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Tutor Salaries: What You Should Charge and What You Should Make

Here’s some information on tutor salaries. It's important to make sure you're charging the market rate.

Don't charge too little, that just makes your service look weak, and don't charge too much over the market unless you can substantiate a solid reason why your services are better or have more value than the average tutor.

Tutor Salaries: Employee vs. Business Owner

If you work for a franchise or tutoring business, you'll probably receive a set hourly pay which is a portion of the hourly rate the franchise charges their clients.

For example, if your company charges $50.00 per hour to tutor, you might expect to be paid about $10.00 to $15.00 per hour.

If you worked for yourself, what you charge is what you make...almost. So, if you charge $50.00 per hour, you make $50.00 per hour. It's a much better deal isn't it? Hmmm...

Take your gross hourly rate ($50.00) subtract advertising, cost of bookeeping, cost of stationary, business cards, liability insurance, rent or mortagage, pens, pencils, calendars, laptop, software, gas, copy paper, copier, fax, phones, phone services...you get the picture.

Plus, if you charge $50.00 per hour, but only have two clients to tutor twice a week, that's only $200.00 per week.

If, instead, you work for a franchise, and get paid $20.00 per hour, and they give you three kids per day, that's $300.00 per week for a five day week.

So which is better? It depends.

Are you a good business person, good at detail work, don't mind being a jack of all trades?

Or would you be happier doing the one thing that you do so well...teach. Don't want to schedule, bill, collect, purchase goods and services...hey, it's starting to sound like that personality thing again isn't it?

So back to tutor salaries.

Tutor Salaries: Part 2

How much should you be earning where you live and work? Well, here's a nifty little tool to help you calculate tutor salaries in the United States.

It's from a site called SalaryExpert.com. Just type in the required fields, and you'll have your answer without even leaving my site. How's that for convenience?

A quick search found tutor salaries ranging from eleven dollars per hour with one year experience to about twenty dollars per hour for over 15 years experience.

I also found some full time online tutor salaries in the seventy thousand dollar range on the general job search engines.

In addition to salary, you can also calculate any cost of living increases or decreases you should factor into your search.

The 80/20 Rule

In addition to calculating appropriate salaries, if you’re self employed, there’s one mistake that many new tutors make, and make sure YOU never do this...

Do not undervalue your services.

If you don't believe your service is valuable, who in the world will?

If you feel charitable, and want to provide your services to the underprivileged, that’s fine, that’s admirable. If you want to provide free services, even better.

But if you’re trying to run a business for profit, you have to charge a reasonable and fair fee.

And another thing that many new tutors and business owners in general don’t understand...charge more to get good customers.

One of the hardest things to do is to collect money from clients who struggle to make payments. As soon as they have an unexpected expense, tutoring is the first bill they will cut or pay late.

It’s called the 80/20 rule, where the top 20% of your customers will provide 80% of your revenues.

There are some customers who need constant attention, but feel very little loyalty to you or your business. There are others who need almost no maintenance, and are fiercely loyal...these are the top 20% who pay every month, refer clients constantly, and of course they are the ones you want.

This is just a long way of saying that cutting your fees to get as many clients as you can isn’t a real good business decision.

There will always be people who can’t afford your services, and there will always be others who can.

You may not understand this intuitively, but it’s better in the long run (and less stressful for all parties) to sell your services to clients who can afford them.

Remember, everyone in the world isn’t your potential client, be selective.

Get Paid Before You Tutor

A final word about tutor salaries. Once you determine what tutors are making in your area, remember that what you decide to charge means nothing if you can’t collect it.

If you’re working for yourself or for your own tutoring company, you must collect your fees before you begin tutoring.

In other words, bill, collect, then tutor. This is where human nature goes awry.

Most good hearted tutors trust that they will be paid. But there are a million reasons why a client may stop paying.

They may feel they didn’t get the desired results. They may have run into financial trouble. They may have decided that they really can’t afford tutoring after all. They may have found a cheaper, less experienced tutor (good luck).

Maybe most of your clients would never run out on their bills, but remember the 80/20 rule? If even a portion of your bottom 80% of clients decide to quit paying, you’re dead in the water...and...you could have been tutoring paying clients.

So as ruthless as it sounds, get the money up front.




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