose to work with some or all agents in an informal manner, it is advisable to enter into a contractual agreement in order to ensure transparency and clarity of the business relationship. While the program may elect to allow non-contracted agents to continue to refer students, a contract is a way to distinguish those agents who have been vetted, formally convey the program‟s commitment to supporting the agent, and establish the expectations and responsibilities of both parties. Guidelines for Developing an Agent Contract

If the program has a legal department or is part of a larger institution that has a legal department available, it is wise to have the legal department review your template contract. Often there are requirements for statements regarding liability or breach of contract.

Contracts should contain the following elements: Expectations and Responsibilities

Outline all expectations and responsibilities including training of counselors, contact with the program, whether a visit to the campus is required, etc. Some programs also include their responsibilities to the agent. Make sure to include provisions regarding the following:

Exclusivity - The program must determine whether they will contract with agents as the exclusive representative in the home country, or if they will contract on non-exclusive basis. Many agents tout themselves as THE ONLY representative of a program so it is important to state specifically if that is not the case. Minimum Referrals - Some programs choose to set a minimum number of referrals required to maintain the status of the agent. For example, they may require three student referrals per year and if the minimum is not met, the contract is terminated. Representation of Institution or Program - If the program is based on a university campus or is part of a larger institution, it is important to note whether or not the agent has the right to represent any other part of the university or institution. Logo Usage and Marketing - The program should detail the rules regarding usage of the program logo and information. It is advisable to require that the agent submit any marketing materials to the program for approval prior to publishing. The program must determine whether they will require the agent to translate the material into English or whether they will find someone on staff capable of translating.

Recognition of Agent Status

Most programs supply their contracted agents with a certificate that can be displayed in their office as proof of their agent status. Commission

It is essential to include language in the contract that specifies the amount of commission (percentage or flat fee) to be awarded and for which courses (e.g. commission may be higher for a technical versus general

English course). The manner in which commission will be awarded should also be detailed. Also be sure to include language on when the commission will be awarded (some programs only award commission after their session has started), whether the agent is required to return commission on canceled sessions, and how many sessions are eligible for commission (first session only or all sessions attended by the referred student).

The program must also decide whether to require agents to tell their students that they are receiving commission. Please note that some agents, in addition to receiving commission, charge the student an advising fee. It is important to state in the contract

a) whether the agent must disclose this amount to the program and b) whether the agent is expected not to charge the student an additional fee.

Commission Structure - Some typical commission structures include a flat fee referral amount (e.g. $150 per student), tiered system (i.e. commission amount goes up as the number of referrals increase), timed support (i.e. quarterly or yearly payment to the agent, regardless of number of referrals) or set percentage. In surveys of Intensive English Programs, 15% is consistently given as the average compensation. Programs vary on whether tuition is granted on tuition only or the total package. Most programs make this determination based upon their structure and what costs they can control. Method of Awarding - The three main methods of awarding commission are:

1. By application - With each student enrollment, the agent collects commission by collecting the gross fees from student and forwarding the net amount to the school or by collecting the commission from the student as a deposit, and directing the student to pay the net amount directly to the school.

2. By session - At the start or end of the program‟s session, the agent invoices the program for all referrals for that session.

3. By time period (quarter, year) – The program pays a set amount to the agent at timed periods, regardless of the number of referrals, or the program pays the agent on a per-student basis but only at certain times of the year (i.e., the program pays for all students referred in the academic year at the end of the year). Please note that the method of awarding commission may vary by country, depending on the country‟s

laws regarding money leaving or entering the country and associated fees. It is best to discuss the options you have available with the agent to determine whether your methods will work within the parameters of that country‟s laws.

The program must be realistic about their own administrative capacity and determine a method for

tracking and verifying agent referrals. Length of Contract

Most programs have a specified end date on their contract. The contract can easily be renewed at the end of the agreement, based on agent performance. Most programs‟ contracts are written for one- to three-year periods. Some programs elect to start the agent with an initial one-year contract and renew for a longer period once they have determined that the agent is performing well and to the standards of the program. Standards

If the program is a member of a professional organization (such as AAIEP, UCIEP, CEA and NAFSA), it is important to note the standards of those organizations or include language that will help the agent adhere to the recruiting standards that your program is expected to follow. For example, the Commission on English Language Program Accreditation specifies, “If there are agreements with a recruiting agent, the institution or program ensures that it has complete information about the agent and assumes the responsibility for monitoring the agent and terminating the agreement if necessary.” http://www.cea-accredit.org/standards.php#recruiting Conditions for Termination

It is essential to include language that allows either party to terminate the contract with sufficient notice. The program can determine whether to leave this statement ambiguous or describe the conditions that would lead to termination. If the program has a grievance procedure for agents, describe it in the contract.

