Earlier this year I tried something new.  Having been selling used instruments for a while, I started thinking about how I could generate income on a more consistent basis.  I remembered something my Dad had mentioned to me years ago – teaching guitar.

There are no shortage of guitar teachers out there, but I didn’t really think I had much to lose by giving it a shot.  If I was going to do it, I was going to attempt to earn good revenue at it.  Rather than teach private lessons I decided to run group classes.  There are several reasons for this.

I can charge approximately $20 per 45 minute class.  That is a reasonable going rate for guitar tuition.  However I value my time at much more than that.  But if I have a class of 4 students, each paying $20 per lesson, I am technically making $100 in 45 minutes ($133 per hour).  That is a figure I am more happy with.  My plan for this year is to run 2 classes in an evening if there is sufficient market to support it – and I believe there is.

Teaching guitar

Most people would probably be quite happy earning $133 an hour.  While I am pleased that I can do that, there are only 2 potential evenings per week I am available to teach.  My full time job occupies several evenings per month, then there are birthday parties and various other events to attend.  I also like to have at least 2 evenings off in the week to relax and spend time with my family.  This is where the idea of multiplication comes in.

Imagine I organize a group guitar lesson.  4 students, each paying their $20 for the 45 minute lesson.  But instead of me teaching the class, I pay an instructor $30 for 45 minutes ($40 an hour).  The instructor teaches my course material, but does it from their own home.  So my income would be $80 from the students, and the expenses would be $30 to the instructor.  Base profit = $50.

The reason I like this is simple.  Once the class has been organized, I don’t need to do anything else, but I would still be earning $50 per evening class.  I could be sitting at home, enjoying a night with my wife and kids, and still be earning $66 an hour.  Yes, that is only half what I can make by teaching the course myself, but this multiplication can grow.

Let’s take the principle a step further.  What if I can organize 3 classes per week all taking place in different parts of the city?  Or what if 50% of students who complete their course decide to carry on with group lessons (current retention rate is higher than 50%)?  How much potential is there for growth?

You see, I am limited to the number of hours / evenings I can work.  By multiplying myself and still paying a guitar teacher a decent wage, I can be earning on my days off.  I could take my wife out for a nice meal, knowing that I was being paid to do it!

So now comes time to find some good guitar teachers in my area……