How To Start An Online Tutoring Business [ Advantages & Disadvantages]

With the revolution of online tutoring, remote learning has become the favorite of learners worldwide. Private online tutoring is a lucrative opportunity for professional educators, retired teachers, or anyone with expertise and experience in a particular niche to make a side income and establish their career.

Online tutoring offers many benefits to students and tutors, which we are going to explore in-depth in a while in this blog. By the end of this blog, you will be able to decide by outweighing the pros and cons of whether running an online tutoring business is a profitable idea or not.

Advantages of online tutoring business

Online private tutoring is a lucrative business. However, it is important to have a passion for it to thrive in the highly competitive industry. If you are brainstorming about how to start an online tutoring business, make sure it is the right fit for you.

You must have the confidence to take up the challenges online tutoring presents, mainly if you are accustomed only to classroom-based teaching practices. To understand whether online tutoring suits you, let’s dig deep into the advantages of the private tutoring business.

Highly convenient and time-saving

Online tutoring is highly convenient and saves precious time for both educators and learners. Learners can access the courses and attend the classes at a time that is convenient and accessible for them. If the virtual lessons are delivered in real-time, students can join the live class at a decided time, avoiding potential delays from both sides. 

How To Start An Online Tutoring Business

Interactive and innovative

One of the major benefits of online tutoring is its capability for student engagement. Students of today thrive in a virtual environment. A powerful online learning platform holds the power to capture students’ attention and foster engagement.

Where traditional tutoring includes textbooks, worksheets, and interactive activities, virtual private tutoring also utilizes digital tools to present all the information in an interactive way. The result of online private tutoring is a user-friendly and enriching environment in which learners flourish.

Flexibility

Online tutoring allows teachers to take classes at any time of the day according to their convenience. Private tutors can fit online tutoring into their personal and work schedules, thanks to the flexibility technology offers.

It is also flexible when it comes to interaction between tutors and students and modifying the delivery of lessons. This is nearly impossible in traditional classroom-based learning as the strength of the classroom limits the interaction. 

Low Start-up costs

Minimal start-up costs are one of the significant benefits of launching an online tutoring business. It’s truly a big opportunity for private tutors out there. You are good to go if you have a basic computer with a camera and an internet connection.

As you expand your business, you can purchase a whiteboard online tutoring software packed with all essential features to start your online tutoring business. Pinlearn is one such all-in-one tutoring software that equips educators to create a full-fledged tutoring website that hosts both live classes and self-paced online courses. 

Personalized tutoring

When teaching in a traditional classroom lacks personalization due to high-class strength and other factors, online tutoring supports personalized teaching. In classroom-based teaching, tutors will be unable to attend and respond to each student as they have to keep up a fast pace to complete their lessons.

However, online tutors can decide the number of students in a class and hence provide a personalized approach where learners can gain knowledge at their own pace. 

Helps improve students’ technology skills

As we all live in a digital world, it becomes important for everyone to have technology-based skills. Online learning helps students to add more skills into their baskets by getting early exposure to technology. This helps them to understand the technology better, and become more strong with their digital skills.

Disadvantages of online tutoring business

The benefits of online private tutoring are several, and often it outweighs the disadvantages. However, online tutoring also possesses some drawbacks, like any other sector. So let’s look into the disadvantages of online private tutoring.

Learners miss the classroom interaction

Most learners, especially the younger generation, are accustomed to classroom-based teaching, and it helps in their overall development. A survey conducted among 2500 educators in eight countries deduced that online learning is not as effective as classroom-based teaching. According to a McKinsey & Co report, virtual learning scored just five out of ten. 

While this stands as a drawback, if you can bridge the gap by incorporating an engaging learning approach, you can use it to develop their self-learning skills. 

Chances of distraction

Virtual tutoring offers convenience for students to learn from the comfort of their homes with the help of the internet. However, it also opens the doors to distractions. Students can easily get distracted when at home, which can be difficult for tutors to control. However, tutors can curb this drawback to an extent by using live sessions where they interact with students in real-time. 