1

NAME OF SCHOOL Right of Representation

Agreement of right of representation between the Trustees of the NAME OF SCHOOL on behalf of the NAME OF PROGRAM (hereinafter called “NAME”) and _________________ (hereinafter called “Representative”). Hereby witnesseth as follows: 1. The NAME hereby appoints Representative as non-exclusive representative in _________ (country) and hereby grants Representative the non-exclusive right to advise and enroll prospective students into NAME programs. 2. This Agreement shall remain in full force for a period of three years. However, either party may terminate this Agreement by giving at least thirty (30) days written notice to the other party. Within ten (10) days of receiving said written notice of early termination, the other party shall acknowledge receipt in writing. 3. Representative shall agree to abide by NAFSA’s criteria for ethical and responsible recruitment of foreign students (“Wingspread Principles” NAFSA 1980) and agree to provide to prospective students full and accurate information about the NAME, including but not limited to its enrollment procedures; costs for tuition, fees, room and board, and incidental expenses; academic offerings; and facilities. Further, Representative agrees to comply with all applicable laws, statutes, ordinances and regulations in connection with its provision of services under this Agreement. 4. The NAME shall provide to Representative a certificate of representation, which Representative shall display in its office in a prominent location. Representative agrees not to photocopy or otherwise duplicate this certificate without NAME’s prior approval. Immediately upon termination or expiration of this Agreement, Representative shall return said certificate to NAME. 5. The NAME shall provide to Representative a supply of brochures, enrollment forms and other promotional material, and upon request shall replenish said supply. 6. The NAME conditionally authorizes Representative to use the official seal and logos of the NAME OF SCHOOL in the Representative’s promotional literature of NAME programs. Authorization is conditioned upon written approval from the NAME for every instance of any such use prior to publication. The NAME grants Representative permission to use only the name, OFFICIAL NAME. Representative may not use the name of any other Program, Department, or School of the University. 7. Representative will collect the enrollment fee from every student it enrolls into NAME and forward it to the NAME prior to the start of the student’s classes along with the completed enrollment form. In consideration for its service to the NAME, Representative shall collect from each student it enrolls, and is entitled to retain, fifteen percent (15%) of the tuition for SPECIFY PROGRAM(S) specified in the enrollment form. Representative will collect above amounts as a deposit from students. Representative will direct students to pay the remaining tuition (85% or 90% respectively) and all other fees to the NAME upon their arrival on campus. Arrangements for recognition of Representative’s service in enrolling students in other NAME programs (special) will be made separately.

2

8. Representative agrees to refund to the student any commission collected for sessions that the student does not attend. 9. Payment for housing and dining are governed by separate procedures as specified in the Housing Application form. 10. Representative agrees to indemnify, defend and hold harmless the NAME and the NAME OF SCHOOL and their trustees, officers, employees, agents, successors and assigns against and from all claims, actions, suits, liabilities, costs and expenses whatsoever and whensoever arising out of or connected to Representative’s provision of services under this Agreement. 11. Representative acknowledges and agrees that it is an independent contractor and is not an employee of the NAME OF SCHOOL or NAME for any purpose whatsoever. 12. Representative understands that this Agreement is entered into with the NAME and does not constitute an agreement for Representative to represent the NAME OF SCHOOL as a whole or any of its constituent parts other than the NAME. 13. This Agreement shall be construed in accordance with the laws of the STATE IN WHICH PROGRAM IS LOCATED. 14. Representative hereby acknowledges reading and receiving a true and exact copy of this Agreement and that it contains all the terms and understanding between the NAME and Representative. In witness whereof, and intending to be legally bound hereby, the parties hereto have executed this Agreement on the ______ (date) day of ______,____ (month, year). Representative NAME By ________________________ By ________________________ Title _______________________ Title _______________________ Date ______________________ Date _______________________

Working Agreement between NAME OF PROGRAM

LOCATION, USA and

NAME OF PROGRAM REPRESENTATIVE Individual Agent’s Name, Country

The above named Intensive English Language Program in LOCATION, in the United

States, and the above named agent in Country, enter into the following working relationship in order to provide opportunities for language and cultural exchanges. Foundation Documents:

PROGRAM Mission Statement: (cut and paste in its entirety)

American Association of Intensive English Programs: Standards of Marketing and Recruiting (attach to this document)

In any Working Agreement between PROGRAM and the REPRESENTATIVE, both

parties acknowledge that the above PROGRAM Mission Statement and the attached professional standards are the foundation for the present and future relationship. By signing this agreement each representative acknowledges this foundation and agrees to act ethically, always keeping the student’s best interest paramount. Responsibilities of the PROGRAM:

• PROGRAM agrees to fulfill its Mission Statement in relation to each student whom REPRESENTATIVE sends to PROGRAM.

