The classic agency structure… thumbs down!
Next we looked at the classic agency structure where the agency owns all the students and sub-contracts out the teaching of lessons to teachers. All payments go through the agency and they keep somewhere between 15% to 30% of all payments received. It’s a bit like teaching at a music school, only they don’t have premises.
It didn’t take us long to shoot this one down as well. We just didn’t feel that it was a very ‘pro the teachers’ arrangement for the teacher to still be losing a large chunk of their weekly lesson fees years down the track and not actually building their own business because they’re still teaching an agency’s students. Why would any good teacher want to do that? They wouldn’t… and we love to work with the best teachers, so that structure got a big thumbs down from us.
We decided that we actually wanted to pass the students on to our teachers. Yes, we want to help you to build your business. We also decided that claiming an ongoing portion of the lesson fees was just not our style.