How to Start an Online Tutoring Business and Make $20K Per Month

The online tutoring industry is booming, and there’s never been a better time to tap into it. As of 2024, the global online tutoring market has surpassed $15 billion in value and is expected to exceed $25 billion by 2027, according to Global Market Insights. More parents, students, and professionals are choosing virtual learning due to its convenience, affordability, and accessibility.

Entrepreneurs now have the tools and opportunities to build profitable, scalable businesses from the comfort of their homes. If you’ve ever thought about creating a platform like Preply, Chegg, or Wyzant, you’re in the right place. In this guide, you’ll learn exactly how to start an online tutoring business, how to market it, and the strategies that can help you earn $20,000+ per month in revenue.

Why Start an Online Tutoring Business?

Online tutoring isn’t just a trending idea—it’s a long-term, sustainable business model with massive growth potential.

Market Trends and Industry Growth

The demand for personalized education is skyrocketing. Millions of students worldwide are struggling with traditional classroom learning, and more parents are turning to tutors to fill the gap. Add to that the rise of remote work, digital learning tools, and widespread internet penetration—this is the perfect storm for educational disruption.

• E-learning is expected to reach $375 billion by 2026.
  
• More than 65% of students in the U.S. used online tutoring at least once in 2023.
  
• Parents are spending 15–25% more on supplementary education post-pandemic.

As per the statistics, parents are investing more in academic support, professionals are upskilling through flexible online platforms, and students worldwide are seeking help from tutors across borders. This creates a lucrative opportunity for entrepreneurs to enter a booming industry with relatively low startup costs and high scalability.

But simply entering the market as a solo tutor isn’t the only — or necessarily the most profitable — way to capitalize on this growth.

From Tutor to Platform: A Smarter Path to Scale

While becoming an individual tutor allows you to start quickly and build a direct rapport with students, it also comes with limitations, mainly, time. There are only so many hours in a day that you can work. That’s why many savvy entrepreneurs are shifting their approach from providing tutoring themselves to building an online tutoring marketplace.

By creating a platform that connects students with a network of qualified tutors, you position yourself to earn from every session that takes place, without having to be the one doing the teaching. This model not only scales more effectively but also builds long-term equity in your business.

Benefits of Running a Marketplace vs. Being a Solo Tutor

While solo tutoring can be profitable, it is limited by your time and availability. A marketplace allows you to scale beyond yourself.

1. Scalable Business Model

A solo tutor may max out at $5K/month working 40 hours a week. But with a marketplace, you can onboard hundreds (even thousands) of tutors—each generating revenue for your platform.

2. Passive Income Potential

You can earn commissions or platform fees from every class conducted, even while you sleep. You’re building a system that generates income beyond your time investment.

3. Low Upfront Investment

Unlike edtech startups that raise millions, you can launch your own tutoring platform with white-label software—a much more affordable, faster solution with minimal risk.

Real-World Success Stories

• Preply started with a few languages and now supports 140+ countries, recently raising over $100 million.
  
• Superprof, a French-based platform, connects over 18 million tutors and learners.
  
• MyTutor partners with UK schools and has supported over 2 million students to date.
  

These stories prove that with the right niche and tools, you can start an online tutoring business and grow it into a global venture.

Step-by-Step Guide to Starting an Online Tutoring Business

Let’s break down the entire process into seven clear, actionable steps to get you from idea to income.

Step 1: Choose a Niche or Subject Focus

A clearly defined niche helps you stand out in a competitive market. It also makes your platform more appealing to users looking for a specific solution.

Why Choosing a Niche Matters?

• Easier marketing: You know exactly who to target.
  
• Higher trust: A specialized platform appears more credible.
  
• Better retention: Users stay longer when content aligns with their needs.
  

Niche Ideas That Work

• STEM Tutoring (K–12 Math, Science, Physics)
  
• Test Prep (SAT, GRE, GMAT, IELTS)
  
• Coding for Kids (Scratch, Python, JavaScript)
  
• Spoken English or Business English
  
• Hobby Learning (Music theory, chess, art)
  

Don’t try to be everything to everyone. Focus on solving one major problem exceptionally well.

