Understand The Educational App Business Model

With The Right Educational App Business Model, You Can Be The Next Best Edtech Business.

While eLearning apps and websites were still around before the pandemic, it was only during and after the pandemic that real use of the technology was realized.

This is the reason why E-learning increases retention rates by 25% to 60%. This isn’t just something students use but also large corporate’s favorite learning tools, as 99% of businesses used it in their programs in 2020.

Plus, eLearning has also helped these organizations increase revenue generation by 42%.

Growing rapidly, the eLearning market is expected to reach $325 Billion in value by the year 2025. The US educational tech market alone is set to grow $12.81 billion from 2020 to 2024.

Great numbers have attracted a lot of people from across the world to invest and develop an eLearning app of their own. When done with the right educational app business model, it can lead to great revenue generation, millions (or maybe even billions).

This isn’t a farfetched idea as we have seen many start-ups do the same. Now, if you are someone who wants to replicate success, you need to develop a market-leading and attractive EdTech app that delivers value to customers.

For that, you must first understand the business model. That is why, in this blog, we shall be discussing everything from edtech business model to elearning app development. With this being said, let’s get right into it:

What is an eLearning App? Educational App Development

eLearning app, also known as an edtech app or educational app, is a popular solution these days. As the name suggested, this is a mobile application that enables users to avail of educational services right through their mobile devices.

There are various forms of educational app development based on utilization.

The current concept of edtech app is not an unknown one as it has been around for some time now. Much of the credit for rapid advancement in the field goes to the global pandemic and the lockdown it enforced.

Nobody could go out let alone students. This is when educational institutes were forced to resort to eLearning solutions. And as things turned out, it was a good option that saved a lot of money and delivered educational facilities to a lot more students at once.

Considering that almost everyone has a mobile phone in today’s age, educational apps are that much more effective.

Now, before you go to hire a dedicated team of developers and create your own eLearning app, let’s first look at the different types of the same in the next section of the blog.

Types of Educational Apps

Education is a vast field. There are different subjects, and streams, and all of that cannot be stored under one roof.

This is the reason why there are different forms of eLearning apps in the market. And it is a good idea to go through all of these before you create your own. Therefore, some of the best educational apps are, as mentioned below:

1. Flashcard Applications

Much research done over a long span of time suggests that learning is a lot easier when it is done in the form of flash cards.

You see, when you are eating something, you would prefer to eat small bites instead of everything at once. And this is the reason why when the academic material is divided in the form of flashcards, it is much easier to learn.

This is the concept behind flashcard edtech apps. Moving on, let’s look at the popular form of edtech apps.

2. Educational Games App

We can all agree on the fact that studying can be boring sometimes.

This is why teachers have been using games to make learning easier and more fun. When the same concept is combined with mobile app development it gives you educational games app.

It goes without saying that this is a popular solution.

3. Dictionary App

Well, the word bank of languages like English is huge. And this is no one who knows it all.

This is the reason why people often resort to dictionaries to learn new words and improve their vocabulary.

If you want to develop an educational app, you should consider this option.

4. eBook Reading Application

If there is a physical book, an eBook version of the same definitely exists.

Now, to read these books on your tablet or mobile phone, the user needs specific applications. This is the reason why a lot of companies develop eBook-reading apps.

5. Language Learning Application

Language learning app like Duolingo are growing very popular and it is a good idea to develop a similar app.There are hundreds of millions of people who want to learn a new language. And not everyone can afford to attend a class. This is why this is one of the top solutions.

6. Online Classroom App

Well, this is probably the most popular Edtech app in the market, since this is the one that saved students during a pandemic.

Now, this is something that you should have definitely considered.

Moving on, we shall finally be looking at the educational app business model. Let’s get right into it:

Educational App Business Model: Types

If you want to create a successful Edtech platform that makes millions for your business, you need to adopt the perfect business model.

This is something that you need to finalize before you build an educational app. Therefore, with this being said, let’s look at some of the top business models that you can use in the Edtech app.

1. Freemium Model

The term freemium itself gives away a lot.

It refers to a model where the app is both free to use and premium. Confused? Let us explain.

See, in this model, the app is free for everyone to download and use. On the other hand, if the user wants to access the premium version of the platform with additional functionality and features, they have to subscribe. (This comes at a cost).

This is a good model because it accommodates both users who aren’t looking to invest any money as well as the premium users who are willing to pay.

With this out of the way, let’s look at some of the methods for freemium app monetization. These are, as mentioned below:

• Education Institution-wide Plan
• Premium Plan
• Advertisement

With this out of the way, let’s move to the next business model for the Edtech app.

2. On Demand Model

A lot of businesses also prefer to create an educational app via on demand app development.

