Mike Marshall5 min read
How tutor payments and fees work
Every tutoring platform makes money somehow. Most take a cut of lesson payments. We don't. Here's why and how our model actually works.
The payment model
On TutorStudio, families pay tutors directly through Stripe. Here's what happens:
Family initiates payment. They pay their tutor's rate for a lesson via Stripe Payment Links or the TutorStudio interface.
Stripe takes its fee. Stripe is a payment processor. They charge a small fee (typically 1.4% + 20p for UK cards). That fee comes from the family's payment. The tutor never sees it deducted from their rate.
TutorStudio takes nothing. The tutor receives the full amount they quoted, minus Stripe's fee.
Platform subscription. TutorStudio makes money through a monthly subscription. Tutors on the free tier pay nothing. Tutors on Premium pay £9.99/month. Tutors on Pro pay £19.99/month (with additional features like lesson recording and agency tools).
That's the whole model. No hidden commissions. No surprise fees. No percentage cuts.
Why this matters
Commission-based pricing creates perverse incentives. If TutorStudio takes 20% of lesson payments, we're incentivized to:
- Push tutors towards higher rates (so we earn more per lesson)
- Maximize lessons booked (so we earn more commission overall)
- Lock tutors in with rate-matching or lock-in clauses
None of these serve tutors. A subscription model does the opposite: we want tutors to succeed, keep teaching, and renew their subscription.
The Founder Member discount
The first 25 tutors on the paid tier got a locked-in 30% lifetime discount. They pay £6.99/month for Premium. That discount stays with their account even if they upgrade to Pro (where they'd pay £13.99/month instead of £19.99/month).
This was our thank-you for backing the product before it had reviews or a marketplace.
What about the free tier?
Tutors on the free tier pay nothing in subscription fees. But we do take a 10% commission on lesson payments. This is how tutors can try TutorStudio without risking money.
The moment they upgrade to Premium or Pro, the 10% commission disappears. They can then keep 100% of lesson payments (minus Stripe fees).
Currency and VAT
Families and tutors in the UK pay in GBP. Stripe handles currency conversion if a family or tutor is in a different country (though TutorStudio currently focuses on UK-based tutors and families).
VAT: TutorStudio is VAT-registered. Subscription fees include VAT (so £9.99/month is all-in). Lesson payments are between tutor and family; TutorStudio doesn't charge VAT on those payments.
What about refunds?
If a lesson doesn't happen and a family asks for a refund, the tutor handles it. They can issue a refund through Stripe, and Stripe charges a small fee to reverse the transaction.
If a tutor disputes a payment or a family reports fraud, Stripe's standard chargeback process applies.
Payout schedule
Tutors receive payouts to their bank account weekly (by default) or monthly. Stripe holds 1-2 business days for clearing. Tutors can see pending payouts and adjust their frequency in the settings.
International payments
Currently, TutorStudio is UK-focused. Tutors and families can be overseas (and we support EUR, USD, and other currencies through Stripe), but the platform is built around UK law and safeguarding frameworks.
If you're outside the UK and interested, contact us. We're exploring international expansion.
Transparency
Every tutor can see:
- Their total earnings (by month, by student, by date range)
- Stripe processing fees
- TutorStudio subscription cost (if applicable)
- Net take-home
We publish our pricing openly. No fine print. No tier juggling. If we change a price, we give 30 days' notice.
Why we built it this way
Tutoring is already a hard way to make a living. Teachers take a pay cut to go independent. Supply teachers and student tutors are juggling hours. The tool should make their life easier, not harder.
A subscription model aligns us with tutors. We succeed when they succeed. We don't benefit from squeezing them or trapping them. It's a partnership, not a marketplace skim.
That's the promise. And it's built into the code.