asd33313131

17 ms·

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by asd33313131 8y ago
The one difference here is the risk component of equity financing versus debt financing -- with debt, you have to pay no matter what, with equity, you pay only if there is money left over. I think in the future, as the cost of capital comes
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by asd33313131 8y ago
Getting a credit limit of 10k is tougher than 2k but you're right, there are other ways to finance learning. We think there are a couple reasons why more people might like our model: 1) the income share agreement means that they aren&#
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by asd33313131 8y ago
Awesome thanks! We believe this model can be helpful and at scale
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by asd33313131 8y ago
Most of the current cohort lives in high cost areas but there is probably a subsidy (like free rent) or savings in there somewhere. I think with a family especially $2000 is not enough without other savings. We hope in the future we can mak
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by asd33313131 8y ago
The income share agreement is strict (Leif helps us handle that). For the staffing agreement, there's no penalty if they decide to work somewhere else. Ultimately we have to rely on the positive relationship we have with the trainee.
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by asd33313131 8y ago
Yep - although not for a bit. We have to do a different collection model than income share agreements to do it effectively right now.
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by asd33313131 8y ago
I think it has something to do with the UK search results/expressions. The US one (the one I see, from our IP) is about "modern labor economics" and "modern labor market"
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by asd33313131 8y ago
Everyone who fills out the application answers this question. It's a little harder to do this test now (because of selection bias) but in the recent past when we were advertising the program we wouldn't tell people about the staff
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by asd33313131 8y ago
I think we would put it more like staffing platform + a trainee/school program. But we combined them because we saw a gap in the market. Pure schools need to make money on the school portion (they have to have high gross profit per stu
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by asd33313131 8y ago
There's no penalty if they don't take our offer. We are likely going to remove this clause. Interestingly, virtually everyone who applies (> 98%) is fine with this.
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by asd33313131 8y ago
We're not tied to the name. If it ends up being a major issue, we will change it for sure. We think of it more along the lines of "Labor party" or "labor rights" or "labor market" than what you mentioned.
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by asd33313131 8y ago
Yep - we think client projects are a big part of the learning process. We haven't designed it to be like their program but it's in the same ethos.
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by asd33313131 8y ago
Marginal rates (brackets) are a good idea. Right now, too complex for the capital markets around this product and we think (possibly) for the customer, so we're sticking to the flat rate.
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by asd33313131 8y ago
Yep -- 100% -- right now it's web development but in the short term we'll bring in other types of software development. Medium term, other knowledge work like data science and finance. Longer term, nursing. Nursing (and other fiel
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by asd33313131 8y ago
In some sense this is very true. Michael Porter (Harvard prof, wrote Competitive Strategy), thinks that basically everyone in an advanced economy has to constantly increase their skills, but as a result, everyone produces more for less mone
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by asd33313131 8y ago
Another one starting in May
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by asd33313131 8y ago
If we wanted to, pretty soon actually -- we have been involved in the financing side of income share agreements for a couple years now so we can do this competitively. As for sustainable profitability, that will depend on our relationship (
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by asd33313131 8y ago
I think in the end, we will remove it or change the language so dramatically as to remove it. We have been surprised by how many people are totally fine with this clause, though, about 99%.
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by asd33313131 8y ago
I think in the future it will be more like marginal tax rates. Right now it comes down to how we finance the program. The market for income share agreements has been, so far, flat percentages. As it develops, this will change as the various
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by asd33313131 8y ago
You're right, we will add this
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by asd33313131 8y ago
It's mostly to do with the income share agreement. Doing it outside of the US is complicated and Leif, our vendor, doesn't do outside of the US yet. That affects the availability of capital (big funds would rather stick to the US
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by asd33313131 8y ago
We have rolling cohorts starting every two months right now, eventually it will be every month.
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by asd33313131 8y ago
Right now you need the right to work in the US, so if they have that, then yep. We will have meaningful data in six months to share.
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by asd33313131 8y ago
Great point, right now we're trying to filter for that desire to be in the field for a while, but ultimately I think we will add a lot of material that gets people ready for the long road ahead of learning. We see ourselves right now a
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by asd33313131 8y ago
Yep, the income share agreement has a clause where, if Leif asks, they need to share their tax information. This is only if other methods have failed, however.
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by asd33313131 8y ago
Right now there's no penalty if they don't take our offer. It could turn out in the future we don't need this clause at all.
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by asd33313131 8y ago
If they drop out, they owe in the proportion they attended. So e.g. if they drop out halfway, they owe 12 months instead of 24 months. Also they owe regardless of their field. We do this for two reasons. We are giving people straight cash a
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by asd33313131 8y ago
Right now (without the stipend) they cost 17% of income for 2 years (for income over $50k) which is just (slightly) more than us. Adding a stipend their prices either have to go up (3 years instead of 2 years paying back, for instance) or t
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by asd33313131 8y ago
Yep - not in the next 6 months though.
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by asd33313131 8y ago
15% of income for 12 months instead of 24 months.

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