Byju's Introduces New Sales Model, Managers To Transition Into Mentors: Report

Raveendran encouraged associates to grow their teams by inviting friends to join as sellers and assume managerial roles. He envisioned building a sales force of 50,000 strong within the coming year

Byju Raveendran

Source : Getty

The cash-strapped edtech firm Byju's has substantially slashed the prices of its offerings to democratise education. The annual subscription fee for Byju's Learning App has been lowered to Rs 12,000 (including taxes) annually. At the same time, Byju's Classes and Byju's Tuition Centres (BTC) are now priced at Rs 24,000 and Rs 36,000, respectively, for a full year of classes, reported Business Standard, citing familiar sources.

In a discussion with over 1,500 sales associates and managers, Byju's founder, Byju Raveendran, introduced a change in the company's sales strategy, highlighting the importance of adopting a sustainable and scalable approach. This initiative aims to empower the sales workforce while ensuring that quality education becomes more accessible.

Raveendran encouraged associates to grow their teams by inviting friends to join as sellers and assume managerial roles. He envisioned building a sales force of 50,000 strong within the coming year, claims the report.

Raveendran invited associates to share innovative ideas directly with him, assuring them of his complete support and reaffirming his dedication to reinstating Byju's to its previous prominence. He emphasised that the Byju's of 2024 remain faithful to the Byju's of 2015, when the company introduced its learning app, revolutionising edtech and reshaping education worldwide.

According to the report, Raveendran told employees, “With the ongoing implementation of Byju’s 3.0, there is no doubt that the company will not just maintain its leadership position but also improve it in the coming years.”

Under the new model, managers will adopt the role of mentors rather than taskmasters. Employees are actively encouraged to report any mistreatment, coerced sales, or discourteous conduct by managers directly to Raveendran. This shift is poised to instigate a cultural transformation within the sales teams' mindset.

Byju's has successfully transitioned from a push-based to a pull-based sales model, propelled by a genuine "love for learning" rather than the ‘fear of missing out’. In this paradigm shift, managers will assume the role of coaches dedicated to supporting and empowering the sales team rather than enforcing rigid call quotas. Associates will enjoy the freedom to work on their terms without the burden of tracking the number of hours spent on calls. Byju Raveendran emphasised employees, "If you can get results by spending just half an hour a day, please do that. Want to only work on the weekends? Why not?" He advocated for a results-oriented approach, as per the report.

Byju’s sales associates will now receive 100 per cent of the sales they close directly into their accounts on the next working day, while managers will receive 20 per cent of the same from the company. Raveendran informed the staff, “The average sales salary is Rs 40,000 monthly. So, close a couple of sales, and you can get not just your salary but also clear your arrears. You can earn many multiples of your CTC through this model.”

After clearing arrears, associates will receive 50 per cent of the sales they close, while managers will receive 10 per cent. Raveendran stressed that this "four-week experiment" has the potential to become a "forever model," noting the exceptional response during the first week, with some sales team members already earning salaries equivalent to Rs 50 lakh per annum CTC.

With the top of the funnel continually expanding, boasting 250 million free users, Raveendran assured the staff that there is ample interest in the products and services. Sales associates are urged to experience the products firsthand to grasp their exceptional quality and leading market position. Raveendran emphasised, “I want you to understand what it means about the quality of our content and the power of our brand. So, your job is not to sell, but to counsel. You just have to guide the students and parents who are already inclined towards the transformative learning that Byju’s offers. You are not sales people; you are education counsellors, empowering students to become better learners.”

Byju’s has introduced a new policy that ties the salaries of sales staff directly to the revenue they generate each week. As per an internal document reviewed by Business Standard, Byju’s will now directly compensate sales staff with a percentage of their weekly revenue at the end of each seven days. This policy, implemented on April 24, will remain in effect for four weeks until May 21, 2024.