Should You Start An Online ESL Teaching Business?
Transitioning from ESL Companies to Independent Teaching
So you're an online English teacher in America or Canada, and you've decided that you want to teach English online. Maybe you've worked for VIPKid, Gogokid, or similar online ESL companies. You enjoy teaching English online, but you don’t want to be dependent on an online ESL company for your paycheck. You don’t want to deal with strict policies, such as VipKId's cancellation policy where you are charged a fine for cancelling bookings without 24 hours notice.
The Challenges of Working for ESL Companies
These company policies impact your ability to get bookings and, ultimately, to make money. And if something happens—like VIPKid shutting down a couple of years ago—it can rock the entire online teaching community. Many teachers were left without income overnight.
You might be thinking, "I want more control over my business. Let me start my own independent online teaching business. Let me market my own English teaching services to kids in China, India, or wherever I think I can offer my services."
Deciding How Much To Charge For Tutoring
After deciding to start your own ESL teaching business, you are uncertain how much to charge for tutoring. You might be googling, "How Much Do Chinese Parents Pay for English Lessons?" You decide to charge $20 per hour for tutoring to remain affordable. You find potential students in India or China who want to work with you. But when they hear your rate, they push back. They try to negotiate. Some might even be offended because they believe you are overcharging for your tutoring services.
Understanding Global Affordability Differences
As an American or Canadian, $20 might seem affordable—perhaps the cost of a meal at McDonald's. But in India, $20 can be a significant expense, especially for families from lower-income backgrounds. Due to currency exchange rates and differences in purchasing power, what seems reasonable in the U.S. can be out of reach in other countries.
The Reality of Finding High-Paying Clients
You also need to consider that wealthier families in places like India or Ecuador often send their children to English-medium schools. These kids are already fluent in English, so their families aren’t looking for extra tutoring. Meanwhile, ESL companies like VIPKid have mastered their marketing. They know their ideal client, set their rates accordingly, and handle all logistics for teachers. As an independent teacher, you don’t have that built-in system.
Getting Monetized on YouTube: How Much Does YouTube Pay?
Over time, you're finding it difficult to find students to teach English online, so you explore other ways to monetize. You start a YouTube channel with the hopes of making ad revenue. You’ve hit 1,000 subscribers and are working toward the watch hours needed for monetization. But here's the thing - ad revenue depends on audience location—advertisers pay different rates based on region.
For example, I had a YouTube video where I focused on the keyword "free online teaching tools". This video ended up going viral and resulted in thousands of new subscribers and views. However, I was confused why I wasn't earning more money. I discovered it's because the majority of viewers were located in India. CPM (cost per thousand views) varies based on where your viewers are coming from and how much advertisers want to put ads in front of your videos to reach those viewers.
Targeting the Right Audience for Your Skills
Personally, I’ve focused on working with clients in the U.S., Canada, or the UK—countries with similar exchange rates and time zones. I once had a student in Thailand with ADHD. The family could afford my rates because the parent was a professor, but the time zone difference was a challenge. I had to tutor either late at night or early in the morning, which disrupted my schedule. Even though they could pay, the logistics weren’t worth it.
If you’re comfortable working odd hours, that’s fine. But consider focusing on clients in your own country or a similar time zone to simplify your business operations. International transactions also come with additional fees and complications.
Did You Choose the Right Niche?
If you’ve built an independent online teaching business but are struggling—despite having a great course, strong tutoring options, a good website, and a social media presence—your niche and pricing model might be holding you back.
Prioritize yourself. Set rates that make sense for you. Don’t keep lowering them just to attract clients from lower-income regions. Instead, focus on offering services to clients in places where the exchange rate and financial situation align with your needs. Building a sustainable business means ensuring that your pricing strategy supports both your passion and your financial well-being.
