Time to refocus.

As you are reading this we have come off of several of the biggest martial arts movies in recent memory.  “Forbidden Kingdom” did respectably opening at #1, the “Kung Fu Panda” went crazy with co-promotions everywhere you looked and $100,000,000+ in it’s first 10 days.  Admittedly “Never Back Down” and, “Red Belt” both had modest success.  Interesting during the UFC MMA Boom the two MMA movies bombed (personally I liked them both) and the “traditional” martial arts movies thrived.

Now, summer is winding down and it’s almost time for “Back to School.”  At the same time Jet Li is back in his next starring role, this on in the Mummy.   Jackie Chan and Jet Li are setting things “on-fire.”   Jackie Chan was in “Forbidden Kingdom” and in “Kung Fu Panda.”  Jet Li is in both “Forbidden Kingdom” and “The Mummy.”

I’ve said for years that I yearn for the “Karate Kid” Days.  Well, I truly believe they are back again.   I know that with the NAPMA Promotions that I put together that many schools generated 20, 30, even 50 or more “Intros” in a couple of days.  I’ve heard of several who attribute 40 or 50 enrollments in June to their work with “Kung Fu Panda.”   It just doesn’t get better than that.

As an aside…. Please send me feedback on your results.   Whatever you’ve implemented with great success let me know:  StephenOliver@MileHighKarate.com

We encourage you to send us your best ads, promotions, and feedback on successful implementation of current or past promotions.   We’ll feature some of the best at the upcoming Extreme Success Academy.

The “Master-Mind” effect.

I’ve just talked with each of my coaching clients and returned from the “Inner Circle” and “Peak Performers” meetings in Florida.  There’s HUGE growth among many of these school owners.  They are aggressively benefiting from the “Master-Mind” effect and growing their schools DRAMATICALLY.  If you are at $400,000 a year or more you really should be in Inner Circle.  It only has one or two seats open, however many school owners will join Peak Performers to be put on the “Waiting List.”  If you are grossing $100,000+ and are sincerely interested in growing to $300,000 or more (possibly MUCH more) then you should be a Peak Performers member.  Go to www.NAPMA.com/innercircle to complete the application and for a personal interview.

In the “Media Gets It Wrong… or, At Least Misleading” Category.

Just as I put last month’s edition “to bed” I received my subscription to US News in the mail.  On the cover is a shot of the coming “World’s Tallest Building”  in Dubai with the headline of “Where your Gas Money Goes….Record oil prices fuel the ambitions of the United Arab Emirates.”   Then the headline in the article (June 16, 2008, Page 33) is headlined:  “Riding the Oil Boom.  With money pouring in faster than ever, Dubai’s ambitions soar.”   In case you missed it I had talked about visiting Dubai.  It was an MBA trip (not mine, I graduated in 1992 for that program) and was a pretty comprehensive “behind the scenes” look a many businesses in Dubai.  Recently I just finished a book called “Dubai and Company” about doing business in Dubai & in the Gulf region (purely for academic “entertainment.”)

Anyway the first two pages of the article implies obviously that your gas money is going directly to Dubai.   That the incredible development of this “Fastest growing city in the World” is coming straight from your wallet as you fill up.   However, later buried in the article the author acknowledges:  “…Dubai has nearly run out of it’s own oil.  But Dubai has successfully turned itself into a post-oil-economy.”  Ok, well which is it.

Now, I don’t bring this up because you are likely to have a business interest in Dubai.  It was to me an interesting wake up call.   Now, I’m sure I read a bunch of stories, or skim them, on subjects that I know little or nothing about in Time, US News and the other news magazines (not to mention stories on TV, Radio, and the daily newspapers.)   This just happens to be one that I knew something about.  I realized immediately that probably the reporter was writing an interesting story on the growth of Dubai.  Somewhere along the line they decided they needed a “hook” to get you to read it and to frankly get you emotional about it.  Well, it’s in the middle east… why not make it about where your gas dollars go?

