“The California gold rush was a time of great opportunity and great risk. It was a time when the dream of striking it rich could come true, but it was also a time when many people lost everything they had.” – David Alan Johnson
The “Gold Rush”
During the California gold rush, thousands of people from all over the world flocked to California to get in on the dream of striking gold. Some rushed out to California right away, others took years. People got rich, others lost everything. They all had one thing in common – they all thought they might be the one who strikes gold. Sound familiar? This is the current story of online Christian higher education. Other institutions have already struck it rich. Could you be next?
How the Online “Gold Rush” Started
The online higher education “gold rush” began as universities and colleges recognized the potential of offering Christian higher education through distance learning or online platforms. These early pioneers in online education saw the opportunity to reach a wider audience and serve more students using new technologies. Quickly these new methods showed promise. Students started showing up and the institutional overhead for online programs was low. Money started flowing.
As the internet and online learning platforms grew in popularity, the online higher education “gold rush” began in earnest. The word got out. More and more universities and colleges jumped on board, offering online programs and courses in an effort to tap into this growing market. Just like the California gold rush of the mid-19th century, the online higher education “gold rush” attracted a wide range of participants, from established institutions to upstart enterprises. And like the California gold rush, the online higher education “gold rush” was driven by a combination of opportunity, innovation, and a desire to succeed. Of course, like the California gold rush, there were also piles of cash to be gained for the organization.
The Early Bird Gets the Worm
The early adopters of online Christian higher education struck gold. By being among the first to offer online programs and courses, early adopters were able to attract students who were seeking the convenience and flexibility of online education. This made these early adopters a lot of money to quickly reinvest back into both their online and brick and mortar campuses. At the time they started “mining”, they were figuratively picking gold up off of the ground.
The Latecomers are Losing
Latecomers to the market for online Christian higher education, much like the later prospectors who arrived in California during the gold rush, may face a number of challenges in trying to compete with established institutions. They may struggle to attract students and may face difficulties in terms of pricing, marketing, and technological infrastructure, much like the later gold prospectors who arrived in California and found that the most valuable mining claims had already been taken.
Even worse, some of the early adopters are starting to lose money on online education as it becomes clear that online education is not an unlimited source of students. If the big mining operations are taking losses, what hope is there for the rookie prospector?
The Cost of Entry and Sustainability are Rising
As more and more students seek the convenience and flexibility of online programs and courses, online Christian higher education institutions have had to invest in increasing amounts of technology and infrastructure in order to meet this demand. This includes investments in things like online learning platforms, course management systems, and video conferencing tools, which can be extremely expensive. The gold is not laying right out on the ground anymore!
Another reason for the rising cost of online Christian higher education is the increasing complexity of online education. As online programs and courses become more sophisticated and interactive, they require more advanced technology and infrastructure to support them. The technology is also changing every year and needs to be updated. While this is great news for the providers of such services, it is bad news for Christian organizations that are late to the party.
The institutional costs are also being driven up by competition. As more schools enter the market for online education, there is increased competition for students and resources. This can lead to higher costs as institutions seek to differentiate themselves and invest in marketing for their online programs. The price to play the game keeps getting higher. Eventually only the very best “mining” operations will survive and everyone else will be forced to quit.
Proceed With Caution
Institutions of Christian higher education that are considering entering the online market should therefore exercise caution and carefully consider their strategy. They should be aware of the risks and challenges associated with online education and should ensure that they have the resources and expertise needed to succeed in this competitive market.
The gold is now deep inside the mountains. Do you have the time, energy, technology and strategic vision to reach it or would your resources be better spent elsewhere? Don’t accidentally lose everything. The gold rush is over.
–Nick Willis is a partner and a financial aid consultant for TG Three.
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