How to start an online tutoring business in 8 steps

💡 The 8 steps to starting a tutoring business

1. Identify your expertise
2. Define your target audience
3. Research online tutoring software
4. Determine your pricing
5. Promote your services
6. Offer a money-back guarantee for your first session
7. Collect testimonials and referrals
8. Build relationships with other tutors

🧪 Identify your expertise

Once you have decided to start a tutoring business or side hustle the first thing to do is figure out which subjects or skills you’re really good at and comfortable teaching. Also, think about whether you possess the skills to teach it

Additionally, consider if you have essential tutoring skills like effective communication and good time management. If you don’t have these skills yet, don’t worry! You can always learn and develop them. As a bonus, they will be beneficial to you no matter where your tutoring journey takes you

🗣 Define your target audience

The next step is to determine the age group, grade level, and specific student demographic you want to tutor. This decision should be influenced by your subject knowledge and your ability to connect with different groups of students

If you can teach challenging high school subjects, you may be able to charge a higher hourly rate because there are fewer tutors available at that level. On the other hand, if you have a knack for working effectively with primary school children, you can also get a lucrative rate as not many tutors possess that skill

Unfortunately, there is a lull in the hourly rate for tutoring lower high school ages, especially in general subjects like math and science. This is because there is a large number of tutors available for these subjects, and fewer students at that stage require assistance. If you choose to target this demographic, consider running small group sessions to make the most of your time

👨‍💻 Research online tutoring software

Explore popular online tutoring platforms and content delivery software. The internet offers a vast array of resources, and online tutoring platforms and educational software will be the foundation of your online tutoring lessons

At this stage, you should consider whether you want to tutor for a company, use a tutor matching site for a commission, or source your own students independently (a post about this is coming soon). When evaluating tutoring companies, read up on their requirements, and commission structures, and try to gauge their overall student reach

Next, focus on finding software and tools that will enable you to tutor effectively online. These may educational resources, video call applications, and online tutoring platforms. You can use meeting applications and note-taking apps, or choose an all-in-one online whiteboard built for tutoring like Kedyou, which can save you time, reduce hassle, and facilitate engaging lessons from the start. If you decide to work with a tutoring company, they typically provide their own software licenses and resources, so you can skip this step (although keep in mind that they will take a cut of your rate for providing this). There are pros and cons to this—less administrative work, but it can be frustrating if you’re not satisfied with their software or processes

💰 Determine your pricing

Start researching the market rates for online tutoring services in your subject area. Don’t reinvent the wheel when you’re starting out, set your price close to what other tutors with similar qualifications and experience are charging

After you get started you can start adjusting your pricing strategy and measure the effects. You can choose to undercut the competition and offer a lower price to attract more students. However, be cautious about dropping prices too far, as it may signal that you are offering a lower quality service relative to your competitors. On the other hand, you can price your services significantly higher and implicitly signal superior quality. If you choose this approach, make sure to clearly display why your services are worth the higher rate, or students may dismiss you immediately

Start with charging an hourly rate - it provides flexibility and allows you to gauge demand. As you acquire more students, you can start offering tutoring packages that bundle multiple sessions or additional services

For a more in depth explanation check out our guide on setting the right price for your online tutoring

📺 Promote your services

** If you’re looking for a detailed explanation of this, you may want to read our comprehensive guide on marketing tutoring services which is summarised below

Establish your online presence as a tutor - it doesn’t take much effort, but it can make a big difference. Begin by creating a website using simple templates from platforms like Squarespace, Wix, or Weebly. These platforms offer easy-to-use options. Then create a profile on tutoring platforms and advertise your services there. You can refer to our post on writing an attention-grabbing tutoring advertisement for guidance. Don’t forget to include your contact information and, if possible, share testimonials from previous students or their parents. Testimonials add credibility and trust to your tutoring skills

Once you have an online presence, utilize various channels to spread the word about your tutoring services. Leverage social media platforms like Facebook, Instagram, or LinkedIn to showcase your expertise, connect with potential students, and inform others to connect you with students who may be looking for help

Reach out to local schools, previous teachers, community centres, or educational organizations to inform them about your tutoring services, and ask them to refer students who may need additional assistance to you

💯 Offer a money-back guarantee on your first session

To attract your first student, consider offering a money-back guarantee on your first lesson. This is different from a free trial. Let’s compare it to Netflix: free trials work for platforms like Netflix because they hook you onto their content, and once the trial ends, you’re more likely to pay to continue watching. However, tutoring is not the same. You should set the expectation that your tutoring services are valuable and should be paid for, delivering high-quality lessons in return

Instead of a free trial, which can be misused and may not encourage students to return, offer a “100% money back guarantee” on the first lesson if they were not satisfied. This allows potential students and their parents to experience your teaching style, ask questions, and gain confidence in your abilities without taking on any risk. If a student does request their money back, don’t make a fuss. Take their feedback as an opportunity to learn, honour the guarantee, and maintain your honesty. Who knows, they might even recommend you to others because of your integrity, even if they don’t continue with your tutoring services

🔗 Collect testimonials and referrals

Once you have a student, it’s crucial to provide an excellent experience. Nothing can replace the value of delivering a high-quality experience and without it, you won’t be able to grow. If a student enjoys your lesson, ask them for a testimonial to display publicly. Testimonials serve as social proof and can enhance the trustworthiness of your services

Don’t hesitate to request satisfied students and their parents to refer you to their friends, family, or classmates. Word-of-mouth recommendations can be a powerful tool in attracting more students

One way to grow your student base quickly when starting out is to set up a referral system. Offer your existing students a lesson in exchange for referring new students to you. For example, if they refer two students who continue with your services, reward them with a free lesson. This strategy can rapidly increase the number of students you tutor. However, manage your time effectively and avoid overloading yourself, as compromising on the quality of your services can backfire. Remember, those who refer you have staked their own reputation on your tutoring abilities, so maintaining a high standard is crucial.

🎓 Build relationships with other tutors

The final step is optional. By following the previous steps, you’ve hopefully already established a successful and profitable tutoring business. If you want to take it to the next level start forming relationships with other tutors, organizations, and schools. Start operating more like a company by offering your services through contracts and hiring other tutors to work with you, receiving a share of their earnings

Start exploring services that are related to tutoring, such as creating educational resources or offering mentoring sessions. As your business grows and you receive more referrals and testimonials, attracting new students and securing bigger clients will become easier. You will have greater control over the direction of your business and the opportunities that come your way. Remember, this step is optional, and it’s up to you to decide how far you want to take your tutoring business