MMA Business magazine Oct 10 by HansenHouse Communication

TapouT Sold to Authentic Brands Group — See Page 10 $ 5 .9 9

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SCOTT COKER OF STRIKEFORCE Tips On Hiring Right < Services for Better Business < BUSINESS DEFENSE: Insurance! <

TEAM WORK A Trainer Knows Best – with Erik Paulson This column has been reserved for training tips and ideas provided by proven expert coaches. This issue, too. And when I got the chance to meet with Erik Paulson recently, I thought this would be a perfect opportunity to work with him on a column. Write the column? Not so much. But Paulson did stand still – at least he stayed in the same room – long enough for me to learn a ton about his training philosophy. Submit to Technique? When I arrived at the Combat Submission Wrestling (CSW) training center in Fullerton, Calif., on a Monday morning, Paulson was working with three Italian men. This trio was visiting Paulson as part of an intensive training program that they could take home with them and put to work in their fighter coaching. And I watched the much-larger Paulson submit these guys like training dummies, teaching the three, working the language barrier and instructing me on best photo angles. Clearly a submission expert, Paulson showed the Italians the finer points of wrestling technique, with detailed instruction on placement of hands, feet and elbows for each submission move. “Is technique and form, then, the most important element of your training philosophy?” I asked Paulson. “An MMA fighter needs a strong grappling base,” said the multi-time champion, “and a fighter needs to + Eloy Kaminski (in red) lived know that it’s leverage, not strength, in a mini-van for months as he travelled nationwide to find that wins the submission battle. But a training home in his fight no, technique is not number 1.” career quest. Paulson made him feel at home instantly. Still, Paulson does lament that the days of learning from an expert Martial Arts master appear to be numbered. “There aren’t many focused and traditional Martial Arts guys training in MMA anymore,” he said. “Everything you learn, you need to

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learn the specific and technical method, like Judo or Jiu-Jitsu or Thai Boxing.” Conditioning First, But … Number 1 on Paulson’s priority list for a fighter – and a trainer – is conditioning. When he finished with the three Italian trainers (who seemed finished before he was!), Paulson turned to his noon-hour conditioning class of about 10 fighters. Though Paulson is quick to admit conditioning is the most important element, he’s still watching technique as his students run a variety of steps through a ladders workout, then hit the mini-hurdles before sparring. His emphasis on technique – even during a pulse-quickening conditioning session – means Paulson must work the room with a personal attention that has him moving from pair to pair with pace and precision. And because he knows these fighters well, he can build off yesterday’s session, and into tomorrow’s. … A Good Trainer Knows More And that’s the difference. Paulson’s strength is not really philosophy about training. It’s more like sociology, or anthropology. It’s a study of man and his spirit. If you train with Paulson, he’ll study you. He’ll get to know you. After he tells me that conditioning is what really sets up a fighter for success, Paulson says “testicular fortitude” – the fighter’s spirit – is what makes a fighter a success. “What makes a fighter get back up right away,” wonders Paulson, “or take a strong hit to the jaw and shake it off.” It’s a similar spirit that has a trainer traveling the world – like Paulson does – to share his intensity and his passion for this training. Not every trainer can bring this sociology to the mat day after day. For Paulson, it comes naturally. And students seek him out because of it. Want proof? Eloy Kaminski got in his mini-van a few months back in Bar Harbor, Maine, and began driving south. The Argentina native had been

+ TOP: Erik Paulson travels the world to coach fighters and their coaches. We caught him at his home gym – the CSW Training Center in Fullerton, Calif. – training some coaches from Italy. + RIGHT: While teaching submission tech-

niques, Paulson put his Italian guest through a bit of agony, all the while instructing the photographer to get in for the expression.

in the U.S. for a few years, working full-time and training MMA. He figured he had potential as a fighter, and the best way to prove that was to find the best trainer he could, no matter where in the nation. Kaminski visited schools, gyms and training centers in Boston, and New York first. And he did more than just visit. “I would stay and train as long as they’d let me,” he said, “or as long as I thought it worth my time. Sometimes that was a day, sometimes it was a week.” He visited schools in Florida and began to work his way west, sleeping in the van by night and searching for a long-term training home by day. “I learned so much great technique from a lot of these trainers,” said Kaminski. Several months later, Kaminski arrived at CSW Training Center in Fullerton. He had visited, trained at, and slept in the parking lots of about 15 gyms nationwide. Actually, 15 of the best gyms nationwide. “I worked with so many great coaches,” he said. “And Erik is a great coach, too. But he’s also a great guy. I learned right away that I could spend a lot of time with him personally, and that

the human aspect of training was very important here. Right away, he made me feel like part of the team, like I was in a good group of friends.” The Human Aspect For a fighter, conditioning, technique and mental strength are clearly the three most important aspects to building a successful career. But for a trainer, the human aspect can outrank all those. As hard as Paulson works his students – on technique and on conditioning – he must create a strong human aspect to foster success. It’s sociology. GLENN@HANSENHOUSECOMMUNICATION.COM

