When I first met Michael Flores, it wasn't in a typical business setting. We were looking for an expert to help with an education client's project, and one of our team members was tasked with finding someone who truly understood the space. As they described it, it was like looking up "education marketing expert" in the dictionary and finding Michael's picture.
In this week’s episode of All Dots Connected, we explore the complex economics of online education marketing, diving deep into why many programs are struggling and what it takes to succeed in today's competitive landscape. Whether you're directly involved in education marketing or interested in how data and analytics can transform traditionally opaque industries, Michael's insights offer valuable lessons about building sustainable growth in complex markets.
One of the most eye-opening parts of my conversation with Michael was his breakdown of the actual costs involved in digital student acquisition. Having built and scaled companies across multiple sectors, I've seen how easy it is for organizations to lose sight of their unit economics. Michael's MBA program example was particularly striking - walking through how a $100 cost-per-click translates to a $16,000 cost per enrolled student, even with optimistic conversion rates. This kind of clear-eyed analysis explains why many institutions are underwater on their online programs before collecting any tuition.
This reminded me of patterns I've seen across industries: companies often pursue growth without fully understanding their unit economics all the way through the funnel, leading to unsustainable business models. What made Michael's approach unique was his insistence on working backward from the finish line - understanding lifetime student value, program completion rates, and funding models before making any marketing decisions.
Michael's perspective on how the education marketing landscape has evolved offers valuable lessons about market maturity. When he started in 2011, education was one of the largest advertising sectors in the United States. Companies could succeed simply by showing up. But as the market matured, success required sophisticated execution - being in the 95th percentile wasn't enough, you needed to be in the 99th percentile to make money.
Perhaps the most provocative insight from our conversation was Michael's assertion that every enrollment journey begins with a search. This isn't just about Google - it's about understanding how modern students discover educational opportunities. Even when a student comes through a call center or partner relationship, that journey often began with a search for better career opportunities.
This insight fundamentally changes how we should think about attribution and marketing strategy in education. It suggests that institutions need to think more broadly about how they appear in various search contexts, not just direct program searches.
What strikes me most about this conversation is how many parallels exist between education marketing and other sectors. The pattern is consistent: in complex channels with multiple providers and affiliates, having clear data and analytics becomes a competitive advantage. When you can see and understand the entire funnel, you can make better decisions about resource allocation and identify opportunities that others miss.
The future of education marketing, like many industries, will belong to those who can combine sophisticated data analytics with a deep understanding of customer journeys. While the days of easy money in digital education marketing are over, there are still significant opportunities for those who can execute at the highest level.
This conversation reinforced my belief that true innovation often comes from bringing analytical rigor and transparency to traditionally opaque industries.
As we continue to work with companies across sectors, these lessons about the importance of unit economics, data transparency, and sophisticated execution remain relevant. The specific metrics may change, but the principles of building sustainable growth through better data and analytics are universal.
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