Which EdTech Business Models Should be Considered During Education App Development?
The pandemic made the EdTech industry a huge success and led to many new ideas. But success isn’t just about having a good product; it should be sustainable. Similarly, you should plan to make the EdTech startup business model long-lasting.
The models used in EdTech are very similar to those used in other fields. Still, you should know a few things before starting your EdTech business.
So, here are the 6 best EdTech startup business models for the EdTech market in 2022 and beyond.
1. Freemium Business Model
Using a freemium business model means giving students, teachers, and parents a free basic version of the web or mobile app and encouraging them to buy the paid version with more features.
The EdTech app can be used as a committed online classroom platform that can replace video-conferencing apps. Teachers can set up times for classes and notify students about them. Students can use the portal to get the code they need to join the class at the right time.
2. On-demand Business Model for EdTech App
One sure way to make money with a business is to use an “on-demand” business model. The on-demand economy works well these days. You can make an app that lets people find tutors on-demand, and tutors can record themselves on the website. Students will be able to find a suitable tutor who can help them with a topic by using different keywords in the search bar.
Each tutor will charge a different amount per hour. Before the session is confirmed, the tutor will give an estimate of how much it will cost. When the student confirms, a link for the session will be made and shared with the tutors and other students.
3. eLearning Marketplace
To understand how an eLearning marketplace works, you can compare it to an eCommerce website or app. Like an online store, the marketplace will have a platform with a list of recorded courses that students can look through and buy.
A marketplace for eLearning is just an app like Udemy or Coursera. The platform has a learning management system and tools for tutoring that tutors can use to make courses. The admin can put courses on the EdTech app once they get permission to do so. The dashboards and search tools that students will use to find courses will be different. They can read about the courses and pay for them if they want to take them.
4. Free trial + paid subscription
This method is a lot like “freemium.” However, you only offer a whole package for a limited time, rather than offering it continuously.
People either stop using your app or pay for an upgrade when the trial is over. This means that most users will pay customers at any given time, bringing in money immediately. This is especially true if the trial automatically turns into a paid subscription.
5. Advertising and ad-free subscription
Instead of marketing directly to end customers, an advertising strategy makes money by selling ad space on your site. Typically, this strategy is utilized in connection with a freemium model.
This revenue model has been utilized most effectively in the EdTech industry by the language learning program Duolingo, which has about 40 million active users.
In 2009, when Duolingo was founded, this business model was regarded as a novel. Later, Duolingo began displaying advertisements at the completion of sessions and offered the option to pay a fee to study without ads.
6. Institutional model
The idea behind the institutional model is simple: show your product to school districts, university administrations, and other people who make decisions.
If your product provides more value to organizations than individuals, this model may be the optimal choice.
Conclusion
There are many ways to use EdTech. If you want to do well in this niche, you should try to build a business model for an EdTech startup that can last. And you can only do this if people want what you’re trying to build.
