A beginners’ guide to starting an online tutoring business

 The education industry is constantly evolving with the development of ed-tech solutions. Conventional classrooms are now outfitted with smart solutions to deliver exceptional learning experiences and improve efficiency. Online tutoring is one of the most popular ed-tech concepts, growing exponentially over the last decade.

According to a recent study, the global online tutoring market size was worth $29.6 billion in 2021, and is estimated to grow to $49.9 billion by 2028, a 9.1% compound annual growth rate in seven years.

Teaching communities are swiftly adapting to the online tutoring landscape, enticed by the ease of teaching and improved learner experiences. Powered by cloud-based tools, the growth of online tutoring has opened up ample teaching opportunities for teachers beyond physical classroom boundaries. Teachers no longer have to work for educational institutions necessarily; they can now build a progressive business on their own terms.

How much does an online tutor earn? 

In countries like the United States, tutors mostly charge on an hourly basis. An online tutor earns an average of $25/hour/student. In countries like India, tutors charge on a monthly or yearly basis and earn up to 32.5K/month. Likewise, your revenue range will depend on the subject you teach, your certifications, and market demand. If you’re teaching a niche concept with valid certifications, you can earn much more.

Revenue also depends on the mode of tutoring. Broadly, there are two modes of tutoring: general e-learning centers and one-to-one private tutoring. Some tutors offer instruction in both modes: learning centers for large audiences and one-to-one private tutoring for limited students who prefer exclusive focus and nurturing. Tutors usually charge higher rates for one-to-one private tutoring.

How can you get started with online tutoring? 

The main advantage of online tutoring is that anyone can begin with minimal investment and basic computer skills. It simply requires your knowledge, time, dedication, and keen focus to grow.

To get started, just like any other business, the first step in online tutoring is market research and demand analysis. You can start your research by narrowing down your areas of interest and corresponding level of expertise. Once you figure that out, you can research the demand for that particular subject in the market.

A demand analysis is vital to having a clear picture of your business positioning, pricing, and other attributes. Funneling your online tutoring business to a well-defined set of learners will help you grow progressively and have a clear career path.

What subjects are most in demand for online tutors? 

There is always a demand for language, math, and science tutors. Parents look for private tutors for their kids to help them cope with foundational concepts that are missed in their regular schooling structures. The tutoring demand stretches from elementary to college levels. Besides subject-specific tutors, there's also a considerable demand for preparatory tutors for the SAT and other competitive exams.

If you are a trained teacher who can handle special children, you can focus on teaching autistic and special needs students. Currently, there's a sizable demand for specialized tutors to teach special needs students. 

What tools are required for online tutoring?  

From a broader perspective, to run an online tutoring business you will require three types of tools: 

1. A tool to host your classes. 

2. A tool to enroll and automate your learners’ communications.

3. A tool to manage payments and other business activities. 

Tools to host classes  

To get started, an educational-focused, content-hosting platform is an absolute necessity. Online tutors host classes using two main methods:

Pre-recorded classes 

You create a course curriculum and bundle a sequence of content that suits your teaching goals.

To host pre-recorded educational content, you’ll need a content hosting platform that distributes content to learners in a sequential manner. So, always select a provider that supports native content hosting with sequential learning tools to streamline how your lessons are consumed by the students.

You might be tempted to host videos on YouTube and create subsequent playlists, but it is always better to choose an online course platform.

Live tutoring classes 

You can host a live session for either a group of people or a single student, and teach in real time. Live tutoring is preferred by larger audiences because it gives students a sense of personal teaching and a classroom-like experience. So, when choosing a platform to host live tutoring classes, look for important elements such as streaming reliability, student engagement/communications tools, and scalability.

The live tutoring platform should provide a high-quality streaming service with options to create session URLs as well as screen sharing and session recording. Teaching tools like whiteboards will be a great addition for teachers when explaining complex concepts.

Learner engagement is critical for live classrooms to build student-teacher rapport and avoid boredom during long sessions. Features like emojis, a “raise hand” function, live chats, and quizzes can make the whole learning experience engaging and more efficient.

Tools to enroll and automate learner communications 

When starting an online tutoring business, it’s easy to enroll and manage learners when they’re in small numbers. Consider having 30+ learners—now think about the amount of effort required to manage their enrollments, session notifications, payment reminders, and more. Sounds tough, right?

You need an automated system to collect student information and enroll them in appropriate classes without much manual intervention. Aligned with the automated enrollment tool, you’ll need a communication module to send automated messages to learners during enrollment and other milestones. You can create workflows and set automated emails when your learners reach their milestones, send class notifications, automate payment reminders, and much more.

Tools to manage payments  

Finance is a tough task to manage but an important aspect to master when running a business. Especially true for online tutoring businesses that mostly operate on a subscription-based model, it’s difficult to send payment notices manually and receive payments.

So, it’s important to choose an integrated, flexible payment tool that supports different payment modes and gateways, automates payment reminders, and updates information accurately to the learner database.  

How do you choose a platform to run an online tutoring business? 

Online course platforms will be a great fit for online tutors to host classes and manage operations efficiently. These platforms offer integration and the right set of tools to run a scalable online teaching business. There are numerous online course platform providers in the market offering diverse solutions pivoted around online teaching. You can research and compare online course platforms that suit your requirements and help reach your business goals.

When choosing an online course platform, consider these important points:

1. It provides an integrated platform with the perfect blend of tools to host classes and business operations.

2. It offers an option to host live classes within the platform.

3. It’s cost-effective and doesn't charge a sales commission.

4. It has a customizable email communication system.

5. It supports a robust payment system with gateway integrations.

How do you market an online tutoring business?  

Once you set up your online tutoring business, the next step is to increase your digital presence and create brand awareness. You can leverage social media to create an online profile and post regular content to become an influencer in your subject area or niche. Consistently delivering valuable content will help you attract followers and convert them to paid learners down the line.

To go further, you can allocate a budget and explore paid marketing services such as Google Ads, Facebook ads, and influencer marketing. But before spending heavily on marketing campaigns, you should calculate the ROI and add it in as a factor when setting your course pricing.

You should also master the art of garnering learner reviews and testimonials. Reviews play an important role in others’ decision-making process and can help speed up your sales cycle. Always stay connected with your learner community and try to build up a library of learner stories and testimonials.

Wrapping up 

Online tutoring is a fast-growing, lucrative business where you can get started immediately without much hassle. All you need is a strategic mindset, and work consistently to hit your business goals. At TrainerCentral, we wish you all the best as you begin your online teaching journey on a high note.