Jessica Kubat's path to becoming a studio owner wasn't typical or glamorous or the product of a family business, handed down. When she opened MJ's House of Dance in Lindenhurst, New York, this past summer, she had just turned 40, was a mom of three, and had worked at two different studios long-term. Over the last two and a half years, she'd painstakingly saved up $25,000 and had gone to the Small Business Development Center at a local college on Long Island for help creating her business plan. Her area was moderately saturated with studios, so she spent considerable time planning what would set her school apart—live musical accompaniment, for one—and hired a marketing director nine months before the business even opened. It was a methodical, careful approach—Kubat calls it "the old-fashioned way"—to opening a studio, and it's paid off: She started summer classes with 75 students and is well on her way to reaching her first-year enrollment goal of 250 dancers. "When I turned 40, I decided that it was time to do something bigger," says Kubat. "I always wanted to own a studio—it was just never financially available to me."
Dance teachers aren't dummies. As in every other industry, the importance of social media for growing a business is not lost on any of us. It's in knowing exactly how to use it effectively that's the challenge. For a group of artists who work within the confines of centuries-old techniques, it's no wonder we start shaking in our boots the second we hear words like "algorithm" and "digital strategy." What's more, the Wild West of Instagram, Twitter and Facebook is constantly changing. How are any of us supposed to feel like we have a handle on things?
Don't worry—we've got you covered. We caught up with an expert, Brigham Young University School of Communications faculty member Adam Durfee. Named Social Media Innovator of the Year for 2019 by The Social Shake-Up conference, he's spilling on the do's and don'ts that will make all the difference in engaging your audience and growing your dance studio business.
If you're a studio owner, the thought of raising your rates most likely makes you cringe. Despite ever-increasing overhead expenses you can't avoid—rent, salaries, insurance—you're probably wary of alienating your customers, losing students or inviting confrontation if you increase the price of your tuition or registration and recital fees. DT spoke with three veteran studio owners who suggest it's time to get past that. Here's how to give your business the revenue boost it needs and the value justification it (and you) deserve.
Running your own studio often comes with a pull-yourself-up-by-your-bootstraps mentality. After all, you're the one who teaches class, creates choreography, collects tuition, plans a recital, calls parents, answers e-mails, orders costumes—plus a host of other tasks, some of which you probably don't even think about. But what if you had someone to help you, someone who could take certain routine or clerical tasks off your hands, freeing you up to focus on what you love?
Accountant Jessica Scheitler has a helpful phrase for the clients of her Las Vegas–based tax preparation business, Financial Groove—one she thinks they'll understand: Expense full-out. "It's the same as when you're at a convention, and you're supposed to dance full-out, as big and crazy as possible," she explains. In the world of tax preparation, it means handing over all your studio business receipts, rather than cherry-picking what seems appropriate or "right."
There are a few other things she'd like from her clients as well—so we made a list. Use it to impress your accountant this year (and make their job a little easier).
Competition trophies, well-respected faculty and an end-of-year recital with Vegas-level production elements are all powerful attractions for potential students and their families. But what about recognition outside the studio sphere, in your community? Is there value in that?
Valentina Bagala and Rafael Savino held their studio's very first registration at a Subway. "We didn't even have an office," says Bagala, who heads the artistic side of Ascendance Studio in Doral, Florida. "This lady called us over the phone, and we said, 'OK, we can take your registration. Would you mind meeting us at the Subway that's downstairs from our studio?'"
Now, five years later, Ascendance is thriving, with a growing competitive team, a 5,000-square-foot space and 300 students—one of whom is the same dancer who was registered in that Subway. Today, registration mostly happens online, as do many of Ascendance's processes—attendance, billing, e-mail marketing campaigns—thanks to Savino, who heads the studio's marketing, finances and administration. To what do Bagala and Savino credit their impressive growth? Digital advertising. Despite working in an industry where many still rely on old-school methods of operation—manual registration, tuition paid in person by cash or check, fliers handed out in parking lots—they took the plunge to modernize their advertising strategy and found it a game changer for their studio.
