Summary
Highlights
Harvard's success is attributed to high standards, no promises of specific outcomes, and the fact that not everyone passes. This differentiates it from many education businesses.
Many mistake payment plans for continuity. True continuity involves a continuous curriculum with new courses, unlike a one-time purchase with a payment plan.
Businesses with enterprise value demonstrate a reliability of future cash flow. Build a brand that guarantees demand, because education alone doesn't ensure continuity.
Differentiate between education that provides one-time value and consumables that offer ongoing value. Consumables like ad testing, resource lists, and communities drive recurring revenue.
Price the one-time educational value high and the consumable value at a price people are willing to pay even without the upfront value. Avoid pricing consumables as a payment plan for the upfront value.
To build a sellable education business, focus on continued education (like certifications) to ensure career-long engagement and demonstrate consistent demand.
Avoid trying to turn your education business into a SaaS company from scratch. It's unlikely to result in a true software exit, as education-focused customers may not stick with software.
Don't delay gratification forever hoping for a larger reward that may never come. Balance long-term goals with enjoying current cash flow and success.
Each feature should be valuable enough to justify its price on its own. Focus on solving core problems and adding elements that are consumed repeatedly.
Focus on acquiring permanent customers who never leave after reaching a milestone. Calculate customer acquisition cost based on how much it costs to acquire a customer who never leaves. This is the hardest part of business.