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IndustryNews FI GH TS

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AUTHENTIC BRANDS GROUP PURCHASES TAPOUT Making headlines across sports, business and fashion media, the owners of TapouT recently sold their company to Authentic Brands Group LLC, a brand development and licensing company with offices in New York, Los Angeles and Toronto. In this acquisition, Authentic Brands also purchased Silver Star Casting Co., and Hitman Fight Gear. The focus, however, is on TapouT, the biggest brand name in MMA today. The value of the deal is undetermined at this time, but Bloomberg Business reported in June that Jamie Salter, CEO of Authentic Brands, had just secured $250 million dollars in equity capital in his hope to acquire “much bigger assets than we’ve gone after in the past.” In an interview following the acquisition, Salter told Bloomberg the purchase made complete sense because “it’s the fastest growing sport in the world today. Like the NFL or the NBA, UFC is here to stay, and TapouT is the number one brand in the world trading in this space today.” When asked about earnings potential and the margins possible in this segment, Salter indicated that TapouT presents much more of a licensing model, saying “our margins tend to be between 60 and 70 percent EBITDA margins (Earnings Before Interest, Taxes, Depreciation and Amortization). Bloomberg referenced yoga company Lululemon’s reported margins of 19 percent, and Nike’s at 13 percent. The best growth opportunity, according to Salter, is internationally. “The biggest potential for us is overseas right now. We see big growth in Europe, Asia and South America,” as he tells Bloomberg reporter Erik Shatzker. Will Authentic Brands keep TapouT authentic? That remains to be seen. Company co-founder Dan “Punkass” Caldwell will remain as president of TapouT, and he told Bloomberg that “sell out” is a bad word to use. (Authentic Brands) is going to help us take it to the top.” Tim “Skyskrape” Katz stays on as marketing/creative director. TapouT Chairman and President Marc Kreiner’s future with the company is undetermined. Authentic Brands also operates brand names such as Polaroid, Linens n’ Things, Tommy Armour, The Sharper Image, Ride Snowboards and more. Hitman Fight Gear of Grand Terrace, Calif., is a distributor of MMA clothing and accessories as well as promoter of the Hitman Fight Team, sponsoring several UFC, Strikeforce and WEC fighters. One-time TapouT rival Silver Star Casting Company was established in 1993 and is a supplier of MMA-branded clothing and jewelry. Silver Star President Luke Burrett will also remain with the company, now joining his former competitors.

Canada MDs want to ban MMA The Ontario, Canada government recently passed laws to regulate MMA. Canadian docs want to ban it. “This so-called ‘sport’ is savage and brutal and its aim is the disability of the opponent completely,” said British Colum10

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bia physician and Dr. Victor Dirnfeld. Tom Wright, UFC Canada Director of Operations, has defended MMA against attacks from this medical group. And he repeats that UFC Canada is willing to work with doctors I

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or any organization to make sure the health of mixed martial artists is safeguarded. It’s unlikely the MDs will get their wish, or that the seven Canadian provinces now regulating MMA will vote as a group to ban the sport.

Everlast Partners with Shock Doctor Everlast Worldwide, Inc., wellknown maker of fight sports clothing and equipment recently announced an exclusive partnership with Shock Doctor, a leader in mouthguard technology. “We are very proud to partner with Shock Doctor,” said Adam Geisler, President of Everlast. “Everlast remains passionate and dedicated to creating the very best fight sports equipment and our partnership with Shock Doctor allows us to provide the most technologically advanced fight sports protection equipment on the market.” The partnership features a line of co-branded protective equipment, including mouthguards and protec-

tive cups. These new products introduce trademarked Everlast technologies such as EverGel, EverFresh and Compress-X, ideas designed and developed specifically for the fight sports market. “Everlast is a natural fit and we are looking forward to working with one of the world’s most iconic sports brands,” said Tony Armand, President & CEO of Shock Doctor. “We have an opportunity to bring Shock Doctor’s patented technologies in sports protection to an even broader audience.” The Everlast line of Shock Doctor protective equipment will launch in the Fall of 2010 and will be available nationwide through sporting goods retailers, sports specialty stores, and online.

