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In a bid to democratise education, cash-strapped edtech firm Byju’s has significantly reduced the prices of its products.
The annual subscription fee for the Byju’s Learning App now stands at Rs 12,000 (inclusive of taxes) per year, while Byju’s Classes and Byju’s Tuition Centres (BTC) are priced at Rs 24,000 and Rs 36,000 respectively for a full year of classes, according to the sources.
They said the prices of each of these offerings have been reduced by atleast 30 per cent.
In a candid meeting with over 1,500 sales associates and managers, Byju’s founder Byju Raveendran unveiled a shift in the company’s sales strategy, emphasising a sustainable and scalable model.
This would empower its sales workforce while making quality education more accessible.
Raveendran invited associates to expand their teams by inviting friends to sell and act as their managers.
He envisioned a 50,000-strong sales force within the next year.
Raveendran also invited associates to share innovative ideas directly with him, promising his full support and reiterating his commitment to restoring Byju’s to its former glory.
He said that Byju’s of 2024 is the same as Byju’s of 2015, when the company launched its learning app and pioneered edtech and redefined education globally.
“With the ongoing implementation of Byju’s 3.0, there is no doubt that the company will not just maintain its leadership position but also improve it in the coming years,” Raveendran told employees.
In the new model, managers will have a role of a mentor and not of taskmasters.
Employees are encouraged to report any ill-treatment, forced sales or impolite behaviour of managers directly to Raveendran.
This will bring about a cultural shift in the sales teams’ minds.
Byju’s has completed its transition from a push-based to a pull-based sales model.
This is driven by ‘love for learning’ rather than the ‘fear of missing out’. Managers will now act as coaches, focused on supporting and enabling the sales team rather than enforcing strict call quotas.
Associates will have the flexibility to work on their own terms, with no tracking of the number of hours spent on calls.
“If you can get results by spending just half an hour a day, please do that.
"Want to only work on the weekends? Why not?” Byju Raveendran told the employees.
He encouraged a results-driven approach.
Incentivising sales
Byju’s sales associates will receive 100 per cent of the sales closed directly into their accounts on the next working day, with managers receiving 20 per cent of the same from the company.
“The average sales salary is Rs 40,000 per month. So, close a couple of sales, and you can get not just your salary but also clear your arrears.
"You can earn many multiples of your CTC through this model,” Raveendran told the staff.
After clearing arrears, associates will receive 50 per cent of sales closed, while managers will receive 10 per cent.
Raveendran emphasised that this ‘four-week experiment’ has the potential to become a “forever model,” citing the exceptional response during the first week, with some sales team members already clocking salaries commensurate with a Rs 50 lakh per annum CTC.
As the top of the funnel has been ever-growing, with the number of free users touching 250 million, Raveendran told staff that there is no dearth of interest in the products and services.
The sales associates are encouraged to experience the products themselves to understand their unparalleled quality and market-leading position.
“I want you to understand what it means about the quality of our content and the power of our brand.
"So, your job is not to sell, but to counsel.
"You just have to guide the students and parents who are already inclined towards the transformative learning that Byju’s offers.
"You are not sales people; you are education counsellors, empowering students to become better learners,” said Raveendran.
Performance-based pay
Byju’s has implemented a new policy linking sales staff’s salaries to the revenue they generate every week.
According to a copy of an internal document reviewed by Business Standard, Byju’s will now directly pay a percentage of the weekly revenue generated by each sales staff at the end of the seven days.
The policy, introduced on April 24, would be applicable for four weeks, to May 21, 2024.
In a relief to employees, Byju’s has paid full salaries for April to all the staff, except the sales force, whose earnings are dependent on the revenue they generate every week.
Byju’s now has about 12,000 employees.
“Founder Byju Raveendran arranged the salaries through private debt and company revenue,” said a person familiar with the matter.
Last month, Raveendran, secured a private debt of about Rs 30 crore to pay the March salaries of employees.
The delay stems from funds raised through a recent rights issue, which have been locked in a separate account due to the ongoing dispute with the investors.
The total salary burn for the company ranges between Rs 40 crore and Rs 50 crore, according to sources.
