The Licensed Affiliate is “RCA's International Representative.” As such, it is critical that we look at a variety of factors when considering expansion into other countries and exploring partnerships with new Affiliates.
Economic Factors (Business Climate of Particular Country)
- Exchange rate
- Labor costs
- Price sensitivity and elasticity for RCA products (What price will the market bare?)
- What is the average daily rate for a consultant? Trainer? Participant Materials?
- What is the Gross Domestic Product (GDP)?
- How is the country ranked in the world in terms of education, work force productivity, worker attitude, worker skills, turnover, etc.?
- What skill sets do the people in the business community need to develop most?
Customs, Duties, and Tax Issues
- Are there restrictions on products imported into the country?
- Do any trade restrictions or obstacles exist that RCA needs to be aware of?
- Does the government levy special taxes on products and/or services?
- Is the currency exchange favorable and easy to calculate?
In addition to learning more about the business climate of the country, we must determine if a partnership would be mutually beneficial for RCA and the potential affiliate organization based on a range of criteria. Determining factors are listed below.
Potential Affiliate Factors
Current Business Operation
- Are you currently in the HRD business?
- What other businesses, if any, are you in?
- Who are your major clients?
- Do you represent other training vendors? If so, who?
- Do you represent your own product line? If so, what type of products?
- Does your organization represent a product(s) or service(s) that may be considered as competitive to RCA offerings? If so, what?
- How many trainers do you have?
- What is your total staff size?
- How do you go to market?
- Where are you located?
- Are you financially sound?
- Do you have a market niche?
- Have you worked with other US firms before?
- What requirements do you have of RCA?
Criteria for Being a Licensed Affiliate
- Will translate and adapt RCA training programs as required to meet the customer and market needs at their own expense.
- Pay a royalty to RCA for materials reproduced and seminars conducted (in English or other language(s))
- Required to attend Facilitator Training for each Packaged Training Program represented
- Must meet or exceed a minimum annual revenue goal set for the territory
- Must be collaborative by nature
- Organization must be financially sound
- Provide a good plan for developing RCA programs in their market
- Has a need for two or more training programs and desire to use full range of RCA products
Benefits of Being A Licensed Affiliate
- Exclusive territory*
- Products and training materials available at deeply discounted prices
- RCA materials may be reproduced as needed in their country under a licensing agreement (For licensees located in non-English speaking countries, translation and production of the RCA materials will be required)
- Ongoing support from RCA
- Marketing materials/support from RCA
- Ability to partner with RCA on international training engagements on an as-needed basis
*Applies to RCA training materials not publications
The Licensing Agreement…
If we determine a licensing arrangement is a mutually beneficial option, we will finalize a formal agreement. Typically, this RCA agreement requires our Licensed Affiliates to:
1. Complete a Business Plan to promote the RCA collection of Packaged Training Programs and products which clearly identifies the Licensed Affiliates':
- Marketing Plan(s)
- Sales Strategies
- Training/Consulting Strategies
2. Provide translation and/or culturalization of our programs into your local language as required.
3. Pay a royalty to RCA for materials translated and printed for resale and seminars delivered using our topics. These royalties will be reported and paid on a quarterly basis.
4. Sending one or more qualified trainers to RCA for instruction on our programs. There is no cost for training; however, affiliate pays related travel and lodging expenses.