Step 2: Understand Your Target Audience

Knowing your user is crucial. Your platform should speak directly to the needs and preferences of your core audiences.

Key Audience Segments

• Parents – Looking for trusted, vetted tutors to help their children succeed.

• Students – Seeking flexible and engaging sessions to improve grades or skills.
  
• Professionals – Want upskilling in areas like language, coding, or business.
  
• Tutors – Need a reliable platform that offers visibility, support, and fair compensation.
  

Identify Their Pain Points

• Busy schedules
  
• Budget constraints
  
• Difficulty trusting online tutors
  
• Frustration with one-size-fits-all platforms
  

Understanding your audience ensures your platform’s design, pricing, and marketing are aligned with their expectations.

Step 3: Decide the Right Revenue Model

Your revenue model will shape how your business grows and scales. Choose a model that reflects your target audience’s willingness to pay.

Top Monetization Models

• Commission Model
  Take a 10–30% cut from every transaction. The more sessions booked, the more you earn.
  
• Subscription Model
  Tutors or students pay a monthly fee to access your platform. Works well for high-volume users.
  
• Freemium Model
  Offer basic features for free and charge for extras like profile boosts or video class recording.
  
• Pay-Per-Session
  Students pay per session booked. A good fit for short-term tutoring or test prep.

Step 4: Finalize Key Features For Your Online Tutoring Platform

Each user group—learners, tutors, and admins, needs a tailored feature set to ensure a smooth and productive experience.

Features for Learners (Students)

• Search and Filter Tools
  Advanced filters let learners find tutors based on subject, price, rating, availability, language, and teaching style—ensuring faster, better matches.
  
• Booking System
  Users can check real-time availability and book sessions instantly or schedule future classes using a built-in calendar and reminders.
  
• Secure Payments
  Multi-currency, SSL-encrypted payment gateways that support credit cards, PayPal, Stripe, and local options for global access.
  
• Live Video Classes
  Seamless integration with Zoom, WebRTC, or native conferencing tools with screen sharing, whiteboards, and recording support.
  
• Progress Tracking
  Students can review past lessons, monitor improvement over time, and set personalized academic goals.
  
• Reviews & Ratings
  Verified feedback mechanisms that help maintain tutor quality and guide new users in tutor selection.
  

Features for Tutors

• Tutor Profile Dashboard
  Manage classes, student interactions, availability, earnings, and reviews in one intuitive dashboard.
  
• Availability Calendar
  Set and update teaching hours, sync with Google Calendar, and block out unavailable dates to avoid scheduling conflicts.
  
• Earnings Tracker
  Monitor completed sessions, pending payouts, and total income in real-time with detailed breakdowns and payout history.
  
• Resource Library
  Upload and share lesson plans, homework, PDFs, and video materials with students for after-class support.
  
• Internal Messaging
  A secure chat feature that facilitates pre-session discussions, clarifications, and updates.
  

Features for Admins

• User Management Console
  Approve or suspend users, monitor interactions, and access full user histories to manage the platform professionally.
  
• Commission Controls
  Set up tiered commissions, bonuses for high-performing tutors, or premium placement incentives.
  
• Analytics & Reporting
  Access platform-wide insights into traffic, revenue, user behavior, tutor performance, and student satisfaction.
  
• Support Ticketing System
  Handle disputes, refund requests, and support queries efficiently with a built-in helpdesk.
  
• Marketing Toolkit
  Create promotions, manage newsletters, offer discount codes, and track campaign performance directly from the backend.

Step 5: Select the Right Development Approach

There are two ways to build your platform: from scratch or using a white-label solution. Each has its pros and cons. Let’s discuss. 

Approach 1: Build from Scratch

• Advantages: Fully custom features, unique design, total control.
  
• Disadvantages: Development costs can exceed $50,000–$100,000, with timelines stretching 6–12 months. You’ll also need a dedicated team for development, updates and maintenance.
  

Approach 2: Use a White-Label Solution

• Advantages: Cost-effective (often under $10,000), ready in weeks, and includes core features out-of-the-box. No technical knowledge or coding skills required.
  
• Disadvantages: For customization you need to upgrade to higher-tier packages or hire developers.
  

