Test Prep Academy
The shortcut: Don't sell hourly tutoring. Sell a structured 8-12 week cohort tied to a specific SAT or ACT test date — parents pay 3x more for a program with a finish line than for "however many sessions you need."
Industry: Childcare & Education | Investment level: Small — $2,000-$8,000 | Time to launch: 6-10 weeks (Bluebook-aligned curriculum + cohort calendar + first 5 enrollees gate the launch)
Best for: A former teacher, a strong-scoring recent college grad, or a working tutor who wants to stop trading hours for dollars. You're a fit if you can show a real test score (760+ SAT section, 33+ ACT) or a teaching credential, write a 12-week curriculum without panicking, and run a Zoom room of 6 teenagers without losing them. What you'll likely make: $1,000-$1,800 month 3, $2,500-$4,500 month 6, $4,000-$8,000 month 12 (with seasonal swings). Math is in Section 4.
Market Opportunity
A parent calls you in November. Their junior just got the PSAT back. Not the disaster, but not the schools the family talks about either. The March SAT is four months out. They've already priced Kaplan and Princeton Review at $1,200-$2,500 for a group course Princeton Review SAT prep and balked. They want someone who actually moved a kid's score 150 points last year. That's your buyer.
What changed in 2024 is the SAT itself. The College Board moved the test to an adaptive digital format delivered through the Bluebook app College Board digital SAT. Most of the photocopied paper-test workbooks in the average tutoring center's closet are now teaching the wrong test. That's your opening.
The trap is selling hourly. Parents shopping by the hour compare you to a $40/hour college student on Wyzant. Parents shopping a 6-week SAT bootcamp for the May test date compare you to Kaplan at $1,800. Same parent. Different frame. The price triples when there's a syllabus, a cohort, and a date on the calendar.
Launch With AI
Pro tip: The cohort-tied-to-a-test-date reframing is the entire 3x pricing defense. AI handles the per-test-date cohort calendar (the SAT/ACT date drives the syllabus + the urgency + the close), the FTC + state consumer-protection "guaranteed score lift" claim audit (saying "150-point guarantee" without the actual cohort data + refund policy = state AG complaint + parent-class-action), the COPPA verifiable parental consent flow for any PSAT 8/9 students under 13, the Bluebook-aligned digital SAT curriculum + ACT.org-aligned curriculum outline, and the Klaviyo cohort-launch + waitlist + score-improvement-testimonial flow.
Upfront honesty: AI cannot run a Zoom room of 6 teenagers + read which one is checked out. The teaching craft is the entire moat. What AI does is everything around it: per-test-date cohort calendar (SAT dates from College Board SAT Dates; ACT dates from ACT Test Dates — every cohort is anchored to a specific test date, syllabus + price + close-rate all benefit from the urgency), FTC + state consumer-protection "guaranteed score lift" + "98% improvement rate" claim audit (per FTC §5 + Endorsement Guides + state AG education-advertising rules — banned: 'guaranteed 200-point lift' without proof + refund policy; allowed: 'In our 2024 cohort of 47 students, 38 saw 100+ point improvement; the average lift was 137 points'), COPPA verifiable parental consent for any PSAT 8/9 students under 13 (per 15 USC §6501-§6505 + 16 CFR Part 312 — verifiable parental consent required + cannot just be a checkbox; safe-harbor methods include credit card transaction or signed paper form), state-mandated reporter + child abuse prevention training (most states require any adult working with minors to be a mandated reporter — annual training via Child Welfare Information Gateway, Sterling/Checkr background check), Bluebook-digital-SAT curriculum + ACT.org-aligned curriculum outline (the digital SAT changed in 2024 — most photocopied paper-test workbooks teach the wrong test now), per-cohort waitlist + Klaviyo flow that turns one cohort into the next + the score-improvement testimonial collection that becomes the #1 marketing asset.
