Agent management-best-practice-guide

DEPArTMEnT of EDucATion, TrAininG AnD EmploymEnT
Queensland VET Sector
International Education
Agent Management
A Best Practice Guide for
Agent Management

Department of Education, Training and Employment
Queensland Government Australia

TAFE Queensland international
Education House
30 Mary Street
Brisbane Qld 4000

PO Box 15033
City East Qld 4002

EmAil: TAFEQueenslandinternational@deta.qld.gov.au

WEB: http://training.qld.gov.au/international

December 2011

Queensland VET Sector
International Education
Agent Management

International Education: Best Practice Guide Series

Queensland Government, Australia

Acknowledgments
The International Education Agent Management Best Practice Guide (the ‘Guide’) has been developed by
the International Education Resources Group for the Queensland Department of Education, Training and
Employment. Copies of the Guide and associated resources are available on the Queensland Department
of Education, Training and Employment website at http://training.qld.gov.au/information/tafe-qld-
international/best-practice-guides.html.

Requests for Information
This Guide contains ideas and examples of recognised industry good practice in international education
agent management. It has been developed in good faith to support the Queensland VET sector and is
intended for use as a source of ideas and options that can be adapted and customised for a provider’s
unique situation. The Queensland Government disclaims all responsibility and all liability for any expenses,
losses, damages and costs you might incur as a result of the information in this Guide being inaccurate or
incomplete in any way, or from the use of, or reliance on, this material.

Disclaimer
By their very nature, Best Practice Guides are a work in progress. They are a snapshot in time of how
providers are dealing with a topic and/or market opportunity. It is not possible to capture every detail
regarding the subject or every provider’s experience. As a dynamic industry resource your ongoing
submissions, contributions and ideas are welcomed – please email us at TAFEQueenslandinternational@
deta.qld.gov.au.

2 International Education Agent Management | A Best Practice Guide

Industry Contributions
TAFE Queensland International wishes to acknowledge the valuable insight of the registered training
organisations (RTOs), education agents and other industry experts in Queensland that provided input into
this Guide. These include:
• AMET Education
• AusEd Brisbane
• Australian Council for Private Education and Training (ACPET)
• CHARLTON BROWN®
• City Smart Education
• Gold Coast Institute of TAFE
• IDP Brisbane
• International Education Services (IES)
• Marlin Overseas Student Agency
• Metropolitan South Institute of TAFE
• Migration Institute of Australia
• Queensland Education and Training International (QETI) (now known as International Education and
Training Unit within the Department of Employment, Economic Development and Innovation (DEEDI))
• Sarina Russo Schools Australia
• Shafston
• Southbank Institute of Technology
• Think Education Group
• Viva College

International Education Agent Management | A Best Practice Guide 3

Table of Contents
Acknowledgments 2
Requests for Information 2
Disclaimer 2

SECTION ONE: AGENTS AND THE AUSTRALIAN INTERNATIONAL EDUCATION SECTOR 6
1. Introduction 7
1.1. Aim of the Guide 7
1.2. The Approach 8
1.3. How to Use this Guide 8
2. What is an International Education Agent? 8
2.1. Types of International Education Agents 9
3. Why Use an International Education Agent? 10
3.1. Reasons to Partner with International Education Agents 10
3.2. Reasons not to Partner with International Education Agents 10
4. Agent Regulation and Control 11
4.1. ESOS Act and the National Code 11
4.2. Education Agents Peak Professional Body 13
4.3. Additional References and Resources 14
5. Managing Agents in Turbulent Times 14
5.1. Potential Risks 15
5.2. Due Diligence and Monitoring 16
5.3. Managing Change Effectively 16
6. Strategically Managing Your Business 18

SECTION TWO: THE AGENT MANAGEMENT PROCESS 19
1. Best Practice in Agent Management 19
1.1. Steps in Agent Management 19
2. Identifying Agents 20
2.1. Market Alignment 20
2.2. Agent Alignment 21
2.3. Sources of Agent Contacts 23
3. Appointing Agents 25
3.1. Application Process 25
3.2. Agent Management Models 28
3.3. Contracting Agents 32
4. On-going Agent Management – Relationship Building 35
4.1. Ongoing Agent Management 35
4.2. Communication 37
4.3. Marketing and Promotion 39
4.4. Record Keeping 40
4.5. Managing Issues 41
5. Review of Agents 42
6. Exit Strategies 42
6.1. Non-Compliance 44

SECTION THREE: PROVIDER TOOLS AND TEMPLATES 46
1. Sample Education Agent Code of Conduct 47
2. Sample Agent Appointment Monitoring and Termination Policy 48
1. Purpose 48
2. Scope 48
3. Definitions 48
4. Actions 48
5. Agent Performance Appraisal 49
6. Re-appointment of an Agent 49
7. Termination of an Agent 49
8. References 50
9. Forms/Record Keeping 51
3. Sample Application for Consideration to be Appointed as an Education Agent 52
1. Sample of an Application Letter 56
2. Sample of Provider Information (International Prospectus) 57
3. Example of an Educational Referee Report 58
4. Example of a Student Referee Report 59
5. Process Checklist: New Agent Application 60
6 Example of Rejection Letter 61
7. Example of Education Agent Acceptance Letter 62
8. Sample Agent Contract 62
9. Example of Education Agent Certificate of Appointment 74
10. Example of Order Form for Promotional Materials 75
11. Example of Agents Manual Contents – Version 1 76
12. Sample Agents Manual Contents (ISANA Report) -Version 2 77
13. Sample of Agent Database / Register 78
14. Sample of an Agent Annual Communication Plan 79
15. Sample of Performance Review of Agent Template 80
16. Example of an Renewal of Education Agents Contract Letter 81
17. Example of Non-Renewal of Contract Letter 82
18. Example of Letter of Termination 83
4. Appendices 84
List of Acronyms 84


SECTION ONE:
AGENTS AND THE AUSTRALIAN
INTERNATIONAL
EDUCATION SECTOR


1. Introduction
The global mobility of students has increased at a rapid rate. Over the past three decades the number of
international students quadrupled, from 0.8 million (1975) to 3.3 million (2008).1 Since the late 1990s,
growth has accelerated. In 2008 alone growth was 11 per cent on the previous year.2 Should current
trends in international enrolments continue it is expected that between 4.1 million and 6.7 million
students will be studying abroad by the year 2020.3 Australia’s share of the global international student
market is between 7 and 8 per cent.
Education is Australia’s third largest export industry and Australia’s largest service export, ahead of
tourism.4 The value to the Australian economy of education exports in 2009–10 was $19.1 billion, an
increase of 10.2 per cent on 2008–09. Educational services have grown to become Australia’s largest
services export industry ahead of other personal travel services ($12.1 billion) and professional and
management consulting services ($3.1 billion). In 2010 over 619,000 international students from more
than 100 countries were enrolled to study in Australian institutions. The majority was in higher education
(39 per cent) and vocational education and training (VET) (34 per cent).
Australian institutions actively use an extensive network of commercial agents within target markets
to promote their offerings and to recruit international students. Over 40 per cent of commencing
international students are engaged or introduced through an agent of one kind or another.5 The use
of agents has been a hallmark of Australian international education and has been instrumental in
Australia’s outstanding commercial success. In 2010-11 the Australian international education sector
experienced its first significant downturn and as such providers have needed to reassess the role and
use of agents in their recruitment strategies.
In order to maintain market share and growth in the Australian VET sectors internationally, education
providers need to be increasingly savvy in their approach to business development. International
education agents play a significant role in the international education sector. In fact, International
Benchmarking research conducted by Alan Olsen in 2008 indicates that on average over 50 per cent of
student enrolments were referred by international education agents to the Queensland public VET sector
in that year. Working effectively and efficiently with agents will be crucial to ensuring the Queensland VET
sector can sustain and increase its share of the international education market.

