Why Edtech startups fail?

y son wanted to learn about finances, investing, and the stock market. And so I decided to get him started with classes on financial literacy, I checked out some online courses offering financial literacy classes for kids. I found one and joined the course.

The demo was great but there was too much information shared in the demo for my son to understand. Then as soon as the session was over the facilitator was nowhere, the session was handed over to an academic counselor who took us through annoying market research, investors, and various things that I was not interested in.

And the pressure to decide what package one wants to choose, and whether to buy now or later. It was only about the price and not about my son's learning. I decided that this was not the right program for us and so we left.

I decided that this was not for us.

There is this usual pattern of Ed-tech companies selling their courses to parents

They typically schedule a session

They take a very informative session

Followed by a conversation with parents

And then the model of payment is presented

They start messaging you and calling you regarding the registration

There is this sense of urgency to sign up for packages that are 6 monthly or 12 monthly

The reason they do this is that they want to lock the parents into a contract

However, what many of these Ed-tech companies fail to understand is that

Most parents are not knowledgeable about the subject matter themselves. So even if they sit through the session, they would not be able to help their children with the coursework.

The Ed-tech company’s idea of course completion is very different from the child’s idea of course completion. For the Ed-tech company, a course is completed when the child has gone through all the sessions and assignments. However, for the child, a course is completed when they have understood the concepts and can apply them in real life.

Ed-tech companies also do not provide any support to the parents after the sale is made. They do not understand that parents need help in understanding the course content and in guiding their children through the course.

Selling the course to students shouldn't be the only goal of Ed-tech companies. They should also focus on providing support to parents and students so that the courses are completed and the students can understand the concepts.

The edupreneurs need to practice long-term and not concentrate on quick returns in the initial stages of the business setup. If a product is successfully created, profit automatically follows the business. This facet of creating value in business is aptly described in the video below.- Edtech Review

Today’s market is flooded with several products and services- why should people choose you? How are you different? 

An ed-tech product has to justify its price. It should have a clear value proposition. If it’s an online course, it should be better than the free resources available on the internet.

Most importantly, the product should be able to solve a problem that people are facing.

Are most ed-tech companies assuming that they know everything-  that they are the only experts in the field and that people will automatically flock to them? The answer is yes. And this is one of the main reasons why ed tech ideas fail.

People do not want to be sold to. They want to be provided with a solution to their problem. Ed-tech companies need to remember this if they want to be successful.

Are Ed-tech companies marketing but not reaching out to parents- the actual decision makers?

It is a common sight to see Ed-tech companies holding events in schools and conducting demonstrations in front of students. They think that if they can get the students on their side, the parents will automatically follow suit. However, this is not always the case.

Ed-tech companies need to understand that it is the parents who make the decisions regarding which course their child will take.

Your sales pitch is irritating- it’s too long, it’s too technical, I don’t understand what you’re saying.`

This is a common complaint that people have about ed-tech companies. The sales pitch is often focused on the features of the product and not on the benefits that the customer will get.

People do not want to know about the features of the product. They want to know what the product will do for them. Ed-tech companies need to focus on this if they want to make sales.

There is a fine line between selling your product and serving a need. People can see through a sales pitch. They want to know that you are genuinely interested in helping them and not just trying to make a quick buck.

Lack of patience by the academic counselors- 

Not giving enough time to the parents to understand the product. Pushing them to decide on the spot. This is one of the main reasons why ed tech ideas fail.

Parents need time to make a decision. They cannot be expected to understand everything about the product in a short period.

Too much information shared by the program leads- makes it difficult for parents to understand what the product is all about.

Ed-tech companies need to focus on providing relevant and targeted information to parents. They should not try to sell the entire product in one go.

The sales process is often done in a very impersonal manner. There is no human connection.

Ed-tech companies need to focus on building relationships with parents. They should not try to sell them the product in a one-time transaction.

They should focus on providing support and guidance so that the parents can make an informed decision.

Ed-tech companies need to focus on providing value to the customer. They should not try to make a quick buck. If they want to be successful, they need to remember this.`