Technology-related problems

As online private tutoring completely relies on an internet connection, technology-related issues can affect its efficiency. To enjoy the advantages of online tutoring, both educators and students must have access to a reliable internet connection.

Hence, make sure you have good internet connectivity and encourage your students to have one too to avoid network issues. 

Running an online private tutoring business has its own benefits and drawbacks for both educators and students. As an educator, if you are able to keep up your passion for teaching and work on offering the best learning experience to students, private tutoring can be a highly successful and profitable venture.

While online tutoring has some disadvantages, if you leverage the right strategies and use the right tools, you will be able to turn the drawbacks to your advantage.

Accept the drawbacks and take care of them to successfully run your private tutoring business. Online tutoring is here to stay forever and coexist with traditional classroom-based learning. The earlier you embrace, the better it is for you to emerge as a reputed and successful online teacher and build a profitable career. 

Online tutoring business VS Offline tutoring business

Before we proceed into the online tutor salary part, it is crucial to understand the difference between offline and online tutoring. It is also essential to know why a tutor considers going online for teaching.

How To Start An Online Tutoring Business

Offline tutoring is where a tutor is physically available to mentor a student or a group of students on a particular topic. This type of tutoring occurs in a physical classroom environment (This may differ in terms of one-on-one private tuition). Whereas in online tutoring, the tutor teaches through a virtual medium. The online medium allows the tutor and the students to teach and attend classes from the comfort of their homes.

The online medium also allows the tutor to reach a greater audience and have a global student base. In offline tutoring, the student base gets restricted to a specific area. Online tutoring offers other benefits like flexible working hours, better and easy payment, etc. Shifting to the online medium is one of the most intelligent choices a tutor makes to elevate their earnings.

How much do tutors make via online tutoring business?

How To Start An Online Tutoring Business

According to the market standards, the average monthly rate for live online classes (for school and high-school-based topics) is $20 per student. The classes are typically scheduled thrice a week according to your chosen schedule.

Now, let us assume you have 20 students in a batch, which means you can earn a sum of $400 ($20*20) from one batch. If you can teach two sets of 20 students, you can easily make up to $800($20*20*2) a month through live classes only.

Also, there will be times when your students book private 1-on-1 classes with you. Private 1-on-1 sessions are charged on an hourly basis, and the average industry rate ranges from $8-$16 per hour. Assuming you take at least 5 private classes in a month (an hour each), you can earn a total sum of $840-$880 per month.

The rates can increase if you teach courses that require a higher level of expertise, like preparation courses for competitive exams like GMAT, CAT, XAT, and more.

Also, if you have the resources to make a prerecorded course, upload it on sites like Udemy, Coursera, and more to keep earning extra. Usually, a course contains 10-12 pre-recorded lectures priced at a standard rate of $12-$15 per student. If at least 10 students attend the lectures in a month, you can earn an extra sum of $120-$150 a month from a single prerecorded course.

Types of online tutoring business

There are two ways to start your online career and start making money on the go, and in this section, we will describe each of the types in detail.

Joining the existing platforms like Udemy

How To Start An Online Tutoring Business

Udemy is one of the leading e-learning platforms in the world and allows teachers from all across the globe to sell their online learning courses. If appropriately used, Udemy can be a source to earn significant revenues in a short time. Tutors like Rob Percival and Victor Bastos have already made over $1 million in total using this platform. They also enjoy a vast global student base.

However, before joining Udemy as an instructor and increasing your online tutor salary, you must know that Udemy works on a marketplace business model. This means the payout and commission rates differ according to how the sale was made.

They have 2 payment tiers, and here is how you can earn tutoring in Udemy:

  • If the sale occurs entirely through the tutor’s promotion via social media, organic advertisement, using coupon code, the tutor will get 97% of the share from the sale; the rest goes to Udemy.
  • If the sale occurs due to a paid promotion done by Udemy, the tutor only receives 37% of the total share of the sale.

