Beware of Dallas McDojo's
One of the new students I got this past week told me "I chose your school because another one wanted $290 and a signed 18 month contract for me to start with them, and that was before giving me any chance on deciding whether or not I liked what they taught". He further added: "I asked them for a trial lesson, to see if I would like it and they said NO, so I walked out".
My first thought, he did the right thing due to the combination of cost, contract, and no trial lesson being offered! I've always felt if something doesn't feel right, walk away, and you'll see some more reasons why that sounded like the right decision!
But back to what the student told me, I couldn't help but ask: "How did that school arrive at $290 to start you in his program?" The student said: "$200 was for an Enrollment Fee and the other $90 was the monthly training fee". He then added: "They kept pressuring me to sign and it was a very uncomfortable experience, they kept saying…if money is an issue we have financing to help you." Financing??? He then added: "The unbelievable part was that the $90 monthly fee only gets you (1) day of training per week".
Wait…$90/month for only 4 days of training/month and a Financing Plan so you can afford that?
Do some people fall for this? Have any of you heard of the MTV show/saying “You’ve just been Punked”? I think a more appropriate saying for those who get corralled into this sort of thing would be “You’ve just been McDojo’d!” For those that don’t know, McDojo is an actual term used amongst quality Karate school owners, when they refer to the questionable business practices of other schools. Another term used along the sames lines is “commercial schools (dojos)” whose primary goal is to make money, while often taking advantage of students, and/or offering low quality instruction.
That same student, at the end of the evening of his first FREE class asked me “How would you like me to pay you, check or cash?” I told him “Either is fine, but don’t worry about it, you still have another FREE class coming”. I guarantee you that is completely contradictory to the way the school mentioned above would’ve handled that students question! I have no doubt the other school would’ve stuck-their-hand-out and taken the money right then and there! Basic Sales 101 says if someone offers to pay for something you’re selling, you take it right then and there, so they don’t change their mind. Me, I’m not only a rebel when it come to rules like Sales 101, but I also know the way I’m teaching, and what I’m teaching, is 1000x better than most other schools. I’m 1000% confident that student WILL be back, and I’m not going to worry about it like the other school likely would!
First and foremost, I say one should always try-before-they-sign any type of long-term committment, but if a school doesn't allow a trial program, and you are dead-set on considering them, then watch a couple of their classes. Specifically look for students that have been there 3 months, 6 months, 12 months, and longer. If you don't know who those students are, ask others sitting-and-watching! After you've identified those type of students, and watched them for awhile, ask yourself "Is that the skill level I'd want to be at if I'd put-in that much time?" If the answer is No, then I suggest you Go!
Regarding a trial class or two prior to signing a contract, be very careful. Personally, I don't think a student really gets a good feel whether or not that instructor can make them great, after a few free trial lessons. Personally, I think it might take 1-3 months before knows that, or sees any results from their training. The danger zone is those who combine (1) Free lesson, (1) Free week, or (1) Free month, with contracts. Why? Because you won't know if you gain any real ability from how-and-what that instructor teaches, until 1-3 months with him, more specifically, AFTER you've signed a contract with him. And what if you don't see any results after you've signed that contract, and you want out of it, due to his inability to make you skilled? Well, that's where things get messy! Bottomline, you are now LEGALLY committed to pay him each month, whether you attend classes or not. Best thing, don't EVER sign a contract for martial arts training, and if you must, add you own handwritten clause that says "if I feel I'm not seeing results in a timely manner, I can be released from this". But there may be other ways out of a contract, if you are already in one, which I've heard others have used and I'll mention later in this article!
Instead of instructors allowing their training to stand-on-its-own, regarding its quality and a fair monthly tuition (what is fair?), many school owners use their school to GET RICH, and often to get filthy rich! Then will often resort to extremely inflated tuitions, various training “packages”, pre-payment “package” discounts, long-term contracts, upgrade deals before your existing “package” (contract) is up, and "only if you sign today" deals/discounts, to shackle their students into training with them. To them, you are no different than the way a Health Club treats its own members! And in case many of you didn't know, most Health Clubs don't really care whether-or-not you show up, its about getting money and signing-up as many people as they can!
You know what I say to those sort of business tactics? If the McDojo’s are 100% confident what they’re teaching is the best for each of their students, then I have a way for them to prove it! Immediately release all of your students from their contracts and give them the freedom to compare your way of teaching with another school for a couple of months, and then let’s see how many of them return to your school! Like many things in life, each of us as individuals needs to decide what’s best for us. How do you do that in the martial arts if a majority of schools won't allow trial lessons, force contracts on you, and don't give you the freedom to change-your-mind or try-something-else later on? I feel school owners are wrong in their actions and intent, by hiding behind contracts and taking that right and freedom-of-choice away from an individual! Yet I fear 99% of school owners won’t release you. Such a thought would give most of them a “financial heart attack”! What deserves deeper thought is every possible consideration why a school owner wouldn’t do that, and deciding if those reasons are meant to benefit the student or the owner!
