The so called “Free Plan” offered by Teach Street
At LessonSignups our fees and plans are competitive and easy to understand. There are no hidden fees, surcharges or other tricks.
We charge $29.99/month for our service. This covers our operation and ensures that we can provide customer service, keep our website running, and continue to make it even better. In addition to that, if you chose to accept online payments you pay PayPal’s fees. PayPal charges a fixed fee of $0.30 per transaction + 2.9% of the amount of transaction if you make less than $3,000 total transactions per month. If you have more than $3,000 total transactions per month it is 2.5% (and even less if you did more than 10k…). If you signup all students for the whole quarter you might easily get over $3,000.
Let’s say you have 20 students, each of them pays $400 for the fall quarter: September - December. PayPal will take $0.30 fixed + $10.00 variable fee, that’s $10.30 per student or $206. LessonSignups fee for the same period is $120 so the total comes to $326.
That’s it. We do not display Ads and we do not collect any additional fees from your students. Of course! Why do I even write this?
Compare this to fees charged by TeachStreet. They offer a “Free Plan”. If you accept payments with PayPal they even waive the fixed $0.30 per payment and only charge 2.9%. So on a $400 payment you save $0.30 and only pay 2.9% (regardless of your monthly transaction amount), that’s $11.60. If you have 20 students you pay $232 in PayPal fees — more the PayPal charges! In addition to that TheachStreet charges students a “Booking Fee” of 5%. That’s $20 per student for your $400 fall session. Let’s do the math…
If you have 20 students that’s an extra $400 they have to pay because your lesson now costs $420 to your students. You save $29.99 per month if you use TeachStreet’s “Free” plan. But over all you and your students pay TeachStreet $632.
TeachStreat also offers a “Pro” plan priced at $29.99. Under this the teacher does not pay 2.9% but there still is the same 5% “Booking Fee” per student. So under the Pro plan you would end up paying TeachStreet 4x$29.99 or $120 for your plan plus $400 in booking fees paid by students, a total of $620.
To summarize our example: If you have 20 students and charge each of them $400 for the fall session (September-December) the total of PayPal fees and LessonSignup fees will cost you $326. That includes managing you make up session, that TeachStreet does not do. TeachStreet “free” plan will cost you $632 and their Pro plan will cost you $620.