1.1. Aim of the Guide
TAFE Queensland International has commissioned this research into agent good practice and prepared
this Guide in order to assist Queensland VET providers in building their capacity and effectively partnering
international education agents.
The specific aims of the research are to:
• better understand good practice in agent management and share the findings with education
providers and international education agents so Queensland can continue to improve operations
• build a better understanding of the roles and activities that both providers and agents play in the
international education industry.

1 OECD (2010). Education at a Glance, p. 32.UNESCO (2009) estimates a total of 2.8 million international students globally
in 2007. While estimates may vary, being based on different parameters, the overall trend towards significant continuing
growth is evident.
2 OECD (2010).Education at a Glance, p. 32.
3 Calderon, A. (2010).Emerging countries for student recruitment in tertiary education.Paper presented to the IMHE-OECD
Conference, Higher Education in a World Changed Utterly: Doing More with Less, Paris September 2010, p. 6.
4 Australian Bureau of Statistics (2010).(ABS Catalogue no. 5368.0.55.004).Note: Includes international students studying
onshore on student visas only. Export income does not include income generated by the operation of offshore campuses of
Australian institutions.
5 Olsen, A. SPRE, (2009)


Based on the research this Guide has been developed to provide practical tools and techniques for
providers to work more effectively together with agents to continue to achieve significant growth for the
Queensland and Australian international education industry.

1.2. The Approach
The approach and initial research to inform this guide was undertaken in 2009. The outcome of the research
was the 2009 Agent Management Best Practice Guide, that has been very well received and highly utilised
across the sector. Since this time there have been a number of changes in market conditions that have
resulted in the need to review the currency and relevance of the guide content.
This Guide represents an updated version of the original and provides additional and current references
and resources to ensure providers maintain efficient practices. To ensure the current edition is timely and
relevant the following approach was used to inform its development.

Phase One: Desk Research
This phase aimed to identify current practice and process in effective international education agent
management through desk research. A range of articles, presentations, conference papers and
international education providers’ web sites were reviewed to determine processes. Current legislation
was also reviewed so that the requirements needed to inform policies and procedures were noted.

Phase Two: Interviews with Targeted VET Providers and Agents
Based on the research above, a discussion framework was developed for phone interviews with a targeted
group of VET providers in Queensland. The targeted providers covered those at various stages of their
internationalisation. The interviews aimed to identify: current agent management practice for VET providers
in Queensland and what providers felt was needed to advance or improve their agent management
activities. Providers were also asked to provide examples of forms, processes and resources that could be
used to inform the creation of the Provider Templates found in Section Three.

Phase Three: Report Preparation and Review
Based on the outcomes from Phase One and Two the final report was prepared for feedback from key
stakeholders. The final publication is this International Education Agent Management Best Practice
Guide 2011.

1.3. How to Use this Guide
This Guide has been developed in three sections:
• Section One provides an overview of the international and domestic market to provide context.
• Section Two outlines the steps of best practice in education agent management.
• Section Three provides a set of tools, templates and resources providers can contextualise to their
specific business needs.
Depending on your needs, you can work through the Guide or simply choose relevant sections. Each
section includes case studies to provide further information and practical examples.

2. What is an International Education Agent?
An international education agent is often seen as a bridge between the many people involved in
international education– including students, parents, providers and home-stay families –providing a
pivotal link between them. Agents can be found across the world with many offering services to the full
range of providers including language schools (ELICOS), schools, VET providers and higher education
institutions.
The specific activities of an agent vary based on provider and student needs, but their core activities are
generally targeted towards students and providers as follows in Table 1.


Table 1: Core International Education Agents’ Services

Targeted to Students Targeted to Education Providers

• Providing information on the range of education • Recruiting suitable students for the provider
options, courses and pathways
• Processing student applications
• Providing information on the preferred countries –
travel, lifestyle, etc. • Offering a translation service
• Providing market intelligence on changes to demand
• Providing education counselling for students to for courses
ensure the most appropriate course selection
• Marketing and promoting education providers
• Processing applications to education providers
• Student-related administration
• Processing visa applications
• Supporting students while in Australia

The education agent industry is not regulated in Australia. Agents are not required to be a member of any
particular body, or have any specific training or minimum business requirements. However, there are a
number of quality controls and systems that can assist providers in determining whether they should enter
into a partnership with a particular agent. More detail on this can be found in the Due Diligence section
of this Guide. It should be noted that an education agent that is not a registered migration agent cannot
provide migration advice to a student but can provide advice regarding student visa types.

2.1. Types of International Education Agents
There are two key types of education agents. These are:
• inbound student agents
• partnership agents.

Inbound Student Agents
Inbound student agents focus on recruiting students to study in Australia. These agents may be based
either in Australia or offshore or they may have branches in a number of locations. Many agents provide
services to a number of clients in markets across the world. Most often inbound student agents work on a
commission per student recruited.
Providers should be aware that some agents may use the services of a sub-agent – that is, an agent
that feeds students through a lead agent to a provider. As the National Code of Practice for Registration
Authorities and Providers of Education and Training to Overseas Students 2007 (National Code) prescribes
that all providers must have a written agreement with an agent, providers should seek clarification from any
agent if this is practice and how the process is managed. This can be clarified during the agent application
stage.
While not common, some agents may request to be a sole/exclusive agent in a particular market. Providers
should carefully consider the pros and cons of such an agreement and ensure they are not limiting their
options.

Partnership Agents/Business Brokers
These agents focus on developing partnership programs between international providers and/or industry.
Often these agents work on a retainer or commission per project.


Migration Agents vs. Education Agents
A migration agent is an individual who has met the minimum requirements to be registered with the
Migration Agents Registration Authority (MARA). This registration allows them to legally provide immigration
assistance and advice. For more information and a list of Australian registered migration agents visit
https://www.mara.gov.au.
Many migration agents also offer the services of an international education agent and vice versa. Agents
with both the education and migration skill and knowledge in their organisation may add value to an
agency partnership. Providers should ensure they understand the primary focus of the agency and their
strengths as different management styles and approaches may be needed for agents with different skill
sets. For example, a migration agent may need more support in educational knowledge, such as knowledge
of Australian Quality Training Framework (AQTF) or the Education Services for Overseas Students (ESOS)
Act 2000.

3. Why Use an International Education Agent?
The international education agent industry is highly competitive and working with a good agent can be
very lucrative for an education provider. While this is the case, the decision to employ an education agent
should be considered carefully to ensure agents are used most effectively for your organisation. There are
a number of reasons you may consider using an education agent and a number of reasons you may not.
These are described below.

3.1. Reasons to Partner with International Education Agents
• Agents can provide innovative marketing and promotional ideas that may be highly relevant to the
target country.
• Agents with offices or contacts in offshore markets can provide first-hand information on trends and
opportunities.
• Agents with offshore offices can provide on-ground support and thus reduce the need to travel as
frequently to markets, reducing the overall business development costs and increasing profitability.
• Agents provide local expertise and have local language and cultural understanding and knowledge.
• Agents can provide access to high-risk markets that may be costly, difficult or dangerous to access.
• Agents can provide a one-stop-shop for students, which may increase students’ overall satisfaction
with the experience.