They do acknowledge (which you should learn from) that the city’s secret is a unique combination of marketing acumen that would make P.T. Barnum proud and an unusually tolerant society that has thrown it’s doors open to foreigners.”   In fact, their primary targets are tourists from the U.K. (the airlines even bought naming rights for the largest football (Soccer) stadium in London,) and Australia.

Interesting member questions.

I’ve spent an enormous amount of time pouring through member surveys.  I’ve read each one that’s come in.  We’ve copied all of them and put in notebooks for each and every NAPMA staff member to review.   I am planning on answering as many of the questions asked by Maximum Impact, Peak Performers, and Inner Circle members as possible – here and in NAPMA Now with the “Basic Toolkit”

This is from Jose Marti.  Traditional Karate America.  178 Harris Road, Bedford Hills, NY.  He’s a Maximum Impact member who should be in Inner Circle.  Teaching over 300 students and grossing over $50,000 a month after just 4 ½ years in business.

He asks “How do you get $300+ for Leadership Programs?  … I currently charge $225 per month.”

It’s an interesting question.  I’ve heard it many times.  Among the EFC Board Members I used to get two questions:  How do you get someone to write a check for $12,000  - $20,000 for “Karate Lessons?”  or, Jose’s question.. how do you charge so much.”

Well back at those meetings.. Keith Hafner could parrot me now without a moment’s hesitation, my answer was always the same:  “Ask.”

Now I know that’s overly simplistic.  However, the first hurdle most must make whether it’s asking for higher down payments, big paid in fulls, higher payments for leadership or other programs is to “grow a pair.”  Now, I don’t want that to sound overly crude but, really it’s mostly a matter of being willing to ask.

Ask expectantly.  Ask congruently.  Ask sincerely.  Ask confidently… really practice it in the mirror first, and be willing to get a few no’s before you get good at it.

After that I think the answer is a little more complicated.   What I tend to find is that most school owners really don’t give great service and have created a curriculum around their own personal “hobby” rather than truly what students need or want to learn.

Coaching client Miko Peled was with me in Denver for two days recently on a consulting day and “behind the scenes” tour.  His observation, not mine, was that what he most learned (contrary to expectations) was about the depth and quality of the character development and personal development curriculum that we’ve developed.

He observed that EVERYONE, staff, franchise owners, instructors, senior staff were polite, great people, professionally groomed, and sincerely happy to be working with students and growing their schools.   It’s really important to implement your own “No Assholes Rule” (Pick up the book by the same name) – and, to make sure that everyone in your environment (down to all of the senior ranked students) really are walking, talking, breathing “Products of the Product.”   It’s easy for parents or students to justify the tuition if they are surrounded by people “who are what they want to be.”

I’ve had the debate from time to time with Dan Kennedy. He says that selling doesn’t have to be “congruent,”  using the example of seeing the idea of not having to do manual labor while traveling around the country doing exactly that.  My experience in our environment has always been the opposite.  I’ve always been a BIG believer in the “Everything Counts” philosophy.

Do you want to “sell success?”  Well make sure you and all of your associates and staff are successful.  Want to sell a high priced leadership program?  Make sure you and your staff and associates all exhibit impeccable leadership skills.

Now, I’ve seen the opposite.

The instructor drives up in a beat-up old Toyota with a “penthouse pet” air freshener on the rearview mirror.  Has a weird haircut and a “Budweiser” t-shirt.  Changes into his martial arts uniform and reads the “script” about leadership development then tries to talk the parents into the “leadership program.”   I’ve got to tell you that many, perhaps even most owners don’t adequately police their environment and people.  They’re willing to tolerate sloppiness and “incongruent behavior.”

