he global school shutdown caused by the covid-19 outbreak has offered a chance for e-learning companies to reach approximately 1.37 billion students. The desire to learn and the need to supplement limited access to educational institutions have led to a boom in the eLearning industry. The e-learning industry is projected to grow at a CAGR of 20 percent to reach $315 billion by 2028.
Thus, now is an excellent time to start your own e-learning or training business, given the worldwide demand for online and distance learning. However, implementing an e-learning business plan is no easy feat. The key to achieving success is to try things no one else has. Consider Cathy More and her ilk as an example. Cathy is a well-known training pioneer who has made it her mission to rid the world of boring education. Companies such as Microsoft, Pfizer, the US Army, Barclays, and the US Department of the Interior have all used Cathy's designs. 😎
Don't be disheartened that the key players have already taken their places at the table, and you're just getting started. At least, this is why we are here to teach you how to fly. EducateMe outlines the fundamental but essential steps to create an e learning business in this article. Want to follow in Cathy's footsteps or perhaps join the ranks of successful e-learning companies? Buckle up and enjoy the ride as we reveal the inside scoop.
In six steps, the following summarizes how to start an e-learning business.
1️⃣ Define your audience
2️⃣ Establish a core content
3️⃣ Choose an LMS
4️⃣ Launch your courses
5️⃣ Promote your company
Ready to learn? Let's go! 🚀
What Is an E-learning Business?
Too frequently, learning and online learning are confused with one another. Before defining an e-learning business model, it is necessary to clarify what falls within and outside the learning scope.
- In scope
E-learning, often known as "virtual learning," primarily refers to an internet-based form of education. The instructor and students do not meet in person. All coursework and contact are conducted through email, message boards, chat, or video conferencing. Some schools refer to this course format as "fully online."
- Out of scope
The bulk of the coursework will be completed online through forums, shared papers, email, chat, and so on. However, this does not mean that students and teachers have no face-to-face contact. Coursework may be completed in a classroom or remotely, so long as most discussion takes place online. Online learning falls under this category.
So what Do Elearning Startups Do? 🤔
You need an e learning business if you want to effectively educate people in a specific field or teach them new skills while maximizing your resources and increasing your revenue. Consequently, learning startups refer to platforms used by instructors to administer online courses or impart curriculum-aligned learning experiences. eLearning programs may contain videos, quizzes, simulations, games, activities, and other interactive elements. Additionally, students could view a recorded lecture or attend a live lecture.
Types of eLearning Business Models
There are three primary business models for e-learning that instructors may implement.
✅ Night School Model
The term "night school model" was coined to describe community colleges' vocational and evening courses. The majority of eLearning companies follow the model of conventional night schools. In this tried-and-true arrangement, students pay a one-time fee for curriculum access. This business model provides courses with predetermined learning modules, assessments, quizzes, and examinations that adhere to a specific structure.
✅ The Academy Model
The Academy eLearning model is comparable to a cyberspace membership or subscription service. Students are granted access to all content, including live classes and courses, for a monthly fee. As their expertise grows, students have a greater say in what and when they study. The business model of the academy provides students with a plethora of study materials, including courses, videos, and other media, from which they can learn and develop in various domains.
✅ The Combined Model
The "combined" model is a hybrid of the night school and academy models, intending to increase income. Here, the academy model is the primary offering, while the night school strategy is an optional extra. In addition to subscription-based services, this model offers both a "buy once, use forever" option and individual courses.
Who Needs an Elearning Business? 🤷♂️
Launching an e-learning startup is just one aspect of the process, but before you start, you'll need to determine if it's a good fit for you.
Course Designers 🖼
Online course developers are those who make courses available to students online. Packaging your expertise into an eLearning course may supplement your income or start a new one. Using an eLearning business model, you may differentiate yourself from the competition by deciding to develop courses that feature your comprehensive knowledge and skills.
Online teachers 🧑🏫
Starting an online learning business requires excellent communication and teaching skills, a stable computer, and knowledge of the subject area being taught. Your responsibilities as a remote tutor may change based on the kind of eLearning company you run, the grade level you instruct, and your student's age and learning needs.
Training Camps ⛺️
The eLearning industry presents an opportunity for boot camp planners to integrate their events. The first guideline for managing a successful boot camp is removing students from their normal environments. Corporate learners can now interact with distant colleagues and facilitators via the eLearning industry, broadening their access to education and training opportunities.