3.2. Reasons not to Partner with International Education Agents
• Agents are not regulated in Australia and as such a greater onus is on the provider to select
quality agents.
• Under the ESOS Act there is a requirement to manage agents and adhere to minimum
management requirements, using staff resources that could be used for other activities.
• The industry standard commissions paid to agents are significant and providers need to assess
these costs against direct student recruitment.
• Agents are placed in a position of considerable power, being the business development arm for
your organisation, and therefore providers need to manage and control their activities.
• There is potential for providers to be targeted by agents that employ illegal and/or unscrupulous
practices, so considerable due diligence is required.


4. Agent Regulation and Control
4.1. ESOS Act and the National Code
The National Code of Practice for Registration Authorities and Providers of Education
and Training to Overseas Students 2007
The National Code as it relates to the use of education agents requires that providers:
• use education agents with an appropriate knowledge and understanding of the Australian
international education industry
• enter into a written agreement with agents you engage to formally represent you
• ensure your education agents have access to up-to-date and accurate marketing information
• do not accept students from, or enter into an agreement with, any agent you suspect to be engaging
in dishonest practices
• terminate an agreement if you become aware that your agent is acting dishonestly or unethically
• take immediate corrective or preventative action if you become aware of any form of unprofessional
activity by your agent.

2010 Amendments to the ESOS Act
In 2010, following a review of the ESOS Act, new regulations were introduced in order to improve the
accountability in the use of agents. Under the Education Services for Overseas Students Amendment
(Re-registration of Providers and Other Measures) Act 2010, providers are required to ‘maintain on their
website a list of all persons (whether within or outside Australia) who represent or act on their behalf in
dealing with overseas students or intending overseas students’.
Further proposals were outlined in the ESOS Act review and, if introduced, providers will need to comply.
Providers will need to keep abreast of these possible changes in the future. Suggested amendments
include:
• holding providers more accountable for agents –providers could be fined if their offshore agents act
unethically
• banning Australian-based agents from charging commissions for luring students from one local
college to another
• banning providers from paying commissions to agents unless they disclose the identity of the agents
and their commission arrangements to both students and regulators
• implementing a ‘unique identifier’ to track the colleges attended by each student
• taking some form of direct regulatory action against offshore agents, such as preventing them from
applying for visas on behalf of their clients, if they fail to meet legislative requirements.
The Government’s final position on the regulatory changes will be informed by proposed consultation and
the feedback received.


POLICY - Standard 4 – Education Agents

National Code, Standard 4 (Education Agents):
Registered providers take all reasonable measures to use education agents that have an appropriate
knowledge and understanding of the Australian international education industry and do not use education
agents who are dishonest or lack integrity.
4.1 The registered provider must enter into a written agreement with each education agent it engages to
formally represent it. The agreement must specify the responsibilities of the education agent and the
registered provider and the need to comply with the requirements in the National Code. The agreement
must also include:
a. processes for monitoring the activities of the education agent, including where corrective action may
be required, and
b. termination conditions, including providing for termination in the circumstances outlined in
Standard 4.4.
4.2 The registered provider must ensure that its education agents have access to up-to-date and accurate
marketing information as set out in Standard 1 (Marketing information and practices).
4.3 The registered provider must not accept students from an education agent or enter into an agreement
with an education agent if it knows or reasonably suspects the education agent to be:
a. engaged in, or to have previously been engaged in, dishonest practices, including the deliberate
attempt to recruit a student where this clearly conflicts with the obligations of registered providers
under Standard 7 (Transfer between registered providers).
b. facilitating the enrolment of a student who the education agent believes will not comply with the
conditions of his or her student visa
c. using Provider Registration and International Students Management System (PRISMS) to create
Confirmations of Enrolment for other than a bona fide student, or
d. providing immigration advice where not authorised under the Migration Act 1958 to do so.
4.4 Where the registered provider has entered into an agreement with an education agent and subsequently
becomes aware of, or reasonably suspects, the engagement by that education agent, or an employee
or sub-contractor of that agent, of the conduct set out in Standard 4.3, the registered provider must
terminate the agreement with the education agent. This paragraph does not apply where an individual
employee or sub-contractor of the education agent was responsible for the conduct set out in Standard
4.3 and the education agent has terminated the relationship with that individual employee or sub-
contractor.
4.5 The registered provider must take immediate corrective and preventative action upon the registered
provider becoming aware of an education agent being negligent, careless or incompetent or being
engaged in false, misleading or unethical advertising and recruitment practices, including practices that
could harm the integrity of Australian education and training.


4.2. Education Agents Peak Professional Body
Prior to 2011 there was no formal monitoring or control of international education agents at a systemic
level; the onus was on the provider to ensure an agent’s standing. In April 2011 the Migration Institute of
Australia (MIA) extended membership in the peak body for the migration advice profession to qualified,
registered education agents. It is not mandatory for an agent to be a member of MIA. Membership, however,
could be used as one of the criteria to determine if an agent is a suitable partner.
The MIA has established a Code of Ethics for Affiliate Education Agents. This Code describes the
requirements that agents must adhere to in order to hold membership. Affiliates must agree to:
• continually strive towards lifting the standard of education Agents within the Australian and
international communities
• act at all times in a manner that upholds and enhances the integrity and dignity of those working
within the international education environment
• be open and honest with clients at all times in regards to the scope of services available
• inform their clients that as per the Migration Act, they cannot provide migration advice (unless also
registered as a Migration Agent)
• commit to ongoing professional development throughout their career and actively assist and
encourage their fellow members to advance their professional knowledge and experience
• comply with the relevant Acts, Regulations and MIA Code of Conduct when dealing with clients
• make no representation regarding the provision of services that are false or misleading and to fully
disclose all applicable charges for services, as well as the scope of the services to be provided prior
to engaging a client
• recognise and respect the rights, dignity and individuality of all persons. A member shall not
discriminate or knowingly permit discrimination on the basis of race, national origin, sex, sexual
orientation, religion, age or disability
• avoid conflicts of interest at all times with regard to professional activities, financial considerations
or other interests. At such time as a member becomes aware that an actual, apparent or potential
conflict of interest exists, the member must make a full disclosure to the appropriate parties.
For more information visit: http://mia.org.au/educationagent/.
Agents have also established professional peak bodies within their own countries. Each of these
professional bodies has its own code of ethics and can be used as a tool in collecting due diligence
information.


4.3. Additional References and Resources
As shown in Table 2, a number of publications and resources have been developed to assist providers to
understand and implement the requirements under the ESOS Act and National Code.

Table 2: Agent Management Resources

Publication Source

Education Agents Manual International Student
Association New Zealand
http://www.isana.org.au/files/EducationAgentsManual.pdf
and Australia (ISANA)

Best Practice in Education Agent Management Victorian TAFE International
(VTI)
http://www.aei.gov.au/Regulatory-Information/Pages/Regulatoryinformation.aspx

Using Education Agents, A guide for providers of education and training to overseas Department of Education,
students Employment and Workplace
Relations (DEEWR)
http://www.pieronline.org/_Upload/Files/Using_Education_Agents_pdf.pdf

National Code Explanatory Guides Australian Education
International (AEI)
http://www.aei.gov.au/Regulatory-Information/Pages/Regulatoryinformation.aspx

5. Managing Agents in Turbulent Times
In 2010 the Australian international education sector experienced its first significant downturn. Figures
reported by providers range from a 10 to 30 per cent reduction in student enrolments in 2010 alone. The
downturn has been attributed to a combination of external factors such as;
• the global financial crisis,
• increased international competition and the appreciation of the Australian dollar,
• and domestic factors such as changes to student visa requirements, student safety concerns,
changes to the skilled migration program and the commercial failure of a number of colleges.
Reports indicate that the impact of the downturn was felt across the whole sector and is continuing
to be felt.
In turbulent times providers many need to place greater emphasis on:
• being aware of possible risks and unethical practices
• ensuring effective due diligence and monitoring processes are in place
• managing change effectively.