Top White-Label Solutions

• Yo!Coach
  
• Pinlearn
  
• Teachworks
  
• TutorBird
  

Why Yo!Coach is the Best White-Label Solution

Yo!Coach is built specifically for entrepreneurs who want to start an online tutoring business or consultation platform. It stands out due to:

• Pre-integrated Tools: Comes with Zoom/WebRTC, multilingual support, tutor booking, video conferencing, and payment integrations.
  
• Extensive Customization: Easily tailor layouts, workflows, and branding. Modify features or integrate APIs.
  
• Lifetime Ownership: One-time license fee means no recurring payments.
  
• International Readiness: Multi-currency, RTL language support, GDPR compliant.
  
• Continuous Updates: Active product development with regular updates and feature releases.
  

Yo!Coach is used by entrepreneurs in 40+ countries and supports a variety of learning verticals—academic, language, test prep, music, yoga, and more.

Step 6: Recruit Qualified Tutors

Your tutors are your product. Their quality will make or break the user experience, and will decide the success of your business. 

Where to Find Tutors

• Online job boards (Indeed, Upwork, Fiverr)
  
• LinkedIn groups and forums
  
• University portals
  
• Facebook groups (e.g., ESL, Math Tutors)
  

Vetting and Onboarding

• Check credentials, experience, and demo lessons.
  
• Interview for communication skills and reliability.
  
• Create onboarding materials and training guides.
  

Maintain Standards

• Develop tutor handbooks, codes of conduct, and quality metrics.
  
• Use feedback, reviews, and performance data to manage tutor retention.

After building, launching, and onboarding qualified tutors on your marketplace, next, you must put effort into promoting your online tutoring marketplace effectively. Below are some of the marketing strategies you can follow. 

How to Market Your Online Tutoring Marketplace

Great platforms fail without strong marketing. Use a multi-channel strategy to acquire and retain users.

1. SEO & Content Marketing

• Blog on keywords like “online math tutoring for kids” or “how to start an online tutoring business.”
  
• Create tutor spotlight stories.
  
• Produce YouTube tutorials or Instagram Reels explaining your platform.
  

2. Paid Ads

• Google Ads targeting high-intent keywords like “SAT tutor near me” or “learn English online.”
  
• Facebook & Instagram ads segmented by parent demographics.
  

3. Social Proof & Testimonials

• Collect video reviews from tutors and students.
  
• Display case studies or success metrics.
  

4. Email Marketing

• Welcome sequences for new users.
  
• Course reminders, upsell offers, tutor match suggestions.
  

5. Influencer and School Partnerships

• Collaborate with parenting bloggers, teachers, and schools.
  
• Offer affiliate programs to tutors who promote your platform.
  

How to Make $20K Per Month From Your Online Tutoring Business: Key Strategies

Once you gain traction, it’s time to grow smarter. Here are the key strategies to implement in your online tutoring business. 

1. Focus on Retention

• Implement loyalty rewards, gamification, or learning streak bonuses.
  
• Offer certificates or achievement badges.
  

2. Expand Niche Verticals

• Add exam prep, hobby classes, or corporate training.
  
• Localize content for different regions and age groups.
  

3. Increase Order Value

• Offer bundles, group classes, or mentorship tiers.
  
• Introduce subscription plans for regular learners.
  

4. Global Expansion

• Support multiple time zones, currencies, and languages.
  
• Target regions like Southeast Asia, LATAM, and the Middle East.
  

5. Upsell Premium Tools

• Offer AI tutor suggestions, progress analytics, or recorded lessons.
  
• Create branded learning paths or curriculum packages.

Final Thoughts

The online tutoring industry is here to stay—and it’s only getting bigger. With the right strategy, platform, and persistence, you can start an online tutoring business that generates $20K+ per month in revenue.

You don’t need to be a tech expert or raise funding. Tutoring software like Yo!Coach makes it easy to launch your platform with minimal risk and maximum scalability.

FAQs

Q1. How much can I realistically earn with an online tutoring business?

Ans. Earning potential varies depending on factors such as the number of students you offer your services to, the session price, or commission rates you charge, and the time you invest. Many tutors earn $1,000 to $5,000 per month as solo tutors, while building a marketplace or managing a team of tutors can allow you to scale your earnings to $20,000 or more per month. The key is to expand your offerings, market effectively, and scale your business model.

