It’s not surprising at all that most people don’t know how Guild Education earns revenue. However, this is an interesting question that we‘ll try to address in the article below.
Guild Education is a tech startup that matches companies with educational institutions for online courses. It makes money by taking a cut of the tuition fees paid by students enrolled in its programs.
You like to read: Fitness Business Names Ideas That Are Ready to Run
About Guild Education
Founded in 2015 by two college graduates, Guild Education seeks to bridge the employment skills and job market gaps for adults who want to advance their careers but lack the necessary training.
They’re committed to “unlocking opportunities for America’s workforce through educational programs and career advancement”.
Dedicated to this mission, these women-owned business partners created a powerful software product worth over $4 billion.
Her successful business model has enabled her to become one of the richest self-‐make women in America. The company is doing extremely well in just six years, and industry analysts predict its success will continue.
Business Model of Guild Education
Guild Education operates on an online marketplace business where they connect employers with top schools and universities to deliver education.
Learning has never been easier than now thanks to online courses.
- employers who want their employees to learn relevant skills for their jobs
- accredited education providers
By completing the program, students gain an understanding of business concepts and learn how to manage their own time efficiently. They also gain valuable skills and experience for future employment.
Carlson says she was once an adult student herself. While she was working full-time at a tech company, she completed two master’s degrees and started a startup. Now she has her Masters of Business Administration and Masters of Education and plans to pursue a degree in digital technology soon.
She believes education can be the key to unlocking incredible opportunities for people.
Her own personal history and beliefs in Adult Education drive her passion for helping others succeed by joining Guild.
According to Carlson, the dream is to have Guild become available and accessible to every college or university student. She attributes this success to having worked with “the smartest minds in the world.”
Guild is the catalytic agent for more than four million Americans having access to higher education. Over forty thousand adults are currently pursuing their degrees through Guild’s programs.
“We believe that if we do our jobs correctly, that in twenty, thirty years, many, many millions of Americans will be better able to succeed in the future.”
Providing an Education
We partner with colleges and universities throughout the country. We look for people who can offer our students the best quality education at a reasonable price.
The company evaluates its 3,000 school districts by assessing their academic performance, safety, and health services.
These things are considered when making decisions about whether or not to accept an applicant.
Questions like these have been tracked by the Federal Government. Recognizing this, the teams at Guild Education took it upon themselves to create a database tracking this information so they can know which school to work with. They will also determine which school will provide the best bang for their bucks for their students.
With Guild, students get a high school education, a college degree, and a career training certificate.
Furthermore, 88% of future Guild students cite the lower cost of attendance as the main reason they chose to attend the Guild. Employers cover the costs of attending the Guild directly through the student loan repayment plan.
By offering low-cost scholarships, Guild gives lower-class families an affordable college experience that they might not be able to afford otherwise.
One of the main components of the organization’s business model involves its ability to onboard new employees.
Regarding employer responsibility, Carlsen states “I believe that we must have a lifelong education system in which every American has access to quality training opportunities for themselves and their families. We need to rethink our current approach to lifelong education and create an environment where people are encouraged to seek out new skills and knowledge throughout their lives.”
Employers who want to improve their workforce by joining forces with Guild can easily connect with top companies that offer scholarships and internships. By doing so, they can provide employees with valuable training opportunities and help them grow into better assets for their companies.
With its platform, companies can ensure that their employees have the skills they need for future opportunities. The program aligns a student’s education with an employer’s strategic job path. It claims that part-time workers have a completion ratio of twice the national average.
Guild offers an online platform where students get personalized career advice from industry experts. Employer benefit includes retaining top talent.
Through their app, Chipotle has achieved high rates of employee enrollment and retention and has even been able to achieve a 7.5 times promotion ratio.
How Does Guild Education Make Money?
It would be hard for anyone to compete with someone who has the mindset of a rich entrepreneur.
The hard-working mother of two has earned her place alongside some of the biggest names in music including Rihanna and Dolly.
Guild partners with employers looking for ways to help their employees get degrees, and careers.
As an educational services provider for Fortune 1000 companies, Guild Educational helps them build strong business partnerships by establishing trust. “Relationship building starts with great connections and then we go from there,” Carlson says.
For example, prominent companies such as The Walt Disney Company, Microsoft, and Walmart reaped the benefits of partnering with Guild in various ways.
Pay for your employees’ education so that they become good employees. A standout company is one that pays for its employees’ education.
Guild also guarantees partnering companies that they could increase their recruiting numbers by up to 30%.
Furthermore, they can also anticipate experiencing a much lower turnover rate with their current and future employees enrolling with Guild.
If a company has an average employee retention rate of 50%, then it would expect its employee retention rate to be at least 7%.
Guild earns most of its revenues by selling university students on using its platform for recruiting purposes. It makes up for any losses through fees paid to them by companies who use their service.
Though the company doesn’t disclose how much universities pay, there are some programs that spend thousands of dollars per student. Forbes reports that revenues hit $99 million last year.
Guild Education Funding, Valuation, and Revenue
Guild members who enroll through their employers are 2.7 times more likely to stay employed compared to non-members.
Black employees who enroll in the Guild Education Program are more than twice as probable to be promoted by their employers. These stats alone explain why so many companies want to invest in the Guild Education Program.
Investors such as RedLink, Salesforce Ventures, and General Catalyst give millions to the company. And they can count on it to be put to good use because Guild says it plans to take its platform to new levels.
As of April 1st, 2020, Carlson has already seen a doubling in its revenue from last year.
Last year, the startup raised $100 million in Series C funding. At the time, it was valued at $1.5 billion.
An achievement that earned it the coveted “unicorn” title. A startup or private business worth more than one billion dollars. Not many startups achieve unicorn titles. Companies such as SpaceX, InstaCart, and Clubhouse have achieved unicorn titles.
With the help of investors such as Bessemer Venture Partners, Cowboys Ventures, and more, Guild has tripled its previous $1 billion valuation in 2019 and now sits at a new valuation of $3.75 billion.
With the newly earned funds, Guild hopes to create more opportunities for students to obtain certifications and degrees. It also intends to hire more full-time coaches who can provide training and guidance to its clients.
Furthermore, the company wants to keep working with historically black colleges and universities to promote greater diversity in the workplace
Is Guild Education Making a Profit?
Guild Education has certainly become a force in the industry!
The business was recognized by Forbes magazine as one of three women-run companies on its “The 100 Cloud” list.
Their company has grown from just 5 people to over 4 million in less than 10 years.
Conclusion: How Does Guild Education Make Money?
Here’s everything we know about how Guild Education makes its income. We’ve gone through their entire marketing strategy and explained each source of revenue. Hopefully, you found it interesting!
Today, as the world becomes increasingly digital, it is critical for professionals to learn new skills that can help advance their careers and grow their companies. With Guild Education’s immersive training and courses, students can become leaders in design, development, coding, and entrepreneurship.
As far as the Guild Education business model goes, there are some things that could definitely be better for consumers. If these improvements were made, we believe people would be happier overall with the product.
You may like to read: The Best Profitable Small Business Ideas in North Carolina