5.1. Potential Risks
The relationship between economic downturn and increased illegal activities is well reported. While we
know most agents are honest, reliable and are looking for a mutually rewarding partnership, it is more
likely in difficult times for individuals to take advantage and attempt to gain from illegal behavior. As such
it is advisable for providers to make themselves aware of possible illegal practices that could affect their
business and have strategies in place to pre-empt these. It should also be noted that these activities can
occur from inside your organisation as well as outside. The set of case studies below provides a good
summary of possible fraudulent activities that have been reported across the sector.

CASE STUDY : Examples Of Rouge Agent Activity

International Draft Scam – A prospective international student approached a provider to enrol as a student.
An international draft for tuition fees was forwarded, payable to the provider. The draft was banked. A number
of days later the international student contacted the provider advising that due to a family tragedy they would
no longer be able to attend the provider and consequently requested a refund of the fees already paid (the
figure was close to $10,000). The staff became suspicious and looked into the request. Meanwhile the bank
contacted the provider to advise that the draft had been dishonoured and appeared to be fraudulent. Clearly
the intent was to have received the refund prior to the provider being notified of the fraudulent draft.
Web Scams – In Country Y, where Provider X was operating, an agent set up a website with the URL http://www.
providerX.countryY.com. The website linked directly to the agent’s own website. Suddenly the other agents in
Country Y started to complain because it looked like this was the ‘official website of Provider X’, directing the
enquiries straight to the agent. The other agents assumed the agent was getting preferential treatment but in
fact he had simply purchased the URL and used it for his own purpose. There is nothing illegal in his action. It
does, however, compromise Provider X who went to great lengths to ensure the agent change the website and
stop using the provider name in the URL. The agent complied and they are still partners. Another agent set up a
website using information and logos of multiple Universities creating the impression that this agent represents
these institutions. None of the Universities have a formal relationship with this agent. Because the agent is not
an authentic agent, there is little the Universities can do about the problem. It has proven difficult to protect
the logos from being downloaded or used in electronic forms.
Double Dipping Scam – An agent was accused of double dipping on commissions. He sent a second invoice for
the same student, in the same course. The provider had a system of paying on invoices for multiple students
with a grand total. They did not have a clear way of recording against the student’s name what was paid and
when. The second commissions were paid. The agent did it accidentally in the first instance but when it wasn’t
discovered they tried again successfully and then, of course, it became a lucrative habit. It was exacerbated
by the fact that sometimes the invoices would arrive months after the student had commenced and the
provider was not good at tracking its payments over time. A response to this was to set up a new system with a
unique invoice number for each student. This has resolved the problem. The provider was also concerned that
perhaps one of the staff who had sole responsibility for paying commissions may have been working by prior
arrangement with the agent. An audit by an outside consultant identified that a key risk to the Provider was
having a single person responsible for this commission payment task.
Conflict of Interest – A Provider’s marketing staff person asked permission to sign up a close relative as an
agent. At no stage did they alert the Provider that the agent was related to them even though the agent was
operating in their marketing region and there was a conflict of interest. The scam was discovered but the
staff person claimed to be innocent of all knowledge of how this could have happened and told a range of
increasingly unbelievable stories around the matter, consistently denying a conspiracy. Only after extensive
investigation and confrontation, involving the Provider’s Human Resources section, the Unions and provision
of irrefutable written evidence did the staff person accept there was something untoward. At this point, even
though the saga had drawn out over two months, the person’s last resort was to claim that the relative had
misled them and that they were shocked and appalled. The staff person was married to the agent and lived
with them at the business address.
Theft – An agent took a non-refundable up front payment from all students for the services that the universities
provide free –for example, airport pickup, orientation and accommodation support.
Modified from Scams and Scammers: Agents and the International Office. A Cautionary Tale, Virginia Pattingale,
http://www.aiec.idp.com/pdf/Paper_Pattingale.pdf


5.2. Due Diligence and Monitoring
The process of conducting due diligence and ongoing monitoring and evaluation are a feature of this Guide.
Section Two of this document provides detailed processes and questions for providers to support their
agent selection and management. In addition to this resource, providers can also refer to the Partnership
Due Diligence Best Practice Guide.

5.3. Managing Change Effectively
The aim of this Guide is to provide strategies and tools to ensure your systems and processes are the most
efficient and effective they can be. Even if you adopt and apply all the best practice ideas outlined, at times
your business will be exposed to economic and social conditions that are outside your control. As such,
providers will need strategies to ensure your business can be sustained through changing conditions.
In turbulent times providers should focus attention on activities such as:

Agent Mix
• Review the number of agents you have on your books and your ability to effectively service these. It
might be that you need to reduce the number of agents you have and provide more focused attention
to a few.
• Which agents are you working with that provide the best returns and outcomes? Consider the 80/20
rule and actively work with your top agents to ensure their needs are met and they are satisfied.
• Review the role and services an agent offers.

Market Strategies
• Review your market diversification. It is important to get the right balance between having sufficient
source markets to generate enrolments and your ability to service them.

Service Levels
• Ensure your service levels for administration and course delivery remain very high. Agents will be
more demanding of providers and be looking for the best product and offering for their clients. By
maintaining and ensuring a high quality the reputation of your brand is retained, which will support
future enrolments.

Coordinating with Agents
• Invite your agents in and discuss the current environment. Consider mutual ways you can work
collaboratively to maintain business.
• Ensure you maintain regular and engaging communication with your agents. Communication is key
to any relationship and a solid relationship will lead to enrolments. If face-to-face communication
is prohibitive due to cost, consider lower cost communication channels such as social networking
platforms, Skype and email.

Consider Pricing Strategies
• Carefully consider your pricing strategies. In poor economic times discounting is often used to attract
business. While this may help business initially it potentially can reduce the perceived value of your
courses and services.
• Monitor your commission rates and negotiate these wisely. As part of your negotiation with agents
you may consider increasing your commission provided to agents to be competitive. It is very difficult
to reduce commissions once you have increased it. It may be more appropriate to consider other
incentives. Providing part scholarship per x enrolments may be a low cost option if your fixed costs
are met for a particular course.


Creative Promotion Strategies
• Consider joint promotions with other providers in a promotion consortium to reduce marketing costs.
This could include shared offshore agents visits.

Monitor and Review
• It is important to use monitoring activities to know your position and adjust your strategies as
required.
Section Two of this Guide provides detail on these activities and a step-by-step guide to managing
your agents.


6. Strategically Managing Your Business
Strategic management is a key element in the success of any business or project. The purpose of this
Guide is to provide practical advice and tools to optimise the provider–agent relationship. It is important to
understand your organisational objectives, operating environment, and identifying strategic activities. This
understanding leads to establishing a transparent document that can be adopted by the whole institution
to drive successful provider–agent projects. Identifying, appointing and managing agents should be
identified as a key strategic activity for your organisation.

