Ideally Students Pay $20/mo To Learn From Robots, $1,000,000 In Revenue in 2015

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Summary:

In Episode #263 Nathan interviews Aditya Singhal, CEO of Transtutors, an education technology entrepreneur who’s hoping to fully automate tutoring in the next five years. Aditya believes in low-cost, high-quality education for all. Tune in as he and Nathan talk automated education, subscription models, and why Silicon Valley is overrated.

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Famous 5

  • Favorite Book? – Growth Hacker Marketing
  • What CEO do you follow? — Elon Musk
  • What is your favorite online tool? — Twitter
  • Do you get 8 hours of sleep?— No
  • If you could let your 20 year old self know one thing, what would it be? —I wish I knew how to hack growth faster

Time Stamped Show Notes:

  • 01:25 – Nathan’s introduction
  • 01:45 – Welcoming Aditya to the show
  • 02:10 – There are 21 million college students in the states, looking for help
  • 02:30 – Created TransTutors – an AI teaching assistant
  • 02:50 – Subscription model: $20 each month, 30k customers
  • 03:10 – Not a typical SaaS business model – uses humans assisted by code
  • 04:05 – Revenue is $60-80k per month
  • 04:20 – Business founded August 2014
  • 04:30 – Revenue is 2015 around $1 million
  • 04:50 – Initially self-funded; now raising investment from 500 Startups
  • 05:00 – Hoping to raise $2.5 million by convertible note
  • 05:30 – Making a trade-off: wants to learn from Silicon Valley
  • 06:10 – Are tech hubs overrated?
  • 06:30 – About 40% of customers (12k) are paying monthly
  • 07:30 – In February 2016 had 3k active paying customers
  • 08:05 – Users typically stay 4-6 months (one semester)
  • 08:40 – Team of 10 people, including 8 in India
  • 09:00 – A young engineer in India earns around $30k per year
  • 10:00 – Aditya’s goal is to have a fully automated teaching system
  • 10:20 – Would be happy to sell once he’s achieved his goal
  • 10:50 – Equity split 50/50 between Aditya and his partner
  • 11:30 – Connect with Aditya by email or twitter
  • 14:50 – Famous Five

3 Key Points:

  1. Create the solution your market are looking for – even if they don’t know it yet
  2. Be clear about your business vision
  3. Focus on finding social marketing methods to grow your business explosively

Resources Mentioned:

  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.