I walked into a “Kung-Fu Panda” promotion at a local theater being organized by one of our franchise owners.  I immediately pointed out that the cute 9 year old kid front and center handing out passes had a “Mohawk” haircut.   Told the owner that he should tell the kid to fix his hair (he was a Demo Team member & SWAT member and Red Belt.) and regardless shouldn’t have him at a public event unless he did.   “Everything counts”

Now, especially if you are teaching kids.  It doesn’t matter what the parent’s political or religious beliefs.  I’m telling you it’s impossible to be “too conservative” in relationship to sexual innuendo, alcohol, dress codes, hair styles, and the environment.

Now, I know it’s a long-winded answer.

However, do you want to charge $400 or more for a leadership program?  We’ll if so, everything counts.  Build the curriculum to REALLY teach leadership.  Base it on “7 Habits of Highly Effective People,” or “Westpoint Way of Leadership.”  Use the “Gold Reports” and the new program that we are working on to really teach character development.  Or, just join Mile High Karate’s team and we’ll give it all to you A-Z.

That leads me into another question.   Another member had as one of his questions “How do I compete with the Franchise Schools?  Now, given his other comments I know he was just trying to be a smart-ass.  However, it is a real question and desires a sincere response even if it wasn’t a sincere question.

My belief about our industry is that it is on the verge of “significant consolidation.”  If you look at many other similar industries many have ended up pushing the mom & pop organizations out for either large corporate expansion or franchise locations.  In a business like ours I’m convinced that that consolidation will come in the form of franchises not “corporate owned” chains.  Now, I may be proven wrong and it may be a combination of the two.  However, look at similar businesses like the Tutoring business.  It’s now dominated by Sylvan (1100+ locations,) Huntington, and Kumon.  Look at Fitness dominated by 24 hour Fitness, Golds, World Gym, Bally’s and a few others.  I sincerely believe we are next.   And, be clear franchising isn’t just for McDonald’s.  Ruth’s Chris is also a franchise as are many other high end establishments.

Now,  clearly one answer without sounding too self-serving is why fight it?  Why not figure out who you identify with and join in?   A great similar example would be real estate where Century 21 and then ReMax expanded quickly with “Regional Developers” and “Conversion Franchising.”   In ReMax the majority of the high performers joined with ReMax, maintaining their own identity while benefiting from the strength of organization that came from the ReMax network.  Identical to the structure of what we are doing with Mile High Karate.

In case you don’t know we’re recently clearly defined a couple of things that were “hurdles for some schools.”  I’ll blame our newest Regional Developer and Mile High Karate – Los Angeles school owner Les Connard for helping me define a couple of pieces.

Anyway a few of what we’ve decided in converting existing schools to our marketing, sales, business operations, and management system:

1.    “Open Style”

The Mile High Karate “Martial Arts Association” is optional.  All schools over-lay “Character Development” curriculum including Orientation, Leadership & Masterclub Levels I, II, III on to their existing “Physical Curriculum.”

All  MHK Martial Arts Curriculum is available in modular fashion and any piece may be used.   Schools required to have “Modular” approach and use MHK program structure.   Existing schools would be welcome to maintain their current Martial Arts Curriculum Association (ie. WTF, ITF, ATA, etc.) and their current instructor (Master Instructor) affiliation.   And, “Co-Brand” with Mile High Karate on uniforms and in their facilities.

Participation in the “MHK Association” is optional and if core curriculum is taught includes Black Belt certification for instructors and students through MHK association (not required for franchise participation.)

2.    “Co-Branding” name usage.  Schools primarily use Mile High Karate &
Logo associated (new version without “Stephen Oliver’s”.)  Are free to add their name &/or style in approved way for internal use and for ads not purchased in cooperation with other Mile High Karate franchises.   All marketing materials structures so that they can add their own photo and “resume” as well as specific location information.

3.    “Choice of Billing Companies” Any approved Billing Company may be
used. Any company with Which Mile High Karate has a cooperative agreement with may be used.  Others may be presented for approval.

4.          Royalty Structure
(longer phase-in, declining percentage as incentive for higher performance and to make it easier to bring in high performance schools)

Declining royalty Percentages based on performance:
9% up to:        $34,999
7.5%             $35,000 to $49,999
6.0%          $50,000 to $74,999
4.0%          $75,000 and up.