Creating your own tutoring platform

Creating your own platform might sound like a highly complicated task for a tutor. But what if we tell you that a full-fledged online tutoring platform can be completed within 24 hours. Yes, you read it right; using turnkey solutions like Pinlearn, tutors can create their own online platform to sell their expertise.

If you are not on board with the idea of sharing your hard-earned money with a third party, building a unique platform is the best option to go forward. Also, having your own platform lets you integrate and work with things that suit you the best, plus you can work according to your own schedule.

The detailed process of starting a tutoring platform

Step 1: Selecting a catchy domain name and picking a hosting provider

The first step towards creating an e-learning platform is to purchase an effective domain name. For purchasing, you can go to websites like GoDaddy. Remember to always pick simple and effective domain names.

Try to steer clear of unnecessarily long and hard-to-spell terms. These names are difficult to remember and thus hard to track. There are good chances of you not getting the name of your choice. In such cases, try tweaking the name a little. Once done, you can proceed to pick a hosting server.

Step 2: Software installation on the server.

The installation is a highly crucial step, and it requires sound technical knowledge to get the job done. For your convenience, the team from Pinlearn installs the software to your servers. Once the installation is completed correctly, you will have a fully functional Udemy clone ready for professional use.

Step 3: Adding customizations and going live

Being a white label software, Pinlearn allows you to make endless customizations to the Udemy clone. Make sure that you have a clear vision of how you want the website to look. Properly convey the changes to the team at Pinlearn, and they will make the changes for you in no time. Once you feel that the product is ready to go live, it is time you go ahead and launch it.

Attracting a good student base

How To Start An Online Tutoring Business

Once the e-learning platform is created, it is time to go ahead and market your product. No matter how good your platform looks, without effective marketing, you won’t get a good student base. Here are a few ways to market your e-learning website:

  • Spend a little time on the internet and find out the contact details of potential customers. Draft a catchy and creative email that informs about your platform and mail it to the contact that you have gathered. Email marketing can be very effective, especially in the beginning stages.
  • Open a social media page for your platform and create good posts regarding updates, information, and announcements related to the website and post regularly.
  • You can also answer e-learning related queries on platforms like Quora, where you can add answers and ask readers to check your platform for a well-rounded experience.
  • Try to create free introduction videos for each course and put them on your websites and social media as a teaser. This will attract more students to go ahead and purchase the entire course.

Tips and tricks to make more money in online tutoring business

The average online tutor salary is the bare minimum that a tutor can earn online. With a bit of effort and smart planning, the tutors can make a lot more. Here are a few tips and tricks to increase your online tutor salary:

  • Teach multiple batches: As the live classes require you to teach for 2-3 days a week, try to operate multiple batches in a week. For example, if you are teaching a batch on Tuesday, Thursday, and Saturday, try to accommodate another batch on Monday, Wednesday, Friday. This way you can have more students and earn better.
  • Use innovative technical tools: Learn to use online teaching tools like an online whiteboard and more. Try to gather more online content in PDFs for study material and try to add interactive features like animations, live quizzes, etc., to your classes. This will make your course more interactive and attract a better crowd.
  • Teach multiple subjects: While your genre will be the same, try to split your expertise into different sub-genres and create courses out of each sub-genre. Suppose you are a school-level science teacher, split the subject into school level physics, chemistry, and biology and have separate classes for each. This will increase your online tutor salary effectively.

Conclusion: Online Tutoring Business

The transition from the offline to the online medium of tutoring can be a little long and challenging, but it is filled with rewards. Being an online tutor, you not only earn more, but you get to learn and adapt to the world of technology.

Steps like marketing and content creation might sound new to you, but once you grab hold of these things, the possibility of having a high salary becomes endless. Go ahead and fulfill your desire to earn great via online tutoring.

You may also like to read: 6 Best PDF Converter Tool

Rajib

Rajib

Rajib is the Co-Founder and the Lead Product Analyst of RiansTech. A BTech in Mechanical Engineering and a veteran in the Home Appliance industry with over 17 years of experience in designing appliances for industry leaders like GE and Whirlpool. He also runs a successful niche blog (RiansClub) on Mechanical Engineering

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