The on demand model isn’t an uncommon one. Well, as the name itself suggests, the educational services are delivered to the students on “demand”.

The user loves it as they are only paying for what they are using. Now, there are various ways you can generate money through this form of educational app.

These are, as mentioned below:

• Cancellation Charges
• Commission Model
• Tutor Verification Charges

Moving on, we shall be looking at last but another popular marketplace business model. Let’s look at this:

3. eLearning Marketplace Business Model for Edtech

Online marketplace development is a very popular solution.

Now, EDX is a popular example of what happens when you combine an online marketplace and an educational app. Here, the users can explore various educational programs and assign them to the one they like.

This is much cheaper than paying for college. This is one of the reasons behind the popularity of the solution. Now, if you are using this solution, you can use the following methods:

• Subscription Model
• Featured Courses
• Commission Model

These are some of the most popular educational app business models. Now, let’s look at some of the most popular Edtech apps and their business model.

Popular Edtech Apps

Take a look at some of the best educational apps that you can take inspiration from before you develop your own Edtech app.

1. Google Classroom
2. ED Puzzle
3. Class Dojo
4. Kahoot!
5. BYJU’S
6. Book Creator for iPad
7. Nearpod
8. Padlet
9. Duolingo

Why Build Educational Apps?

With all that said and done, you must be wondering, why should you invest in Edtech app development? So, let’s look at some of the reasons to do so.

These are, as mentioned below:

• Edtech apps are needed today as more and more people prefer online educational methods over traditional ones.
• The user base for the Edtech market is increasing at an amazing rate. This is something that can be highly beneficial to business.
• Edtech industry introduces huge revenue generation opportunities that a lot of businesses are looking for.
• Edtech apps are not all that expensive and the advantages are many.

These are some of the reasons to invest in your own educational app. Now, we shall be looking at some of the top features to include in Learning apps.

Features To Include In eLearning App

Features are the soul and driving force behind every mobile app. So, choosing the right features is as important as it is to choose an educational app business model.

Moving on, let’s look at some of the top features. These are, as mentioned below:

You can ask for mobile app development services to include this in your Edtech app. Moving on, we shall be looking at the development process in the next section.

How To Build Educational App? Step-By-Step Process

Edtech app development is much more complex than meets the eye. Therefore, if you are someone who wants to learn more about it, in this section we shall be going through that.

These are, as mentioned below:

Step 1) Research

The first thing that you need to do is conduct research.

Here, you need to look at the market opening, competitors, and other important aspects. Once you have all the required information, we can move to the next step.

Step 2) Ideation

You can start ideation.

Ideation refers to coming up with an idea. Now, there are various ways you can do that. Nevertheless, it is considered that you work with more than one idea to have a backup plan.

Moving on, let’s look at the monetization strategies.

Step 3) Monetization

If you want to make millions with your Edtech app, you need to use monetization strategies.

Now, the strategies being used highly depend on the educational app business model you are using, as we already discussed.

Step 4) Choose Platform & Tech Stack

It is time to choose a mobile app development platform.

As such, you can either go with iOS or Android app development services.

Both of these platforms are good in their own right. Being native they deliver exceptional performances. Speaking of which, you can also consider hybrid app development.  

Step 5) Hire Mobile App Developers

Now, it is time to hire learning app developers.

Some of the best ways to do so are, as mentioned below:

• Hire freelancers
• Hire part time developers
• Outsource to app development companies
• Assemble in house team

These are the best ways to hire developers for your next project. With a development partner by your side, we can start with the design process.

Step 6) UI/UX Designers

UI/UX design or front-end development is the first part of the development.

Here, a team of designers will be creating a user experience and interface. This should be easy to navigate while also attracting new customers and keeping older ones engaged.

Once this is done, we can move to back-end development.

7) Back-End Development

This is the part where the Educational App Development Company will be writing the source code of the applications.

This is the longest step of the development process and a lot of resources are used. Maintain good communication with the development team.

Step 8) Testing

Once the final version is created, it is time to test the app.

QA team checks the app for errors and bugs. Follow the testing process and once all the required changes are made,  it is sent for deployment.

Step 9) Deployment

This is the part where the educational app is deployed in the market.

Step 10) Maintenance

Maintenance & support services help the mobile app i.e. Edtech apps improve over time and become the next best solution in the market.

How Much Does It Cost To Build An eLearning App?

The cost to build an eLearning application highly depends on the factors involved in development. Now, it is not possible to estimate the total cost without learning about the project specifications, but you can expect it to be anywhere between $15,000 and $30,000.

Conclusion

If you are someone who wants to learn more about the educational app business model or want to create your own e-learning app, it is highly recommended that you consult eLearning App Development Company which will help you with it.

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.