How To Start An Online Tutoring Business?

How To Start An Online Tutoring Business?

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Updated on: 23rd Nov. 2022

Modern education has been pushed into a whole new sector as the pandemic accelerated the adoption of technology for all stakeholders in academics and the online tutoring industry. According to a research report by Global Market Insights, the global eLearning market is projected to exceed USD 375 billion in the next 5 years growing at over 8% CAGR between 2020 and 2026.

market insights e-learning industry

Although countries across the world are not far behind in adopting online education & remote learning, certain nations have embraced it more than others. ICEF Monitor (a market intelligence resource for international education) has listed the countries that have stepped up the game which includes – United States of America, India, China, South Korea, Malaysia, the United Kingdom, Australia, and South Africa.

Not only in academics, but these countries have implemented online learning platforms in several niches like online tutoring, language learning, music teaching, fitness training, and many others. Recent trends indicate that online tutoring continues to grow at a very high speed due to its benefits for both tutors as well as parents & learners. It allows the tutors to be their own boss, set their availability, determine the hourly rates, and take as many or as few clients that fit their schedule.

In this blog, we take a look at the growth of the online tutoring market (region-wise), then move on to the advantages of starting an online tutoring business, steps to start an online tutoring business, must-have features, and how our readymade solution – Yo!Coach can aid in starting an online tutoring business with a list of successful websites powered by it.

Table of Contents

Growth of Online Tutoring Market – Region Wise

The Global Online Tutoring Market Size is expected to be worth USD 6.52 Billion in 2021 and is estimated to reach USD 19.47 Billion by 2030 at a CAGR of 13.50% from 2021 to 2030. In this section, we cover the region-wise growth of the online tutoring market, the top players, and the rules and regulations.

Things To Consider While Launching An Online Tutoring Business in the US (United States)

Market Overview of Online Tutoring Business in the US 

According to a report by Technavio, the online tutoring services market share in the US is expected to increase by USD 27.85 billion from 2021 to 2026 at a CAGR of 16.4%. The key factor driving this growth is the flexibility offered by online tutoring. Further, vendors are seeking ways to tailor and align courses according to the needs of the students.

Top Players of Online Tutoring Business In the US

  1. Chegg Tutors
  3. Cambly

Rules and Regulations to Start Online Tutoring Business in the US

To start a tutoring business you will need to choose one of the following business structures:

  • Sole Proprietorship
  • LLC (Limited Liability Corporation)
  • S Corporation

Also, you will have to get your business insured.

Things To Consider While Launching An Online Tutoring Business in the UK (United Kingdom)

Market Overview of Online Tutoring Business in the UK

Commonly, it has been quoted that the tuition industry in the UK is worth over £6 billion per year. But after lengthy research into the market size of the UK tutoring industry, the Sutton Trust concluded that these figures are likely overestimated. Though, what seems certain is that the tutoring industry in the UK is growing.

Top Players of Online Tutoring Business In the UK

  1. My Tutors
  2. Tutorful
  3. Superprof

Rules and Regulations to Start Online Tutoring Business in the UK 

The tutoring business is fairly free from strict regulations in the UK. However, if you are looking to start a tutoring business, register with the HMRC (Her Majesty’s Revenue and Customs), consider getting a DBS (disclosure and barring service) check, and get business insurance.

Things To Consider While Launching An Online Tutoring Business in Canada

Market Overview of Online Tutoring Business in Canada

The online tutoring market in Canada is valued at around $443 Million and is forecasted to grow at 6.8% respectively over the 2020-2027 period.

Top Players of Online Tutoring Business In Canada

  1. Skooli
  2. First Tutors (Canada)

Rules and Regulations to Start Online Tutoring Business in Canada

When starting a tutoring business in Canada, you have the option of either registering it as a small business or incorporating it. Once you have figured out which is best for you, you can look to register for a business license.

Things To Consider While Launching An Online Tutoring Business in the UAE (United Arab Emirates)

Market Overview of Online Tutoring Business in UAE

Online education business in the UAE is on an upward trajectory. As per a market report, the education market size in the UAE is expected to grow by USD 718 million from 2021 to 2026. Additionally, the market’s growth momentum is expected to accelerate at a CAGR of 5.03% during the forecast period.

