Pricing classes based on market trends

5As an educator entrepreneur, pricing is one of the most important decisions you’ll make about each class you offer. In setting price points, you balance your own opportunity costs and business goals with an understanding of how your offerings align with the market to determine a fair price.

In an effort to provide more insight into the Outschool marketplace, our team of analysts has created the following guide to help you make smart decisions about pricing and stay competitive.

These recommendations are based on thorough research into what families are currently paying for different types of classes on our platform as well as on other learning platforms. We want you to feel confident pricing your classes with fees that align with current Outschool market trends and set your business up for success.

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Pricing Recommendations (updated July 2024):

Based on recent insights, we’re suggesting the following pricing suggestions. The bottom end of the range is equivalent to the 50th percentile of enrollments for a given segment. The top end of the range is equivalent to the 75th percentile of enrollments for the segment.  

Insights by class format and subject type

1-on-1

• Core Academic: $65-$70 per hour
• Enrichment & Club: $55-$60 per hour

One-time

• Core Academic: $20–$23 per hour
• Enrichment & Club: $18–$21 per hour

Course

• All Courses: $22.50-$24 per hour

Self-Paced 

• Core Academic: $15-$20 per week
• Enrichment & Club: $12-18 per week

1-on-1 pricing guidance

The average price range for academic, online tutoring for kids under 18 is $60-100 per hour. This is a market average generated by our research into Outschool and its competitors. As of June 2024, we’ve observed that many educators on Outschool price their 1-on-1 classes below this average. 

Undervaluing your services can impact your business in several ways, and we encourage all our educator entrepreneurs to use this industry average as a tool for evaluating their own pricing strategy. You should feel empowered to set prices that:

• Reflect the value of your time and expertise
• Signal to parents the quality and value of your class in relation to others in the tutoring marketplace
• Help you stay competitive in the online tutoring market
• Provide enough revenue for you to sustain your teaching business on Outschool

Minimum price for Math & English 1-on-1 classes

To help educators get closer to industry standards, there will be a minimum price requirement of $30 per hour for 1-on-1 classes. This requirement will initially only apply to Math and English 1-on-1 classes, as these academic subjects typically have a higher price point. 

You’ll notice this required minimum price is well below the industry average for online tutoring listed above ($60-100 per hour). While only a small number of classes are currently priced below $30 per hour, we hope that this change can bring Outschool in line with current industry standards. 

Pricing FAQ

How do I change the price of an existing class?
You’re welcome to change the price of an approved class (including ongoing classes) at any time. Just visit the Classes tab on your Educator Dashboard, then click on the title of the class you’d like to adjust and input your new price (don’t forget to hit save). Price changes will only apply to new enrollments and won’t affect your current learners.

What if changing my prices hurts my business?
Remember that pricing is only one factor in your business’s success. Our suggestions are meant to help you align your prices with current market trends, and you’re welcome to experiment to find what works for you. Keep in mind that adjusting your class format, duration, and scheduling can also play a factor in boosting enrollments and generating profits for your business.

To stay informed about the state of the Outschool market, explore additional insights in the menu at the top of this page or head over to the Business & Marketing section of the Educator Handbook to view our collection of entrepreneur resources. You can also enroll in free Business Coaching from Outschool, where you’ll meet live with staff members and fellow educators to hone the skills you need to reach your business goals.

Will Outschool give us pricing info regularly?
When possible, we update all insights (including pricing recommendations) to include the most recent available data. Be the first to know about new insights on the Library by signing up for our educator newsletters. To subscribe, head to your e-mail settings and toggle on Occasional updates about Outschool.

Is Outschool making changes to the 70/30 earnings split with educators?
No, we are not revisiting how earnings from class enrollments are divided between educators and Outschool.