AI Tools You'll Use
| Tool |
What it does for you |
Cost |
| ChatGPT (Plus) |
Cohort syllabus, cold pitch, FTC claim audit, parent waiver, testimonial flow |
$20/mo |
| Claude (Free) |
Reading FTC §5 + state AG education-advertising rules + COPPA + state mandated reporter |
Free |
| Zoom Pro + Acuity Scheduling |
Cohort sessions + parent enrollment + payment |
$36/mo combined |
| Google Classroom |
Free LMS for assignments + practice tests + parent access |
Free |
| Klaviyo + Brevo SMS |
Cohort launch + waitlist + score-improvement testimonial collection |
Free → $35/mo combined |
The Workflow
Step 1: Generate the per-test-date cohort calendar + Bluebook-digital-SAT-aligned curriculum (the 3x pricing defense). Most tutors sell hourly + lose to $40/hr Wyzant. The single change that triples pricing: anchor every cohort to a specific test date with a fixed syllabus. AI generates the calendar.
Prompt: "Generate the per-test-date cohort calendar + curriculum outline for my [SAT or ACT] test prep academy. (1) THE PER-TEST-DATE CALENDAR — for the next 12 months, list every SAT date (per College Board SAT Dates — typically 7 dates/yr: Aug, Oct, Nov, Dec, Mar, May, Jun) OR every ACT date (per ACT Test Dates — typically 7 dates/yr: Sep, Oct, Dec, Feb, Apr, Jun, Jul). For each date: the cohort start date (8 weeks before for standard cohort, 6 weeks before for summer intensive), the cohort end date (1 week before test date for review), the per-week session topic, the practice-test schedule (full Bluebook test every 2-3 weeks). (2) THE BLUEBOOK-DIGITAL-SAT-ALIGNED CURRICULUM (8-week cohort) — Week 1: Bluebook orientation + adaptive-format strategy + diagnostic full-length; Week 2: Reading + Writing Module 1 strategy (reading for evidence + grammar + transitions); Week 3: Reading + Writing Module 2 (advanced — the harder module if Module 1 went well); Week 4: Math Module 1 + practice test #2; Week 5: Math Module 2 (algebra heavy + advanced); Week 6: Mixed-section pacing + question-skipping strategy + practice test #3; Week 7: Final review + targeted weakness drilling; Week 8: Final practice test + test-day mental prep. (3) THE ACT-ALIGNED CURRICULUM (8-week cohort) — Week 1: ACT format + diagnostic; Week 2: English (grammar + rhetoric); Week 3: Math (algebra/geometry/trig); Week 4: practice test #2; Week 5: Reading (passage strategy); Week 6: Science (data interpretation, NOT science knowledge); Week 7: pacing + the optional essay; Week 8: final practice + test-day prep. (4) THE 6-WEEK SUMMER INTENSIVE — same coverage compressed, 3 sessions/wk × 2 hrs each (vs 1 session × 90 min in standard cohort). Higher pricing ($1,100 vs $750). (5) THE PER-WEEK ASSIGNMENT PLAN — for each session, the homework: 1 Bluebook practice section + 1 targeted-weakness worksheet + 1 vocabulary drill (if applicable to test). Total: 3-5 hrs of homework/wk. (6) THE COHORT SIZE + PRICING TIERS — 4-student cohort at $750 (intimate, premium pricing); 5-6 student cohort at $650 (sweet spot — most cohorts run here); 8-student cohort at $550 (volume — for accessible-pricing positioning). Output: 12-month cohort calendar + per-week curriculum outline + per-week homework + per-cohort-size pricing tier."
Step 2: Generate the FTC + state consumer-protection "guaranteed score lift" claim audit. Most test prep companies make unsubstantiated score guarantees. State AGs + FTC have enforced. AI generates the audit.
