Valuable service or exploitation? – Iconlib

I tutor next to me for a few extra bucks. I enjoy work and can earn enough for my weekend activity for an hour or two on an otherwise boring evening.

This past week, I was working with a regular student. They left Wyzant and offered to pay me through an alternative service like Venmo. I refused, which surprised them. They asked, “But Wiszant takes a cut at your hourly rate. It seems like a win-win to me: I pay the same rate and you can keep more of it. Isn’t Weizant exploiting you? “I saw an opportunity to discuss the cost of the transaction.

It’s true that Wyzant takes a cut, and that’s a significant cut. They take 25% of my hourly salary. I charge $ 40 / hour, they get $ 10 / hour and I keep $ 30 / hour. Why don’t I want a 25% salary increase and take the student on their offer?

Reason: Wyzant provides me valuable services. Services cost me more than 10 / hour:

-Wyzant provides online meeting capabilities. Without them, I need to buy a zoom account (or something similar)

-Wizant verifies, manages and guarantees all payments. Whatever it is, I get paid. They exploit risk and track criminal accounts. Without them, I would have to manage my own accounts.

-Wisant helps me match up with students. They do all the searching and advertising for me. Without them, I would have to handle heavy search and advertising costs.

-Provides Vizant Calendar software. Without them, I would have to manage my own appointments.

-Wyzant provides legal security. They have a complete arbitration process for complaints or abuse. Without them, I would have to invest in legal aid.

In short, Wyzant dramatically reduces transaction costs if I can personally teach. They take $ 10 / hour of my wages, yes. This is the “seeing” aspect. But they save me a lot more dollars on transaction costs. That is “unseen”. I am rich because of Weizant. If their goal was exploitation, they were doing a bad job.

I also mentioned that Wyzant also reduces student costs:

-Wizant thoroughly examines teachers who use their platform. There is no need for the tutor or the student to run a search to verify their qualifications.

-Wisant prevents payment fraud. I can’t claim extra money or anything else because Wyzant has a complete payment process.

Wyzant makes tutoring better for both students and teachers by providing a platform to reduce transaction costs.

This post may sound like Wyzant’s ad, but it’s not. Weizant is simply a stand-in for the countless firms and organizations that exist in the market economy. They do not exist because they are exploitative, but because they reduce the cost of transactions. If companies do not reduce the cost of transactions, they will disappear from the market.

Isador Johnson is a free speech advocate on campus, an economics and philosophy student, and regional coordinator of Students for Liberty.

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