Upwork-Like Platform for Tutoring | Solid Reputation | Massive Industry | Low Multiple
-
REVENUE
$853,556
-
INCOME
$338,297
-
MULTIPLE
2.22x
Asking Price: $750,000Sold
Reading Time: 2 minutesNote: We are seeking cash offers with a quick closing for this business. We have priced it aggressively to drive cash buyers with a faster closing process.
Launched in 2017, this Upwork-like platform connects high school and college students with qualified tutors. The platform is composed of over 95% college students. Currently, there are 1,110 tutors on the site serving 26,339 students. The platform is monetized by charging a transaction fee to students and a commission to the tutor.
The platform is highly focused on delivering high-quality tutoring. In fact, for a college homework customer, the payment is not released to the tutor for 14 days unless the student approves the answer. If there is a question with the quality of the answer, the student even has the option to propose a settlement price for the tutor to review. Disputes are handled by the platform, but the most important point is that tutors cannot just provide flippant answers to homework problems. The sellers have incentivized the tutors to work very hard to protect their reputation, just like you would see on a freelancing site. As the tutor gains a reputation on the platform, the commission they pay to the platform goes down.
The site has 20,413 reviews. Of those reviews, 18,731 of them are five stars and 694 are four stars.
The sellers feel strongly that if growth is important to the new owner, the business needs to be taken over by someone with a solid marketing background. The sellers have focused primarily on building the tech, the base of tutors and students, and a solid reputation and building out the reputation in natural search. They have no customer acquisition costs because they have never paid for customers. The customer lifetime value currently is $511.29, and the average transaction amount is $83. They originally thought they would run it until it was a $5M–$10M business, but they feel they have hit a wall regarding their capabilities to grow it beyond its current level.
The current owners are selling because they believe it is time for a fresh set of eyes to embark on the next chapter of this business.
This business has sold :-(
The business you're looking at is no longer on the market. Sign up below to receive instant notifications about new listings directly to your inbox.
Meet Your Advisor
Brad Wayland
Brad Wayland is an entrepreneur who began working in the online space in 2003. He spent over a decade in the custom printing industry where he bootstrapped a business to millions in sales and over 100 employees. While honing his SEO skills in the print industry he spent much of his time learning other aspects of the web from traditional ecommerce, to affiliate marketing, to content. Eventually his love for content businesses led him to being a serial acquirer and he ended up on the buy side 26 times. A majority of his acquisitions were part of a rollup strategy he was pursuing. In 2015 he sold his content portfolio to private equity. Brad has experienced 4 successful exits from businesses he owned and operated. Brad joined the Quiet Light team in 2017 and has represented more than 50 successful transactions.
Thinking of Selling Now or Later?
Get your free valuation & marketplace-readiness assessment. We’ll never push you to sell. And we’ll always be honest about whether or not selling is the right choice for you.
You might also like
Efficient Online Jewelry Business | 20 Year Track Record | No Experience Necessary | Low Multiple
Revenue: $1,183,859
Income: $263,897
Amazon FBA
SBA Prequalified | 7 Year-Old Blue-Collar Workwear Brand w/38% Net Margins | Growth Opportunities
Revenue: $4,413,859
Income: $1,704,289
E-Commerce