Alex Hormozi: Do THIS to Make $30,000/month as a Student

The video is about how students can make $30,000 per month by starting a test prep and tutoring business, using a semi-private model where they charge $35 per session for a group of eight students, and focusing on selling the outcome of tutoring rather than the tutoring itself.

This video by Alex Hormozi was published on Dec 14, 2022.
Video length: 08:18.

In this video, Alex Hormozi discusses the best business for students to start, which is test prep and tutoring.

He explains that instead of selling tutoring, one should sell the outcome of tutoring, which is to get into a better school or pass a standardized test. He suggests using a semi-private model where one can charge two-thirds of what they would charge for one-on-one tutoring but can work with eight times as many people. Hormozi also provides tips on how to package and sell the service, including prepayment and a three-day curriculum.

He emphasizes that test prep is repeatable and can lead to top one percent earnings with no capital out of pocket.

• Test prep and tutoring is a profitable business for students.
• Sell the outcome of tutoring, not the tutoring itself.
• Don't do one-on-one tutoring, do one-to-many.
• Have a three-day curriculum that you teach the class A and class B separately.
• Hit up your network and DM people in your high school.

Do THIS to Make $30,000/month as a Student - YouTube

The Best Business for Students

• Test prep and tutoring is a profitable business for students.
• Sell the outcome of tutoring, not the tutoring itself.
• Standardized tests are the most valuable tests to prepare for.
• Getting into a better school has a material difference on earning capacity.
• Charge $35 per session for a group of eight students.

The Semi-Private Model

• Don't do one-on-one tutoring, do one-to-many.
• Semi-private tutoring is profitable because you can charge two-thirds of what you can do one-on-one.
• With a group of eight students, you can make $1,120 in profit per day.
• Charge $35 per session with eight people instead of $60 per hour for one-on-one tutoring.
• You can do it at free libraries or any other free space.

The Curriculum and Selling Pitch

• Have a three-day curriculum that you teach the class A and class B separately.
• Prefer to get people to prepay instead of transactional one-off things.
• Price based on the fact that they would make $100,000 more a year if they go to better schools.
• Estimate how many problems they need to solve to increase their test score.
• Statistically, every thousand problems give an extra 20 points.

Do THIS to Make $30,000/month as a Student - YouTube

How to Start the Business

• Hit up your network and DM people in your high school.
• Offer a free session to show how your method works.
• Ask lots of people and get rid of your shame.
• Do a little bit of assessment at the beginning to show an easy win.
• Show them the outcome of the improvement they can have.

How to make $30,000/month as a student

• Start a test prep and tutoring business.
• Use a semi-private model where you charge $35 per session for a group of eight students.
• Sell the outcome of tutoring rather than the tutoring itself.
• Give the first five to ten sessions for free and bill them for not doing homework.
• Ask for feedback, testimonials, and referrals in exchange for doing the work for free.

How to scale your tutoring business

• Reach out to people you don't know and run ads.
• Get referrals from sports teams where students need tutoring.
• Templatize your process for getting students to do more problems.
• Hire teachers and pay them $50/hour while making the spread between $280 and $50.
• Develop a pipeline for getting students and teachers in.
• Scale up to four teachers and make $3,600/day, which is over $1 million/year.

Watch the video on YouTube:
Do THIS to Make $30,000/month as a Student - YouTube