Figure 1: Agent Management within a Strategic Framework

IDENTIFY AGENTS based on
› Organisational Objectives
› Market Objectives

ORGANISATION INTERNATIONAL
STRATEGIC PLAN ORGANISATION PLAN

Financial Management Plan

Organisational Plan
SELECT AGENTS

Marketing Plan
Conduct Due Diligence

Contract/Agreement

Agent Management

Review

Exit

• the types of agents are identified on the basis of your organisational and international objectives.
This should be considered and finalised during the strategic planning process. What kind of agent do
you need to appoint in a particular market to assist in meeting market objectives?
• Agents are selected on the basis of ‘best fit’ in meeting your goals in a particular market. Does the
agent being considered offer skills and services that are needed to meet market objectives?
• Agent management is built into your international plan and internal management model with:
-- internal positions/staff designated for the ongoing identification, recruitment, management and
review of your agent network
-- information management systems identified for the ongoing monitoring and record keeping
involved in managing agents
-- the costs of managing agents included in your financial management plan.


SECTION TWO
THE AGENT MANAGEMENT PROCESS
1. Best Practice in Agent Management
1.1. Steps in Agent Management
Five key steps have been identified as best practice to ensure effective agent management. The process
is cyclical with ongoing identification, management and review occurring at different times depending on
the business needs, market conditions and agent activities. These five steps are:

Identify Appoint Manage Review Exit

Figure 2: The Agent Management Process

3. ONGOING AGENT
1. IDENTIFY AGENTS
MANAGEMENT

assess internal needs conduct initial training

identify agent conduct refresher training

develop communication
approach
2. APPOINTING AGENTS

agent completes application
4. REVIEW OF AGENTS

conduct due diligence

review performance
decide on approach to
service provision
re-negotiate performance
requirements
agree on terms of business

re-sign contract
agree on performance
indicators

develop contract
5. EXIT STRATEGIES

provide certificate of
appointment
terminate contract if required

forward student appeal
information packs



2. Identifying Agents
There are numerous types of agents and hundreds of different businesses operating as agents internationally
and locally. If you are a large, well-established provider to international students, in many instances agents
will seek you out. Smaller providers however, or those new to the international education industry, may
have to actively search for agents to appoint. No matter which category your organisation falls into you
need to have a clear understanding of agents and their role in each market. You should consider:
• market alignment – the market objectives and client needs that the agent will service
• agent alignment – your business needs or objectives that the agent will service.
Investigating these questions at a macro level will assist in identifying agents that align with your business
needs and objectives in a market as well as market-specific issues that may need to be addressed.

2.1. Market Alignment
Every market is different and should be approached in a unique way. Agents may have different roles, offer
different services and operate at different levels of accessibility in different countries. You need to research
the market in the context of the needs of the students and the services offered by agents, as well as other
market issues such as visa processing, the relationship between agents and governments, and regulation
of agents.
In investigating the market you should consider the following:
• Is the use of an agent an effective market strategy to meet your organisational objectives?
• What are the particular market trends? Are they whole-of-country based or regionally based? Large
countries such as India, China, and Russia have niche regional markets and may require different
strategies and agents to be employed in each one. In other markets, such as Scandinavia, it is the
‘done thing’ to employ and work closely with only one agent. The Scandinavian market, although
covering several countries, tends to be more similar than many regional markets within the same
country.
• Where is Australia placed competitively in the market? Is Australia’s market share large or small?
Does this affect the agent–provider relationship? For example, in Malaysia and China there may
be agents that focus solely on Australia because of the size of Australia’s market share. In other
countries, such as Russia, Australian agents will service a number of different markets so providers
may have to maintain these agents more to gain some competitive advantage.
• Are there any particular market issues affecting agents? For example, in countries where there is a
high corruption index this may affect a particular agent’s ability to process student visa applications
or affect your management of an agent.
• Are there any in-market government regulatory requirements concerning agents?
• More agents are employing an ongoing-care strategy with students, which does not necessarily end
when their commission is paid. Agents sometimes provide support, advice and services prior to,
during and following students’ first qualifications.
Investigating these areas and others will help you build a profile of agents’ roles in each specific market
and assist you in targeting your search if you do identify agents as a key strategic activity.


Approaches to Agents by Market
Working with agents requires a unique approach for each market to ensure the local needs, regulations
and customs are adhered to. It is recommended that the legal, financial, institutional and cultural
considerations be addressed for each market in which you intend to work. Understanding and flexibility
are required. It is also important to consider the timing adopted for each market. As outlined in Table 3,
education and training dates vary for different markets.

Table 3: Indicative timing of key term dates for selected markets

Market Term 1 Term 2 Term 3 Term 4 School Year
Finishes
Australia February April July October December
North & Central America September December February April July
Continental Europe August October January April June
Japan April September January - March
South America February April July October December

Implications for agents:
• Have material ready.
• Negotiate the strategic use of conditional offers to fit into timing – i.e. give a conditional offer on the
basis of incomplete results.
• At peak times make sure providers are well resourced. Resource planning is necessary.
• Have appropriately trained staff – for example, culturally aware staff.

CASE STUDY : Education Agent Requirements by Market

The Chinese Government introduced laws to regulate the activities of agencies providing advice
to Chinese students about going overseas to study. These laws regulate the activities of student
recruitment agencies in China, not students or overseas institutions. The laws require agencies to
be registered with the National Government, via a process of nominations from provincial/municipal
authorities. No foreign organisations are permitted and unapproved agents are prevented from
advertising. The laws prevent agents from actively recruiting students at secondary schools (children
under 15 years of age). There are nearly 400 agents approved by the Chinese Ministry of Education. A
full list of approved agents is available to purchase from Austrade Beijing. Providers seeking to deal
with agencies that claim to have national approval should refer to this list. More information can be
gained through Austrade in China.

2.2. Agent Alignment
Assessing the market will provide you with a clear understanding of whether your business objectives will
be met by appointing an agent in-market or whether other strategies would be a better use of resources. It
will also provide you with information to select agents that align with your objectives in-market, specifically:
• the type of agent required in-market
• the client maintenance expectations of the market, which will determine whether you should appoint
an agent onshore or offshore
• how agents monitor the market trends and demand for your product and how competitive the
market is
• the number of agents needed to service the country, given regional niche markets. Does each region
require a different agent or can one agent, through their networks, service the whole country?


Onshore vs. Offshore
Many agents have offices based in Australia to provide ongoing service for their students and to establish
a stronger relationship with providers. Most Australian-based agents have affiliated companies based in
their target market. They usually travel offshore to recruit students on your behalf. The advantage of an
onshore agent is that they have a high level of accessibility to you and your organisation. An offshore-
based agent, however, may have more accessibility to in-market information and potential partners. An
agent who has a large network both in Australia and offshore would have both benefits.
You may need to monitor the legislative changes to the ESOS Act. One recommendation that has been
made is to require more accountability for onshore agents, such as banning the payment of commissions
should an onshore agent be caught poaching students from one provider to the other.
As shown in Table 4, a simple matrix of the markets you wish to target and the number of agents you have
servicing that market can help you manage and plan the search for agents. Note that markets can be as
dynamic as they are diverse, so an agent environmental analysis should be conducted regularly to ensure
your agent management strategy is following market trends.