Top Players of Online Tutoring Business In UAE

  1. Concept Tutors
  2. MyPrivate Tutors
  3. TutorEye

Rules and Regulations to Start Online Tutoring Business in UAE

The setup process of an online education business in the UAE could be tedious due to the documentation and clearance required. The investor needs to get pre-approval from the regulatory authorities to proceed with issuing an Online Education Business License. Private tutoring without a permit is prohibited by the government of the UAE.

Things To Consider While Launching An Online Tutoring Business in the South Africa

Market Overview of Online Tutoring Business in South Africa

The eLearning market in South Africa is at a nascent stage. But it is anticipated that the eLearning industry revenue will grow at a positive double-digit CAGR of over 12% during the period 2018-2023. The increasing demand from corporate clients is likely to drive future demand for LMS services in South Africa.

Top Players of Online Tutoring Business In South Africa

  1. Turtlejar
  2. Tutors SA
  3. 123 Tutors

Rules and Regulations to Start Online Tutoring Business in South Africa

To start a tutoring business in South Africa, you don’t necessarily need to register it as a business. However, if you are going to tutor, you need to have passed the subjects by at least 80%.

Leverage Technology to Start an Online Tutoring Business

Advantages of Starting An Online Tutoring Business

As mentioned, the online tutoring business has taken over the traditional system of education in the past few years. This has created several business opportunities for individuals looking to start an online tutoring business. In this section, we take a look at a few reasons why starting an online tutoring business is a good idea.

Global Reach – Setting up an online tutoring business allows for reaching a geographically diverse audience.

Reduced Operating Costs – In the online tutoring setup, costs in the form of transportation, maintenance, building leases, and so on are eliminated.

Flexibility – With the online tutoring business there is a lot of flexibility as tutors/stakeholders can fit their tutoring into their personal or professional schedules.

Customer Data – An online tutoring platform allows you to gather valuable customer data that can aid in planning marketing strategies and building a loyal customer base.

High Demand – Due to its effectiveness and convenience, there is a rapid surge in the demand for private tutoring.

Possible Revenue Streams for An Online Tutoring Business

If you are looking to foray into online tutoring, here we share the possible revenue streams.

Commission from Tutors – Business owners can retain a commission from tutors for every delivered session in the form of a commission. The rates for which can be pre-decided.

Subscription – This is one of the most popular monetization strategies. Learners can pay a subscription fee to access the complete tutoring platform including access to lessons on a weekly, or monthly basis.

Pay-Per-Session – In addition to the free content available on the tutoring platform, business owners can entice learners to pay for premium sessions with tutors.

Freemium – A few training and live sessions can be offered at no cost. However, advanced courses providing a certification can be offered at an additional cost.

Tiered Access – As an admin or a business owner, you can set different levels of memberships at different prices. Learners can preview different levels but access will only be granted post-membership purchase.

Advertisements – Business owners can earn from displaying paid advertisements on their online tutoring platform. However, they need to make sure that too many ads are not displayed as it can hamper the user experience.

Step-by-Step Approach to Build An Online Tutoring Platform

An online tutoring business can be started by following these steps:

Research and Competitor Analysis

As you are just setting up your online tutoring business, it is important to perform market research and competitor analysis. It will give you a better understanding of where your competitors stand and will help you with what the audience is looking for.

Define Target Audience

Market research helps you to understand your ideal audience, i.e. their age, qualification, income level, and more. Once the target audience is defined it would give you a clearer idea of the way you would want to provide the tutoring services.

Have a Business Plan

Once you have done the competitor research and have defined your target audience, then you must have a well-defined business strategy. This again includes comprehensive research as here you can establish prices for providing tutoring services through the platform. It could also mean choosing a solution or opting for custom development.

Build the Online Tutoring Platform

When it comes to building an online tutoring platform, there are two options.

  • Custom Development
  • Readymade Solution

Custom Development – This method incorporates building an online tutoring platform as per the tailored needs of a business. It is more time-consuming and expensive than a readymade solution.