Prompt: "Generate the per-claim FTC + state consumer-protection compliance audit for my test prep marketing. (1) FTC §5 DECEPTION STANDARD — per FTC §5 + Endorsement Guides: every claim about score lifts, percentile improvements, or guaranteed outcomes must be (a) substantiated by actual data, (b) qualified with the supporting math (sample size + time period + comparator), (c) honest about the no-improvement-or-decline cases. Banned: 'Guaranteed 200-point score lift,' 'Average student improves by 300 points,' 'Get into your dream college.' Compliant: 'In our 2024 cohort of 47 students who completed the program AND took both a baseline + post-program test, 38 saw a 100+ point improvement; the average lift was 137 points; 9 saw less than 100 points improvement (typically due to incomplete attendance or homework completion below 60%).' (2) STATE AG EDUCATION ADVERTISING RULES — many states have additional rules for educational service advertising. CA Education Code §94800 et seq for educational institutions. NY Education Law §5001 et seq. TX Education Code §132 + the Texas Workforce Commission Career Schools and Colleges regulates private career schools (sometimes catches test prep). FL Department of Education private-school regulation. Output [my state]'s education-advertising rule citation + the per-state penalties + the per-state advance-approval requirement (some states require curriculum + advertising approval before opening). (3) THE GUARANTEE WITH REFUND — 'Score guarantee' is OK if I actually refund per the documented policy. Generate the per-cohort guarantee policy: 'If you complete 100% of sessions + 80% of homework + take both the pre-program diagnostic + the actual test, AND your test score does not improve by at least [X] points over the diagnostic, I refund 50% of your tuition. Eligible for refund: complete attendance log + complete homework log + score-report screenshot from College Board/ACT. Not eligible: missed 3+ sessions, completed less than 80% of homework, did not take the actual test, took the test more than 6 months after program completion.' Documented policy = legal protection. (4) THE TESTIMONIAL DISCLOSURE — per FTC Endorsement Guides: every testimonial must (a) reflect typical results OR disclose 'individual results vary' + the average/median, (b) be from a real student, (c) include the per-student attendance + homework completion context if presented as 'guarantee result.' (5) THE 'COLLEGE PLACEMENT' CLAIMS — banned: 'We get students into Harvard.' Compliant: 'In a 2024 alumni survey, [N] respondents reported acceptance to top-25 universities; this represents [%] of respondents who chose to share outcomes; not all alumni shared outcomes.' (6) THE COMPETITIVE-COMPARISON RULES — claims like 'better than Princeton Review' or 'cheaper than Kaplan' must be substantiated + non-disparaging. Output: per-claim audit + verbatim rewrite + the documented score-guarantee policy + the state AG advertising-rule citation + the testimonial-disclosure template."
Step 3: Generate the COPPA verifiable parental consent + state mandated reporter + background check compliance. AI generates the legal floor.
Prompt: "Generate the per-state COPPA + mandated reporter + background check compliance audit for my test prep academy. (1) COPPA VERIFIABLE PARENTAL CONSENT — per 15 USC §6501-§6505 + 16 CFR Part 312: for any student under 13 (PSAT 8/9 prep would catch this), I must obtain verifiable parental consent before collecting personal info. Methods accepted by FTC: (a) signed paper form mailed/scanned back, (b) credit card transaction by parent, (c) parent calls a phone number with toll-free verification, (d) video conference with parent, (e) government-ID verification. NOT accepted: simple checkbox 'I am the parent.' Generate the parent consent flow + the per-method script. (2) THE STATE MANDATED REPORTER LAW — every state requires anyone working regularly with minors to report suspected child abuse to state CPS. Some states require all citizens; some require specific professions (teachers, tutors); some have permissive (you can but don't have to) laws. Reference Child Welfare Information Gateway state list. Annual training (free at Child Welfare Information Gateway training) — keep certificate on file. (3) THE BACKGROUND CHECK PROTOCOL — even if not legally required by state, parents check. Generate the per-cohort 'meet your tutor' page disclosure: 'Background check: cleared via [Sterling/Checkr] on [date]. Re-screened annually. Mandated reporter trained via [Child Welfare Information Gateway] [date]. CPR/AED current via American Red Cross [date].' (4) THE STATE-SPECIFIC PRIVATE TUTOR LICENSING — most states do NOT require licensing for private academic tutoring. EXCEPTIONS: Texas Workforce Commission Career Schools and Colleges may regulate test prep above [revenue threshold]; CA Bureau for Private Postsecondary Education may regulate above [threshold]. Output [my state]'s tutoring-license-required-or-not + the per-state revenue threshold. (5) THE DATA PRIVACY + RETENTION — per FERPA (only applies if I'm receiving funding from US Dept of Ed — generally NOT for private tutors) + COPPA + state-specific data privacy laws (CA CCPA + Colorado CPA + similar). Generate the privacy notice for my parent intake form + the per-student data-retention policy (typically 1-2 years post-program for refund-claim review, then deleted). (6) THE SAFEGUARDING PROTOCOL — Zoom session recording-policy (NEVER record sessions with minors without parent consent + secure storage); 'never alone in Zoom' rule (always 2+ students OR 1 student + parent observer); chat archive policy. (7) THE INSURANCE — $1M GL + professional liability via Hiscox at $400-$1,000/yr — most carriers require background check on file before binding. Output: per-state compliance audit + COPPA parent consent flow + mandated reporter + background check disclosure + safeguarding protocol + insurance quote contacts."
