Comments on: Business Model Breakdown

By: Brian Armstrong

Brian Armstrong — Tue, 11 Nov 2008 04:42:29 +0000

Yep I think I picked the right one. It’s working the best so far.

By: Prabu Rajasekaran

Prabu Rajasekaran — Mon, 10 Nov 2008 08:45:34 +0000

I think the current model of charging successful tutors (those who’ve received more than five enquiries) is the best one.

Because howmuchever they make is because of a standard listing (for which they make a standard fee) and due to their performance - referrals, repeat students, etc. (for which they fix their own price)

Good job, Brian. It’s a joy to see how your brain thinks.

By: Brian Armstrong

Brian Armstrong — Tue, 24 Jun 2008 02:12:56 +0000

I’m hesitant to go ad supported up front and then switch to paid down the road because I think its human nature that once something is free you think of it that way and switching can anger people.

If I’m gonna go only ad supported I’ll just go all the way with that….but I consider that a backup plan if every other way to monetize it fails….thats not ideal in my mind.

I’m leaning toward charging tutors to put up an account, just like a classified ad. I’ll test it and post results as always to the blog ;)

By: Lucky

Lucky — Mon, 23 Jun 2008 18:03:25 +0000

You could make it free for both sides and only charge tutors for premium placement which will get them more bites. You could also work something out that students would have to pay a certain amount but the first hour of tutoring will be free. you can then use part of the students fee to pay the tutors their first hour. If you figure out how to work that, you will also get an accurate picture of how many people are successfully using your site.

What are your thoughts on making the whole site 100% free and relying on ads to make some money and then once the site becomes popular, starting to charge for the service?

By: Brian Armstrong

Brian Armstrong — Mon, 23 Jun 2008 06:49:38 +0000

Good to hear the perspective of an actual tutor, I should survey more of my tutors.

By: Brian Armstrong

Brian Armstrong — Mon, 23 Jun 2008 06:48:36 +0000

You’re right about that…it has been much easier to find tutors than students who want to sign up. Mostly by running Facebook ads I was able to find lots of potential tutors…

By: Brian Armstrong

Brian Armstrong — Mon, 23 Jun 2008 06:46:47 +0000

Wow Carlo this is great…I like what you said about checking out the competition and not reinventing the wheel (in general this is a great strategy and I know a few sites I’ll take a look at). Good point about purchasing power too…thanks for the comment.

By: Emily

Emily — Mon, 23 Jun 2008 01:55:29 +0000

As a math tutor, I’ve looked for ways to advertise online and was sorely disappointed. The only service I found wanted to take a cut of EACH session with each student I contracted through them.

Now, being an honest person, I did not sign up with them because I just couldn’t see me sending them a cut of each session after the relationship was established.

Anyway, as to your questions: as a tutor, I would be willing to pay a monthly fee to advertise with you. I agree with Nick that I want as many eyes as possible on my profile, so I’d prefer that the students don’t pay a fee.

By: Nick

Nick — Sat, 21 Jun 2008 19:57:04 +0000

Hi Brian,

Speaking as a college student, I think the only reasonable model is tutors pay (probably a monthly fee) to be listed, and buyers use it for free. I dont think it is a leap to assume that the number of transactions that take place is a function of the number of people looking for tutors, rather than the number of tutors looking for students.

Since students are the limiting factor, you would maximize your transactions (and consequently, your gains)by maximizing the number of perspective students, which is obviously highest if it is free.

By: Freddie

Freddie — Sat, 21 Jun 2008 16:24:43 +0000

Good comments Carlo. However the problem with the Elance model, as Brian explained, is once ethe student and tutor exchange phone and emails, they have no incentive to come back to Brian’s site to give him a cut of the future money. I have used elance and think it is great, however, once I have found a Virtual Assitant that works, we contract directly with them and avoid elance.

Just my two cents….

Still working on a solution for you Brian.