So what are some of the reasons school owners want to lock someone into a contract 20-30 minutes after you say “Hi, I’m interested in Karate”? Well, most I feel are purely self-serving ones (serving them)! There are those who say it’s a well-known statistic that if you walk-out after visiting a school, without having done something that commits you to returning, 90% of the time you won't return! There are 5 words school owners pray you won’t say, which are “Let me think about it”. School owners know that once you leave, there’s a 90% chance you are a lost opportunity (no money for them). Many actually pay lots of money to attend well-known “Karate Sales/Enrollment Seminars” about this, and how to counteract that, and every possible objection you might throw at them. Afterwards they return from these seminars and devise all sorts of devious ways to get your money today (mostly by having you sign something or providing a small payment), so that you'll come back tomorrow! The second reason for contracts relates directly to most schools huge overhead costs! Keeping you locked-into ongoing contracts is a schools best insurance policy that you'll help pay their huge expenses EVERY month! Third, if the schools owner is trying to make a fulltime living from teaching, your contract helps insure you will help pay the mortgage on his huge house each month, along with helping him and his family maintain a lifestyle he thinks they deserve! And last, that schools owner may also resort to contracts because they teach a style where 80-90% of student’s dropout within the first few months, because it takes many years to become good at what he teaches, he knows it, and thus a "contract" gives him a little added insurance you won't leave as easily. No matter what "sales spin" school owners put on it, saying things like “signing today shows you’re serious about training and keeps you committed to it, just like we’re committed to being here in this building each month”, the contract is for him NOT you! Don't buy into their hype!
Next, I've always felt that students shouldn't judge a schools quality or value by how fancy the facility looks inside, the monthly tuition they charge, nor by their big Yellow Page ads, nor size or location of their school, nor the instructors own ability or tournament wins! The only thing that should matter is how great he can make YOU and everyone else, and that is how you should judge a school! I've seen many great instructors around here who have won lots of trophies, yet couldn't make their own students get anywhere close to their own level of skill! Some I suspect were either extremely athletic, or were one of the rare types who stuck-it-out and stayed longer than those around themselves, until they got good! My opinion, you should think of your instructor more as a coach than someone whose physical skill you want to attain! Remember, an instructor won't be there to save you in the street, the only thing that matters is how good he can make you, and even more importantly - how quickly he can do so! Back to how great an instructor is, or even the thought of comparing that to his own students, personally, I want every student I train to become better than I ever was or ever will be, and I mean that! Compare it to a parent wanting everything to be better for their child than it was for themselves! Yet there are countless teachers who hold-back and don't really share ALL their secrets nor provide students the individual attention it takes to make them great! I know of one highly talented well-known local instructor who I once questioned about this and he said "If I show them everything I know, and I make them good quickly, then what would be their point in coming back after that?" Again, whose interests are being served with that way of thinking? Personally, I think there are TONS of instructors like that running McDojo’s, making students go through the motions each day, dragging out their training and progress with long-term contracts. If an instructor isn’t giving you his all, to make you the best you can be, then what are his motives and why are you sticking around?
From a business standpoint, and knowing that specific schools size-and-location this story is based on, I suspect his costs are why he resorts to contracts. But is that financially fair to his students? I’ll backup a little further so you get the full picture!
A few months ago, when I first started to think about opening a school, I started looking into the business aspects of doing so. Meaning, the cost of retail space, advertising, electricity, etc:
Lets look at the most expensive first, rent/location. Did you know that a Karate school is typically only operational from about 5PM-8PM Monday-Thursday. Friday nights typically have very few students that show-up and the same for Saturday mornings! Kids are at school during the day M-F, and most parents/adults can't take classes while they are at work. And lets face it, most Karate schools aren't operating at 9-10PM at night! So there's really only about 3 hrs a day, 4 days a week, they see the bulk of their students. Adding that up, that's a paltry 12 hrs a week they are conducting business! Yet landlords charge them rent, as if they were running a 10-12 hr a day productive retail business like all the other retail businesses surrounding them! In my opinion, the rent issue is what makes it so tough in a huge metropolitan area for a Karate school to have its own Prime Retail Location, and be able to afford it! So if a school owner wants to try and do that, and/or make a fulltime living at it, he has to play games with you (contracts, etc) to make sure he can pay that each month, and pass on to you inflated monthly tuitions? You don't believe me? Try this, estimate the square footage of a particular school (length times width in feet), look in similar close-by shopping centers for a vacant retail space about the same size, find the posted Leasing Agents name for that space, call him up and ask him "How much is the monthly rent"? When you become shocked at the price, think about how many students it takes to cover that rent, and keep in mind that's ONLY the rent! Hint - I checked on a small rundown location that was roughly 30ft x 50ft (1500 sq ft) and they wanted $2500 a month! Keep in mind 1500 sq ft is the entire facility, not counting dressing rooms, bathrooms, office, entrance/lobby, or watching area for parents! I know of different local schools that are 2-4 times that size. Thus imagine what a 2-4 time multiplier does to the rent price I mentioned above!