Slow, but consistent
Bagala and Savino admit Ascendance got off to a rocky start. They rented space from a fitness studio for three months. "We didn't get the best schedule," says Bagala, who could only rent the space by the hour when it wasn't being used. Still, she managed to amass 25 students. Eventually, she found a small, 550-square-foot space of her own in a shopping center. "I remember for our first classes, we would have people who were supposed to show up but didn't," says Savino. "If we had one student in class, we had to teach to that student. That happened multiple times."
When two more spaces became available in the same shopping center, the couple grabbed them, despite the inconvenience of the units not being connected. "You had to step outside," says Bagala. "It wasn't very comfortable."
"The fliers weren't working."
With more space came more responsibility—to increase enrollment. They had been passing out fliers at nearby schools, but that approach, Savino says, "became unscalable. That's when I started looking at digital advertising." He didn't have much money to spend on it—his budget was $5/day—but he began looking into advertising on Google. He also enrolled in a local digital marketing course at nearby Miami-Dade College. "That gave me strategy," he says.
His most successful venture has been with Google's AdWords. With this advertising strategy, business owners create a search ad. (Search ads appear above Google search results when people look for local services the business offers.) The Ascendance search ad, for example, includes the studio website and phone number, plus: "Dance classes for kids. All ages and styles. Try a free class today." Then, you choose keywords—the words or phrases potential customers might type into their browser—and set a daily budget for how much you'd like to "bid" on each keyword. You're charged only if users click your link. During his first AdWords campaign, Savino often bid less than $1 on keywords like "ballet classes," "hip-hop classes," "jazz" and "dance studio."
How much you bid affects in what order your search ad appears among other businesses. But a business with more money to spend on keywords won't automatically see their ad pop up first. Multiple factors—keyword bidding price, how long a user stays on your website, your click-through rate—determine what's called your quality score. And it's your quality score, ultimately, that decides in what order your ad appears on Google.
"For example, let's say there's a huge competitor who's bidding $10 a keyword, while I'm only bidding $1," says Savino. "Google is tracking everything. If users stay on my website for a while and don't click the back button to get back to the search page, Google knows my website is relevant and a good experience." That increases his quality score and gives his search ad odds a boost.
Savino ran his initial AdWords campaign for about a month in 2013, starting in mid-September—prime back-to-school time. Each week, he wound up getting 10-plus interested customers. He offered each a free trial class. Of that weekly number, more than 80 percent enrolled in classes. By the time the campaign was over, Ascendance had 45 new students. And it all cost him less than $150. Though he risked spending more than his daily allotted $5, he knew it would pay off in increased enrollment.
As they became more comfortable with AdWords, the couple experimented. Bagala asked her mom what words she would use to search if, for example, she were looking for ballet classes for a 5-year-old. Her responses became part of their strategy: "ballet classes in Doral," "dance classes in Doral," "dance studio in Doral." They also interviewed parents of new students, asking 'How did you hear about us?' "If they said, 'Google,'" says Savino, "we'd ask if they remembered what they typed."
Now his daily budget is $20, though he's careful to time campaigns with high-enrollment periods. "During back-to-school season, August and September, I know a lot of people are going to be looking for classes," he says. "But I also know that January is another high-enrollment period—that's when we see an uptick in our baby program. Those moms are operating on a calendar year, not a studio year."
When Google came to town
Last spring, Google itself took an interest in Ascendance, and it featured Savino and Bagala in a national video campaign as a small-business case study. Of particular interest was the studio's dual advertising campaigns: one in English and one in Spanish. Savino and Bagala are bilingual, and their community is largely Spanish-speaking—so they capitalized on that. "Since we were advertising in Spanish," says Savino, "those people were sure that they were going to come through our door and someone would be here who would speak their language."
Of course, digital advertising can only take a studio so far. You have to follow through with a great product—and that, Savino says, is Valentina's greatest contribution to the business. "At the end of the day, if the product isn't good, people are simply going to leave," he says. "She's the heartbeat of the studio."