> because we have aligned incentives [with our students] - we only make money if they do.
If you sign up all students and do nothing further, you still get your 7%. That is not aligned.
To align incentives you would have to align the students payments with how much you improved their outcomes - much harder to do of course.
I think your model has the same risks as real estate commissions where the selling agent is highly motivated to sell quickly and they have little motivation to get a higher price.
If you sign up all students and do nothing further, you still get your 7%. That is not aligned.
To align incentives you would have to align the students payments with how much you improved their outcomes - much harder to do of course.
I think your model has the same risks as real estate commissions where the selling agent is highly motivated to sell quickly and they have little motivation to get a higher price.