Next cost consideration is advertising. Some schools spend huge amounts of money each month on advertising, especially the ones with high dropout percentages. Why, especially when they say that the typical Martial Arts School gets most of its students from walk-ins? The walk-ins typically happen by picking a “prime” location on a major road or intersection, someone drives by, sees the building or sign and stops-in. However, prime locations in major metropolitan areas often become a costly consideration, as rent for those areas are typically the highest! Many times school owners will settle for a less expensive location and resort to heavy advertising to make up for that. I did a little checking. Did you know it can cost $5K-$10K/month to have a full page ad in a major cities Yellow Pages? Even a half page or quarter page ad is very expensive! Who do you think really ends up paying for that ad? So what other forms of advertising are out there that cost less. Well, there's the internet. OK, who is # 1 on the internet? Alexa.com says Yahoo is the #1 service people use to look up something they are interested in! But did you know Yahoo really isn't a search engine, in that everyone has a fair shot of being listed for free? A person either gets listed in Yahoo because the editors feel they offer something very unique, non-commerical, or if they are commercial Yahoo wants them to pay to be listed, and for them to pay BIG! You’ll see some schools located on the right side or very top in Major Search Engines. You know how they get there? On what the search engines refer to as a PPC basis! The search engines most of the time charge that school each time a person clicks on a premium spot ad! There are ways around this, but its a very tough process that only webmasters know, and it involves lots of work on the internet to get it done! But regarding the PPC route, I have a website that gets about 10,000 visitors a month, and due to the amount of visitors I get there, the "PPC" game (pay-per-click) financially scares me. You literally have NO IDEA how much search engines like Google, MSN, AOL (and Yahoo..not a true S.E.) will say you owe them at the end of each month, should you go that route! And an ad in the major Dallas newspaper? Get ready to write a huge 4 or 5 digit check!
Lets sum all the financial considerations in starting a school:
Rent: $3K-$10K/month for a retail location
Electricity: $100-$500/month
Advertising: $100-$10K/month ($10K/month full page Yellow Pages ad!!!)
Self Employment Tax: almost near 50%, unless you incorporate
Full-Time Income for a person in Dallas: $50K-100K/yr
Staff Salaries?
Let’s take a medium number from above for a school that has its own location, and is trying to make a fulltime salary out of it, meaning about $8K/month total. Now, how many students does it take at $100/month to do $8K/month? 80 on the low end! But the question remains: "Is the student really getting $100/month worth of value in their training, or are they mostly helping to pay the rent and line the owners pockets?" And if you sign a contract, how long is it after signing, and after its too late to do anything about that, before a person figures that out??? Personally, I feel most schools aren't providing quality training, as I've personally seen the quality training provided at many schools, and the level of skill and ability of most students. Simply stated, I don't feel most students are getting their moneys worth, and I think school owners deep down know that and love everyone being on contracts that say "Too bad, now I've got you, and you can't go anywhere else, or do anything about it!"
Is there a way out of a contract if you're in one you're unhappy about? You could of course try and talk to the school owner, tell him you're unhappy, and see if he'd release you, but good luck! That's like saying "Hey, do you mind if I stop handing you a check every month?" Be prepared for how that will go over with him! FYI - get ready for the "Customer Retention" speech they learned at their seminars, in which they say things to you like "Students often get to a frustraion point where they think about quitting, that's part of the reason why our contract is meant to help you stay with us and reach your original goal, even if you become frustrated. Stick with it a little longer, and that feeling of frustration will pass." Then watch the instructor give you a little added attention for a few classes, to make you feel like he really cares, but he'll eventually go back to his old ways. Once again, the real goal is to make sure you don't stop handing them a check! If you are really bold, I guess you could just always be negative in class, or do something that breaks their rules (not illegal of course), until they realize you are such a thorn-in-their-side they have to let you loose of their contract for the sake of their business, and other students. However, there's often a clause that if you physically become "unable to participate any longer", or it's "detrimental to your health", they'll let you out of it. I've "heard" of some people spending $30 to go see their doctor, telling the doctor their knees hurt all-the-time and they think its due-to-kicking in karate. Then asking their doctor if he'll write a note saying "I recommend you discontinue karate immediately for the sake of your knees" so you can get out of the contract. I've "heard" people have easily and successfully done that and were released from their contract!!!