• PROGRAM agrees to provide quality language training in an efficient, well organized, academic setting and in a safe, comfortable, and modestly inexpensive part of the United States.

• PROGRAM agrees to provide its representative with a full range of advertising and promotional materials about PROGRAM and its host cities’ LOCATION.

• PROGRAM agrees to provide a commission of $X of the first-term tuition. This commission is payable in a way helpful and appropriate to the representative. If the agency collects and transfers tuition and fees for multiple terms, the agency may multiply and retain the above commission by the number of terms for which fees are transferred. A gross and net invoice will be provided.

• PROGRAM agrees to provide support services for each student who needs airport pick-up, help in locating accommodations, and day-to-day living, as well as in obtaining admission to the next level of academic study.

• PROGRAM agrees to provide a report of the student’s academic and social progress at the end of each academic term as appropriate, or as requested.

Responsibilities of the REPRESENTATIVE:

• REPRESENTATIVE agrees to study the PROGRAM Mission Statement so that REPRESENTATIVE understands PROGRAM’s commitment to each student.

• REPRESENTATIVE agrees to abide by the standards of ethical conduct as they relate to an authorized PROGRAM sponsor.

• REPRESENTATIVE agrees to study the PROGRAM materials in order to provide each prospective student with a clear description of the PROGRAM, expenses, and accommodations in LOCATION. It will be helpful if in due course each person who represents PROGRAM can visit LOCATION and observe the PROGRAM in progress.

• REPRESENTATIVE agrees to distinguish clearly between any charges to the student for services rendered in admission to PROGRAM and document processing by the REPRESENTATIVE, and those expenses published by PROGRAM for tuition, fees, and accommodations which the student will pay to PROGRAM in advance by wire transfer or will pay upon arrival.

• REPRESENTATIVE agrees to help the student in document processing, transfer of funds, and visa application to the United States Embassy, as well as travel arrangements to the United States.

• REPRESENTATIVE agrees to inform PROGRAM of the student’s arrival plans in the United States, so that proper meeting of students can take place.

• REPRESENTATIVE agrees to receive, if desired, reports on the academic and social progress of its students and agrees to support any appropriate and necessary disciplinary actions, and if appropriate, communicate this information to the family or in-country sponsor.

In Conclusion:

These principles of a working agreement are acceptable to the representative of each of the above parties, as indicated by their signatures and their dating of the agreement. This agreement may be discontinued by either party upon written notice, effective upon completion of responsibilities to any current student(s). PROGRAM REPRESENTATIVE Name: ____________________ Name: ____________________ Title: ____________________ Title: ____________________ Organization: ____________________ Organization: ____________________ Date: ____________________ Date: ____________________ Location: ____________________ Location: ____________________

Additional Online Resources AAIEP (American Association of Intensive English Programs) Standards for Marketing and Recruiting: http://www.aaiep.org/about/standards#marketing The Australian Government's Education Services for Overseas Students (ESOS) http://aei.dest.gov.au/AEI/ESOS/Default.htm The British Council‟s Guide to Good Practice http://www.britishcouncil.org/eumd-services.htm China Education Association for International Exchange http://www.ceaie.edu.cn/ Commission on English Language Program Accreditation (CEA)‟s Recruiting Standards

http://www.cea-accredit.org/about-cea/standards.html The Federation of Education and Language Consultant Associations http://www.felca.org/ Global Student Mobility Data (IIE's Open Doors and Project Atlas) http://www.iienetwork.org/

ELS - American Education Centers' Journal of International Student, Spring 2009http://www.elsaec.com/partner_materials.shtml Additional NAFSA Resources NAFSA's Statement of Ethical Principles "Recruiting's Brave New World": an article from the November/December 2009 issue of International Educator magazinehttp://www.nafsa.org/_/File/_/novdec09_recruiting.pdf Guide to International Student Recruitment, 2nd editionEdited by Linda Heaney