Online Tutors Business

How Profitable Is An Online Tutors Business? (Updated for 2024)

Pat Walls

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Updated: December 18th, 2024

How Profitable Is An Online Tutors Business? (Updated for 2024)

So you want to start an online tutors business?

And the first question that came to your mind was, “well, are online tutors businesses actually profitable?”

With a market size of $144B - there’s plenty of business to go around.

Especially considering:

You could start a online tutors business with as low as $50
Based on our data, online tutors businesses generate an average of $489K per year
You could see gross margins as high as 95% with online tutors businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a online tutors business.

Let’s dive in!

Is an online tutors business profitable?

Yes, an online tutors business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $489K per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your online tutors business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your online tutors business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an online tutors business worth it?

If you’re wondering if a online tutors business is worth it, the answer is a big YES. With online tutors businesses, you have the potential to earn $489K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $144B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a online tutors business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful online tutors businesses case studies.

Examples Of Profitable Online Tutors Businesses

Here are a few examples of profitable online tutors businesses, and a few more details about them:

1. Teacher Jade's Writing Academy ($144K/year)

Jade was working on her masters and she started a side hustle as a teacher to earn extra income. Soon, what started as a side job became her career path and led her to starting her online courses business.

Is it profitable? Yes
How much money it makes: $144K/year
How much did it cost to start: $50

How I Went From Part-Time Tutor To Making $120K/Year Selling Online Courses

Teacher Jade's online academy and consulting services, which teach youth and adults how to offer online classes, resulted in a five-figure monthly income with increased enrollment through Outschool, leading to the creation of a second business and a plan to expand course offerings and salaries for her teachers.

Read this case study

Read by 4,651 founders

Wes was in a tough spot in 2007, dealing with financial struggles and a long daily commute. During those hours on the train, he began to work on a side project he called CG Cookie, a website focusing on computer graphics. With a background in 3D game art, he wanted to build something positive and useful for the CG community.

Wes and his friend, Jonathan, faced many challenges, especially when they couldn't afford to keep the project going in 2009. They decided to presell a training DVD to validate their idea and earned enough to continue. This gave them the confidence that CG Cookie could become a real business.

They continuously refined their idea based on user feedback and market needs, focusing on subscription-based access to high-quality training. They learned the importance of clear direction and community focus, adapting their strategy whenever necessary to meet their goals without losing sight of what they set out to achieve: helping artists succeed.

Is it profitable? Yes
How much money it makes: $1.06M/year

How CG Cookie Grew From Near-Bankruptcy To $88K MRR

Read this case study

Read by 13 founders

Learn more about starting an online tutors business:

Where to start?

-> How much does it cost to start an online tutors business?
-> Pros and cons of an online tutors business

Need inspiration?

-> Other online tutors business success stories

Other resources

How much can you make with an online tutors business?

With a online tutors business, you can make an average of $489K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $50. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a online tutors business make a week?

Based on our data, average weekly revenue for a online tutors business ranges around $12.6K. As such, you could see monthly revenues of $50.2K.

To know if your online tutors business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your online tutors business.

How much do online tutors businesses owners make?

The income of an online tutors business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established online tutors business is about $12.6K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an online tutors business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Online Tutors Business Profit Margins

Generally speaking, an online tutors business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an online tutors business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, online tutors business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, online tutors business owners can ensure long-term sustainability and profitability for their business.

Online tutors business owner salary

The salary of an online tutors business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established online tutors business, in a prime position, might see an average weekly salary around the ballpark of $11.3K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a online tutors business may be a promising business to start - but the success of your online tutors business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable online tutors business.