We have 3 payment models:

Model A (recommended): company pays upfront 

(BCG, BCGDV, IHI)

1. The company buys points for students upfront, and the students have the whole term to use up the points (e.g. 6 months for BCG; 5 months for IHI); 
2. We charge a matriculation fee which covers textbooks, reporting, customer support, etc.; 
3. We have a spreadsheet template that has the user's name and the number of points they want to order. We can put any number of points there. Each student can do a different number of lessons if they would like; 
4. We email that they have been enrolled and that they can start booking;
5. We can add people to a term and add points to people; and
6. We generate a report at the end of the term, and then students have to pay for any missed lessons.

The criteria on whether students need to improve their GBC score for their lessons to be paid for are defined by their HR, not us. Our responsibility ends with giving the company what they need to fulfill their own internal requirements.

Model B: student pays and gets reimbursed

(ADL)

1. HR does the enrollment process. ("Who wants to do lessons?")
2. TEF enrolls the students with 0 points, and the students buy their own points before the term starts (and after they are enrolled);
3. Students pay their own matriculation fee (when a student buys new points for a new term, the admin fee gets billed automatically);
4. Students have to use 80% of the lessons to be reimbursed; 
5. We issue an attendance report as soon as the student attends 80% of their lessons; and
6. We can add people to a term and add points to people.

*Note: in ADL's case, we are the recommended service provider, not the provider. ADL students get reimbursed regardless of whether or not they improve their GBC score. 

Model C: discount code

(McKinsey, Nomura, HLAB)

1. We are just the recommended provider; and
2. We give them a discount code.

*Note: The HR of McKinsey thinks we are awesome (but the company doesn't want to work with us because of BCG). She recommends people who are starting with McKinsey or university-leavers to study with TEF.

Why Model A is good for the students & HR

• Students are more motivated to take lessons because they have already committed to a certain number of lessons (50 or 100 lessons in 6 months. 50 lessons in 6 months is about 2 25-minute lessons a week).
• Students are more motivated because of loss aversion—people react more strongly to losing things than gaining them. (Having to pay their company for lessons missed will feel more painful than the joy of getting money back that they've already spent.) 
• Model B is a hassle for HR people/their company because each student keeps coming to them for reimbursements. With Model A, HR people can just enroll, pay, and forget about it until the end of term, so they can free their headspace and focus their time and energy on other important things that need their attention. 
• Only the good students tend to take lessons with Model B. 
• You basically get more value for your money because more people mentally include English lessons in their schedules ahead of time instead of trying to find free space in their schedules. Kind of like the "rock, pebbles, and sand" story.

Why Model A is good for us

We want to work with companies who have the budget and motivation—ones that are willing to pay the bills. This way, we get a lot of students in one hit (e.g. 150 students with 50 or 100 lesson points at the beginning of a BCG term VS 20 points per student at the beginning of an ADL term), and the process is quick and easy.