Sramana Mitra: Going from curriculum to a more broad soup-to-nuts set of services and, accordingly, raising the percentage of the royalties that you get paid is a massive strategic move. Todd Zipper: It’s risky. I’d like to say we are in the private equity game because I’m going to be a million dollars in before
Sramana Mitra: Is there a particular subject material or type of degree that you specialize in? Todd Zipper: Good question. We are, essentially, generalists. Initially, my thesis when I saw the opportunity at Learning House was that I didn’t want to work with one particular subject area. Let’s say, teaching. That’s a big program online. Another big
Sramana Mitra: Who are the customers? Is this something that you sell as a software solution to other education institutions who are trying to launch or run an online program or are you actually running this as an outsourced service on behalf of these educational institutions who have a brand? What is the business model? Todd
Todd Zipper: Around late 2005, one of the entrepreneurs bought a business that became what Kaplan Higher Education is today. This individual had an idea to start a marketing business focused on higher education using TV commercials. We called it LendingTree meets eHarmony. It had a matching algorithm. We went on to build a brand
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. The white-labeled education services business is scaling rapidly, and institutions of all sizes are building online programs. Learning House operates in the small, regional college and university segment, and has built a nice business. Sramana Mitra: Let’s start at the very beginning of your personal journey.
Sramana Mitra: Who pays you? Tod Browndorf: When we sell a course, we retain a percentage of revenue. Sramana Mitra: I got it. Tod Browndorf: Let me go back to the HIPAA example. That was created by a company called Teach Privacy. Teach Privacy is an expert in HIPAA compliance. We had a customer who
Sramana Mitra: Where are you right now in terms channel, or other strategic pieces that enable you to grow? How do you acquire customer? Is it a direct channel? Is it an online channel? Robert Moore: We have two main channels through which we acquire customers. One of them is inbound marketing and one of
Sramana Mitra: So you’re a B2B platform software company. Tod Browndorf: Correct. We just delivered 600 HIPAA compliance courses. Then we give them an interface where they can then distribute it within their organization. We didn’t create the course. We’re the distributors of the course. Our software is able to report who did what, when