In 2016 this YouTuber simply wanted to teach Physics to UNDERPRIVILEGED students
Now his YouTube channel has become a billion dollar startup
The CRAZY part? In a world where EdTechs are burning money, it was profitable from day 1
THREAD: How Alakh Pandey built Physics Wallah🧵
Now his YouTube channel has become a billion dollar startup
The CRAZY part? In a world where EdTechs are burning money, it was profitable from day 1
THREAD: How Alakh Pandey built Physics Wallah🧵
Just like any other company, PW identified a problem: education is a business.
Nobody has a problem with it being a business, everyone hates how it has become a cash grab.
You see, education is a great business because it lies in the area of what Kunal Shah calls “Dam Breaks”.
Nobody has a problem with it being a business, everyone hates how it has become a cash grab.
You see, education is a great business because it lies in the area of what Kunal Shah calls “Dam Breaks”.
It’s an emotional area, where people don’t mind spending.
Indians spend heavily on education.
So, it becomes much easier to extract money from them by playing on the fear of a “bad future of their child”.
x.com
Indians spend heavily on education.
So, it becomes much easier to extract money from them by playing on the fear of a “bad future of their child”.
x.com
Most coaching institutes operate in this manner. But Physics Wallah was different.
PW isn’t a business trying to milk you, their ambition is to make you a lifelong learner.
And that’s exactly how they portray themselves as well — a teacher’s YouTube channel trying to help you.
PW isn’t a business trying to milk you, their ambition is to make you a lifelong learner.
And that’s exactly how they portray themselves as well — a teacher’s YouTube channel trying to help you.
Just have a look at Byju’s main channel:
And now look at what Unacademy’s main channel looks:
Finally, take a look at PW — a billion dollar company and yet its main channel looks like this:
Can’t they hire better designers and design a beautiful brand?
Add more seriousness to the brand? Add better visuals to signal professionalism in teaching?
Well, to answer that, have a look at what Laxmi Nagar in Delhi, which is a hub for entrance exam coaching, looks like:
Add more seriousness to the brand? Add better visuals to signal professionalism in teaching?
Well, to answer that, have a look at what Laxmi Nagar in Delhi, which is a hub for entrance exam coaching, looks like:
Do you get it now?
Marketers have a bias that improving design and raising it up to industry standards will necessarily have a positive affect towards the brand.
But that’s not always true! What PW wants to portray with such a branding is that they are not a premium brand.
Marketers have a bias that improving design and raising it up to industry standards will necessarily have a positive affect towards the brand.
But that’s not always true! What PW wants to portray with such a branding is that they are not a premium brand.
They are an affordable brand for middle class people who are driven by aspiration.
PW made a genius move by not falling for these biases & tried to keep their branding as authentic as possible — to signal homeliness.
Giving you your neighbourhood coaching centre feels.
PW made a genius move by not falling for these biases & tried to keep their branding as authentic as possible — to signal homeliness.
Giving you your neighbourhood coaching centre feels.
But that’s not the only reason why PW is so successful.
We have to understand that for content companies like Physics Wallah, content is not just a distribution strategy — it's THE product.
Moreover, studying is fundamentally boring for students and Alakh sir solved for it.
We have to understand that for content companies like Physics Wallah, content is not just a distribution strategy — it's THE product.
Moreover, studying is fundamentally boring for students and Alakh sir solved for it.
With his unique teaching style, he made sure that friction gets reduced and even students whose concepts aren't clear are able to understand.
You watch it learn something important and also get entertained in the process.
So, in PW, they don’t have to hard sell courses.
You watch it learn something important and also get entertained in the process.
So, in PW, they don’t have to hard sell courses.
The teachers teach & students discover courses on their own.
Alakh sir doesn’t want to mix teaching & business, and keep it pure.
This philosophy builds more trust because there’s no chest thumping unlike coaching centres & EdTechs who go as far as buying ranks for advertising.
Alakh sir doesn’t want to mix teaching & business, and keep it pure.
This philosophy builds more trust because there’s no chest thumping unlike coaching centres & EdTechs who go as far as buying ranks for advertising.
PW changed the game by giving high quality lectures for free on YT — something that EdTechs like Unacademy & Byju’s were giving only on paid subscription basis.
