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Why EdTech works, and the future of EdTech (it’s not good? 
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1. In many cases, teaching a skill can make more money than the skill itself.
JEE Coaching teacher makes more than an engineer.
CA coaching teacher makes more than a CA.
Pilot school makes more than pilot.
Colleges make more than total placement offered
JEE Coaching teacher makes more than an engineer.
CA coaching teacher makes more than a CA.
Pilot school makes more than pilot.
Colleges make more than total placement offered
2. Why does this happen? - Distribution.
If you have decent distribution, you can make quite a lot with courses.
This does not happen with engineering or accounting because the distribution is not available.
If you have decent distribution, you can make quite a lot with courses.
This does not happen with engineering or accounting because the distribution is not available.
3. But if you manage to distribute engineering - SaaS businesses, you can do much better than EdTech
Stripe, AWS, YouTube have made engineering their product - and are much more valuable than ALL EdTech companies.
Stripe, AWS, YouTube have made engineering their product - and are much more valuable than ALL EdTech companies.
4. But then, making and selling education is MUCH easier than making and selling a product like YouTube or Stripe.
Engineering and Technology create magic. And magic is not easily sold.
Engineering and Technology create magic. And magic is not easily sold.
5. So what is the future of EdTech and educating?
20 years back there were few players who made shit tonne of money.
Then online players came in and destroyed some profit.
Now, the EdTech space is HYPER competitive.
20 years back there were few players who made shit tonne of money.
Then online players came in and destroyed some profit.
Now, the EdTech space is HYPER competitive.
6. Profits are being destroyed day in and day out.
Unless you have a differentiating brand, a great distribution, or a unique proposition, you cannot scale too much.
It’s very difficult to have a unique proposition today in EdTech, and only the older players enjoy distribution.
Unless you have a differentiating brand, a great distribution, or a unique proposition, you cannot scale too much.
It’s very difficult to have a unique proposition today in EdTech, and only the older players enjoy distribution.
7. As free players are emerging (YouTube educators), soon people might stop paying for paid courses all together (like what Jio did to other Telecom players)
The free players don’t make much, and they don’t allow the paid ones to.
EdTech is digging it’s own grave.
The free players don’t make much, and they don’t allow the paid ones to.
EdTech is digging it’s own grave.
8. What’s the way out?
One is to stay small and grow organically. Trust is valued in EdTech, and building an organic and high trust audience will keep you afloat.
Second is to innovate - which is the foundation of capitalism.
One is to stay small and grow organically. Trust is valued in EdTech, and building an organic and high trust audience will keep you afloat.
Second is to innovate - which is the foundation of capitalism.
9. But, what kind of innovation?
Education that should exist but doesn’t - financial education, for example.
Figuring out new ways of educating, and new curricula of education as well.
I hope this kind of innovation rekindles EdTech - which could be the next Silicon.
Education that should exist but doesn’t - financial education, for example.
Figuring out new ways of educating, and new curricula of education as well.
I hope this kind of innovation rekindles EdTech - which could be the next Silicon.
10. This is why we @AcadBoost do not put out ads and grow through a trusted audience organically, while trying to build education that’s futuristic (hence the development of SkillBoost - skill learning courses)
JEE/NEET,CAT,IAS profit pools are about to disappear for big players
JEE/NEET,CAT,IAS profit pools are about to disappear for big players
11. I would personally not recommend entering traditional EdTech now (test prep, K-12, etc) - instead, identity the next thing on rise and enter that market.
At this point, EdTech is more like “Go big and go home” than “Go big or go home”
At this point, EdTech is more like “Go big and go home” than “Go big or go home”
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I make such insightful thread quite frequently, do follow for more.
Thank you!