BUSINESS OPERATIONS

ServiceSolutions By Jerrod Kelley Service-Providing Companies Can Help MMA Gym Owners Become More Efficient, Boost Profits & Find Extra Time in the Day Small business owners – from Mixed Martial Arts facilities to yoga academies to auto repair shops and more – face similar concerns when it comes to daily operations. How to attract new customers and then collect their fees, especially delinquent payments. How 14

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to manage trainers and full-time employees. How to market their skills and advertise effectively, including the new social media game. And there’s more. These day-to-day procedures can consume vast amounts of time and keep you deeply entrenched in run-

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ning your business, when you could be serving your clients and growing the business. While hiring competent employees can lighten the load, time spent in the office – and off the mat – can be a burden. Many business owners have made a

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+ “Savant Young runs his Fight Academy MMA (Pasadena, Calif.) from the mat, not from behind a desk.”

common-sense decision to work with outside service providers. Using a combination of systematic software and operations expertise, they can help you operate more efficiently while allowing you to focus on the reason you started your school, and the reason your students joined in the first place. But there is a cost. You’ll give up some money and you’ll give up some control. So how do you choose a service provider? How do you find the ones that meet and exceed your needs, yet remain a cost-effective option? Are all outside service-providing companies equal or should you explore one that is well versed in martial arts? Do What You Do An MMA gym is often built on the personality of the owner or top trainers. “That’s great for the first few years of business,” says Jon Malach, vice

president of sales for ChampionsWay, a British Columbia, Canada-based provider of operations services to MMA schools, “but these people essentially become the business.” And that might not be good. “If that business is going to be sold, or if the top trainers leave, you lose those personalities, and the business is effectively worth nothing because everything was dependent on them,” he says. According to Malach, your business must become dependent on good systems and not just a few good people. Service providers help by creating systems and efficiencies, often through the use of easy-to-learn, purpose-built software. This forces you to use a consistent way to approach every task. “When the time comes to grow and hire staff or start to delegate tasks, you are delegating into a system that

anyone can pick up and is not dependant upon a personality or a particular person,” says Malach. Billing Everybody likes getting money, but nobody likes asking for it. Perhaps that’s why customer billing is one of the top professional services sought by Mixed Martial Arts gym owners. Sure, many owners still accept cash and checks, and allow for payments at each session. But it’s not efficient or effective, and will likely cost you more money in the long run. Most of the companies offering services to MMA schools handle billing. A company like EasyPay clearly explains why it’s in the billing service business. “Make the bank the banker.” EasyPay delivers a software program for your school that automates billing through a credit-card processing sys-

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tem, depositing funds directly in your bank account, and alerting you of potential payment problems. “You really want to get folks on some sort of electronic payment method. If you leave it to people to give you a check or to pay manually, your delinquency rate will be three to four times higher,” says Steve Pinado, CEO of Member Solutions, a PCI Compliant service provider that serves more than 100,000 consumers each month with $150 million in transactions in 2010, 20 years of experience and more than 2,500 global clients. Simply collecting money is key for many MMA businesses. “Just because someone misses a payment, you don’t necessarily want them out of your gym,” says Pinado. “You want to get the payment but keep them happy and protect

your relationship and have them make 12 to 36 more payments.” Malach calls collecting cash inefficient and says a pre-authorized payment plan is the best way to go. “We assist school owners with getting that set up. We have extremely low rates, so that’s why people connect with us,” says Malach. He calls having an inhouse credit card terminal and accepting other payment forms (PayPal, cash and checks) too labor intensive and says businesses need to remove themselves from the collection process. Marketing To aid gym owners, Colorado-based ASF International has an in-house marketing and design team that can do everything from logo design and branding to creating direct mail pieces and flyers. ASF uses DojoPRO software that integrates with its marketing programs to automatically track prospects (from first point of contact to contract signing). “They can then run reports to manage the effectiveness of various marketing strategies and geographical areas,” says Rachelle Dodge, a marketing assistant with ASF. ASF’s software also provides gym owners with a free email communication portal through its software. “It’s a super easy way to send newsletters, check up on non-attending students and much more,” Dodge adds. “Communication is key to retention, beginning immediately after joining the gym. As a billing company, we know that proving the value of your gym in the first few weeks is crucial to retention.” She suggests setting goals with new students, to communicate with them during the process and include them in events outside of class. The Social Media Game With social media’s popularity, many service providers have added it to their service packages. The WebSocial program from ChampionsWay uses Per-

