B2C learner (Duolingo, Coursera, MasterClass): end consumer pays. Pros: fast feedback, no procurement cycle, clean unit economics. Cons: very high churn (consumer-typical 5-10% monthly), CAC compresses margins, content-treadmill cost is real. Best when: product is habit-forming, consumer-grade design, branded by category leader.
B2B school / district (PowerSchool, Renaissance, Securly): school or district pays. Pros: low churn (annual contracts, multi-year renewals), large per-deal ARR ($5k-$500k), strong moats once installed. Cons: 6-18 month sales cycles, procurement / RFP processes, buyer (administrator) different from user (teacher or student), high implementation cost. Best when: solves a measurable district-level problem with admin sponsor.
B2B2C teacher (Kahoot, Padlet, Edpuzzle): teachers adopt free; schools or districts upgrade to paid for additional features. Hybrid model. Pros: viral teacher network effects, bottom-up adoption, lower CAC. Cons: hard to monetise — many teachers won't pay personally and don't have authority to buy.
The hybrid trap: founders try all three and fail at all three. Pick one as primary, accept that you're constrained by its rules, and build for it. Switching channels mid-stage costs 12-24 months.
B2B employer / upskilling (Coursera for Business, Udemy Business, Pluralsight): a sub-segment that behaves like enterprise SaaS rather than education. ACV $50k-$500k, sales-led, retention driven by manager mandate. Often the fastest EdTech path to revenue but limited in TAM.