Table 4: Market–Agent Matrix

Market No. of Students Target No. of Agents Contracted No. of Agents Needed
China 30 0 2
Japan 20 2 1
India 50 3 4
Total 100 5 7

Quality vs. Quantity
It is important to know your agent market and plan as much as possible. However, the decision to appoint
a certain number of agents in a market is not always a strategic one. There are generally two approaches
within industry to selecting and appointing agents:
• appointing a minimum number of agents with whom you build quality relationships. These agents
usually refer large numbers of students to your institution.
• appointing a large number of agents in a market. This strategy involves appointing several agents
who each refer small numbers of students to your institution. Collectively they make up your country
enrolment target. It is much more difficult to manage large numbers of agents effectively or to build
strong sustainable relationships in using this strategy.
There are benefits to each approach. It is probably a natural progression that a smaller VET provider, starting
out internationally, would initially appoint a larger quantity of agents. As they grow and establish strong
relationships with key agents, they reduce the number of agents working with them. This progression is not
always strategically driven: as an organisation grows internationally and establishes a brand in-market this
places them in a better position to negotiate and establish a quality relationship with the more successful
agents in-market.


CASE STUDY : The Changing Nature of Agents

IDP Expands to Recruit for Alternate Markets
IDP Education has become the world’s largest student placement firm, operating more than 70 counselling
centres in more than 20 countries and placing more than 300,000 students. It was jointly owned by 38
Australian universities and a leading online recruitment firm. IDP has been placing students into Australia for
more than 20 years. In 2009 the organisation expanded into the United States and since that time has built the
largest portfolio of university partners of any agency worldwide. IDP has now further expanded into the United
Kingdom, Canada and Turkey and is continuing its growth into a multi-source, multi-destination placement
organisation.

2.3. Sources of Agent Contacts
International education agents can be found in countries throughout the world and there are many ways
providers can identify suitable agents. It is now a requirement under the ESOS Act for all Australian
providers to list their agents publically on their website. While this can be a good source of potential
agents, providers should always conduct their own due diligence on these agents to ensure they are
strategically aligned to your business. Table 5 provides a summary of some possible sources of agents you
may consider.

Table 5: Sources of Agent Contacts

Source Description

Austrade http://www.austrade.gov.au/

International Education ICEF: http://www.icef.com/
Agents Fairs (ICEF)

Local onshore Agents Trade Queensland
Australian-based, country-specific associations: for example, the Singapore
Malaysian Association of Australia
telephone books
Chamber of Commerce and Industry
other providers

Internet web searches

Networking with other other registered training organisations
Providers
other sectors

Web search Provider Agent published provider lists of educational representatives either on their websites
Lists or through their international prospectuses

International Education Austrade Fairs
Student Fairs

Queensland Government http://www.export.qld.gov.au/contact-us.html#international
Offices Offshore


Professional International www.pieronline.org.
Education Resources (PIER
Online) for a full list of Qualified Education Agent Counsellors: http://www.pieronline.
org/qeac/mobile.aspx

Direct to you Internet site

Offshore providers and agents introduction via networks in different markets

Advertising expressions of interest/tender

Agent Associations Migration Institute of Australia (MIA) http://mia.org.au/educationagent
The Federation of Education and Language Consultants has a world wide
network of Agents Associations (FELA): http://www.felca.org/
Association of Australian Education Representatives in India (AAERI): http://
www.aaeri.org/



3. Appointing Agents
At this point you have assessed the market, identified the use of agents as a key recruitment strategy,
and determined the type of agents you require. You now need to select specific agents to implement
your strategy.
Appointing and using agents as a recruitment strategy can be very effective; however, it is not without its
risks. It is essential that appointed agents act ethically and professionally. From a marketing point of view
agents are generally the first point of contact clients have with your organisation. A bad first impression
can damage your in-market reputation. Also, there is a legal obligation through the National Code for
providers to ensure that agents are honest.
A number of providers have developed an Agent Code of Conduct as a public means to articulate their
requirements for agents. Proposed amendments to the ESOS Act as described in the Baird Review will place
greater onus on the provider to manage agents. As such it is important that you state your expectations up
front. It is advised that your Agent Code of Conduct is placed on your website for easy access.

POLICY : The National Code (2007): Standard 4 – Education agents, Outcome of standard 4
Registered providers take all reasonable measures to use education agents that have an appropriate knowledge
and understanding of the Australian international education industry and do not use agents who are dishonest
or lack integrity.67

3.1. Application Process
The appointment of an agent involves three steps:
1. Undergoing due diligence through an application process
2. Establishing the kinds of agent management models you are going to use
3. Formalising your partnership through a contract.
To reduce the risk associated with partnering with a non-desirable agent, many providers have implemented
an application process during which due diligence of the agent is conducted. The application process is
also an opportunity to identify agents best suited to your organisation’s needs in the market: you can
find out how far their networks reach and potential market strategies they are going to implement. It is
recommended that your agent application form be divided into four sections:
• Due diligence – where the corporate profile, organisational structure and referees are established
• Training and educational qualifications – where potential agents’ knowledge of the Australian
education industry and training qualifications is established
• Market information – where knowledge of the target market, services being offered and in-market
strategies are established
• Services they will offer.

6 http://aei.gov.au/AEI/CmsTemplates/GeneralTemplates/LandingPage.aspx?NRMODE=Published&NRNODE
GUID=%7b2F9C1196-4B2B-49A8-A64A-67B003520F81%7d&NRORIGINALURL=%2fAEI%2fESOS%2fDefault.
htm&NRCACHEHINT=ModifyGuest
7 http://www.aei.gov.au/AEI/ESOS/NationalCodeExplanatoryGuide/PartD/Standard_4.htm


3.1.1. Due Diligence
The main purpose of due diligence is to ensure the agent you are appointing is honest and professional.
There are two reasons to conduct due diligence on any potential agents:
• Under Standard 4 of the National Code, providers must not make an agreement with an agent who
has been engaged in dishonest and unethical practices or who has provided unauthorised migration
advice.
• Agents are usually the first point of contact between you and your potential students. The agent’s
professional conduct is essential to maintain the integrity of your reputation as well as, more
generally, Australia’s reputation as a quality provider of international education.
You should thoroughly investigate the potential agent before appointing them. Most due diligence can be
conducted through use of an application form, filled out by the agent, and contacting referees. Information
sourced directly from the agent should collaborate with other sources such as government agencies,
referees, agent associations and networks as well as your own industry networks.
Areas for consideration in due diligence are:
• the company profile
• the owners and executives involved in the company. Pay particular detail to establishing whether
anyone connected with the company has been involved in any bankruptcies, legal proceedings or
liquidations
• any sub-branches or affiliated companies, if the company is registered
• the company’s financial probity
• how long the company has been established
• at least two educational referees, preferably Australian-based
• possibly two student referees to ascertain the level of service the agent provided them, although this
is not common practice within the Australian international education industry.

3.1.2. Training and Educational Qualifications
This section of the application form should establish the agent’s knowledge of the Australian education
industry. It should assess:
• their familiarity with the Australian Department of Immigration and Citizenship (DIAC)—the visa
application process and where to find changes to student visa requirements
• their familiarity with the ESOS Act and associated National Code through the Department of
Education, Employment and Work Relations (DEEWR) website
• whether they are Qualified Education Agent Counsellors (QEAC). The Education Agent Training
Course (EATC), delivered online by PIER is the result of collaboration between Australian Education
International (AEI), DIAC and Australian international education peak bodies. The EATC covers four
areas: Australia, the Australian Qualifications Framework (AQF) and career trends; Legislation and
regulations; Working effectively in international education; and Professional standards and ethics.
Qualified agents are listed on the Qualified Education Agent Database (QEAC) at http://www.
pieronline.org/qeac/default.aspx.
• whether they are qualified Migration Agents under the Migrant Act. If not, do they understand what
they can and cannot promise regarding Australian residency?