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fectMIND, software that is used by many gym owners. The WebSocial platform is straightforward and is designed to integrate with your existing website. When you update your website, simply click the icon of the social media platform you want to post to and it too is updated in seconds. ChampionsWay says PerfectMIND can post to all of social networking sites simultaneously, which saves you time and energy, and eliminates the need for pricey or slow webmasters. It also calls WebSocial a way to create endless exposure and a positive because your peers (students and their family and friends) talk about your facility and its benefits, which creates community and free marketing. ChampionsWay started a consulting service midway through 2009 and then branched out with social media classes for martial arts schools (Facebook 101/ Twitter 101). “We are focusing on social media because it is the only way to market right now,” says Malach. “Everybody is on Facebook or Twitter. Everyone is reading micro posts. Everybody loves to see martial arts videos,” says Malach. Dodge says MMA Gyms are doing a pretty good job at social media and taking advantage of the popularity of the UFC and MMA in general. However, there’s still a big issue of traditional martial arts schools trying to attract MMA students and how they should market to them. “These schools have worked hard to build their brands over the years and be seen as experts in tae kwon do or karate (for example), but now they have changed their curriculum and it’s is presenting a challenge for their marketing … attracting two different types of students to two different programs,” Dodge adds. She says MMA gyms and traditional school have different target markets and should approach marketing differently, in terms of copy, images and advertising in general.

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Social networking has obvious customer acquisition benefits, but also appeals to current members for its interactive appeal, community approach and its affordable marketing. “The great providers of martial arts to a community do a whole bunch of other things and the social media outlets allow them to become even more public because our members are our greatest advocates,” states Pinado. “Serve them well, give them an outlet to voice their thoughts, expand the reach and further your community.” Frequent Concerns About Using Service Providers Apprehension toward using a service provider is common. The expense is an important aspect for MMA gyms. The implementation time and eventual loss of control may also concern you. Or you might think your gym is too small to need one of these service providers. “Small gyms (say 50 members or less) can probably handle many services themselves,” says Pinado, “but they probably shouldn’t. You should still be working on growing, and turning 50 members to 100,” he says. “We want to pinpoint a need, so we can help our clients be more efficient, grow their business — by getting more customers and keeping the ones they have.” Member Solutions says it will save gyms money because it can collect payments and obligations more efficiently than the gym itself. Spinado says, “The time you spend on it isn’t worth it. We have the ability to help people get a better credit card processing rate, for example, than they can get on their own. We have programs where you can buy from suppliers, like Century and Zebra Mats and others, where you get our buying power.” The company takes clients through an implementation process with a team to simplify new operations. “If you want to start billing right away, you’re up and running in two or three days. 18

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Service Providers List Easy Pay: Automated Billing service, Studio Management Software, etc. (800) 852-4005, www.mymartialartsbilling.com Premier Management Group: Marketing, Training, etc. (877) 613-4900, www.pmgsite.com

ASF International: Billing, Software, Marketing, etc. (800) 227-3859, www.asfmartialarts.com Member Solutions: Billing, Registration, Office Management, etc. (888) 277-4409, www.membersolutions.com

ChampionsWay: Billing, School Management Software, Web and Social Media, etc. (877) 774-5425, www.championsway.com This is straight forward and anyone can do it,” Pinado explains. “In terms of web applications and software applications, you must invest some time. You have to populate it, set some things up, and enter data … it takes as much time and energy as someone wants to put into it. You need to manage it and make it work to get the most out of it.” Choosing A Provider With MMA Knowledge It’s important to get a company with membership business understanding, not just a payment processor, your local bank or a collection company. Those familiar with martial arts schools and MMA gyms understand what an owner is faced with and how to create a mutually beneficial partnership. Pinado says martial arts makes up about 80 percent of Member Solutions’ clients. “We appreciate what they go through and we understand it and it lets us be more helpful when we provide advice and consulting support. It lets us be more effective. We don’t charge for those things, but we provide a whole lot of content, information and access that just comes with the package.” Malach says there isn’t an industry as complicated as martial arts; it’s

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imperative to partner with a service provider with MMA knowledge, like ChampionsWay, which started as a private martial arts gym itself. “If you’re running an MMA or martial arts business, you will not have the same level of success working with a non-niche specific provider. Not only because their staff isn’t aware of what you’re going through, or what you’re going through is unique, but you’ll lose out on the networking opportunity,” he explains. Because of its martial arts ties, ChampionsWay created an online community for its clients to be able to exchange best practices and support each other. It grew to more than 31,000 schools in less than a year. Think Of It As An Investment There’s an old adage that says you have to spend money to make money. Free spending of your profits is unwise, but to partner with an outside service provider, one that can ensure your business is more profitable, more efficient and offers a clear look to the future, is a wise decision. From billing to web-based applications to marketing and social media expertise, service providers exist to simplify your business and save you and your staff time, which some say is more valuable than money.

