The right way to scale a tutoring company
here's the steps to making $1,000/day
GM. This is Work "After" Work, the newsletter that leads you down the road to success in business. Hop in and enjoy the ride!
Here’s how we’re starting the week:
🧑🏫 Making $1,000/day tutoring
😂 Meme of the day
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THE RIGHT WAY TO RUN A TUTORING BUSINESS
If you're in school, fresh out, did really well on your standardized tests, or are currently running a tutoring business and looking for a way to scale it, this newsletter is for you.
The first thing you need to know is that most sell tutoring the completely wrong way. You don’t want to sell tutoring; you want to sell the outcome of tutoring.
So, if you were helping someone prep for their SAT - helping them achieve a higher score means they get into a better college, which gives them:
A better network of people to hang out with in college
Better companies that recruit from those schools
And a higher average salary coming out
How do you scale this business into something generating $1,000 a day in profit?
Take out your notepad - class is now in session. Ay-Ay-Ron please raise your hand.
The first thing you need to do is throw 1 on 1 tutoring out the window. The numbers just don't make sense unless you literally charge $300 an hour.
Semi-private group sessions are the way to go. If we follow the numbers, 1:1 tutoring will yield you maybe $60 an hour. Semi-private groups on the other hand, even at a lower rate ($35/hr), will yield you over 4 times more:
I even have a way to supercharge this business and make you well over $1,000 per day. I gotchu later in the email!
The other thing you need to know when starting this business is this simple formula: the more questions one practices before a test, the better one scores.
Your job is to get students higher test scores. Do this by having them constantly solve problems, answer questions, and give tips and tricks when they're stumped.
Now that we've got that under our belts, let's go over how to get this business goin!
HERE'S YOUR 3-STEP APPROACH
1. Use your network
The first problem you're going to run into is having no clients.
You might already know some high schoolers or college undergrads who need help. Hit them (or their parents) up and see if they're interested in you tutoring them.
Getting people in your network will always be the easiest way to gain initial clients. Once you exhaust those options, you'll need to start reaching out.
What do you say for your outbound messages? Try this:
You can target students but I think targeting parents would be an even better move. Think about it, they’re the ones who will ultimately pay you and care (probably more than their own kid) about what college their kid gets into.
As you start to do these tutorial sessions always ask for 3 things – feedback, testimonials, and referrals. This helps you get better and helps grow your business.
If you're falling flat on your face with no one interested, try this! Offer students the first 5 sessions free if they submit the homework you assign. If they don’t submit their homework, you’ll bill them.
This instills good habits and gets students somewhat motivated to get better because they won't want to pay money.
They do the work, their test scores improve, and if they don't do the work you get paid, kind of a win-win situation for you either way. If their test scores are increasing, they'll come back wanting more than just 5 sessions.
2. Use your testimonials as ads
Facebook ads are still extremely effective in today’s day and age. In fact, it’s a big part of how I grew this newsletter to over 30,000 readers!
(ps: love you all 😊)
After you’ve taught a few students and gathered their feedback, testimonials, and referrals it's time to use those to get more clients.
One of the most popular techniques is to post ads with your testimonials.
Here’s a few examples:
Show that students are gaining higher test scores with you and your traffic will increase along with your word-of-mouth referrals - the cheapest form of advertisement. People trust what other people have to say!
If one of your client’s friends tells them “I really need to ace this SAT to get into UCLA, my dream university.”
And your client says “My SAT went up 50 points after Faares started tutoring me. You should check him out!”
You just scored a client without even trying!
3. Hire others to tutor for you
Remember how I said I'd show you how to supercharge this business? This is how.
Here's the situation:
You’ve gained more clients than you can keep up with and you’re panicking! You can’t teach all of them and you don’t want to turn them down, or the money. Here’s what you're going to do.
If you're tutoring at a school, you essentially have access to unlimited tutors. All the teachers around you are likely willing to tutor a group of 8 for $50 an hour considering it's almost double their average salary of $27/hr and the same hourly rate for professors.
Take the difference and rake in $230 per hour (since you’ll be making $280/hr with 8 people @ $35 each)
Later, you can always get that teacher to refer more teachers to increase the number of people working for you.
Now the fun part - the money. Here’s some quick math.
If you're able to successfully grow this business and hire 4 teachers at $50/ hr, that's $200/hr.
You run 4 classes with 8 students each paying $35/ hr - that's $1,120 or $920 in profit.
Turn this into a 4 hour session and you're all of a sudden grossing $4,480. Take out $800 for teacher costs and you're profiting $3,680 per day!
Rome wasn’t built in a day. I believe in every one of you. Start small, focus on your students getting better test scores, show results, and scale as you grow.
Go get that bag - happy hustling! 👊
MEME OF THE DAY
Teach ‘em young 😂😂
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.