Byju's sales team misses target despite 30% subscription fee reduction

Majority of the sales team, who shifted to a revenue-linked payout model last week, have yet to secure a sale for any course, despite Byju's reducing prices of educational products by 30%

Even as the admission season commences, financially troubled edtech company Byju's is encountering low sales this year. The majority of the sales team, who transitioned to a revenue-linked payout model last week, have yet to secure a sale for any course or subscription, despite the firm reducing prices of educational products by 30 per cent.

The yearly subscription fee for the company's flagship Byju's Learning App is now fixed at Rs 12,000, inclusive of applicable taxes. Meanwhile, the annual fees for Byju's Classes are set at Rs 24,000, and enrollment in BTC (Byju's Tuition Centre) will require students to pay Rs 36,000 annually.

 

The Financial Express (FE) quoted a source as saying, "Many of us haven't managed to sell any courses in the past week, and hence haven't received any payouts. The perception around the brand remains a challenge for us when we try to convert."

Byju's recent implementation of a revenue-linked payout policy appears to have heightened uncertainty among employees, contributing to the company's ongoing challenges with high attrition rates and mass resignations, the report said.

The report quoted a sales executive as saying, "Quota-based incentives are common in sales roles. However, with our regular salaries suspended, it adds further uncertainty to our immediate future."

An employee with Byju's said the content team's manager said there would be no further layoffs. "But the teams have already lost all faith in the management. Many people are resigning every day across all teams," the employee said.

The report said that the edtech firm is rehiring certain employees who were let go during the previous round of layoffs a month ago. However, they are being brought back at reduced compensation levels compared to their former positions.

FE quoted a former BTC employee, who worked for the firm until March, as saying, "I received an offer from Byju's this morning to rejoin the BTC centre in my hometown. The offer I have received is 50 per cent lower than what I was earning before being told in March that I was no longer required."

A former Byju's product manager said the employees getting rehired are being offered salaries 30-40 per cent less than before.

During a meeting on Wednesday, founder and chief executive officer (CEO) Byju Raveendran asked associates to expand their teams by inviting friends to join as sales representatives and to take on managerial roles. Additionally, he said he envisions having a sales force of 50,000 members within the next year.