5.           An incredible array of “done for you tools” including a complete, sequential series of teleconferences, webinars, “infomercials” delivered by DVD for student retention and to facilitate the upgrade process.

Now, my desire 25 years ago was to in essence be Regional Developer for Jhoon Rhee working with him, Jeff Smith and the others in that organization.  Unfortunately that was never to be – for organization reasons on his end not for lack of desire on mine.  Truly I’d say why fight the tide.  Why not just join forces and improve your income, improve your lifestyle and avoid “reinventing the wheel.”

A Quick Aside…. “Extreme Success Academy”

I heard Tony Robbins at his Date With Destiny Seminar in Del Mar California say something that has always stuck with me.  Someone was talking about not being able to do an event or activity that was critical to their success.  His response was:

It you Can’t You MUST!

It’s always stuck with me since it is a marvelous way to REFRAME a “knee jerk” failure response to turn it around and take the necessary steps.   It was brought back to mind as some of our service reps at NAPMA relayed to me a couple of really dumb excuses that they’ve heard for not attending the Extreme Success Academy coming up at the end of September.

A series of valuable lessons…. See this month’s NAPMA Now (September) for complete observations on lessons from this interview.   This is just a brief “Reminder”

In the July and August packages you received part 1 and part 2 of an interview with my instructor Jhoon Rhee.  Jeff Smith and I have been associated with Jhoon Rhee for 45 and coming up on 40 years respectively.   If  you pay close attention to the interview and to the discussions we’ll have at the Extreme Success Academy there are many, many lessons to learn from Jhoon Rhee:

Lesson 1.   Early realization that commercial success was necessary.  Jhoon Rhee (as well as Bruce Lee) was openly reviled by many in the martial arts community.  Both for their “innovation” and their “commercialism  Clearly neither Bruce Lee or Jhoon Rhee had “hang-ups” about whether they should be making money from martial arts.  Jhoon Rhee described it to me in two ways:  First, it’s impossible to accomplish much of anything without financial resources.  Second, if you are providing a great service you deserve to be well compensated.

Lesson 2.    The Master-Mind effect.   You heard a little bit about the people that Jhoon Rhee surrounded himself with.   I can tell you from personal experience that his peer group and “Master-Mind” group was not the other guys running schools who were failing, making excuses, and failing.   Who was he associating with? He affiliated with the VERY top school owners he could find in the country and openly shared ideas with them (Chuck Norris schools among others.)

Lesson 3.    Immunity from Criticism.   Jhoon Rhee introduced many innovations. Overlooked may be the early ability to run successful commercial schools, with quality marketing and effective sales processes, teaching many thousands of students.  He managed to persevere throughout all of the criticism, ignore the critics, and keep his eyes on his own goals.

Lesson 4.      Resources used to produce incredibly high quality students..  Far from “Selling Out” the Jhoon Rhee schools produced many of today’s industry leaders

Lesson 5.    Seeking Experts.   Jhoon Rhee relentlessly sought out experts to help him grow his business.

Lesson 6.    Relentless Promotions. It was an total, never ending quest to fill the schools and therefore improve the gross, improve staff salaries, and “spin-off” resources for other purposes..

Lesson 7.    Goals Orientation. To be successful you first must make a “Decision” you can call it setting a target.  Being goal oriented.  Whatever… but you’ve got to decide that no-excuses you are going to make it happen.

What should you take away from the interviews and from your discussions with Jhoon Rhee at the upcoming “Extreme Success Academy?”   Well at the least you should know that it’s okay to make money and grow your school.  That not only does commercialism imply “selling out” but that the more resources you have the better you can make your students.  Next,  that you need to spare no expense in associating with a quality Master-Mind team and in developing knowledge (and, hiring experts) to shorten your own learning curve.  Finally, that you need to be tireless in promoting your school and make sure that you have the tools and resources to do that effectively.