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Troubled edtech firm BYJU’S seeks to distance itself from its earlier aggressive sales tactics to a strategy where salespeople are tasked with counselling rather than selling, as the company aims for revival amid increasing challenges.

As part of the new strategy, BYJU’S sales executives will have increased flexibility and greater earning opportunities, sources aware of the development said. The company has also reduced its product prices around the start of the academic year.

“BYJU’S has completed its transition from a push-based to a pull-based sales model, which is driven by love for learning rather than the fear of missing out. Managers will now act as coaches, focused on supporting and enabling the sales team rather than enforcing strict call quotas. Associates will have the flexibility to work on their own terms, with no tracking of the number of hours spent on calls,” a source noted.

“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?,” Founder and Group CEO Byju Raveendran is said to have communicated in a meeting with over 1,500 sales associates and managers.

According to sources, BYJU’S has introduced a system where sales associates can receive 100% of directly closed sales into their accounts the following working day, with managers receiving 20% of the same from the company—at a time when the edtech company struggles to meet payroll.

Following the clearance of arrears, associates are slated to receive 50% of closed sales, while managers will obtain 10%.

“The average sales salary is Rs 40,000 per month. 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,” Raveendran informed the sales team.

The CEO highlighted that the “four-week experiment” has the potential to become a “forever model”. 

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Drop in price and change in approach

Besides, the edtech firm has slashed the annual subscription fee for its BYJU’S Learning App to Rs 12,000 (inclusive of taxes). As per sources, 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. The drop in the prices is around 30%.

Interestingly, the company is urging its salespeople to embrace a new approach to marketing these products. “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,” Raveendran communicated.

He encouraged associates to grow their teams by inviting friends to sell and serve as their managers, envisioning a sales force of 50,000 in the upcoming year.

With the new approach, managers will function as mentors rather than taskmasters, with employees encouraged to report instances of ill-treatment, forced sales, or rude behaviour directly to Raveendran to foster a cultural shift within the sales teams, sources said.

BYJU’S chief told the attendees that BYJU’S of 2024 is the same as BYJU’S of 2015 when the company launched its learning app and pioneered edtech. With the ongoing implementation of BYJU’S 3.0, it hopes to improve it in the coming years.

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BYJU’S battles

These developments follow the exit of BYJU’S India CEO Arjun Mohan, with Raveendran taking “a more hands-on approach in spearheading the daily operations” of the edtech company.

The beleaguered edtech firm has announced a reorganisation to streamline operations. It is consolidating its businesses into three focused divisions—the learning app, online classes and tuition centres, and test prep.

Also, several senior executives have departed from BYJU’S in the past month. The company also initiated another round of job cuts affecting more than 500 people in April. 

BYJU’S current employee count is estimated to be between 12,000 and 13,000, down from the peak of over 50,000 during 2022. It is expected to reduce its headcount to under 10,000 employees as individuals seek alternative opportunities due to the company’s struggle to meet payroll.

Besides a severe liquidity crunch, BYJU’S is locked in a tussle with a clutch of prominent investors, including Prosus, General Atlantic, Chan Zuckerberg Initiative, and Peak XV, who have sought to void the $200-million rights issue initiated in January by appealing to the National Company Law Tribunal.

BYJU’S is also engaged in a legal dispute with some of its investors in the Karnataka High Court.