Q2. What are the first steps to start an online tutoring business?

Ans. Starting an online tutoring business involves several key steps:

• Choose your niche: Decide the subjects and age groups you’ll focus on (e.g., K-12 subjects, test prep, language learning, professional development).
  
• Create a business plan: Define your goals, target market, pricing strategy, and growth plan.
  
• Set up a website or platform: Create an easy-to-use platform for students to book lessons or set up a tutoring marketplace if you plan to hire other tutors.
  
• Market your services: Use social media, SEO, and online ads to attract clients.
  
• Legalities: Register your business and set up payment systems, including contracts and tax considerations.
  

Q3. Do I need a teaching certification to start an online tutoring business?

Ans. While having a teaching certification or relevant qualifications can certainly add credibility to your business, it’s not always required. Many entrepreneurs do not necessarily have expertise in a specific subject, but still, they build successful businesses based on the tutors they hire. However, certification may be required in certain niches or when working with younger students in formal educational settings.

Q4. How can I scale my online tutoring business to $20K per month?

Ans. To make $20K per month, you’ll need to focus on scaling your business effectively. Here are a few strategies:

• Build a tutoring marketplace: Create a platform where you can connect students with a network of qualified tutors. This allows you to earn a commission on each session booked through your platform without having to personally conduct all the sessions.
  
• Diversify your services: Offer different types of tutoring (group lessons, test prep, language learning, etc.) to attract a larger audience.
  
• Increase your rates: As you gain experience and a positive reputation, gradually increase your rates or offer premium services.
  
• Leverage automation: Use scheduling tools, payment processors, and marketing automation to reduce your workload and focus on business growth.

Q5. How do I find clients for my online tutoring business?

Ans. Finding clients is one of the most crucial steps in growing your online tutoring business. Some ways to attract clients include:

• Use social media: Share educational content, success stories, and promotions on platforms like Instagram, Facebook, and LinkedIn.
  
• Leverage SEO: Optimize your website and content for search engines to attract organic traffic from people searching for tutoring services.
  
• Run paid ads: Use Google Ads or Facebook Ads to reach a targeted audience and bring in new clients.
  
• Word-of-mouth marketing: Encourage satisfied clients to refer friends and family, offering discounts or incentives for referrals.
  

Q6. How do I price my tutoring services?

Ans. Pricing depends on various factors, including your niche, expertise, and target market. On average, online tutors charge anywhere from $20 to $100+ per hour, depending on their qualifications and subject matter. If you’re building a marketplace, you may charge tutors a percentage of each lesson fee. Be sure to research competitors’ rates and adjust your pricing to remain competitive while ensuring you’re compensated for your time and expertise.

Q7. Can I start an online tutoring business with little or no experience?

Ans. Yes, it’s possible to start an online tutoring business even with limited experience. You can hire other tutors with more experience and focus on managing and growing your platform. Your entrepreneurial and marketing skills will play a major role in growing the business, even if you’re not teaching yourself on the platform.

Q8. What technology do I need to get started?

Ans. To start an online tutoring business, you’ll need:

• A reliable video conferencing tool (e.g., Zoom, Skype, Google Meet)
  
• A website or tutoring platform (either a custom website or a ready-made platform like Yo!Coach)
  
• A payment processor (e.g., PayPal, Stripe)
  
• Marketing tools (e.g., email marketing platforms, social media management tools)
  

Q9. How much time does it take to launch an online tutoring business? 

Ans. Well, with a ready-made software solution like Yo!Coach you can launch your online tutoring business in a few days. However, the custom development process may take a few months to even a year to develop your online tutoring platform from scratch. The time for the development and launch of your online tutoring business can increase depending on your unique needs and business requirements. 

Q10. What is the total cost to start an online tutoring business? 

Ans. The total financial investment needed to start an online tutoring business depends on several factors, such as the feature integration requirement, customization needs, design enhancements, API integrations, and more. However, the primary cost involved is of development approach. Custom development may cost you around $20,000 to 500,000 or more, whereas, if you opt for a white-label readymade software, then the investment you have to bear would be less than $10,000.