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Advantages and Disadvantages of Online Tutoring From a Business Perspective
Technology has improved over the past 20 years to such an extent that online tutoring services are now quite easy and affordable. While many freelance tutors and tutoring companies see this as a welcome change in the industry, it also poses many threats to existing businesses. Many articles look at the advantages and disadvantages of online tutoring from the student’s point of view – this article will examine this topic from the perspective of the tutoring business.
Advantages
The availability of online tutoring technology is most beneficial for new tutors or tutoring companies that are not yet established in the market. Online tutoring requires low start-up costs, it opens the tutor up to a larger market and offers more flexibility for scheduling. Let’s take a look at each of these benefits one by one:
Lower barriers to entry
While many independent tutors also have low start-up costs, if you are a tutoring company and decide to go the online route, you can avoid many of the costs associated with starting a traditional tutoring company. Traditional companies often require an office for management, or where tutoring takes place, marketing through local media, driving to meetings with potential clients, etc. Online tutoring companies do not require an office other than a home office and do not necessarily require a building for teaching. students. Online marketing is cheaper and can be targeted more directly than traditional marketing, and customers can be interviewed online or over the phone. These low start-up costs make it much easier for new businesses to start online.
A bigger market
Traditional tutoring companies are limited by geography – they cannot effectively serve students outside of their geographic area due to time constraints and transportation costs. Because of this, tutoring companies have smaller markets and can only enter new markets by adding new locations. Online tutoring businesses do not face this limitation. They are accessible to anyone with an internet connection, and the only real limitation is language. For this reason, many individuals choose to start an online tutoring company so that they can reach a larger market. This can be a very good strategy if your company is teaching a highly specialized subject where there are not enough people locally to support the business.
Tutoring companies can also recruit tutors from a wider area and be more successful in finding high-quality tutors in the subjects they offer.
Flexibility
Online tutoring companies have more flexibility as they can choose to tutor students in different time zones. Tutors who are only willing to teach in the evenings can easily teach students from the later time zone of the afternoon. This makes it easy for freelance tutors to fit their tutoring around their personal or work schedules.
Low operating costs
The ongoing operating costs of running an online tutoring business are also lower than traditional tutoring. Some of the canceled expenses come in the form of building rent, telephone, transportation and marketing. Online tutors can do everything from their home, they can use free or cheap online phones like Skype to communicate, and they don’t have to spend money to drive to the tutoring office or clients’ homes.
Disadvantages
Many of the benefits of online tutoring can also present challenges for tutoring companies. We will consider the following disadvantages one by one.
Lower barriers to entry
Low barriers to entry make online tutoring attractive to new tutoring companies, but it is a disadvantage for incumbents as it makes it easier for new companies to enter the market and compete with them. This ultimately leads to more price competition and lower profit margins.
Competition from other markets and other countries
Online tutoring overcomes the geographical barrier, which is a disadvantage for existing tutoring businesses. This means that instead of only competing with tutoring companies in their own market, they now face competition from tutors in other parts of the country and in other countries in general. Many online teachers are from countries like India where the cost of living is lower. You can tutor American students online and pay a rate that is still much lower than standard rates in the US, but well above what they would earn for tutoring in their home country.
Technology limitations of students
While most people have a personal computer and internet access at home, many students who need tutoring do not have the technology required to take online lessons. In addition to a computer, a high-speed internet connection is ideal, equipment such as a headset and microphone to talk to the tutor, and a whiteboard depending on the subject may be required. This means that if your business only wants to provide online tutoring, there will be a lot of students you cannot reach.
Efficiency
While online tutoring can be effective, there are some topics where face-to-face communication and explaining concepts on a piece of paper is more effective than online communication. It can also be more difficult to keep students engaged with online tutoring, which can negatively impact student progress.
Online tutoring presents both opportunities and challenges for the tutoring business. By understanding and appreciating these challenges, tutoring companies will be better prepared to respond to them and adapt their business strategies to the changes it brings to the industry.
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