The one industry that has one of the highest ROI when compared to any other sector is the education industry. And, ever since the worldwide closure of the educational institutions due to the pandemic, this industry has been booming more than ever before.
The global market size is anticipated to expand at a CAGR of 15.6% from 2021 to 2028 and is expected to reach $18.18 billion by 2028. Even though online education prevailed in the pre-pandemic world, its focus was more on enhancing education rather than school curriculum.
However, things have taken a turn. Online classes were introduced to make education approachable to the people who cannot afford to go to institutions. But given the complete lockdown situation where there was no solution at bay, the complete education ecosystem had to turn to this particular, not-so-popular trend.
And today this has become a go-to solution for anyone who wants to learn or teach. Online learning and tutoring have become the next big thing in the world of education and are presently one of the most profitable business ideas to venture into.
Why Online Tutoring Business is a Good Investment?
Having an online tutoring business allows you incredible job flexibility. You can help students in their academics and guide them towards their educational goals while managing your own schedule. You have the liberty to work from home while doing meaningful work in the community. Apart from these elementary reasons, there are other multiple reasons proving that the online tutoring business is a good investment. Let’s discuss them.
1. Minimal Infrastructure Required
Online tutoring does not require you to invest in setting up and running your franchise unit. You do not need to buy any expensive equipment, rent/buy premises, or pay for its utilities. You can get started at a minimum investment which will allow you to reach your break-even point in less time and start earning profits quickly.
2. No Legal Complications
There are no legal requirements and certifications required to become an online tutor or launch an online tutoring platform which makes the complete process smooth and less complicated. However, the core of a successful tutoring business lies in the quality of its tutors. The tutors must be qualified, knowledgeable, and skilled to offer more value to the students so that you can charge them accordingly.
3. Huge Commissions
As the trend of online tutoring is gaining pace increasingly, parents and students are willing to pay even more for online tutoring services. In addition, many students do not have any other alternative as many schools, colleges, coaching centers are still operating online. This gives an opportunity to the business owners to earn huge commissions.
4. High Demand
As the pressure of achieving better grades at school is increasing on students, a higher number of students and parents are searching for online private tutors. The demand for online tutors is growing aggressively. Moreover, the business idea of online tutoring is not influenced by trends and fads which makes it sustainable in the long run.
5. Convenient & Flexible
Running an online tutoring business is as convenient as a pie. One can manage it from the comfort of their home eliminating the commuting time and costs. In addition to this, you will be able to finetune your schedule to suit your requirements. The amount of flexibility you will be getting with the online tutoring business will allow you to fulfill your family’s needs and commitments.
Learn More About the Business Opportunities & Trends in Tutoring Industry
Revenue Streams of an Online Tutoring Business
A sustainable and successful tutoring business requires choosing a business model that can finance its operations. The majority of the tutoring marketplaces have basic revenue streams – commission, subscription, listing. However, there are many other streams available that can prove to be beneficial for your tutoring business. Let’s discuss them in detail.
It is the most popular revenue channel of an online marketplace. In this model, the tutors on the platform are charged a fee for each session delivered on the platform. The business owner can choose to charge either from the seller or buyer or from both of them.
The subscription business model is a revenue stream where the users (students/tutors) are charged to access the platform. These platforms help the tutors find students or get access to the database of potential students. After charging the subscription fee, the platform then does not participate in the transactions between the students and tutors.
The listing model is where the platform charges the tutors to list them on the platform. The platforms following the commission model tend to miss the revenue from the less popular tutors, however, this model tackles this problem and earns revenue from all the tutors listed on the platform.
The platforms working on this business model have both free and premium features. Tutors and students can use the basic free features, however, to have access to premium features they need to buy the premium plan. The only trick in this business model is that the platform needs to have very enticing premium features for the users.
5. Sponsored Listings
In this model, the tutors pay a fee to get their featured listed higher than others on the platform and enhance their visibility. The only thing to consider while using this revenue stream is to be aware of not overloading the platform with featured listings.
Wondering if you can also enter this industry and launch an online tutoring platform, but not sure where to start? We have listed below the key features required for an online tutoring platform.
Essential Features of an Online Tutoring Platform
The list of the features that an online learning platform can offer to its users is never-ending. However, there are a few features that need to be in place for the basic functioning of the platform. Let’s know about them.
1. Virtual Interaction
An online tutoring platform with a virtual classroom feature brings all the students and teachers together regardless of their physical location. Tools like a whiteboard, screen sharing, class recording, etc. make the learning and teaching process simple and efficient for the students as well as the teachers.
2. Reporting & Statistics
One of the most important features of an online tutoring platform is strong reporting and statistics functionality. The platform must be able to generate detailed reports of the number of visitors, most visited pages, bounce rates, time spent on each page, etc. so that you can craft your marketing strategies accordingly.
3. Payment Gateways
Arguably, this is the most important feature on the whole list. You can compromise on anything but a reliable payment gateway on the platform. The absence of a payment gateway may fail to take off your business. Make sure you integrate a secure and reliable payment gateway in your online tutoring platform in addition to the easy payment methods like credit/debit cards, internet banking, online wallets, etc.
This feature allows the business and platform to be transparent to gain more trust from the students. Students attending online sessions from teachers posting reviews and feedback for the teachers help the future students to make an informed decision while selecting the tutor for themselves.
5. Mobile Support
Teachers and students should be able to take and deliver sessions anywhere they want via mobile devices. The platform should be either mobile responsive or have a native mobile app for the users to use the platform directly from their smartphones or tablets.
You would want a platform that can grow with your growing business. Make sure the platform is able to accommodate the future requirements of your business in terms of the number of users and functionality.
Build and Launch an Online Tutoring Platform in No Time
Joining the Bandwagon
Once you have made up your mind to join this booming industry, all you would require is an online tutoring platform. Building a tutoring platform is not a cakewalk, however, there are readymade solutions available in the market that can help you build and launch an online tutoring platform in no time.
Yo!Coach is one such ready-made solution tightly packed with all the essential and advanced features required in the online tutoring business. Being a fully customizable solution, Yo!Coach can cater to the varying needs of each tutoring business and help in building platforms like Cambly, Preply, and many more.