Is Elearning a Profitable Business and Why Launch One?
The importance of the eLearning industry has grown as the educational landscape has shifted away from classroom-based instruction to online courses. An e-learning company facilitates digital interaction between educators and their students. Several important factors are contributing to the increase in interest and participation. Listed below are the most important ones.
The COVID-19 Pandemic has Irrevocably Altered the Future of Education, with Elearning at the Forefront of the Revolution
According to Technavio's most recent market analysis, the e-learning market's potential growth gap is expected to increase by USD 1.72 trillion between 2021 and 2026. The report finds that the market is expected to expand at a CAGR of 16.35% over the predicted time frame. The e-learning market's growth is largely fueled by improved learning in the academic sector.
COVID-19 boosted e-learning revenue. In response to rising employee safety concerns, companies are adopting work-from-home policies. This hinders companies' training, communication, progress monitoring, and upskilling, fueling demand for e-learning platforms among large corporations and SMEs.
Corporates Are Investing Heavily in R&D for Their Clientele, and Employees
Between 2022 and 2028, the service providers industry is anticipated to grow at a rate of 30% due to the increasing emphasis on portfolio expansion among Indian businesses. The rapid spread of coronavirus necessitated the closure of schools and universities, necessitating the development of online alternatives for reinstatement of regular classes. Terms such as social and collaborative learning are becoming commonplace in fast-advancing companies. Businesses invest more money in research and development to provide new products and services to satisfy consumer demand.
The North American Government Is Improving Its Telecom and IT infrastructures
Increases in telecom and IT infrastructure investment, scalability of resources, and greater access to university courses have all contributed to the expansion of the eLearning industry, as have service providers' substantial According to the International Telecommunication Union, the number of internet users will increase from 4.1 billion this year to nearly 5.3 billion in 2022. (ITU). The development of the industry is being driven by the growing number of people with Internet access. As the telecommunications and broadband industries have expanded, so has the availability of inexpensive Internet connection options.
Higher Education Now Prioritizes Scalable Resources and Expanded Course Availability
In addition, there is a great deal of encouragement to launch an eLearning company because the demand for online learning materials currently exceeds the supply, resulting in a substantial increase in the earnings potential of market participants.
What Is ROI in Elearning?
Using an economic formula known as elearning return on investment (ROI), 💰 one can calculate the financial benefits of offering online training courses or operating an eLearning business. For an eLearning project to be successful, its benefits must exceed its expenses. A calculation of return on investment justifies the investment in training by comparing the costs of development and delivery to the value or benefits realized.
The owner of an eLearning company is understandably curious as to whether or not their online training program produced the desired outcomes, whether or not their trainees found it useful, and whether or not their company's bottom line has increased significantly. In essence, eLearning ROI is an essential performance metric for determining whether or not your eLearning organization is optimizing its financial resources.
How Do You Measure Elearning Business ROI?
When starting an e-learning business, the ROI estimate is essential. Measuring ROI enables a business to determine the success of a campaign and establish benchmarks for future campaigns. For instance, after establishing an e-learning startup, you could use ROI measurement to determine when something fails, allowing you to swiftly reevaluate or re-shape your offerings and avoid wasting time and money on something that isn't working.
Traditional Elearning ROI Calculation
ROI is frequently calculated by dividing the profit from an investment by the amount invested. The ROI of your eLearning company can be determined by comparing the cost of creating and delivering training programs to the results they produce. To determine the average eLearning ROI, simply divide the amount of money your company made due to the program by its implementation cost. You can calculate your return on investment as a percentage using this formula by multiplying the result by 100. To declare your effort a success, you must show that the benefits and value of your program outweigh the costs.
Kirkpatrick's Four Tiers Evaluation
Donald Kirkpatrick's 4-level model, which considers learner feedback, the impact on the business, and the return on investment, is the most widely used technique for determining training effectiveness.
- The first level or stage is known as "Reaction." Students' responses to surveys and comments reveal what should be improved and whether the material was useful.
- Each participant's learning level will determine how much they take away from experience. It assesses how well the learner is progressing toward their objectives, whether the training objectives are being met, and whether there are knowledge gaps that can be filled by modifying the course content.
- Upon completion of a course, instructors can determine whether their students' behavior has changed and whether the skills and knowledge they gained have been applied by observing their behavior levels.
- The effectiveness of training is determined by calculating its impact or influence on the trainees' outcomes. Productivity gains are a common indicator of success.