Step 4: Generate the parent-targeting cohort-launch outreach (the channel mix that fills the cohort). Most academies wait for inbound. The single change: outreach to the parents who already shop test prep. AI generates the mix.
Prompt: "Generate the per-cohort launch + parent-targeting channel mix for my test prep academy in [city]. (1) MACARONI KID + LOCAL FAMILY NEWSLETTERS — Macaroni Kid has hyperlocal parent newsletters in 1,200+ US cities. Generate the per-newsletter sponsorship pitch + the dedicated email feature ($150-$400 per newsletter) + the editorial-content sponsorship (cheaper, drives long-tail traffic). (2) NEXTDOOR HYPERLOCAL ADS — generate the per-zip-code Nextdoor ad copy + the targeting ('parents of high-schoolers in [zip code]'). $50-$200 per cohort launch. (3) HIGH SCHOOL COUNSELOR OUTREACH — generate the per-counselor email pitch: 'I run small-group SAT/ACT prep cohorts in [city]. For your students who can't afford Princeton Review's $1,800 program but need more than the school's free Saturday workshop, my $750 8-week cohort sits in the middle. I'd love to be on your 'recommended providers' list for any student/family that asks.' Goal: 1-3 high school counselors recommend me + drive 5-10 students/cohort. (4) LOCAL FACEBOOK PARENT GROUPS — most cities have 'Parents of [HS]' or '[County] Parents' Facebook groups. Be the known helpful contributor (NEVER spam-promo — answer test-prep questions, share free Bluebook tips, link only when explicitly asked). After 30-60 days of contribution, occasional cohort announcements are welcome. (5) THE PSAT-RESULTS HOOK (October-November + April) — when PSAT scores release in October-November (junior PSAT for college selection) + April (PSAT 10), the immediate-after email hook to my list: 'PSAT scores just dropped. Here's how to read your kid's score report + here's my March SAT cohort (8 weeks, $750, starts [date], 3 spots left).' (6) THE SCORE-REPORT REVIEW LEAD MAGNET — at every parent contact, the offer: 'Send me your kid's PSAT or ACT score report (no name needed) + I'll send you a 1-page analysis of which 2-3 areas would lift the score most + whether a cohort is worth it for them. Free, no sales pressure.' Drives email-list signups + qualifies prospects. (7) THE COHORT-LAUNCH KLAVIYO FLOW — Email 1 (T-60 days from cohort start): 'March SAT cohort opens for enrollment + early-bird $50 off until [date].' Email 2 (T-30 days): the 4-spot countdown + the per-cohort syllabus. Email 3 (T-14 days): the 'last 2 spots' urgency + the parent testimonials from prior cohorts. Email 4 (T-7 days): the soft-close + the waitlist offer if cohort full. Email 5 (T-1 day): the cohort-start logistics + the parent-portal access. Output: per-channel pitch + the PSAT-results-trigger campaign + the score-report review lead magnet + the 5-touch cohort-launch flow."
Step 5: Generate the score-improvement testimonial collection + waitlist-to-next-cohort flow. AI generates the engine that compounds.