• whether they hold any other relevant memberships or licenses. For example, you would ask agents
from China to provide a copy of the Chinese Ministry of Education Registration Certificate with the
agent registration number; alternatively, if the agent is based in Australia, ask for evidence that they
are partnering with a registered Chinese education agent based in China.
• whether they are an affiliate member of the Migration Institute of Australia (MIA).

3.1.3. Market Information
The application should also allow agents to show their knowledge of their geographical territory or market.
Ask for details of:
• the potential market
• the geographical area the agent will service and how they will service it
• the agent’s strengths in these areas
• the number of students they handle each year
• their proposal for promotion and marketing in the territories, including the events they will organise
and attend on behalf of your organisation.

3.1.4. Services
Finally, you should ask for details of the services the agent is prepared to offer as part of the agency
agreement. The range of services will depend on the type of agent, their qualifications, market demand
and the facilities they have in country. All agents should offer the following services as a minimum:
• undertaking basic promotion and marketing
• providing information to prospective students on your courses, campus, facilities and other
information required under Standards 4 and 5 of the National Code
• assisting in the recruitment of prospective students by providing advice on completing application
forms and submitting them to your organisation
• arranging for English language testing of prospective students
• assisting prospective students with completing and submitting Australian immigration visa
applications with the Australian Embassy.
Additional services may be negotiated depending on the market and the agent’s qualifications and
licenses. For example, if the agent is located in Australia and is registered as an official migration agent
they may be able to provide a migration advisory service to the student. If they are a travel agency they
can organise airfares and accommodation in Australia. If one of your goals is to form partnerships in the
target market some agents may act as a partnership broker between you and other overseas institutions.
Services can be defined in more detail within the agreement. However, the application form will provide
some information on the potential services the agent could offer.
Note: The most successful agent–provider relationships are based on mutually beneficial and equal
partnerships. Therefore it is important to provide information on your organisation to the agent when
asking them to complete the application form. You should also encourage them to complete their own
due diligence process on you. The partnership will only work if there is a genuine alignment of business
objectives and ethos.
The best way to establish the scope of an agent’s services and market knowledge is to ask for a promotion and
marketing plan for their specified territory. The plan could be seen as a Capacity Statement demonstrating
what the agent knows, will do and can do to meet your business objectives. It should cover the following:
• This is what we know about you.
• This is our understanding of your needs.
• These are the services we will provide you to assist in meeting those needs.


3.2. Agent Management Models
After identifying an agent you want to appoint, and before contracting them, you need to decide on the
scope of their appointment, specifically:
• the service provision—what roles and responsibilities will they have?
• commission structures—how will they be remunerated?
• incentive Management Models—are there rewards for exceeding goals and obligations?

3.2.1. The Service Provision
What services will the agent offer? What role will they play in promoting, marketing and recruiting for your
organisation? The roles and responsibilities should be based on your business’s strategic objectives and
priorities. You should keep in mind why you are appointing the agent in that particular market and the
services the agent offers, and align the service provisions accordingly.
If the agent is newly appointed, you may wish to enlist them to provide only minimum services to the
market. As the relationship grows you could increase the service provision. You should note that the more
high-level services you require, the more your responsibilities towards the agent will increase, such as
training, monetary support and time. Table 6 below shows suggested service provisions and examples of
the level of service that an agent may offer.

Table 6: Service Provision and Level of Agent Support
Services Basic Intermediate High

Promotion Easily available and Joint promotions such as Regional advertising
accessible in shop front. interviews when provider is campaigns; agent
in market. representing provider at
events.

Marketing None. Translating marketing Exclusive marketing plan
material. organised by the agent
including marketing events
Provider involvement in the
and advertising.
agent’s marketing plan.

Market Research Basic information on market New market trends and Follow-up in market for
features. demands as they come to students who have not
light. converted into enrolments.

Customer Student Counselling. Advice on migration and visa Issuing offer letters and
Service application (if the agent is a Confirmations of Enrolment
Advice on educational
registered Migration Agent). (COEs) on behalf of
application.
provider.
English language testing.
Assistance with visa
application.
Pre-departure orientation.

Alumni None Alumni events and follow up. Maintaining in country
alumni database.

Business None Introduction and advisory Partnership brokering and
Development service for partnerships in negotiation on behalf of
education and industry. provider.

Servicing for None Through regional events and Through regional offices
regional areas promotion. and sub agents.


Remember that, as in any relationship, you need to build trust with the agent and the agent with you. Only
appoint agents for services you are comfortable with them performing. As the relationship develops the
service provisions can be changed and expanded.

3.2.2. Remuneration
The most common way for the remuneration of agents is through payment of a commission. The agent is
paid a percentage of the tuition fee once the student has paid their fees and commenced their studies.
The industry standard varies but feedback from VET providers indicates that commission rates on average
are 15 per cent for a formal qualification and 20 per cent for ELICOS.8 Some organisations, in an effort to
gain the competitive advantage over other providers, have offered up to 40 per cent commission. Careful
consideration needs to be given to the long-term economic viability of this approach, as opposed to using
that money in marketing support for the agent. The biggest advantage of payment by commission is that
the agent does not get paid if they do not recruit any students. However, a disadvantage is that, usually
because agents work for a number of different providers, if they are recruiting large numbers for your
competitor there is no incentive for them to re-route those students to your organisation. They get paid
either way.
Other payment models include:
• set fee per student.
• retainer. The agent is contracted to represent your organisation over a specified period of time to
recruit students. It is recommended that this type of financial model be used more as a consultancy
contract for a specific objective rather than a long-term market strategy.
• agent administrative fees. The agent charges the students a fee. This is usually packaged and
may include tuition fees, air flights, accommodation, etc. This method of payment is rarely used.
However, some agents do charge the institution a commission fee and the student an administrative
fee. You need to clarify whether an agent is charging students fees in addition to your commission
payments. If they are, what added value are they providing the students? Associating yourself with
an agent who is fleecing extra money from students can damage your reputation as well as expose
you to non-compliance of the ESOS Act. It is essential you are clear on your agent’s services and
payment methods.
When considering which model to use, look at the environment and assess which model would provide
you a competitive edge while taking into consideration the long-term effects of any strategy you employ.
One strategy employed by a number of organisations is to couple the payment of a basic commission with
an Incentive Management Model.

3.2.3. Incentive Schemes
As the international education industry becomes increasingly competitive, agents are a major source of
student recruitment for providers. To manage agents more strategically, reward agents who are working
well and gain a competitive advantage over competitors. Many organisations are using incentive schemes.
Incentive schemes can take many forms and may include financial or non-financial incentives. Types of
incentive schemes include:
• discounting. Agents are offered reduced tuition fees for the students they recruit. Discounting is
used by some providers to encourage the agent to route the students to their organisation rather
than a competitor. Careful thought needs to be made before offering this incentive. Discounting can
seriously undermine your position and attract students who are not necessarily part of your target
market. Discounting can lead to a reduction in the quality of student being referred and devalue
your courses.