All they've been doing is basically take whatever institutes do offline, online &
— becoming online coaching centres.
All they've been doing is basically take whatever institutes do offline, online &
— becoming online coaching centres.
PW wants to become bigger than that & solve for core education problems thru tech.
That’s the macro goal. But while aiming for that, they are deep seated in reality & building profitable businesses.
But wait — why do students buy their courses when their classes on YT are free?
That’s the macro goal. But while aiming for that, they are deep seated in reality & building profitable businesses.
But wait — why do students buy their courses when their classes on YT are free?
Firstly, everyone wants to learn in a proper structured way — and YT becomes the MVP.
When students discover they can learn in this interesting way & also get live classes, student teacher interaction, doubt sessions etc. after paying a small amount, they buy.
When students discover they can learn in this interesting way & also get live classes, student teacher interaction, doubt sessions etc. after paying a small amount, they buy.
Also, most EdTechs are burning money because of a very fundamental problem in the education industry, arising due to the nature of this business,
— CHURN RATE.
Every year you’ll acquire new customers in class 11, and they’ll leave you when they pass class 12.
— CHURN RATE.
Every year you’ll acquire new customers in class 11, and they’ll leave you when they pass class 12.
So, you’ll have to put another round of effort & money in acquiring the new batch of students.
Coaching centres across the country (especially in Kota) solved this by feeding on the uncertainty of a child’s future, and the fact that such a low % of students are selected in IITs.
Coaching centres across the country (especially in Kota) solved this by feeding on the uncertainty of a child’s future, and the fact that such a low % of students are selected in IITs.
They started marketing and persuading parents to enroll their child as early as in class 6.
That’s how they increased their customer lifetime value — going too far by making students start early and destroying their childhood.
But Physics Wallah is built different.
That’s how they increased their customer lifetime value — going too far by making students start early and destroying their childhood.
But Physics Wallah is built different.
They are solving for churn rate by creating a solution where students who've entered the PW ecosystem don't feel the need to leave it once the course ends.
For example, after you enter a college, you might need to prepare for further studies & they'll help you prepare for that.
For example, after you enter a college, you might need to prepare for further studies & they'll help you prepare for that.
If later you feel like going abroad for further studies or trying your hand at UPSC, they have something for that as well.
At every step of the journey, they want to serve you.
So the initial trust that forms because of Alakh sir, keeps you stuck to the product for a long time.
At every step of the journey, they want to serve you.
So the initial trust that forms because of Alakh sir, keeps you stuck to the product for a long time.
See, Physics Wallah is not a normal EdTech, it is an ecosystem company.
Like we mentioned earlier, their ambition is to make a person a lifelong learner.
So, e-commerce is also a part of it.
Like we mentioned earlier, their ambition is to make a person a lifelong learner.
So, e-commerce is also a part of it.
On PW, they sell course books, bed study tables (because a lot of learners don’t have proper tables), white boards etc. at affordable rates.
Their motto is simply, we’ll serve to any and every need of their customer — the student, & profit over every part of their student life.
Their motto is simply, we’ll serve to any and every need of their customer — the student, & profit over every part of their student life.
But teaching content alone cannot help you grow to become a YouTube-fed billion dollar company.
They have a growth engine in their content strategy
— MOTIVATION.
It is a very important aspect of any entrance exam's preparation because they are extremely hard to crack.
They have a growth engine in their content strategy
— MOTIVATION.
It is a very important aspect of any entrance exam's preparation because they are extremely hard to crack.
PW thought of an excellent strategy to integrate motivation + teaching.
Alakh’s motivational content routinely goes viral through which students discover him.
They stick for his teaching & get engulfed in PW's ecosystem because the trust becomes unmatchable by this point.
Alakh’s motivational content routinely goes viral through which students discover him.
They stick for his teaching & get engulfed in PW's ecosystem because the trust becomes unmatchable by this point.
Moving forward, their main aim is to change the fundamentals of education in India because right now, education has only become digitised.
There’s no real innovation. So, they want to solve for that.
And in the process become the Tata/Birla/Reliance of education in India.
There’s no real innovation. So, they want to solve for that.
And in the process become the Tata/Birla/Reliance of education in India.
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