CENTERRING Q&A WITH

SCOTT COKER WHEN WE STARTED MMA BUSINESS MAGAZINE, WE HAD A SHORT LIST OF MUST-HAVE INTERVIEWS FOR OUR FIRST YEAR. ON THAT LIST: DANA WHITE, UFC PRESIDENT; THE EXECUTIVE TEAM AT TAPOUT; AND SCOTT COKER, HEAD OF STRIKEFORCE; AMONG OTHERS. IF SOMEONE WOULD HAVE TOLD ME THEN THAT SCOTT COKER WOULD BE THE TOUGHEST TO SCHEDULE OF THESE THREE, I WOULDA SAID “YOU’RE NUTS!” BY GLENN HANSEN Six months later, I’m finally on the phone with Scott Coker. That means six months of calling, e-mailing, posting messages on company website, networking industry connections. Then, he called. Scott Coker thinks like a fighter, at least more so than he thinks like a marketer or PR guy. Plus, even though he says he doesn’t wake up and think about the competition, he is in a constant battle with Dana White; the UFC exec relentless in his verbal attacks on the Strikeforce enterprise. In this fight, Coker is the Underdog. And he plays it well. Sticking to his game plan, not worrying about the opponent’s efforts to pull him away, and working for continuous improvements. MMA: You and Strikeforce put on four events in 2006, and in 2010, you promoted 11 events in just the first eight months of the year. Plus, your events have moved far out from your home base of San Jose. Is this growth manageable? Coker: My staff may think we’re doing too many events, but I don’t (laughing). We have a great product with national recognition, and we’re very proud of it. Sure, we’re busy, but we have a lot of fighters on contracts and we have to keep them busy, too. 20

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+ Scott Coker (left) joins Josh Thomson at a press conference during the Strikeforce: Evolution event.

MMA: How do you work with local MMA gyms and fight promoters before an event? Coker: We always work with local fight promoters to drum up talent. Usually, a fight promoter owns a gym in town, and has relationships with most of the other gyms around. This can be great help for us building an undercard. And for choosing a fight location, or planning which of our top fighters compete where, we look at a lot of things. For example, there’s a reason GSP fought in Montreal.

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MMA: What are you doing about the fight for MMA regulations in New York State? Does Strikeforce have a lobbying team in assistance? Coker: We’re monitoring the situation closely. It’s an ongoing battle, of course. And the tougher the battle gets the longer it can take. But we’re always aware of what’s going on there. MMA: With MMA competition being allowed in Ontario, Canada now, will Strikeforce host an event north of the border?

Coker: I think we will, maybe next year. You know, Canada has proven to be a great market for MMA with thousands of knowledgeable and eager fans. Eventually we will go there, sometime in 2011. MMA: Is Showtime’s subscription-based TV model the best exposure option for Strikeforce right now? Or does it limit your potential audience? (Showtime’s subscriber numbers may rise following the network’s record-setting haul of seven primetime Emmy honors.) Coker: I can tell you this, the Showtime people are great partners. With Showtime, we’ve built a feeder system with the Challengers events, finding great fighters in this system – like Tim Kennedy. Here’s the beauty of it; Showtime would gladly go along with us into a pay-per-view format. That could happen yet this year. We plan to be with Showtime for a long time to come, we have many options with Showtime, including CBS national broadcasts. MMA: Let me ask you about the Women’s fighting category. Strikeforce has gained a unique place by offering this, but it’s not without controversy, right? Coker: Controversy? Martial arts doesn’t – and shouldn’t – have boundaries based on male or female. I trained in martial arts around a lot of women very talented in self-defense areas. I don’t see the controversy with having women fighters in the athletics of MMA. MMA: Controversial or not, the women’s competition gives Strikeforce and Showtime a marketing category that UFC does not address. Do you believe this is helping grow the sport locally for MMA gyms owners? Coker: I never even looked at it like marketing to women. It’s just something

that needs to be done. Back in my days of kickboxing promotion, many of our best ‘Fight of the Night’ honors went to womens’ bouts. And it’s not like boxing where it can be rare to see a woman. I think there are simply a lot more women into MMA than boxing, so it can’t be compared to women boxing; it can’t be thought of in the same way.

ter who wants to celebrate or console a fighter in there, we limit it.

