Financial models
Overall Goal
Find a working financial model so Sagefy isn’t dependent on donations or grants alone to support itself. The initial goal is to reach about $10k-12k/month.
Goals
- Independent revenue stream, not dependent on donations or grants.
- No paywalls that block access to content or learning.
- Create content as part of process.
- Incentivize learning as part of process.
- More than one stream (lowers risk).
Models
Donations
What:
- Ask individual learners and contributors to support Sagefy directly. This can be either through one time payments or recurring payments. Offer small gifts in exchange for different support levels.
Pros:
- Integrate within experience easily.
- Easy to optimize once its rolling.
Cons:
- Probably low amount compared to other options.
- Would take a very long time to reach a sustainable pace.
Considerations:
- One time v recurring.
- Payment: Doesn’t require building new payment system.
- Taxes: Tax handling likely handled by platform we use.
- Tech: Low technical requirements.
Grants
What:
- Apply for and seek grants with grant giving organizations.
Pros:
- If you find a decent grant, then that’s all you need to roll.
Cons:
- Very difficult to actually get a grant, very competitive.
- Hard-ties Sagefy to the grant giving organization.
- Grant applications are very time consuming.
- Most grants are pretty small in the amount, would take many grants.
Considerations:
- Size of grant.
- Competitiveness of grant pool.
- Effort specifically to target closely matching grants.
- Payment: Doesn’t require building new payment system.
- Taxes: Non-issue.
- Tech: No technical requirements
Kickstarting / crowdfunding
https://github.com/nayafia/lemonade-stand/blob/master/README.md#crowdfunding-one-time
Suggest (Fundraise for Contributors to Build Content)
What:
- Allow anyone to say, “I’d like to see Sagefy offer this subject.” Contributors can make bids (time, scope, price) to build it out. Individuals can pledge money towards the different bids. When the amount is met, contributor gets 50% to start, 50% on complete (or some similar arrangement). Sagefy takes some small percentage of the amount (5-20%).
Pros:
- I can test it out before getting financial.
- Doesn’t tie us to anything specific.
- Scales up nicely.
- Gets content built!
- Helps us get in-demand content built (things not offered on other platforms).
Cons:
- It might not work. There’s so much free learning content out there already.
- Lots of tax considerations for Sagefy’s cut.
- So many Kickstarter/GoFundMe/Patreon like things already.
Considerations:
- Requires building out a little site. UserVoice/HelpRace might work as a POC but wouldn’t handle the financial part. No ‘whitebox’ crowdfunding platform works exactly this way.
- Requires a person to make sure contributors deliver on time and scope.
- How do you promote this?
- Payment: We have to build a payment handling system.
- Taxes: Pledgers would want us to give them tax forms.
- Tech: Moderate technical requirements.
Certifications
What:
- Offer certifications of knowledge. Requires verified testing system. Or, partner with an existing company/organization to offer the learning system to prepare for the certification, and take a cut from the partner.
Pros:
- Learners seek accreditation because online learning typically gives nothing substantial to show for employers and universities.
- The right partnership would scale out nicely, and would be a small number of people to manage.
Cons:
- Lots and lots of content building. Would require finding (and paying) experts.
- Building a certification system requires lots of verification systems. Vulnerable to hacking and cheating.
- Ties us to a specific partner if we go that road.
Considerations:
- Sagefy is open-content. That might make it hard to build content for specific purposes and keep it that way.
- Payment: Would need to handle payments if self-built. Partner would handle otherwise.
- Taxes: Non-issue.
- Tech: If we use a partner, almost no technical requirements. Otherwise its quite extensive.
Premium Features
What:
- Allow learners access to special features to support their learning. Perhaps goal setting, time management tools, analytics, individualized learning plans, algorithmic advising and feedback, reminders, etc.
Pros:
- These things are fun to build.
- Easy to experiment and optimize.
Cons:
- We need to be popular before this model could work.
Considerations:
- Payment: We would build a payment system.
- Taxes: Not a direct consideration.
- Tech: Significant technical expense and risk.
Tutoring
What:
- Partner with a company or a create a system for: learners work with a tutor to help them through the content. Learners pay by the hour/month etc for tutoring while using Sagefy.
Pros:
- Online learning can be cold, and learners want that personal touch.
- 1-on-1 learning is a proven model.
Cons:
- It’s all online, tutoring works best in person.
- Tutors are expensive, and most learners can’t afford it.
- Have to have a reasonable content base to start with.
Considerations:
- Technical integration is pretty high challenge.
- What if a learner doesn’t like their tutor?
- Payment: Partner would handle, or we would have to build.
- Taxes: Same as payment.
- Tech: Extensive, no matter what option we do.
Employment Exchange
What:
- Work with employers to produce ‘graduates’ of programs they create. Employers pay a fee for Sagefy to recruit and support their learners. (Similar to a ‘bootcamp’ model).
Pros:
- Just a handful of partnerships can be sustainable.
- Gets content into the public Sagefy!
Cons:
- There’s already several sites doing this.
- Sagefy would need to be more popular for employers to consider this model.
- Support isn’t cheap.
Considerations:
- Payment: Doesn’t require building new payment system.
- Taxes: Non-issue.
- Tech: Very low technical requirements.
What:
- Allow businesses to advertise their services on Sagefy. Either in general (email marketing etc) or content-specific (such as Facebook supported subjects). Likely better to have a specific set of partners instead of using a generic advertising platform.
Pros:
- Just a few sponsors could make a big difference.
Cons:
- Everyone hates advertising.
- Return would likely be low.
- Requires an established user base to seek this model.
Considerations:
- Payment: We would need to handle payments from sponsors, but probably not a large scale.
- Taxes: Not a direct consideration.
- Tech: Low technical requirements.
Premium/Paid Content
What:
- Allow contributors to make content behind a paywall. Contributors and Sagefy both take a cut of the learner fees.
Pros:
- Easy way to generate money. Lots of platforms are moving to this model.
- Doesn’t require an established popularity/base. Could start doing immediately.
Cons:
- This prevents learners from accessing content! A big violation of the goals of Sagefy.
- Learners have so much they could pay for.
- Dis-incentivizes contributors from working together.
Considerations:
- Payment: We would end up building a payment system.
- Taxes: Not a direct consideration.
- Tech: Some technical challenges.
Support contracts
What:
- Get organizations to install their own instances of Sagefy. Offer to support the instances on a contract basis.
- Schools, Colleges, Government, Other Non-profit, Corporate Training
Pros:
- Just a handful of these would support Sagefy.
Cons:
- Labor intensive.
- Sagefy needs to be popular before any organization would seriously consider us.
- There’s SO many edtech companies going after contracts with K-12 schools and corporate training.
- Schools like authority. Sagefy is open-content.
Considerations:
- The site would need to update to be easily deployed and customized.
- Payment: Doesn’t require building new payment system.
- Taxes: Non-issue.
- Tech: Significant changes to make it easy to deploy, support, and customize.
What:
- Get schools and teachers to use Sagefy in the classroom. Charge for access to tools to help teachers and schools see student progress, areas of weakness, etc.
Pros:
- Teachers and schools control the traditional market.
Cons:
- So many companies already targeting this market.
- Requires lots of code to support.
- We would need to be popular already for schools to consider this.
Considerations:
- Payment: If we do it on the public Sagefy, then payment handling system would be needed. Otherwise its the same as a support contract.
- Taxes: Not a direct consideration.
- Tech: Significant technical expense.