- TESTutor.com is an online marketplace that matches students seeking test preparation with affordable professional tutors for exams like the SAT, ACT, GRE, and GMAT.
- It taps into an untapped market of affordable tutors outside the US and applies the proven "Russian School of Mathematics" methodology to quantitative training.
- The platform aims to provide a personalized approach at a lower cost than traditional offline tutoring through online matching of students with qualified tutors and monitoring their progress.
EPANDING THE CONTENT OF AN OUTLINE using notes.pptx
Online Tutoring Marketplace Matches Students with Affordable Tutors
1. TESTutor.com
The innovative marketplace matching tutors
with students for online university tests (SAT,
ACT, GRE, GMAT) preparation, tapping the
market of affordable professional non-US
tutors, and applying proven methodology of
'Russian School of Mathematics' in
quantitative and scientific training
2. Summary
• $4 billion + highly fragmented market with mostly
offline services;
• Untapped source of affordable, professional tutors
and teachers outside US;
• The team's over 30 years of experience in tests
preparation market
$4billion
highly
fragmented
market with
mostly offline
services
3. Problem
Students and their parents have difficulty choosing the right
program for standardized academic tests preparation:
• prepackaged courses lack personalized approach;
• professional personal tutors are expensive;
• no smart choice of tutors;
• offline classes and tutoring sessions are tied to location, causing lack of choice
and logistical difficulties;
• online tutoring services are underdeveloped and lack focus;
Many professional affordable tutors are unavailable
for offline tutoring:
• Non-US tutors;
• US tutors outside of metropolitan areas, or available only
limited amount of time;
4. Solution
For Students:
• professionalism – highly professional tutors with more
than 10 years’ experience
• affordable prices - $10-$25/h outside US vs $30-
$80/h in US;
• Smart matching algorithm - to match student's needs
with tutor's expertise;
• increase satisfaction - progress monitoring system;
tutors can be replaced during a course;
For Tutors:
• growth of business - expanded ability to reach students;
• professional qualification, testing and training for specific
tasks and tests to ensure highest quality of their service;
• reliable payment processing taking care of cross-border
transactions hassle;
6. Technology
• Yii2 fast framework;
• Integration with Google product line:
Auth API, Calendar API, Hangouts API;
• Deep integration with social networks facilitating
proprietary smart-matching system to match students
with tutors.
7. 0
Business Model
Monetization:
• Commission on successfully completed tutoring
sessions (30%);
• Unused sessions in prepaid blocks of sessions are
recognized as TESTutor's revenue;
• Additional revenue streams (supplemental materials,
third-parties sales and promotions, advertisement) for
later stage development
System:
• Smart matching, scheduling and notifications;
• Payment processing;
• Monitoring of sessions and progress including video
streaming and recording;
3%
commission
on successfully
completed tutoring
sessions
8. Market
* Reported for Service Providers with 20+ staff, no individual tutoring. Source: TechNavio, 2015
** Assumption
*** Source: National Center for Education Statistics
$4 billion tests preparation market in 2015, growth at ~2% annually,
expected to reach $4.3 billion in 2019*
$3.9 billion* reported in
2014
~$4 billion unreported**
~$8blntotaltest
prepmarket(TAM)
University exams prep,
~50% or $4 billion (SAM)
20 million students enrolled
in US Universities in 2014***
¼ - ~5 million enter programs
X
$800 – average preparation
expense
University exams, ~$4
billion (SAM)
Top-down Bottom-up
9. Competition
Skills training Test Preparation
MultipleareasAcademic
Market is competitive, but only a few focused players in Academic Tests preparation market. We
see WyzAnt, Thumbtack and Verbling as the new growth leaders to watch closely.
11. Lessons from Other Cases
TESTutor’s team is learning from the mistakes of its predecessors:
Marketplace for tutoring services. Shut down and
acquired by WyzAnt in 2013
Marketplace for home cleaning services.