MMA: I heard Joe Rogan talking in a post-fight conference recently about the importance of competition among promoters, and that he felt Strikeforce was a good business and had some great fighters. Still, Dana White seems to have it in for you. How do you view the relationship?

Coker: As you know, we’re talking to (pro wrestler) Dave Batista. And Herschel Walker will fight again soon. But our core business is not creating events to showcase Wrestling vs. MMA, or MMA vs. Boxing.

Coker: I look at it much differently. You can say one thing about MMA – it needs to continue growing. Look, if you were a manager or a fighter, you would be in bad shape if there were just one player in the business. Some promoters have come and gone from Mixed Martial Arts. Those who don’t make it, it’s because it wasn’t their core. We have been around since 1985. We can pay fighters as well as UFC can. You know, when we signed Fedor (Emelianenko), UFC came after us pretty hard. But when I get up in the morning, I don’t think about the UFC. We currently have many of the top fighters in the world. MMA: How has Strikeforce changed since the infamous Nashville fight, when a post-fight brawl broke out in the center of the cage? Coker: Nashville was a learning experience for all of us. In 25 years of promoting fights, I never had a problem like that. And we have made a commitment that will never happen again. One thing is to simply limit how many people can get in the cage after a fight. No mat-

MMA: We are seeing a trend of pro athletes crossing over into MMA from other professional event areas. Strikeforce got to showcase Herschel Walker last year. UFC just brought in boxer James Toney. Is this a trend that is increasing?

MMA: I am wondering if you have any tips or recommendations for MMA gym owners on growing their business, and helping all of us grow this business. You have “promoter” in your title or job description at least, and are well versed in promotions around MMA to draw crowds. And I’m wondering if there are similarities between your type of promotion and a gym owner trying to promote the active MMA lifestyle. What would you tell gym owners about promoting MMA? Coker: I do see connections in many of the towns where we hold events. I’ll tell you this, when we have a big fight in town, it stimulates the whole MMA and fitness industry. We pump a lot of ad dollars into local industry. And with that, guys and girls who come to our fights, they then get fired up about training. And it energizes the gyms in the area. I can’t speak for every gym, but the ones around here in the Bay Area are doing a great job. And the best ones – when there’s a fight in town – create a re-activation campaign, working to connect with customers who maybe have lapsed in their training, or quit completely. It’s also good grass-roots initiative to bring new students.

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Hiring & Training Your Staff is Your Business

Somewhere in the far reaches of Steven Kane’s mind, he has a vague recollection of what Mixed Martial Arts is – maybe he had seen two guys fighting in a cage on Versus or Spike while channel surfing – but sports-wise, he’s more concerned with traditional American pastimes like football and basketball. What Kane does know is human resources – the policies and procedures that a business follows when it hires, maintains and fires employees. Kane runs California-based Kane Partners, an HR consulting firm that has worked for major corporations such as B.F. Goodrich and the New York Stock Exchange. Once Kane was informed on how the business of Mixed Martial Arts had progressed since its debut in the U.S. in 1993 – to the point that gyms had sprung up to respond to demand – he was in his element. “What would be the competitive advantage? It’s not trade secrets, it’s not technology,” he said. “It’s their people. That’s the key to success or failure, those people.” And that’s why human resources is the key to the success of a Mixed Martial Arts academy, Kane said. “It is identifying and creating all the systems, programs and practices to maximize the contributions that those folks can make to that enterprise,” he said.

HIRING Of all the various practices of human resources, Kane has his Golden Rule: “If you do one thing well, select well,” he said. “Make sure people understand what their job is; for what are you going to hold them accountable? For what are you going to pay them?” he said. Brad Daddis of Daddis Fight Camps, which has locations in Pennsylvania and New Jersey, said he is so confident in the team of employees he has in place that if he were to “die tomorrow” the team would continue to run things without missing a beat. Daddis said he selects his employees carefully, usually from those who are already familiar with his gym. “It’s always best to hire in-house,” he said, adding that he has a leadership program in place for upand-coming students. Jason Appleton, who runs the MMA Big Show promotion and just opened the Big Show Gym in Batavia, Ohio, said an employee’s demeanor goes a long way: “They could be a black belt in everything, but have a bad attitude – it’s not worth it.” Like Daddis, Appleton said he prefers to hire people he already knows. “I don’t really hire people off the street. I know enough people that I can find somebody to fill it (a vacant position).” Kane said an employer should not put too much weight in a sit-down interview, but recommends contacting “offlist” references. If a candidate gives three people who will vouch for them, call those people and ask for other people who know the candidate, but are not on the list, and call them. It’s more legwork, but well worth the perspective an employer can gain, he said. With the growing popularity of MMA as a career option, you will get eager young applicants claiming they’ll take any job just to get in the door. Be careful to match the position to the right person. A young man may say he’ll fill your need for a front-desk clerk, but if he really wants to be a trainer, his head and heart will not be on the job you need accomplished. This is where it pays to use a “hiring team” approach, bringing in some of your best employees to spend 20 or 30 W W W. M M A B U S I N E S S M A G . C O M

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minutes with each job candidate. This will help you get a second and third opinion on the attitude, personality and overall fit of any potential new hire.