Back to the costs, between rent, advertising and electricity, those 3 items make it very hard to open a school, keep the doors open, and often lead to the closing of most schools! Add to that, anyone who wants to try and make a school their main source of income, and a respectable source, and it becomes even more difficult. Bottom line, every single dollar more than you think you should be charged for tuition is usually going towards paying the rent, electricity, using a percentage of that for some form of advertising to attract new students, then whatever is leftover gets a near 50% self-employment tax if the owner wants to put any of it into his pocket each month (unless he's incorporated).
Now getting back again to my thoughts of opening up a school a few months ago, I decided not to start with that kind of overhead, thus having to outrageously inflate my prices, nor lock students into contracts to pay a huge monthly "nut". It made more sense to me, noticing there are about 100 schools in Dallas, to go the opposite end of the spectrum, regarding what everyone else was doing.
Specifically:
1. Low overhead so I could...
2. Offer a low monthly cost for classes
3. No contracts
4. Focus on making students effective quickly, instead of dragging out their training for years to pay the bills each month!
5. My final consideration was what kind of students would I ideally like to train and focus on to achieve all this? Adults, Kids, Women, all the above?
One of the first things I noticed was that the Dallas marketplace mostly catered towards flashy-kids-type-karate-programs! In my assessment, practically no schools offered quick and efficient self defense training for adults at a reasonable cost! It seems many schools focus on making students train for many years, getting money as long as they can, before certifying them as good! Owners actually have a saying "Kids pay the bills", which certainly seems to make them the majority in most Karate schools that involve lots of kicking. Let’s face it, hundred of kicks per day are hard on an adults body! Most school owners deep down know this, and that whatever they trained in as a child (especially a kicking art), becomes very difficult to attract adults too, or make them stick with (thus contracts?). I believe many realize they have to train kids, if they want to make a business out of a kicking art, and thus they settle on becoming a full fledged McDojo. Some even try to mislabel what they teach as "Adult Self Defense", yet what they are really doing is trying to force adults into an activity/style that's really best suited for kids (kicking art)! You'll notice in most kicking arts that not very many adults start as beginners, and if they do, they typically don't stay around very long, and compared to kids, adults dropout at a much higher pace/rate! It takes a significant amount of effort for an adult to become good in a kicking style versus a kid! Can it be done? Sure, but most adults are unwilling, especially those past 30, to put in the considerable amount of effort it takes for them to become good at kicking. Compare it to trying to take someone who is 30-50 yrs old, start them from scratch, and make them great at Gymnastics or Ballet! It's highly unlikely, and the same goes with most kicking arts, and the chance of an adult becoming great in them!
Seems to me that with nearly every school catering to Kids, the biggest market not being addressed is adults, and training them in something that isn’t too demanding on their bodies, and that can make them highly street effective! Thus I decided to focus on training adults in HAND ARTS (versus lots of kicking)! It makes more sense for their body and provides them a better chance of successfully training in something they can become great at, and quickly too!!! Do I refuse to teach adults kicking? No, but I always emphasize to them the risks (to their knees), and that they will likely have to put a considerable amount of effort, more than they could imagine, just to become good, and even more to become great!
So there you have it! Business costs and personal income goals seem to dictate what schools teach, who they teach, what they charge, and thus forces shrewd school owners to take a hard line stance on the way they do business, meaning contracts and expensive monthly tuitions. But are their huge expenses and income goals fair to you as a student, and do you really feel you are getting that much value out of that training each month? Worse, how do feel about signing contracts, that should you become unhappy and walk away from, without getting officially released, might end up effecting your credit report/score?
Unfortunately, most schools treat training as purely a business. And what is the goal of a "business"? Simply, to make a profit, and as much of a profit as they can! Try this, when you look at an instructor, do you see someone who wants to really train you, and money is secondary, or do you see him as someone who is first about money, and training is secondary? If you've been at a school for awhile, how often do you have to dig into your pocket each month to pay for little "add-on's" (other products or services they are selling)? Look around the school you're at, are there lots of other things you see, or have been encouraged too, spend money on?
If you are an adult in the Dallas area who is locked into a contract, training in something you now think isn't the right art/style for you, then you may want to consider your "options". Bottomline, I personally think many owners know what they start training adults in likely isn't a good fit for them, but they just want their money, and a contract that says they'll keep giving it to them. FYI - You don't have to completely give up on martial arts, you just need to find a style/art that allows you the freedom to try it, to see if its right for you! And to those adults who are just starting to think about training somewhere in the Dallas area, if you think it makes more sense to TRY BEFORE YOU BUY, and you don't want CONTRACTS, there is "A Better Way of Self Defense"!
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