8 Feedback collected during consultation with Queensland VET Providers.


• variable commission rates. Additional percentages of commission rates are included as an incentive
for your agent to perform better for you. For example, if they have completed the EATC they get
an additional 1 to 5 per cent commission above their basic rate. This can be an effective tool to
encourage your agent to perform better services for you. However, effectiveness will depend on the
agent, the size of your organisation, and the number of students the agent is sending to you. This
strategy may be less effective for smaller organisations where the number of students being sourced
through one particular agent can vary significantly.
• scholarships. Scholarships are offered to high-performing agent counsellors in the form of
Certificates, Diplomas, short courses or even the EATC. These can be particularly effective for
building relationships between you and the agent. Offering a scholarship or other professional
development opportunity will also increase the skills and knowledge of your agent.
• familiarisation visits. You offer to pay for your agent to visit your institution and meet relevant
staff face-to-face. This increases your agent’s knowledge of your institution and personalises the
professional connection by allowing your admission officers to meet the agents.
• additional marketing support. This could be financial or physical support, whether by organising
more joint promotions in-country or providing more financial support for marketing activities.
You may want to use one or a combination of these incentives to motivate your agent – a combination of
financial and non-financial incentives seems to be most effective.
The decision of whether to use an incentive scheme or whether you can engage and motivate your agents
one-on-one will depend on your resources, size and long-term growth plans. For example, if you have
appointed a small number of agents they might be easily managed personally; however, unless you have
a dedicated agent manager as you grow and appoint more agents, you might want to consider managing
your agents within a management model.
Many larger VET providers and universities are now using Incentive Management Models to strategically
rank and provide incentives for their top performing agents. Agents are categorised and ranked against
selection criteria based on performance and the provider–agent relationship. The selection criteria again
should be based on your institutional objectives and should be at a macro level to account for market
level diversity.
For example, Table 7 illustrates how agents may be ranked into four levels depending on their performance
in recruiting and their length of association with the organisation. Agents are recruited as bronze agents and
then, through consistently achieving and exceeding their key performance indicators, can be recognised
and rewarded for their loyalty and hard work.

Table 7: Agent Rankings

Rank Description No. of Students Revenue target

Bronze New agents < 20

Silver Existing agents demonstrating growth in students > 20
numbers and meeting minimum targets

Gold Key agent in targeted markets > 40
Use of sub-agents to recruit large numbers of students

Platinum As above plus >50 $ 500,000
Business development activities for industry and
institutional partnerships

Each level offers incentives and rewards to encourage progression to the next level, as shown in Table 8.


Table 8: Agent Incentives and Rewards

Relationship Structure Bronze Silver Gold Platinum

Length of Agreement 1 year 2 years 3 years 3 years

Performance Review 6 1 year 1 year 1 year
months

Monthly report  

Incentive / Benefits

Commission rate - ELICOS 20% 20% 20%+3% 20%+ 4%
over over target
target revenue
revenue

Commission rate - Diploma 15% 15% 15% 15%

Commission rate – Other (Study tours, etc) - - 10% 10%

Commission rate based on revenue - - - 1.5%
revenue
generated

Familiarisation visit – assistance arranging visits    

Partner Certificate    

Regular newsletter    

Listing on web site    

Training support – web based    

Scholarships scheme   

Familiarisation visit - paid visit to Queensland  

Promotional Budget - $2000  

Agreement administrative / marketing expenses paid  

Training support (in person)  

Signage on site 


3.3. Contracting Agents
POLICY: The National Code (2007) Standard 4.1 states:
The registered provider must enter into a written agreement with each education agent it engages
to formally represent it. The agreement must specify responsibilities of the education agent and the
registered provider and the need to comply with the requirements of the National Code. The agreement
must include:
• processes for monitoring the activities of the education agent, including where corrective action may be
required, and
• termination conditions, including provision for termination in the circumstances outlines in Standard 4.4.

In addition to compliance with the National Code, the contract provides a document of reference to manage
your relationship with the agent and the agent with you. As a minimum the agent contract should include:

Service Provisions
• roles and responsibilities of each party
• a clear indication of the territory or geographical area the agent is responsible for

Key Performance Indicators
• Key Performance Indicators including student targets, processing times and partner introductions

Incentives
• incentive schemes
• commission structures

Basic Contractual Concerns
• the duration of contract and termination clauses
• provision for the document to fall within Australian legal jurisdiction whenever possible.
As with any legal document it is essential this be reviewed by your organisation’s legal representatives.

3.3.1. The Service Provision
The roles and responsibilities should be based on your business strategic objectives and priorities. You
should keep in mind the reasons you are appointing the agent in that particular market and the services
the agent offers and align the service provisions accordingly.
If the agent is a new agent you may wish to appoint them to basically serve the market. As the relationship
grows you could increase the service provision. You should note that, the higher the level of services you
require, the higher your responsibilities towards the agent, such as increases in training, monetary support
and time.

Clearly Defined Territories
It should also be made clear which geographical areas the agent is servicing. This will make it easy for you
to manage your agents as well as stay focused on your organisational needs and objectives. There are a
number of reasons for this:
• Different markets may need different approaches. The agent you have appointed for a particular
market may not be suitable to meet your objectives in a different market.
• An agent expanding or encroaching into another territory may have implications on your relationship
with existing successful agents or partners in that territory.
• You may not have the resources to service another market.


To clarify this, it should be noted that agents’ territories might be defined but not the nationalities they
can recruit. For example, an agent servicing Slovakia would be able to recruit a Korean student if they were
recruited within that territory. A Taiwanese agent based in Brisbane might have a defined territory of South
East Queensland and Taiwan. The size of the territory would be up to you and the nationalities of those
recruited within the territory would not be restricted.

3.3.2. Key Performance Indicators
Once the services have been decided and documented, key performance indicators (KPIs) should also be
established. KPIs should be established together so the agent has some ownership over them and they are
also realistic. There is no point setting a KPI of 50 students when you are a small provider with a population
of 100 international students. If the KPIs are unrealistic then the agent will not work productively for you
and the partnership will not reach its potential. Examples of KPIs include:
• number of student applications sent by agent
• conversion percentage of applications to enrolments
• length of application processing times
• number of partnership introductions made.
As mentioned, KPIs will depend on the agent and the market. An agent who primarily provides business
development services and recruits students through these opportunities would have different KPIs to an
agent who primarily recruits students through a number of promotional and marketing activities such
as student recruitment fairs. Ranking and incentives schemes can encourage agents to work above and
beyond their KPIs.

3.3.3. Remuneration and Incentives
Payment procedures and incentives should be clearly stipulated in the contract and strictly adhered to.
If using incentives or an Incentive Management Model, these should be clearly documented either in the
body of the contract or in the form of an attached Schedule.

3.3.4. Basic Contractual Concerns
As per all legal documents, the following should be included in any agent contract:

Length of the agreement
Most providers have a basic 12-month validation period from the time the agreement is signed. The length
of the contract will depend on a number of factors including: your relationship with the agent; the resources
you have to conduct a review and renewal of agreement; and your positioning in the marketplace.
If you are using a management model and you have a long and established relationship with your agent,
the term may be three years. If it is a new partnership, you might want to have a probationary period of six
to twelve months.
If you are a small provider you need to consider the resources you have to conduct reviews and renewals
of agents. If you have over 50 agents and all agreements expire at the same time it might be a large job
to review and renew all of them. If this is the case you may want to consider a management model and
ranking your agents.


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