Prompt: "Generate the per-cohort testimonial collection + the waitlist-to-next-cohort flow. (1) THE POST-COHORT TESTIMONIAL COLLECTION — at week 8 (cohort end), the per-student request: 'Once your kid takes the test in [date] + sees the score, would you be willing to share a 2-3 sentence testimonial? I'll send a $25 Amazon gift card as a thank-you. Permission to use first name + grade + score-improvement number? OR anonymous version with permission to share '[grade] level student improved [N] points.'' Goal: 5-8 testimonials per cohort, banked for marketing. (2) THE BEFORE/AFTER SCORE DOCUMENTATION — for every testimonial, document: (a) baseline diagnostic score, (b) actual test score, (c) attendance %, (d) homework completion %. The per-student data substantiates every score-improvement claim per FTC §5. (3) THE PARENT-NPS + REFERRAL ASK — at week 6 + at cohort end, the parent NPS: '0-10, how likely are you to recommend me to another parent?' For 9-10 promoters: the immediate 'do you have a friend whose kid is also prepping for [test]?' ask + the $50 referral credit per booked student. (4) THE WAITLIST FLOW — for parents who inquired but missed the current cohort: Email 1 (immediate): 'The [date] cohort is full — here's the next [date] cohort that opens in [N] days. Want to lock in early-bird pricing today + secure your spot before public announcement?' Email 2 (T-30 days from next cohort): the early-bird price + the 4-spot countdown. (5) THE SIBLING DISCOUNT + REPEAT-CUSTOMER FLOW — every family that books one cohort: at week 6 the email — 'Younger sibling? Older sibling? 15% off for any sibling who books a cohort within 18 months. + If you're returning for a higher-score retake, 25% off.' (6) THE KEY-DATE EVERGREEN CONTENT — for the parent email list: monthly newsletter with: 1 score-improvement story (with permission), 1 'how to read your kid's PSAT/ACT score report' explainer, 1 cohort calendar update, 1 free Bluebook tip + the 1-line CTA ('reply with your kid's score report for a free 1-page analysis'). (7) THE LONG-TERM RELATIONSHIP — for cohort families, the senior-year follow-up: 'How did college applications go? Want to share an outcome (university acceptance) for the 2025 testimonials?' Builds the alumni database that drives next year's enrollment. Output: per-cohort testimonial collection + per-student documentation + parent-NPS + sibling discount flow + waitlist-to-next-cohort flow + key-date evergreen content."
Time Saved Per Week
- Per-test-date cohort calendar + curriculum (one-time + per-test-cycle refresh): ~10 hrs saved + 3x pricing defense
- FTC + state AG claim audit (one-time + per claim): ~5 hrs saved + state AG complaint protection
- COPPA + mandated reporter + background check (one-time + annual refresh): ~5 hrs saved + parent-trust signal
- Per-cohort launch outreach (per cohort): ~4 hrs saved per cohort
- Testimonial collection + waitlist + repeat flow (one-time): ~6 hrs saved, then runs forever
- Total: 5-8 hrs/wk back in steady state — enough to add 1-2 more cohorts per quarter without burning out.
Total AI Stack Cost
- Budget tier: ChatGPT Free + Claude Free + Zoom Pro ($16) + Acuity ($20) + Klaviyo Free = $36/mo
- Full tier: ChatGPT Plus ($20) + Zoom Pro ($16) + Acuity ($20) + Klaviyo ($20) + Brevo SMS ($15) = $91/mo
- Compare: A part-time admin + content + cohort-coordinator = $400-$1,000/mo. AI does it for $36-$91.
Your First Win (30-min action)
Pick the next test date in 8-12 weeks (e.g., March SAT, April ACT). Use Step 1's prompt to generate the 8-week cohort syllabus + pricing today. Then use Step 4 to launch the first cohort outreach (Macaroni Kid + Nextdoor + 3 local high-school-counselor pitches).
Prompt to lock the cohort-launch package + FTC compliance in one batch: "Apply Step 1 to the [next test date — March SAT / April ACT] cohort: output the 8-week syllabus + pricing + size + per-week homework + the cohort-launch landing page copy. Then apply Step 2: audit my draft cohort-pitch sales page for FTC + state AG claim violations + output the documented score-improvement policy + the testimonial-disclosure template. Then apply Step 4: generate the 5-touch cohort-launch Klaviyo flow + the 3 high-school-counselor outreach emails."
That single cohort-syllabus + outreach + compliance batch typically lands the first 4-6 students within 30-45 days + protects every claim from the state-AG complaint. That's the entire 'first $1K-$1.8K month 3' path.
Product / Service Offering
You're selling a structured cohort tied to a real test date. Three packages cover most of the demand:
- Small-group cohort (4-6 students) — 8-12 weekly sessions of 90 minutes, full Bluebook practice tests every 2-3 weeks, one optional 1:1 review per student. $600-$1,200 per student for the program. This is the core.
- Summer intensive bootcamp (6 weeks) — 3 sessions/week, 2 hours each, for rising juniors who want the test crushed before fall sports. $900-$1,500 per student, runs June-July. Highest revenue event of your year.
- Private 1:1 (premium add-on) — $90-$150/hour for kids who need extra work on a specific section (usually math or reading). Not your main product — just a release valve for the families who want more after the group.
Pick the SAT or ACT to launch — not both. The tests are different enough that one curriculum doesn't cover the other. Parents in your area lean one way (East Coast and California skew SAT; Midwest and South skew ACT). Add the second test in year two.