Readymade Solution – This is an ideal method for individuals who are looking to launch their online tutoring platform quickly and at a low cost. No development is required. 

Platform Deployment and Marketing

Once the tutoring platform is ready, it is time to deploy it on the internet. The process requires meticulous planning and should be carried out systematically as the platform would be available to users. Furthermore, different marketing approaches can be used to create awareness among the target audience. These include:

  • Search Engine Optimization (SEO)
  • Social Media Marketing
  • Content Marketing/li>
  • Advertising

Looking to kickstart your Online Tutoring Website?

Must-Have Features – Online Tutoring Platform

An online tutoring platform should incorporate the following features:

Multilingual – Your online tutoring platform will have customers from across the globe, so having a platform that supports multiple languages is a critical feature to have.

Multicurrency Support – Users can select their preferred currency before making a payment for a lesson on the platform using this feature.

Video Call – This is a pivotal feature to have in an online tutoring platform as teachers and students can connect with each other virtually, irrespective of their geographical location. Virtual meeting tools include TextPad, a whiteboard, and a workspace.

Multiple Payment Gateways – Having multiple payment gateways provides learners with the best possible experience on their payment journey. Needless to say, sales and conversion rates improve if a platform offers multiple payment gateways.

Review and Ratings – This feature allows learners to make an informed decision before selecting a tutor or a course.

Time Zone Compatibility – As already mentioned, users from all over the world use online tutoring platforms, so a platform that is time-zone friendly makes it easier for teachers and students to collaborate with each other despite being in different time zones.

How Can Yo!Coach Help in Starting An Online Tutoring Business?

Yo!Coach is a flagship product of FATbit Technologies which is integrated with an array of exemplary features to help entrepreneurs launch their online tutoring and consultation platform with ease. It is a versatile software where multiple tutors or consultants can register to deliver one-to-one or group online sessions to learners. Additionally, it can be tailored to serve other niches like fitness coaching, culinary coaching, language learning, and more. Yo!Coach has also been serving numerous tutoring businesses around the world and has built a spectrum of global clientele.

Main highlights of Yo!Coach are listed below:

  • 100% White Label
  • Fully Customizable
  • GDPR Compliant
  • Pre-Integrated with Video Conferencing APIs
  • Supports Multiple Payment Gateways

Start your Online Tutoring With Yo!Coach

Successful Tutoring Websites Powered by Yo!Coach


Country: Hong Kong(China)

Hong Kong-based David Chin had the vision to deliver the uninterrupted and engaging learning experience for learners. He reached out to FATbit Technologies to curate an innovative and technologically driven e-learning platform – WTutors for the learners to continue learning without any hassle.

The platform offers one-to-one private tutoring & learners can pick the tutors based on their choice.

The platform has currently 600+ tutors registered on it specialized in different subjects and languages, helping WTutors reach a very large user base of learners.

W tutors

Words from David Chin, CEO, WTutors


Idioma Tutors

Country: USA

With a belief that the ability to communicate in more than one language opens doors for personal and professional growth, Jaimi Saunders, the founder of Idioma Tutors, launched Idioma Tutors.

He understands the fact that finding the right tutor is not an easy task, and therefore, strives to bring the best tutors on a single platform. With the principle, “when learning is interactive, engaging, and fun, students learn”, Idioma Tutors is looking to revolutionize the way of language learning. The platform has more than 40 tutors already registered on it.

idioma tutors


Portal Teach

Country – USA

Rey D Angelo, the founder of Portal Teach believed that a minuscule virus should not be allowed to disrupt education and came up with this thought of moving his offline coaching classes to an online platform.

His mission is to develop the largest online learning platform that connects students with qualified teachers/tutors for private sessions through live video chat and a suite of the latest technology available.

The platform has tutors specialized in different subjects and topics to help you with anything from music to science. Portal Teach allows tutors to teach one-on-one and see the impact right away and evaluate their performance.

portal teach


Be the next entrepreneur in the online Tutoring industry


With the surge in demand for acquiring new skills online, starting an online tutoring business promises a successful and bright future. As we steer towards a learning system dominated by technology, online tutoring is all set to become one of the most renowned businesses, likely to dominate this sector in the coming years.

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