{"id":92,"date":"2022-07-16T11:09:29","date_gmt":"2022-07-16T11:09:29","guid":{"rendered":"https:\/\/ecloudsoftware.in\/blog\/?p=92"},"modified":"2022-07-16T11:09:29","modified_gmt":"2022-07-16T11:09:29","slug":"how-to-generate-revenue-for-edtech-startup-india","status":"publish","type":"post","link":"https:\/\/ecloudsoftware.in\/blog\/2022\/07\/16\/how-to-generate-revenue-for-edtech-startup-india\/","title":{"rendered":"How to generate revenue for Edtech Startup India"},"content":{"rendered":"<p>Every industry has seen major Impacts in its processes\u00a0 after the Pandemic situation.The education industry has also adapted and transformed its functionalities.<\/p>\n<p>Many educational organisations has come up with various Edtech solutions to secure their positions in the education industry. Edtech is referred to as the ecosystem where\u00a0 technology is utilized to assist the delivery of education services. Also referred to as new\u00a0 technological implementations in the classroom.<\/p>\n<p>The Purpose of Education is to turn Mirrors to Windows . Since time , technology has become a forefront of\u00a0 education. This is how Edtech startups were born and are emerging because of their inherent nature.<\/p>\n<p><strong>Purpose of Edtech<\/strong><\/p>\n<p>is to develop software solutions that make education more accessible and streamline the learning process.<\/p>\n<p><strong>Revenue models<\/strong><\/p>\n<p>is the right choice to know the complexity of the startups. It gives a clear picture of\u00a0 choosing the right revenue source for the business. It&#8217;s essential to know what value to offer and who pays the value.<\/p>\n<p>Before getting into next process, as an Edtech software\u00a0 development company\u00a0 , you should understand the education sector ,users needs and expectations and the competitive market.<\/p>\n<ol>\n<li><strong>Freemium or Free Trial<\/strong><strong>\u00a0<\/strong><\/li>\n<\/ol>\n<ul>\n<li><strong>\u00a0<\/strong> is\u00a0 the first model of Edtech company. everyone is\u00a0 font of this model as it is free.<\/li>\n<li>\u00a0This model allows users to use products and services for free , with an option to upgrade to a paid version for extra features and functionalities .<\/li>\n<li>It has 2 different ways to work<\/li>\n<\/ul>\n<p>1.\u00a0 \u00a0Feature Limitations(Freemium)<\/p>\n<p>2. Limited Time Period (Free Trial)<\/p>\n<ul>\n<li>As no customer would get into buying a membership or upgrading the services, thus , the Edtech companies find no profit in the end.<\/li>\n<li>The disadvantage in education is of the principal-agent problem , which means that your users aren&#8217;t your customers or buyers.<\/li>\n<li>Students and educators are interested in the product and services that you offered but might not be able to convince the higher authorities to upgrade and purchase them.<\/li>\n<li>Coursera is an excellent example of an Edtech startup. In 2020, they earned over 30+\u00a0 million new users.<\/li>\n<\/ul>\n<p><strong>\u00a0 2.\u00a0 Top Down\u00a0<\/strong><\/p>\n<ul>\n<li>\u00a0The top down or institutional model is a more traditional method of selling to schools through district leaders.<\/li>\n<li>Here , the market size is first estimated and then the targeted market volume is decided on the anticipated\u00a0 penetration rate.<\/li>\n<li>The advantage of the top down model is that the districts will sign large contracts.<\/li>\n<li>The disadvantage of the top down model is that these contracts consume a lot of time to sign up and are contested by competing vendors.<\/li>\n<li>Schoolzilla is an example of topdown ,district-wide or state &#8211; wide implementation of Edtech software. It offers a host of features that aid school and district level decision making. Its metrics showcase the results of changes made to school curriculum and policy through data driven metrics.<\/li>\n<\/ul>\n<p><strong> \u00a03. Bottom Up<\/strong><\/p>\n<ul>\n<li>\u00a0Once the predicted growth is estimated , the feasible market volume and total revenue is determined\u00a0 .<\/li>\n<li>Edtech companies can approach the consumers through schools that are convinced to utilize the product or service for free. If the families want to keep it at home , they might be charged for it.<\/li>\n<li>Schools generate leads for consumer adoption.<\/li>\n<li>This model is suitable for the Product Loop between educational institutions and home.<\/li>\n<li>Its disadvantage is that it is a potentially\u00a0 \u00a0inequitable strategy as every students financial background could vary.<\/li>\n<li>Scholastic and ABCmouse offers great option as they can use the product for free and students would pay for its usage at home.<\/li>\n<\/ul>\n<p><strong> 4. Sponsored<\/strong><\/p>\n<ul>\n<li>is a unique and unconventional model in which neither the school nor the parents would pay for the\u00a0 \u00a0products\u00a0 or services.<\/li>\n<li>A company\u00a0 sponsors the product and pays for product placement.<\/li>\n<li>Also called as Corporate Social Responsibility (CSR)Project.<\/li>\n<li>Benefit is that when you offer a great product to schools for free , utilisation will be relatively high for the sponsors.<\/li>\n<li>The sponsors have the opportunity to build brand awareness and goodwill for their company.<\/li>\n<li>Gonoodle is an example of sponsored which helps to improve company&#8217;s image.<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 5. Edtech Market Place Model\u00a0<\/strong><\/p>\n<ul>\n<li>allows educators to showcase their course to a massive audience and the platform earns a percentage from the proceeds.<\/li>\n<li>Udemy in an example of Marketplace model.\u00a0 It is a online\u00a0 marketplace that allows businesses and individuals to offer the courses\u00a0 online. Charges only the\u00a0 50% of the course fee.<\/li>\n<\/ul>\n<p><strong>\u00a0 6. Ad-Sponsored Model<\/strong><\/p>\n<ul>\n<li>Startups can offer ads during a course to cover its cost.<\/li>\n<li>Greatway to showcase more courses to\u00a0 your existing customers in the form of ads .<\/li>\n<li>Duolingo is an example of Ad sponsored model.<\/li>\n<\/ul>\n<p><strong>Requirements to start an Edtech<\/strong><\/p>\n<p>1. Know your market<\/p>\n<p>2. Study the system<\/p>\n<p>3. Pitch Right<\/p>\n<p>4. Know the system , Hire a teacher<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0 \u00a0\u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every industry has seen major Impacts in its processes\u00a0 after the Pandemic situation.The education industry has also adapted and transformed its functionalities. Many educational.<\/p>\n","protected":false},"author":1,"featured_media":93,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/posts\/92"}],"collection":[{"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/comments?post=92"}],"version-history":[{"count":1,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/posts\/92\/revisions"}],"predecessor-version":[{"id":94,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/posts\/92\/revisions\/94"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/media\/93"}],"wp:attachment":[{"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/media?parent=92"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/categories?post=92"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecloudsoftware.in\/blog\/wp-json\/wp\/v2\/tags?post=92"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}