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participated in. Instead, try and arrive at a win/win agreement everybody
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<td colspan="14" align="left" valign="top" bgcolor="#FFFFFF" ><h1>Making "Pay Per View" Pay For You.</h1>
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<h2>"Pay-Per-View" is a way of paying for e-learning
that's becoming increasingly popular with corporate training
purchase authorities. It works like this:</h2>
<ul class="dot">
<li>
<p>A training purchase authority twists your arm for a substantial
volume discount on your e-learning offerings based upon their
sizeable 150,000 employee population. In return, the customer
agrees to link to your offerings on their corporate Intranet
and to include your course descriptions in their 350-page
"Corporate University" catalog.</p>
</li>
<li class="carot">
<p> Instead of a guaranteed annual subscription fee based
on overall anticipated usage, the customer offers to pay a
small royalty each time your training is "viewed."
You are assured "if your e-learning is as powerful and
compelling as you say it is, then our knowledge-starved employees
will flock to your site and you will realize millions of dollars
in royalties every month."</p>
</li>
<li class="carot">
<p>You agree to a 80% per use discount, anticipating that
30,000 employees will participate in at least one course every
quarter. To be on the safe side, you double your server capacity.
To show your gratitude, you throw in $30,000 worth of course
customization and training management software.</p>
</li>
<li>
<p>Three months into the agreement, you find that a total
of nine employees have visited your e-learning site to enroll
in a course at $14 "per view." You call your investment
banker to cancel your IPO, and begin updating your resume.</p>
</li>
</ul>
<p>Don't blow your top when training purchase authorities dangle
a Pay-Per-View scheme in front of you. Chances are they're
just trying to get even for paying you (or one of your e-learning
rivals) a huge annual subscription fee last year for training
their people never participated in. Instead, try and arrive
at a win/win agreement everybody can live with. Here's how.</p>
<h2> A. Insist On A Training Marketing Plan</h2>
<h4> In spite of all the hoopla about self-directed learning,
many employees will never lift a finger to find out what corporate
resources are available to support their knowledge development
needs. </h4>
<p>Which is why you need to encourage your customer to
develop an aggressive education marketing and promotion plan
that includes frequent contact with individual learners and
the leaders who are responsible for them. By aggressive we're
talking about e-mail messaging, interoffice mail distribution
and bulletin board signage. These forms of "push promotion"
are much more effective than passive links on the education
page of the corporate Intranet or dry course descriptions
in a 350-page catalog that never gets out of the employee
resource center.</p>
<p> See if there's a way that you can influence the content
of your customer's internal promotion efforts. Training officials
are notoriously poor promoters of their own wares. Perhaps
you can develop some compelling promotion templates that customers
can easily customize to their own situation. Also see if you
can build in a regular review of internal training marketing
and promotion efforts, preferably including vendor participation.</p>
<p> Insist on an education marketing plan even if your customer
is paying up front in anticipation of avid employee participation.
Remember, if your customer pays through the nose for training
that isn't used this year, you'll pay the price next year.</p>
<h2> B. Be Sure A Pool Of Training Funds Has Been Pre-Approved</h2>
<h4> While you may be agreeable to serving up your e-learning
in a Pay-Per-View way, there's no way you want to be stuck
with a "Bill-Per-View" relationship with individual
learners. </h4>
<p>So don't cut any Pay-Per-View deals with training
purchase authorities unless they also have bona fide budget
responsibility supported by pre-approved funding for anticipated
training activity. That way you can roll up all monthly trainee
activity into one invoice and get that invoice approved and
paid in one simple operation.</p>
<p> Also be sure your customer advertises the fact that your
e-learning has been pre-approved and budgeted-for to their
learner community. Individuals are a lot more likely to sign
up for a learning activity if they know they don't have to
go through an elaborate approval process.</p>
<h2> C. Encourage Customers To Make Your Training A Requirement</h2>
<h4> Even if a customer promotes your e-learning offerings aggressively to employees and emphasizes that course tuition
is "free", chances are that the participation rate
on an elective basis will be less than 10%. So see what you
can do to get your offerings incorporated as part of your
customer's employee development requirements.</h4>
<p> Are you selling supervisory skills courses? How about a
requirement that employees being considered for supervisory
roles must successfully complete 6 e-learning course hours
in addition to the traditional classroom supervisory training
regimen.</p>
<p> Are you an IT e-learning provider. How about getting your
customer to require certification -- either one of the industry
standard certification paths, or a proprietary certification
that supports your customer's unique application environment.</p>
<p> Don't just mandate training to individual learners. Also
see about getting managers and supervisors held accountable
for the ongoing skill development activities of their team.</p>
<p> If your customer is willing to mandate your courses, you
may want to go the extra mile in making sure your courses
are customized to their unique business needs. While you're
at it, why not throw in some consulting and software development
support to help them assess learner competencies and manage
service delivery.</p>
<h2> D. Don't Discount Without Performance Guarantees</h2>
<h4> Since a Pay-Per-View method of purchase puts you at risk
regarding how much of your e-learning will really be used,
don't take on any additional risk by guaranteeing your customer
a substantial volume discount in advance. </h4>
<p>And don't sweeten
what may turn out to be a very bad deal for you by throwing
in expensive up-front customization services and training<br>
management consulting for free.</p>
<p> Try offering your customer a nominal discount up front as
evidence of good faith. Then offer to award greater discounts
once reasonable purchase thresholds have been achieved. This
gives you and your customer a joint interest in growing e-learning
volume. Alternatively, insist on a certain minimum threshold
of e-earning purchases every month as evidence of good faith.</p>
<p> Also, in the absence of any performance guarantees, insist
that your customer at least cover your costs associated with
customization and consulting services you are providing on
their behalf. Or, charge full price, offering to rebate a
certain percent once specified performance thresholds have
been achieved.</p>
<p>In conclusion, in constructing annual e-learning purchase
agreements, try and arrive at a solution where you and your
client are equally incented to see that expected training
volumes actually occur. Otherwise, you are likely to be looking
at a contentious end of term scenario that will make an ongoing
relationship most unlikely.</p>
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