Free to Learn — An interesting business model for driving school at China

Traditional driving schools charge a tuition fee of $600 or more, but Free to Learn (FTL) driving school not only learns to drive for free, but also gives each student extra $200. The event became an instant hit, and everyone in the entire driving school industry was waiting to see his joke, but FTL didn’t bankrupt, instead, they occupied 80% of the local market share.

FTL told the students that anyone who signed up for driving lessons only had to pay a safe driving deposit of $600, get a driving class to learn how to drive. If you have no more than two traffic accidents in a year, you will get a reward of $200. If you drive safely for four consecutive years, you will get a reward of $800. In other words, not only will the $600 yuan tuition you paid previously be fully refunded, but you will also earn $200, so how do you know if the students have violated the rules? It’s very simple. If you want to learn to drive for free here, you must buy your car insurance from FTL.  FTL cooperated with the insurance company by taking the students’ orders, and the insurance price was lower than the normal market price. There are more students buying car insurance here. FTL makes a lot of money from insurance commissions alone.

You may already feel that this model is awesome enough.  But the business model part two is even amazing.  Forty percent of people who learn to drive will buy a car immediately after getting their driver’s license, and 30% of them will buy one a year later.  FTL tells all students that when you buy a car elsewhere, you either have to pay the full price or pay 30% down, but when you buy a car at FTL, you only need to pay interest with zero down payment, and you can drive the car back directly, relying solely on the interest difference. The annual profit is several million.

FTL no longer makes money by provide driving training course, but by making money from cars and finance. This is actually a process of cross-industry, traffic diversion, and monetization. FTL uses its main product as a traffic diversion product and makes the driving school an entrance to car buying and subsequent car consumption. When FTL catches all the people who want to buy a car in one go, All subsequent consumption will goto FTL. The era of doing business to earn price differences is over. What will be earned in the future will be cash flow and resources integration. The better business model you designed, the more money you will earn.

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