Revenue Model
Unit economics for a solo founder running cohorts on Zoom + Google Classroom + one Bluebook-aligned curriculum, no employees:
| Service |
Price/student |
Variable cost (platform + payment fees) |
Your time |
Take-home per student |
| 8-week small-group cohort |
$750 |
~$25 (Zoom + Acuity + Stripe 2.9%+$0.30) |
12 hrs total per student in cohort of 5 |
~$725 |
| 6-week summer intensive |
$1,100 |
~$35 |
18 hrs total per student in cohort of 6 |
~$1,065 |
| 1:1 private hourly |
$120/hr |
~$3.80 (Stripe) |
1 hr |
~$116 |
| Practice-test add-on (proctored) |
$40 |
$1.50 |
3 hrs proctoring split across group |
~$38 |
Your first $1K month = 1 cohort of 4 students at $750, billed across 2 months = ~$1,500/month run rate. Roughly 6 hours of teaching per week.
Your first $3K month = 2 cohorts of 5 students at $750 = $7,500 spread across 8 weeks = ~$3,750/month while cohorts run. Roughly 10-12 hours of teaching per week.
Revenue is seasonal. SAT test dates drive the calendar. Expect fat months August-October, January-March, and June-July (summer intensives). Plan for lighter months in November, April, and September College Board SAT dates. Build a waitlist between cohorts so you're never starting from zero.
Startup Costs
- Curriculum materials: Ivy Global SAT/ACT books at ~$30-$50 each ivyglobal.com. Buy 1 instructor copy plus 1 per founding student. Free official practice tests via the Bluebook app satsuite.collegeboard.org and Khan Academy SAT Prep khanacademy.org/sat. For ACT, the official ACT prep guide act.org test prep is the baseline. Total: $200-$500.
- Tech stack: Zoom Pro at $15.99/month for unlimited meeting length. Google Classroom is free. Acuity Scheduling acuityscheduling.com runs $20/month for enrollment + payment intake. Stripe is 2.9% + $0.30/transaction with no monthly fee. Total: ~$40/month.
- Website + booking page: Squarespace or Carrd at $12-$23/month. Don't overbuild. Parents need your score, your photo, program dates, and a "book a free 15-minute call" button.
- LLC + EIN + insurance: $35-$500 LLC filing depending on state — LLC University 50-state table. EIN is free at IRS EIN Online — never pay a third party. Combined general + professional liability runs $400-$1,000/year via Hiscox or Insureon.
- Marketing seed: $300-$1,000 for three months of Macaroni Kid sponsorships, Nextdoor boosts, and flyers for local high schools.
- Optional in-person space: A public library meeting room is usually free. A coworking day pass is $20-$40. Skip a leased office until cohort 4.
Realistic all-in: $2,000 if you already have a laptop, can use a library room, and defer insurance to month 2; $8,000 if you bind a year of insurance up front, buy 30 student curriculum copies, and run a Macaroni Kid + targeted Facebook ad campaign for your first cohort.
Legal & Formation
Business entity. Single-member LLC the day you take a paying student. Tutoring isn't high-risk like swim school. But you're collecting parent payments, holding student data, and making score-improvement claims. The LLC separates your personal bank account from a refund dispute or a small-claims filing. EIN is free at IRS EIN Online — never pay a third party. S-corp election isn't worth the payroll overhead until net profit clears ~$80K-$100K IRS S-corporations guidance, which most solo academies hit in year two at the earliest.
Licenses & compliance. Test prep is one of the easiest sub-niches in this cluster legally. No state license is required for private academic tutoring or test prep in any U.S. state. No state credential mandate either. Tutoring services are not subject to sales tax in most states. If you tutor PSAT 8/9 students under 13, COPPA applies. You need verifiable parental consent in your enrollment form — not just a checkbox FTC COPPA guidance. Mandatory reporter laws cover anyone working regularly with minors. Annual training is free or low-cost via the Child Welfare Information Gateway. Background check yourself through Checkr or Sterling ($25-$75) and put the date on your website. Parents check.
