Now outsourced tutoring has been increasingly reported in the news: latest from SF Chronicle (Sunday 10/22/2006). One of the India firm Tutor Vista even snatched a $11 million investment from Sequoia Capital.
So how big is the market potential? According to Tim Wiley, senior analyst at Eduventures, an education and research consulting firm in Boston, it is a $2.2 billion private tutoring market in the U.S., which reached 1.9 million K-12 students last school year. Although TutorVista’s ambition goes beyond U.S.
And how much can this outsourcer make? Growing Stars, which began offering tutoring in 2004, serves 400 students who pay $21 to $25 per hour. TutorVista, which started in November 2005 and charges $20 for a 45-minute session or $100 a month for unlimited hours, has 2,000 students and aims to reach 5,000 by next fall. That’s not a lot of money. But they pay only between $300-450 per month to their employees, compared to about $40-$60 a private tutor makes per hour in the U.S.