TRAINING According to Kane, an advantage for a prospective employee is the ability to be trained. “Can they be educated? Can they be developed? I like to take that as the primary selection indicator,” he said. In Mixed Martial Arts, training is what it’s all about; however, even trainers need extra training from time to time. Appleton said that when he hires someone, he doesn’t look for the person with the highest education pedigree – he looks for someone willing to learn. “I like to find people who are capable of more than they’re doing (at the moment) and groom them,” he said. “You can teach anybody just about anything. I think it starts with the person, their drive, their ambition.” Greg Nelson, who owns and runs Minnesota Martial Arts Academy in Brooklyn Center, Minn., has trained some of the most well-known fighters on the planet in Brock Lesnar, Dave Menne, and Sean Sherk. Nelson employs two main assistant managers/instructors, who often travel to attend seminars. When they go to Thailand to train, “If they go for a month, they get paid for a month,” he said. When they enter competitions, he pays for those too. “That’s all going to come back to the school,” he said. “It kind of boosts their loyalty and it’s like another bonus.”

REVIEW It’s a basic human need – no matter what

+ The right staff is vital to your success, especially when it comes to working with kids MMA classes.

your confidence level, no matter how well you think you’re doing, people need feedback from their supervisors. “People want to know how they are doing, from the lowest employee to the highest executive,” Kane said. “’You’re doing well’ or ‘you suck’ - just tell them.” “The goal is to have a sit-down at the end of the year and go over everything,” Nelson said. “If they’ve done really well, and the school’s been successful,” then they get a raise. At the end of the year, all the instructors get a bonus too, he said. Appleton said he will use a similar practice at Big Show Gym: “If the gym’s doing well, everybody that’s a part of it’s going to do well.”

FIRING Working for someone is not a right, it’s a privilege; and so, workers in all states are “at will,” meaning they serve at the will of their employer. The legal concept, goes like this: anybody can be fired at any time, for any reason or no reason at all - with the exception of discrimination based on things like race, gender, sexual orientation. Likewise,

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an employee can leave an employer for any reason or no reason at all, Kane said. Firing depends on the offense,” Kane said. For example, if one employee punches another employee – not in training – it could be grounds for an immediate dismissal. But, if it’s something less severe, like tardiness, it’s possible the bad habit “can be trained out of them,” he said. Daddis has tasked his manager with being the bad guy in terms of firing. “As an owner, you want to be the good guy,” Daddis said. “This way, it’s never Brad who looks like the bad guy. The last thing you want is to tarnish your name or your brand.” Daddis also has employees, especially instructors, sign a no-compete clause, which states that if they leave Daddis Fight Camps, they can’t teach within a 20-mile radius of the gym for up to two years and they are not allowed to solicit any of the current students. Nelson said he doesn’t have a no-compete clause and, in fact, former students run the two gyms closest to his. There’s enough people to go around … Hopefully, if we’re doing our job right, we’ll grab more of them.”

YOUR NEW EMPLOYEE Make sure you know and understand state and federal laws regarding staff. You can check with the U.S. Department of Labor regularly (www.dol.gov) to keep up on regulations, and also know your state’s rules. This is especially important if you provide benefits such as health insurance or a 401K plan. An employer can have their human resources practices written out and have employees sign them, but there still might be unique situations that crop up. In those cases, “When in doubt, use good judgment,” Kane said. “Unless what you did before was really stupid, try to let your past practice guide what you do now.”

