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Heyang: A recent news report has revealed that online tutors can make more money than some internet celebrities. And like we’ve talked about earlier, internet celebrities are 西单女孩， who’s now apparently making millions millionsmillions of yuan, and there is also a whole bunch of other people that have monetized on their fame on the internet. So are these teachers actually making that amount of big bucks? Now it’s me feeling really jealous.
Nick: Well apparently they are. Yes. So(HY: What?!How are they doing that?)this all come about when a photowas posted online which supposedly showed the income of one of these online tutors. And the photo showed that because the class is given online, so number of students it can reached is pretty much unlimited. So in this case over 2000 students paid 9 yuan each to listen to this class which has been taught by the tutor 王宇. Even when the platform deducted their cut, the tutor could earn over 18000 yuan for a one hour class, which is more apparently than the hourly income of an internet celebrity. So the idea is, as we said that, each student pays only a very little amount of money but because there are so many of them, the teacher can make big bucks out of this. Seems like it is working for them. It’s an interesting idea that each student is only paying so little but at the same time the teacher is making so much.
Luo Yu: It is actually the spirit of shared economy. Now All across the industrypeople seem to be embracing the trend of internet plus. I think those teachers have done andset a very good example to the general public. And as you saidHeyang just now, those teachers who can achieve such big bucks have to work very hard as well to achieve such success.
Heyang: Basically it sounds like they are moonlighting. So during the day, they are your teacher in school on campus and doing whatever the teacher need to do in a classroom.And when they are home or during the weekend, they are giving extra classes but online. When it’s the internet world, you have countless audience basically if you have the popularity. Is that kind of the…but what about the business model here? So how is money pouring in and how is that divided?
Luo Yu: Well basically Nick has just pointed out a little bit about this business model. So 80% of the money will go directly to the teachers whereas 20% will go to the platforms which offer such courses. I think if you price your courses at a very low price ranging from 1 yuan to 9yuan. That is very easy to attract millions of audiences, well on the basis that you are a good teacher. So that’s how the business model works.
Heyang: Well, a good teacher is one thing but having the reputation of a good teacher to attract people is probably more important because if you want to have the, you know, total revenue(LY: several thousand students) to amount to that level then you need a lot of students. It doesn’t sound to be something very easy.
Nick: I think this is where the platform comes in, the platform that is hosting the courses. So each time you give one of your lessons, the students who took in can rate you and kind of say whether they learn something from having taken this class. And people taking your class in the future can see your reputation as a teacherso it gradually builds up. And then (Luo Yu: Right) you can have more reputation for future students.
Heyang: Ok.Great. Then it sounds like good teachers who can attract students can disseminate knowledge, get students online and also get the big bucks and also the platform gets money too. Sounds likewin win. But why are some people such as the local Department of Education, excuse me, not very happy about this?
Luo Yu: Well actually, education authority is not happy about this all these years about those teachers who are doing some tutorial classes in their spare time. Now after this incident we see the municipal government of Nanjing and Shanghai had banned such behaviors. But I just wanted…
Heyang: Why are they, sorry to interject, but why are they not happywith teachers giving extra classes?
Luo Yu: They are claiming that they will be easily making more money out of the class which is a distracting factor for those teachers who haveclasses in the virtual classes.
Nick: So I think the concern is they will put more effort into preparing their online classes than their day-to-day school running classes. So their student who actually attend school won’t be receive as good an education as they could be if they just stay at home.
Heyang: Well that is one legitimate reasonand also another one is what if the teacher’s not giving you the good stuff in the legitimate class but saving stuff for the extra class and telling your real class students to go that extra class and that has happened before.
Luo Yu: I don’t think many teachers would do so. Because I think they are attentive to their students’ needs and always have to put the students as the first priority. And then use same teaching materials basically are going to teach similar stuff. So there is nothing wrong about this.
Heyang: ok. That’s your opinion coming from Luo Yu, you know. It’s great. And there is also this other side of the argument that is whatabout tax because these online tutors they are not paying any tax to, you know, the state. It sounds like a great business model but you know when the government wants a bite of this you sort of can see there’s an argument backing that up too.
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