Traditional education methods saw a paradigm shift during the pandemic, as they were unable to cater to the needs of students and teachers in those times. When teachers, parents, and students were clueless about their future, because of the closure of the schools and institutions, it was eLearning platforms that came to the rescue and we saw massive adoption of digital methods into learning.
The eLearning industry saw significant growth during the Covid-19 era and is still booming at the same pace. Since then online teaching has become the next big thing in the education sector. According to Businesswire, the global online tutoring market is expected to reach $2.9 billion in 2025 at a CAGR of 15% from 2020-2025.
It is anticipated that the industry will continue to gain momentum even after the pandemic, as learners and teachers are now getting used to this convenient and comfortable mode of learning. As the education industry is going through a transformation, it is the right time for aspiring entrepreneurs to get into this industry, which promises high ROI and enormous earning opportunities.
Let us see how you can start building your online tutoring business:
Choose a Niche
When you decide to get into this industry, the foremost thing is to research the different niches in this domain. Once you are well-versed with the niches, it becomes easy for you to select a niche for your business. Below mentioned are some of the popular niches in this industry.
- ESL including IELTS, TOEFL, etc.
- Tutors for STEM subjects.
- Teaching hobbies like Music, Dance, Cooking, etc.
- Teaching aerobics, yoga, meditation, etc.
- Teaching languages like French, Korean, German, etc.
- Focusing on competitive exams like SATs, GMAT, GRE, etc.
- Teaching primary and secondary school subjects.
- Special tutors for kids with special needs.
Additionally, a major advantage of online tutoring is that your students are not restricted to any geographical location or culture, so you can enroll students from any part of the world and can explore various niches in your industry.
Decide your Revenue Strategy
A successful online tutoring business model must be able to finance its operations effectively. Though, the majority of online tutoring marketplaces have basic revenue streams like subscription fees, commissions from tutors, listing fees, adverts, etc. But still, you can try some other channels depending on the niche of your business.
For instance, personalized one-on-one classes can be provided to students, who need personal attention, and your rates can be decided accordingly. Also, students can be taught in a group, which will increase your revenue and limit the usage of your resources and time.
Additionally, multiple payments and multi-currency options can be provided, depending on the geographical location of your students and teachers. Furthermore, be clear and transparent about your fee structure to all the members enrolling on your platform.
Register your Business
It sounds very exciting to start and run your own online tutoring business. But you need to go through certain legal formalities as well. Though you won’t need a license to start an online tutoring business, still there should be some business structure to follow. And for that, you need to register yourself with departments and agencies in your area.
You can either register as a sole proprietor if you are just starting your business and would not share profit with anybody or as a limited liability company (LLC) if you wish to separate your finances from the profit of this business. This will decide your tax liability depending on your local laws.
Build the Website
After deciding on your niche and business model, the next step is to build a website. Fortunately, there are plenty of user-friendly website development tools available in the market, if you decide to build your website. If you are a complete novice in this industry then, you can hire a professional web developer or you can even buy readymade software like Yo! Coach to start your business instantly without much hustle.
Also, do not forget to add relevant features and tools to your website based on your business niche.
Market your Business
Building your online tutoring website is not enough, you need to attract students and teachers as well. Apart from hiring good tutors and providing the best digital infrastructure, you need to focus on marketing strategies too.
Listed below are some tactics you can use to spread awareness about your newly launched business.
- Your website should be mobile-friendly.
- Make your website SEO friendly.
- Use social media for promotions.
- Create educational marketing videos.
- Tie-up with schools and colleges.
- Publish student testimonials on your website.
- Publish advertisements in print, as well as digital media.
Starting your own online tutoring business may look like a lot of effort right now. However, it is nothing compared to the lucrative returns it promises in the end. With the boom in the eLearning industry, this can prove to be an attractive avenue for edupreneurs. It is an easy industry to enter and thrive in. An edupreneur must take into consideration the factors mentioned above, to kick start their entrepreneurial journey.