Industry-specific risk. The trap that sinks new test prep academies is the score-improvement guarantee. "We guarantee a 200-point increase or your money back" is legal as a refund offer. But the FTC treats outcome claims like "students typically improve 200 points" as substantiation-required if you can't back it with documented results FTC endorsement guides 16 CFR 255. Worse: if you offer the refund without giving every student a timed baseline practice test before week one, any student can claim they didn't improve and demand their money back. The fix: every enrollee takes an official Bluebook practice test in week one. You document the score. Refund eligibility is conditional on completing 80% of sessions and submitting the final practice test. Your enrollment contract spells this out and (in California, New York, and Massachusetts) includes the cancellation-rights disclosure those states require for educational contracts above a certain dollar amount.
Marketing & First Customers
Your first 5 students come from people who already know you can teach. The order that actually works:
- Your warm list. Text 30-50 contacts: parents you know with juniors, teachers from schools you've worked at, former students. Offer 5 founding spots in your first cohort at $400 (instead of $750) for a written testimonial. You'll fill 3-5 spots in two weeks.
- Local high school college counselors. Visit the counselor at the 3-5 high schools nearest you. Bring a one-page handout: your test score, your program format, your dates, your price. Counselors don't get paid to refer, but they remember the tutor whose students sent thank-you emails.
- Macaroni Kid and Nextdoor. Macaroni Kid local sponsorships run $50-$200/month and reach exactly the parent demographic buying test prep. Nextdoor neighborhood posts are free and convert well for "looking for a tutor" requests.
- Facebook mom groups. Find the 2-3 largest local-parent or local-high-school groups (often 5,000-20,000 members). Post once per cohort launch with the test date, format, and founding-cohort price. A single post in a high-engagement mom group regularly fills a 5-student cohort.
- Google Business Profile + a one-page site. Free Google Business listing. One Squarespace page with your photo, your score, the test dates you're prepping for, and a Calendly link to a 15-minute parent call. Skip blog SEO until cohort 4.
FTC outcome-claim rules apply to every testimonial you publish 16 CFR 255. When a parent gives you "Sarah went from 1180 to 1410 in 8 weeks," include "individual results vary" language. Don't imply the jump is typical unless you can back it with data across all your students.
First 90 Days
- Week 1. Take a full Bluebook practice test yourself. Proves your score is current. File the LLC. Get your EIN free at IRS.
- Week 1-2. Build your 8-week cohort syllabus using Bluebook + Khan Academy + Ivy Global. One Google Doc, one session per row. Set up Google Classroom and Zoom Pro.
- Week 2-3. Run a background check on yourself via Checkr or Sterling. Bind general + professional liability insurance ($400-$1,000/year). Stand up a one-page Squarespace site with your score, program dates, and a Calendly intake link.
- Week 3-4. Text your warm list. Aim for 5 founding cohort enrollees at $400 each by end of week 4. Run their week-one baseline tests on Bluebook on a scheduled Saturday.
- Week 4-12. Run cohort 1 weekly. Document every student's practice test scores in a private spreadsheet. Capture testimonials by week 8.
- Week 6-8. Begin marketing cohort 2 at full price ($750). Macaroni Kid sponsorship. Two posts in local Facebook mom groups timed to the next test date.
- Week 8-10. Email college counselors at the 3-5 nearest high schools with cohort 1 results (anonymized). Aim for 1-2 counselor referrals into cohort 2.
- Week 10-13. Open enrollment for cohort 2 (5-6 students at $750 = $3,750-$4,500). Plan a summer 6-week intensive at $1,100/student for June-July — start marketing in April.
Common Pitfalls
- Teaching the paper SAT in 2025. The digital SAT is adaptive, module-based, and 2.25 hours instead of 3. Old paper-test workbooks teach the wrong question types and the wrong pacing. Use only Bluebook-aligned materials. If your curriculum was written before March 2024, throw it out.
- Offering a score guarantee without a documented baseline. "200 points or your money back" without a proctored week-one practice test is a free option for any unhappy parent. Every student takes a timed Bluebook practice test in week one. Score gets recorded. Refund eligibility is tied to completing the program and the final practice test.
- Pricing by the hour. A parent comparing you at $80/hour compares you to a college kid on Wyzant. A parent comparing you at $750 for an 8-week SAT cohort compares you to Kaplan at $1,800. Same parent, triple the price. Sell programs, not hours.
- Ignoring the seasonal calendar. SAT and ACT test dates are public a year in advance. Build your cohort calendar to end 1-2 weeks before each test date — March, May, June, August, October, November, December. Cohorts that don't line up with a real test date don't fill.
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