- In Kirkpatrick's assessment methodology, Level 5 is the transition between the first four stages and the final step in calculating ROI for online education. The ROI of online learning can be calculated by comparing the cost of the training to the benefits it offers.
Through an LMS (the most practical method)
A learning management system (LMS) is essential software for your e-learning business. It enables you to host training and provides multiple options for collecting training data and generating reports on the fly. Using your cloud-based learning management system (LMS), students can access course materials anytime and from any location. Your learning business's return on investment (ROI) may not rack up immediately. However, your business will begin to generate a return on investment once you replace traditional training with an LMS.
How to Build an Elearning Business in 6 Steps
There are two possible routes for launching an e-learning business. The first is to create a website or mobile application to promote your business, and the second is to use an LMS to aggregate or sell courses. Custom websites and applications are an excellent concept, but they require a substantial investment and technical expertise to develop and maintain. In contrast, LMS implementation requires fewer resources and no technical knowledge. Consequently, instructors utilize LMS more frequently.
If you prefer the LMS route, the following is a 6-step guide on how to start e learning business models.
Step #1. Define Your Audience
Market research is required to determine who you should target. To narrow down your target audience, ask yourself questions like:
- Who is my target audience?
- What age range should I shoot for?
- What are their annoyances or pain points?
- What kinds of courses do they want to take?
With the answers to these questions, you can tailor your course material to the needs of your audience.
Step #2. Determine Your Core Content
If you want to launch an e-learning startup, you should prioritize long-term value and attract prospective new learners, and keep your current customers. A list of the core skills students want to learn is extremely beneficial. Based on this data, you can decide what to focus on creating and who you're attempting to reach. Furthermore, you may complete more than one critical piece of content with different subsets of your target audience.
Step #3. Select an LMS
When it comes to launching your eLearning business, you have some options. However, to provide students with engaging online course material, we recommend using a platform with an open-source LMS. You can customize an open-source platform to meet your specific needs.
Step #4. Make Your Courses Available
It's a good idea to create some sample lessons and courses that cover the main features of your platform before launching it. To see high rates of early acceptance and positive feedback, ensure your material is high quality and provides value to the learner. Your students' reactions to these initial practical exercises will determine the long-term success of your eLearning platform.
Step #5. Decide on a Price
Every e learning business must make a profit, and detailed course pricing is one way to do so. It would help if you struck a balance between charging too little and failing to make enough to cover your expenses and charging too much and failing to attract any students. You could conduct a market study and compare the prices of similar classes on competing websites. Establishing a market presence frequently entails undercutting competitors' prices or offering discount deals.
Step #6. Market Your Elearning Business
You won't be able to succeed without solid marketing, no matter how strong your platform is. You'll need to actively promote your business through marketing, social media, and other channels to stand out among the hundreds of eLearning platforms.
Elearning Startups Founders' Lessons
Here are some pearls of wisdom from early learning entrepreneurs. We didn't name them but picked up their most important messages.
👉 Lesson 1. It's All about being in the Audience!
The learners are now the mainstay of education. This trend is further supported by concepts such as cohort-based learning. As an instructor, you must capture your students' attention and reassure them that they are not alone in their struggles. When starting an eLearning company, focus your efforts on the target audience. When users feel like they belong on your eLearning platform, they have an emotional investment, which motivates them to tell their classmates about it.
👉 Lesson 2. You Can't Ignore the Technical Sides
Technical considerations and project technology execution are equally important to the instructional component of the project. You must understand the fundamental guidelines for evaluating your eLearning business software.
👉 Lesson 3. Do Everything You Can (Mistakes Too)
You can save money in the early stages of a project by doing as much of the work as possible on your own. Your future failures will not negate the valuable lessons you've already learned.
👉 Lesson 4. Adopt Industry Best Practices to Increase Your Demand
The goal of online education is to make learning enjoyable and beneficial. Best practices in the industry may be used to increase sales in this manner. Suppose you want your students to be able to see how they're doing and receive feedback on how they can improve. In that case, one option is to use an artificial intelligence-powered ePortfolio module. Games can help to foster student competition.
Create an E-learning Startup on EducateMe 🔥
Beginning an eLearning business may not be the simplest endeavor. But with an all-inclusive and feature-rich LMS like EducateMe, you can streamline the process.EducateMe is a platform that enables instructors to offer live courses, foster engagements between mentors and their students, and offer performance analytics.