Shut down in 2015
• Inconsistent product - standards of service:
– Could not provide training to contractor
cleaners;
– Low price model attracted low-level
servicemen;
• Low retention rates, focus on high growth
numbers at all costs :
– Attracting customers by offering large
discounts (value destructive, minimal
loyalty);
– High commissions %%, customers and
cleaners motivated to stick direct deals;
• Legal problems with contractors:
– Cleaners sued to be reclassified into
employees
• Low retention rates:
– Relying on single channel (SEO) – low quality
traffic;
– Relying too much on Google algorithm –
vulnerability of traffic to external forces;
– Customers struck direct deals with tutors
bypassing Tutorspree after initial contact
• Miscalculation of market:
– Parents did not trust online profiles and chats
to interact;
– Fewer classes completed – lower LTVC;
– Struggling in the largest and most congested
local markets;
• Management issues
12. TESTutor’s Advantages
• Narrow focus – no distraction:
₋ Online only;
₋ Only most common standardized tests (SAT, ACT, GMAT);
₋ Narrow Target Auditory (Students entering undergraduate
programs; Tutors preferring flexibility in location and time);
• Professional tutors from outside of US;
₋ Affordably priced;
₋ Low risk of US employment litigation;
₋ Low risk of customers’ bypassing TESTutor after initial
contact;
• Methodology of ‘Russian Academic Math and Physics
School’ for math tests preparation;
• Over 30 years Founders’ experience in test preparation
market;
• Asset-light base – no offline infrastructure to maintain;
13. Growth Strategy
1 3
2 4
Product Development:
• full-service online platform with
sessions-handling capabilities,
monitoring of progress, video
streaming and recording;
• students' and tutors' ledge books;
Attracting tutors
• SEM, SEO;
• Social networks and blogs;
• Incentive programs;
• Job-sites parcing;
• Context advertising;
Attracting students:
• Virus advertisement;
• Aggressive smart remarketing;
• SEM, SEO;
• Social networks and blogs;
• Word of mouth, free incentives;
• Volume, loyalty discounts;
Customer Service
development
14. Milestones
Completed 12 months 24 months
Business Development
•Trademark
•Website/Platform
Product Development
•Tests offered: SAT, ACT, GRE,
GMAT.
•Website/Platform
•MVP
•Design Library
Operations
•Executive Team, including CTO
•Platform
Milestone Cost
$100,000
Business Development
• $300k Revenue
• 450 clients
• 50 blogger relationships
•Product Development
•Develop in-house video
platform
•Social Networks Integration
•Prepare for 20 tests
Operations
•Office
•Team (8 members)
•Cloud server, reliable
Milestone Cost
$500,000
Business Development
• $1,750k Revenue
• 3,000 paying clients
Product Development
• Multi-country platform
• Smart search and
matching algorithms
• Prepare for 30 tests
Operations
•Server
•Office
•Team (15 members)
Milestone Cost
$3,000,000
16. Team
Vyacheslav
Davidenko
(CEO, Founder)
25 years of
Entrepreneurial
experience, including
17 years with
education and
tutoring; Started 6
businesses and had 2
exits; 8 yrs in
Investments and
Wealth Management;
started his career as a
software developer;
Igor
Eliseev
(CTO, Co-Founder)
over 10 years
experience in
programming and
development in
online advertisement
(BDLP.ru), online
booking
(ClickAvia.ru),
banking (rsb.ru); won
prizes in a number of
hackathons and
harvests;
Eugenia
Heckman
(COO, Co-Founder)
15 years of tutoring
experience including 10
years of online
tutoring; deep
knowledge of
standardized tests
structure and strategies
(TOEFL, TOEIC, IELTS,
ISEE, SSAT, SAT, ACT,
GED, GRE, GMAT, LSAT);
global experience in
designing individual
study plans;
Editor's Notes
Lack of individiua
Group preparation provides little flexibility on timing and place of sessions;
Offline tutoring limits matching choices for tutors and students;
Offline tutoring is more expensive as it takes in account additional costs (commute, space rent, hard materials);
Online tutoring is underdeveloped and is complimentary to traditional offline approach
Tutors:
Pass standardized process of evaluation, authorization and training;
Based on qualification, offered price level;
Authorized tutors choose time slots of their availability;
After each completed course or session, tutor’s pay is transferred from the student’s account to tutor’s account;
Students:
Search for available tutors according to chosen criteria (credentials, feedback, price, availability etc.);
Deposit prepayment into personal account;
Book sessions;
First session is provided for free, following ones are charged for;
Option to reschedule or cancel sessions at her convenience;
Option to change tutors during a course;
Take short tests after sessions or courses to monitor progress;
Leave feedback on their experience with the tutor in exchange for bonuses ($$ or additional ‘goodies’)