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Business Model

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SaaS subscription pricing and revenue model for Hogwarts school management platform.

Business Model

Hogwarts operates on a tiered SaaS subscription model with per-student pricing, designed to scale from small schools to large government contracts.

Subscription Tiers

FREE

$0

For small schools getting started or evaluating the platform.

  • Up to 100 students
  • 1GB storage
  • Community support
  • Core features (attendance, grades, timetable)
  • Standard branding

PRO

Most Popular
$1.50/student/month

For growing schools that need custom branding and priority support.

  • Unlimited students
  • 10GB storage
  • Priority email support
  • Custom branding (logo, colors)
  • API access (1,000 requests/hour)
  • Advanced reports and analytics
  • Parent mobile notifications

ENTERPRISE

Best Value at Scale
$1.00/student/month

For school networks, government contracts, and large institutions.

  • Unlimited students
  • Unlimited storage
  • Dedicated account manager
  • 99.9% SLA guarantee
  • White-label option (custom domain)
  • Unlimited API access
  • SSO integration (SAML, OAuth)
  • Custom integrations
  • On-site training available

Billing Options

Payment Structure

OptionDiscountBilling
Monthly-Per-student, metered monthly
Annual15% offPrepaid yearly commitment
Multi-yearCustomNegotiated for government contracts

Payment Methods

  • Stripe Subscriptions - Credit/debit cards, automatic billing
  • Bank Transfer - For government and large enterprise contracts
  • Local Payment - Regional payment gateways for MEA markets

Free Trial

All paid tiers include a 14-day free trial with full feature access. No credit card required to start.

Revenue Streams

Primary Revenue

Per-Student Subscriptions

Core recurring revenue from monthly/annual subscriptions based on enrolled student count.

~85% of revenue

Enterprise Contracts

Large multi-school and government contracts with custom pricing and SLAs.

~10% of revenue

Secondary Revenue

API Overage

Usage-based billing for API requests exceeding tier limits.

White-Label Licensing

Premium fee for schools wanting custom domains and complete rebranding.

Professional Services

Implementation consulting, data migration, and custom training programs.

Marketplace (Future)

Commission on third-party integrations and add-ons sold through platform.

Market Opportunity

MEA EdTech Market

2024

$14.4B

MEA Education Technology

2030

$33.0B

14.6% CAGR

Target Markets

Market2024 SizeGrowthK-12 Share
Middle East EdTech$11.3B9.1% CAGR44%
GCC EdTech$3.02B6.74% CAGR44%
Saudi Arabia$2.32B12.77% CAGR-
Egypt$302M14.0% CAGR-
South Africa$929M11.78% CAGR-

Addressable Market

With K-12 representing 44% of the EdTech market, the total addressable market (TAM) for school management systems in MEA exceeds $6B by 2030.

Unit Economics

Example: 500-Student School (PRO Tier)

MetricValue
Monthly Revenue$750
Annual Revenue$9,000 (or $7,650 with annual discount)
Customer Acquisition Cost (CAC)~$500
Payback Period<1 month
Gross Margin80%+

Example: 5,000-Student Network (ENTERPRISE)

MetricValue
Monthly Revenue$5,000
Annual Revenue$60,000 (or $51,000 with annual discount)
Customer Acquisition Cost (CAC)~$3,000
Payback Period<1 month
Gross Margin85%+

Growth Strategy

Phase 1: Freemium Acquisition

Use FREE tier to acquire small schools and prove value.

  • Target: Schools with ≤100 students
  • Goal: Build user base and testimonials
  • Conversion path: Grow beyond 100 students → upgrade to PRO

Phase 2: Land and Expand

Start with one school in a network, expand to entire organization.

  • Pilot program with single campus
  • Demonstrate ROI and user satisfaction
  • Propose network-wide ENTERPRISE contract

Phase 3: Government Contracts

Secure ministry-level partnerships for public school networks.

  • Respond to government RFPs
  • Offer custom compliance and integration
  • Negotiate multi-year contracts with volume pricing

Phase 4: Regional Expansion

Expand from Sudan/MENA to broader African and Asian markets.

  • Add language support (French, Spanish, Hindi, Mandarin)
  • Obtain regional compliance certifications
  • Partner with local education consultants

Revenue Projections

Year 1

$240K ARR

  • 100 schools
  • 98% CSAT
  • <3% monthly churn

Year 3

$6M ARR

  • 2,500 schools
  • 85+ NPS
  • <1.5% monthly churn

Year 5

$36M ARR

  • 15,000 schools
  • 50+ countries
  • IPO-ready metrics

Cost Structure

Infrastructure Costs

CategoryDetails
Cloud HostingVercel (serverless), Neon PostgreSQL
StorageCloudflare R2 (S3-compatible)
Email/SMSResend, Twilio
PaymentsStripe (2.9% + $0.30 per transaction)

Operational Costs

CategoryDetails
DevelopmentCore team + community contributors
SupportTiered support based on subscription level
SalesEducation conferences, digital marketing
ComplianceAnnual security audits, certifications

Target Margins

  • Gross Margin: 80%+ (cloud-native efficiency)
  • Operating Margin: 20%+ at scale
  • Customer LTV:CAC Ratio: 10:1+

Related Resources

SaaS business model for Hogwarts school management platform.