YOURGYM NAME: MMA Institute LOCATION: Richmond, Virginia & other locations OWNERS: Rick McCoy YEARS IN BUSINESS: 3 DISCIPLINES: Brazilian Jiu Jitsu, Muay Thai, Clinch & Take Downs, Judo, Yoga, and MMA It’s called MMA Institute, and that may make it sound a bit industrial or impersonal. But when you look a little deeper, or even simply log on to the gym’s website, you see this is the Real McCoy – the McCoy Martial Arts Institute, that is. Yes and apologies, but pun intended. Rick McCoy opened the Richmond, Va., MMA Institute location in 2007, and has since opened locations in Harrisonburg, Winchester and Charlottesville, covering a large section of Northeastern Virginia. The two largest sites are in Harrisonburg and Richmond, at 6,000 and 5,000 square feet, respec-

“from investment bankers to construction workers. Our style of training appeals to a wide variety of people – some who just want to workout; some are interested in striking; some grappling.” And some who win Spike TV’s “The Ultimate Fighter.” Amir Sadollah, winner of TUF 7 in 2008, was raised in Richmond, Va., and trained at McCoy’s MMA Institute on his way up to stardom. McCoy, humble to a fault, acknowledged Sadollah as another customer amidst many who train at his gym. The MMA Institute is no stranger to advertising, using a variety of ad

tively. But Richmond is the home facility for owner Rick McCoy. This gym has a member base of nearly 200 people, with 13 instructors leading a diverse class mix – classes average about 15 students per session. “We have an eclectic mix of people training here,” said owner Rick McCoy,

strategies to promote the four locations. Still, word-of-mouth is the most successful tool in McCoy’s promotional toolkit. “The majority of new customers come from current member referrals,” said McCoy. “We have a referral rewards program for our students that works well.” The first refer-

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ral gets an existing member a free tshirt. And it ramps up from there: the fifth referral gets the member a rash guard or new Muay Thai shorts; and the well-connected members can get one-year of free tuition for the 10th new-member referral. Existing members recommend the MMA Institute with confidence, according to McCoy, who says, “The instructors really set my gym apart from the competition. Every one of my instructors has competed, and all have plenty of experience in the art they teach.” How important are these instructors to McCoy’s business? “I’m just so lucky to have such good people with me,” he said. “Any business owner knows that success happens because of good people. And the success of MMA Institute is because of these good people.” McCoy’s MMA Institute does have a competitive and professional side to it, as well. “We are home to one of the largest amateur and pro fight teams in the country,” said McCoy, “with over 100 competitors. We train the fighters to prepare for competition, we coach them during competition, and we help steer their career path as well.” McCoy even acts as manager for several of the professional fighters on his team. This business is a personal and professional commitment, of course, for McCoy. But he reminds owners of MMA gyms that it’s not just a business. “Make sure it is a labor of love for you,” said McCoy. “Owning a gym, especially at first, is not a big money maker. To be successful, you cannot be ‘all-business.’ It really is a service industry, and a gym owner who truly loves the sport and has a passion for it will usually be successful.

PRO SHOP

N E W

PRO D U C T S

S E RV I C E S

A Zebra Roll-out Mat

This lightweight and portable 1 3/8-inch roll-out mat lets your students train whenever and wherever they want – at home, on the road, outside, anywhere – so they can keep honing their skills even when away from your gym. Available in blue or black, the mat measures 5-feet by 10-feet, and rolls for easy storage or transport to any room in the house. It features a durable and comfortable Tatami-textured surface. The mat retails for $189; shipping is extra. Call (800) 989-8085, or visit www.zebramats.com.

B MMA Training School

Good marketing is all about being noticed and found. With the prevalence on online search – and particularly Google Search – it takes a lot more than a well-placed banner. MMA Training School has created an E-Book that gives MMA gym owners the information they need to get their gym on the first page of a Google Search ranking. Local search optimization can greatly boost your traffic, and this E-Book is designed to do just that. Contact Alan at 702-339-6563, or mmaschools@gmail.com

Local Online Marketing Made Easy

C Concept2

Indoor SkiErg

Concept2 is best known for building high-tech rowing machines used by athletes of all styles to improve cardiovascular fitness. Now MMA fighters are tapping into this training style, especially the new SkiErg. Based on a cross-country skiing style workout, the SkiErg provides resistance and aerobic training in one intense workout. The machine’s Performance Monitor tracks workouts digitally, and can be used with popular heart-rate monitors. Fighters such as BJ Penn, Chuck Liddell and others are new fans of Concept2 equipment. Call (877) 887-8014, or visit www. concept2.com/mma.

The Ultimate Guide

To A Top Ranked

D Driven

Driven Inc., a lifestyle apparel brand that offers men’s and women’s t-shirts, introduces a new line of Kid-specific MMA training gear, including MMA and boxing gloves, shinguards, and hand wraps. The gloves are available in a variety of hand sizes, and all are designed proportionally to best fit young hands, with separate boys and girls sizes. Driven says the gear is made with the same quality and protection as their adult-size MMA gear. Order direct from Driven. Visit www.driveninc.net.

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