The Institute of College Access & Success and Statista shared insights on the average cost to attend university per year in the United States from 2000 to 2018. The image below shows a steadily rising graph, which started at 15381 USD in 2000 and eventually became 32782 USD.
The education industry is imploding, which is giving rise to a new age of entrepreneurs who want to leverage eLearning as a business idea. While there are growing concerns among the teaching community regarding decreasing income due to online learning, a more pressing concern for the US economy is the growing student debt, which might get solved by eLearning.
Best Colleges collected feedback from 1500 respondents who were former online students. The data provides insight into different concerns in the United States related to eLearning. Among the concerns, 32 percent shared no interest over opting for online learning options and excelled in their career.
On the brighter side, in another study conducted by McGraw-Hill and Hanover Research, the data clearly shows a positive impact on college students who opted for online learning. According to the survey, most students observed improved studying efficiency, better exam preparation, more confidence, reduced stress, and more.
The rise in eLearning startups can also be observed through the eyes of a venture capitalist. The graph shown below shows the venture capital investment in EdTech from 2014 to 2018 in Europe. After in-depth research, entrepreneurs who wish to start their online learning website and seek funding can approach venture capitalists.
If you are passionate about this industry and think of disrupting the education sector for the greater good, then starting your online learning venture makes sense. However, merely putting effort into greater good will not enable you to earn profit along the way. Hence, it would help if you thought hard about a monetization plan for your venture in the education industry.
Benefits of Having a Monetization Plan for your eLearning Startup
Compliments the Business Strategy
As a thumb rule, the monetization plan should always be a priority and an integral part of your business strategy. Giving it a priority will enable you to sustain your education venture.
Attract Venture Capitalists
A well-thought monetization plan is essential for you to generate returns on investment. The same is appreciated by venture capitalists as well. In a world where technology and experience are continually evolving, additional capital is what oxygen is for humans.
Invite Learners and Trainers
Both learners and trainers will think about “What’s in it for me.”. Also, it is your fundamental requirement to have enough learners and trainers in your database to make your venture sustainable. To invite both types of users, you need to reward them with an appropriate monetization plan.
Helps you Scale and Upgrade
Having a well-researched monetization plan can significantly add value and revenue. The revenue can then be used to upgrade your website and education mobile app with new features to stay competitive.
Different ways to Monetize your Online Learning Startup
Revenue from Subscription
Subscription packages provide monthly recurring income and can enable an entrepreneur to take calculated risks. Many online businesses have leveraged subscription packages as there are several benefits of using this method of monetization. Few benefits of subscription packages are lower costs than one-time payments, better forecast of profit, and more.
Single Course Purchase
Learners or students don’t prefer to be a jack of all trades and master of none. In most cases, a student needs to master a specific skill set to excel in his career and require a relevant course to gain knowledge. You can add an option for students to purchase a single class and leverage this unique use case for additional revenue. Furthermore, you can sell packages of multiple courses that are a part of an entire career path that can transform a beginner into an expert.
Extra Features Upselling
Upselling is equally important as providing friendly customer support. In an online business where two different users are involved, upselling can be done for both. For learners or students, you can have multiple subscription packages, but an ideal place to start is the free package, which can be offered with limited viewing time. The teachers can be given advanced analytics and reporting features at an additional monthly cost.
A form of advertising where you can get paid to list courses at a premium section on your online learning website and mobile app. Ideally, it would help if you create a marketplace where different brands can register their classes. Those who wish to advertise their course can do so by opting for the sponsored package. Furthermore, you can charge them a flat fee on a weekly or monthly basis. Alternatively, you can charge the course creators on a pay-per-click basis.
While one might be interested in different fields of study, the zeal to learn something new is deeply ingrained in every human being. Some are interested in arts and science while others are interested in earning a specialization to grow in their career. The concept of eLearning will continue to dominate the traditional study system for many reasons.
In this blog post, we primarily focused on having a monetization plan for your online learning venture. Another equally important area is the online learning solution, which comprises a website and an education mobile application. As leaders in delivering customer-centric solutions for startups, we urge you to conduct thorough research to improve the chances of your success.
If you require consultation regarding your business plan, monetization strategy, minimum viable product (MVP) development, custom mobile app development, pre-launch, or post-launch marketing, do feel free to share your concerns below in the comments sections.