Learn-and-Earn business model
Who pays for the earning part of “Learn and Earn”?
In short, less committed learners pay for harder working ones.
Consider gym memberships. Many people buy them, but few people end up going to the gym consistently. The people who don’t go as often, contribute the most to the gym owner’s profits.
Imagine you are a gym owner who wants to maximise physical health of society, rather than your profit. One way to encourage more people to exercise is for you to pay a reward to those who train regularly. Hard-working people who are consistent in their efforts can make back their membership fee, enjoy the great health benefits and have lots of fun in the process!
This is exactly how LetMeSpeak works with online education. We want to help people maximise their potential by speaking better English.
We want to illustrate the simplified intuition behind the ‘Learn-and-Earn’ model at the core of LetMeSpeak.
Imagine an English language school offers to pay their students for each session.
The language school has put a few rules in place. The student has to pay $300 upfront and then complete one-hour sessions each day for the next 60 days, getting paid $10 for each completed session. A student who completes all 60 sessions would earn $600.
The language school knows that everyone is different, and no one has consistent motivation. Some students come for two days after payment and then disappear. Most of them will not complete 50% of their total daily sessions. But some of them, who need it the most, will do nearly all the sessions. This approach creates a unique opportunity for good students to get both education and money.
Less committed learners will pay more than they earn and this value redistributes to the more committed ones. This approach provides additional motivation for learners, boosts the learning results and creates a strong and unique value proposition for the language school.
The language school will find the right proportion of entry price / length of package and sessions / rewards for each completed session to make this approach both attractive for new students and sustainable from a business perspective at any scale.