Preply Business Model: How Does It Work

Learning has never been accessible and easier, thanks to the wide variety of tutoring platforms available online. Preply is one such online tutoring platform aimed at helping people speak confidently in any language from online tutors. 

Preply raised over $35 million Series B last year as the demand for language learning accelerated. Boasting over 49k tutors from 185 countries, Preply is a buzzing platform accommodating all learning styles.

But is it the right platform for you? Preply, how does it work? What are the monetization models adopted by the platform? 

This article will look into all these aspects, including the Preply business model, which may help you decide whether the platform is best for you as an online tutor. 

What is Preply?

So what is Preply? Simply put, Preply is an online tutoring marketplace connecting online tutors proficient in different languages with learners from across the world who want to learn a language. Learners can connect with tutors from all over the globe who offer classes on over 100 different subjects and learners attend classes over a video call.

How does Preply work?

The Ukraine-based online tutoring site started off as an online learning marketplace for SAT and ACT. But later, the company relaunched itself as an online tutoring platform for English online tutoring. While there are a range of skills to study on Preply, it’s most famous for finding language tutors with over educators specialized in over 24 languages available on the platform.

While many online tutoring platforms are dedicated to language learning, what makes Preply special? Or how does Preply work? One of the USPs of Preply is that it’s designed around students! 

Students are in complete charge of what and when to learn by trialing different tutors to find the right fit. The free trial lessons offered on Preply are generally 1 hour long, and students can utilize this time to discuss your level and everything they need to know. 

Preply has 3 package types:

• Casual 
• Determined
• Unstoppable

Learners can search for online tutors on Preply by applying filters like language, price per lesson, location, etc. After choosing a tutor, learners can view their complete profile with information like bio, schedule, qualifications, and reviews. 

Once satisfied with the results, they can go ahead and book a lesson with the tutor based on the free slot available on the Preply Calendar. Once the student attends the virtual lesson at the scheduled time, the tutor marks it complete and shares the summary and duration of the class. 

Preply then automatically generates a confirmation request for the same to the learner. After this, the payment is transferred to the internal account of the teacher. Preply gives control to tutors to set their own price, prepare their own lesson plan and implement their own strategies to find, connect and teach students.

How does Preply make money- Preply business model

Now you understand how Preply connects tutors and students to conduct online classes. Preply is completely free for tutors as they don’t charge any fee to host tutor profiles. So how does Preply make money? Just like any other online tutoring marketplace, the primary revenue source of Preply is the commission it charges on the tutor’s earnings. 

The platform charges a commission only when a teacher successfully completes online classes. For all the classes, the teacher is charged a share of the hourly price they set, which generally comes around 18%-33%. The percentage greatly relies on the total hours the tutor has competed on Preply. 

It works this way– The more tutoring hours you complete on the platform, the lower would be the commission rate. 

To note: The total number of hours is the teaching hours taught on Preply, not total teaching hours per learner. Trial lessons will also be counted.

Pro-tip for tutors: When teaching on Preply, it is a great idea to consider the commission when setting hourly pricing.

For instance: If you are new to the platform and your hourly rate is $10, you will get around $6.70 for all lessons excluding trails. Whereas a more experienced Preply teacher (Say with over 400+ teaching hours) with the tutoring rate of $10 will earn around $8.20 for each lesson (excluding trial lessons).

How Preply uses the commission

The Preply business model is a commission model that makes money from the commissions from teachers’ earnings. But how does the platform use this commission? The commission they charge is used to bring students to the platform and for the marketing activities. 

Alongside, Preply has a simple-to-use and secure video conferring tool- Preply classroom. A share of the revenue is also invested in optimization and technical advancement of the tutoring marketplace to build a world-class learning space that enhances the tutoring experience.  Preply also offers multilingual customer support and free training webinars for tutors to guide them on their tutoring journey. 

The 100% commission from the trial sessions also allows the platform to offer learners a free replacement for tutor if they don’t like the trial session, which increases the confidence of students that they will find the right match, which in turn increases the chances of tutors to get more bookings. 

Pros and cons of Preply

As an online tutoring marketplace meant to connect tutors and students, the platform offers many advantages for both parties involved. This is one reason that played a significant role in the popularity of the Preply business model. 

Pros 

• Simple application process, no interview or tutoring demo.
• Supports a range of subjects. 
• Tutors can withdraw their earnings whenever needed. 
• Tutors may cancel lessons by offering 4 hours prior.
• Tutors can efficiently conduct classes from tables or on smartphones.
• It offers the flexibility to use your own teaching materials, and they provide materials if needed.
• No minimum teaching hour commitment.

Cons

• The commission rates are set high, which start at 33%, and don’t go less than 18%.
• Tutors are pressured to sell Preply packages to students.
• More adults sign up to the platform than young children.
• Teachers aren’t paid for the one-hour long trial lesson, which adds up the unpaid time.
• Russian tutors have been blocked.

The hiring process of Preply

The tutor hiring process on Preply takes a minimum of 5 days from submitting the tutor application. Tutors can sign up on the platform with their email address or asocial profiles and submit details like name, country, subject taught, languages spoken, hourly rates, teaching experience, and other details. 

How to create a language learning platform like Preply using Pinlearn?

The success of Preply as an Online language learning marketplace has attracted online tutors and students alike. It’s obvious that Preply won’t be the only platform of its kind in the coming years. Many edTech businesses are adopting the Preply business model to launch their own tutoring platform to conquer the eLearning market. 

If you want to join the bandwagon by launching your own tutoring marketplace like Preply, there is no better time than NOW! With the pandemic still around the corner, the need for online tutoring is more critical than evermore. 

But how to get started? 

Pinlearn is a white-labeled or readymade solution designed to cater to modern edTech businesses that want to revolutionize the global online learning space. Right off the bat, Pinlearn offers interactive tools and features to enhance tutors’ and learners’ tutoring and learning experiences, respectively.

• Video conferencing- Zoom and Lessonspace integration.
• One-to-one and group live classes.
• Self-paced online courses.
• Virtual whiteboard.
• Monetization features.
• Marketing features.
• Language Translation.

Moreover, Pinlearn offers a full range of admin management features and functionalities for simplified platform management. What not, you get 100% access to the source code and you can customize the script to suit your unique business needs.

Conclusion

Learning a new language or a skill from the comfort of home has been the latest trend in the modern world. The craze of language learning among people is a great business opportunity for independent educators and edTech businesses who want to leverage the power of online learning to flourish and grow their businesses. 

If you want guidance on launching a Preply-like online tutoring marketplace, get in touch with us. Or do you prefer to check out the Pinlearn demo first? Then here you have it.