Abhishek Pattanaik
Education is the great equalizer! Yet, accessibility and affordability limitations restrict many from having an opportunity to receive it. While EdTech platforms effectively work towards addressing both issues while delivering quality education, they still require monetary support.
Monetizing is necessary to sustain an EdTech business. But certain factors create challenges during the planning and implementation of a monetization strategy.
Also Read: Embracing the Future of Education: The Rise of Interactive Learning Tools
Discover 3 different monetization models suitable for Edtech platforms and the benefits and drawbacks of each.
Edtech platforms are used by people of various backgrounds. Additionally, every firm caters to a different market with a different demographic. Thus, it becomes critical for the Edtech business to select the right monetization model.
Model #1: Subscription-Based
Perhaps the most popular monetization strategy, a subscription-based model has recurring payments (generally monthly or annual). This model is suitable for EdTech platforms that provide and update their content on a frequent basis.
Offering premium features is also a good reason to use a subscription-based strategy.
The benefits of this model are:
- Revenue is consistent and predictable
- Fosters long-term engagement with the User
- Users can individuals or educational institutions
The drawbacks of this model are:
- Requires consistency in number of subscribers
- Difficulty in securing many subscribers in early stages
A notable example of this type of model is Khan Academy headed by Salman “Sal” Khan.
Model #2: Freemium (Free and Premium)
In this monetization model, a business offers limited products and features free of cost, while certain advanced features come at a price. This strategy is effective to draw a large crowd at initial stages, then convert a portion of them into paying customers.
The benefits of this model are:
- Can quickly attract large audiences
- Gives users opportunity to assess the content before purchasing
- Can be tiered according to user demographics
The drawbacks of this model are:
- Only a small portion from the large crowd become customers
- Revenue is dependent on rate of conversion
For example, EdTech platforms that offer many courses for free, but require payment for specializations or certifications.
Model #3: Pay-per-Course
Some platforms create specialized content offering quality education but cannot maintain the quantity. For such businesses, a sales strategy based on pay-per-course can be beneficial.
The benefits of this model are:
- Complete flexibility for users during content purchase
- In-demand courses with one-time payment generates high revenue
- Best fit for niche markets
The drawbacks of this model are:
- Requires constant content updates without which revenue can tank
- Require heavy marketing of individual courses
- Users can make use of specific courses without committing fully.
Thus, niche market content creators can utilize this strategy.
Closing Thoughts
In conclusion, the right monetization strategy for EdTech platforms depends on matching their user needs with markets trends.
