Fill Your Seats
Seems fairly obvious, but indulge me.
I talk to school owners all day, who’s enrollment ranges from a handful to several thousand. And, regardless of their class size, the primary topic we always discuss is how we can grow their school. Every owner has a unique vision on how to do this, including social media marketing, creating a wait list or purchasing an existing school with guaranteed enrollment, just to name a few.
And guess what - these all work! We have partnered with schools who leveraged a waiting list and existing enrollment to fill their class seats. We have also interviewed countless students who moved across the country to attend a school they found on Tik-Tok or scrolling through Instagram. It’s obvious that high-quality technical schools can pump out unique content, but it takes a lot of work, creativity, coordination and effort to do so.
At Mia Share, we have a simple solution that can quickly fill seats with little to no work from the school- fill every available seat using an Income Share Agreement. Now, if a student is able to pay cash, that obviously comes first. Or, if a student is able to secure a grant or state-funding - no brainer! But, with those students who do not have cash readily available or do not qualify for additional funding, an Income Share Agreement can be the solution to fill those remaining seats.
After talking with several admissions reps and school administrators, they’ve all had to deny potential students because of funding or financial constraints. These talented students (and eventual alumni who refer future students) are turned away. It breaks their hearts to do so, but you can’t just give away tuition!
With an Income Share Agreement, that potential student can become a reality.
1. The student puts down a non-refundable deposit. This ensures that the student puts “skin in the game.” Many schools charge a deposit of 10% of tuition cost. So, if your tuition is $10K, the deposit should be around $1K. Remember, this is YOUR deposit. That’s why the deposit should be enough to make it sting if the student decides to drop out. Again, in conversations with hundreds of school owners, a deposit is always agreed upon. This next part is where we see some schools get nervous about filling seats.
2. Obviously, there are costs with running a school. Payroll needs to be met, lights need to be on and the internet needs to flow. If you have not done so, I urge you to figure out what it costs to teach that next student. This is where every school within every industry differs. Educating a welding student is much more expensive than teaching an online coding student. Once you come up with that analysis, simply multiply that cost by how many open seats you have.
For example, it costs $5,000 for the next welding student, and the school has 5 open seats for its' upcoming June class. If the school enrolls 5 students with an ISA (meaning the students pay for tuition after they graduate), the school will need to “cover” the $25,000 (5 students x $5,000). Remember, the school has the deposit coming in at $1,000/per student, so the school really needs to cover $20,000.
3. Here’s where things get really interesting! As soon as the student graduates and finds a job, they will report their income to us and make payments that we pass through. Our program is simple and user-friendly. Let’s use our example above.
Of these 5 students, 3 may earn a great income, 1 could earn a low income and 1 may still be looking for a job. Because the incomes of these students will vary, the repayment amount will vary. By filling these empty seats from the get-go for a small investment, you will receive your tuition and then some, along with (and most importantly!) supporting even more students to find success and earn a living.
Partner with Success
At Mia Share, our entire system is built to service and support students through their education journey - from application to job searching to reporting through our customized platform. We’d love to help you calculate your marginal student costs and show you your future revenue projections. As the student repays, we collect those funds and send them directly to the school. We work to do this until the student has completely filled their obligation.
The best part of ISAs is they are always affordable for the student. Unlike a loan, the repayment process is determined by their income. So, if a student’s ISA is 6.5% of their income and they make $3,200, the student will pay $208 per month. If they have a huge month with lots of overtime and make $4,750, they will pay $308.75. This amount may fluctuate as it will always be 6.5% of their income. In other words, it’s manageable and feasible for the student and the school.
If you have empty seats in your upcoming class, it makes sense to fill them with an ISA student. For a small investment, you (and your students) will be reaping the benefits in the future!