So… what did we come up with?
After much brainstorming, coffee stirring and white-board scribbling, we finally emerged with a structure that reflected everything Stars & Catz is about. Here’s how it works.
When we place a student with you, the student pays us for their first two lessons at the rate you charge for the lesson duration they’ve booked. If a single booking involves multiple students (e.g. two children from the same family) then the first two lesson payments for each student is paid to us. If, for whatever reason, the first lesson is shorter in duration than the ongoing lessons will be, then we would receive the payment for lessons two and three instead. Put simply though, the students pay us for their first two lessons.
Then, you teach those two lessons as your payment to us for everything we do. The student begins paying you directly from lesson three, in whatever way you want, and there are no further fees due to us relating to that student.
Assuming the student reaches lesson five (in which case everyone’s winning) then that’s how the payments remain. The first two lesson payments stay with us, the student is happy with the match and you have a new, established student for your teaching business. We think that’s a very good arrangement all round.
However, if the student discontinues before they reach lesson five, then we don’t think our usual arrangement is fair for you because you’d have taught one or two lessons without payment and not received an established student. In these cases, we have a ‘safety-net’ policy for you—we will pay you one of the two lessons we were paid. It’s worth saying here that these situations are quite few and far between.
So, there are only two possible outcomes for taking on a new Stars & Catz student:
- You get a new, established student who reaches lesson five, you receive payment from the student for three lessons and the first two lesson payments remain with us. All future lesson payments are due to you.
- The student drops off before reaching lesson five and we ‘share the loss’ by paying you one of the lessons that had been paid to us. If only one lesson has been taught, you will still receive the full one lesson payment.