How to Start an Online Tutoring Company?

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Written By Aditya Sharma

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The pandemic caused a paradigm shift in traditional education, which was unable to meet the needs of teachers and students. Teachers, parents, students, and even their families were unsure of what the future would hold. Consequently, eLearning platforms came to the rescue. We saw a huge adoption of digital learning methods.

During the Covid-19 era, the eLearning industry experienced significant growth and continues to grow at the same rate. Online teaching has been the new trend in education. Businesswire predicts that the global market for online tutoring will reach $2.9 billion by 2025, with a 15% CAGR from 2020-2025.

The industry is expected to continue growing even after the pandemic. This is because both learners and teachers have become more comfortable with this method of learning. A transformation is taking place in the education sector, making it a great time to invest in this industry. It promises high ROI and huge earning potential.

Let's see how we can help you build your online tutoring business.

Choose a Niche

The first thing to do when you are considering entering this field is to study the various niches. It is easy to choose a niche when you have a good understanding of the different niches. These are some of the most popular niches within this industry.

  • ESL including IELTS, TOEFL, etc.
  • STEM tutors
  • Teaching hobbies like Music, Dance, Cooking, etc.
  • Teaching aerobics, yoga, meditation, etc.
  • Teaching languages like French, Korean, German, etc.
  • Focusing on competitive exams like SATs, GMAT, GRE, etc.
  • Primary and secondary school subjects.
  • Special tutors available for children with special needs

Online tutoring has the added advantage that students are not limited to a particular culture or geographic location. This means that students can be enrolled from anywhere in the world and can explore different niches within your industry.

Decide Your Revenue Strategy

An online tutoring business model that is successful must be able to afford to operate its operations. Most online tutoring platforms have basic revenue streams such as subscription fees, commissions from tutors, and listing fees. Depending on your niche, you may be able to explore other revenue streams.

Students can have one-on-one lessons, which can be customized for them. Your rates can also be set accordingly. You can also teach students in groups, which will increase your income and reduce your time and resources.

Depending on where your students are located, you may be able to offer multiple payment options and multi-currency options. Be clear about the fee structure and communicate it to everyone who enrolls on your platform.

Register Your Business

It sounds exciting to be able to own and operate your own tutoring online business. However, you will need to follow certain legal requirements. Although you don't need to have a license in order to start an online tutoring company, there is a business structure that you should follow. Register with the appropriate agencies and departments in your locality to get your license.

If you're just starting your company, you can register as a sole proprietor and not share the profits with anyone. Or you can register as a limited liability corporation (LLC) if your finances are separate from the profit. This will determine your tax liability based on local laws.

Create The Website

Next, you will need to create a website. If you are interested in building your own website, there are many user-friendly tools on the market. You can either hire a professional web designer or buy Yo! ready-made software if you're a total novice in the industry. Get a coach to help you start your business immediately without any hustle.

Don't forget to include relevant tools and features to your website that are specific to your business niche.

Marketing Your Business

Creating an online tutoring website alone is not enough. You also need to attract teachers and students. Marketing strategies are important as well.

Here are some ways to promote your newly launched business.

  • Mobile-friendly websites are essential.
  • Make your website SEO-friendly
  • Social media can be used to promote your products and services.
  • Create educational marketing videos.
  • You can tie up with colleges and schools.
  • You can publish student testimonials on the website.
  • Advertisements can be published in both print and digital media.


It may seem like a lot of work to start your online tutoring business. It is worth it for the potentially lucrative returns. This can be a lucrative avenue for edupreneurs, given the eLearning boom. This is a great industry to start and prosper in. To kickstart their entrepreneurial journey, an edupreneur should consider the factors listed above.

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