Posted on: August 25, 2021 Posted by: Biên tập Viên Comments: 0

we ran the math with him the other day and realized that you know hey if he were going to a university he wouldn’t have graduated even yet um so net net he’s up about 470 000 versus where he would have been including university tuition and time by the time you would have graduated school let’s talk about lambda school and um how do you even start what started with the idea first because i think that’s interesting yeah so way back in the day we basically said let’s take a really good school uh code school and put it online um then you know we did that and started asking folks uh you know why aren’t you joining lamb to school how can we get you you know how can we make it a better fit for you and what we heard again and again for basically everybody we talk to is you know i it was a financial constraint so

i will i’m happy to pay for it but i don’t have enough money that’s why i’m going to school so i can get a better job um so is there any way that i can pay you back once i get a job and so we started thinking about that and like why why isn’t that a thing why can’t why don’t schools hold all the risk why don’t students you know only pay if they’re hired and started looking at various financial instruments that you could use to to make that happen uh eventually stumbled upon uh kind of experiment that milton friedman ran in the 50s or an essay he wrote

in the 50s about income share agreements um and kind of went from there and so lambda school is mostly built on an income share agreement got it and can you describe what an income share agreement actually means just if people are even interested in signing up so yeah so uh for lamb school students you basically don’t pay us anything unless and until you’re making more than fifty thousand dollars a year um and then you pay us seventeen percent of your income for two years at a maximum of thirty thousand dollars so basically it says you can study at lamb school at no upfront cost and if it doesn’t work out you don’t pay anything if it does work out you know you pay up to thirty thousand dollars what percent of people actually um actually end up going through versus the ones that um say hey i can’t afford i’m not gonna be able to pay the income share agreement uh almost everybody goes through with

it i mean that’s that’s a nice thing is that you know you don’t make any payments unless you’re making more than 50 000 a year so normally in with most debt instruments the reason people default or don’t make payments is because they can’t afford it because their income isn’t high enough so this almost solves for that by definition um so yeah got it okay and so how do you guys i mean it’s the complexities around this right it’s it’s like you have uh you know how do you enforce this type of stuff how do you if someone wants to do something like this i’m sure there’s people that want to do income share agreement thing right like um how did they even make that happen in the first place yeah so now it’s it’s uh becoming more and more standardized as time goes along so there are companies that will do the you know the servicing of the isa sorry i abbreviate income share agreement to isa uh there are companies that will do collections so you can really pull most of that off of the shelf um with a company like maritas or leaf or vemo so you can you know that piece has been figured out for you to some degree which wasn’t true when we were first getting started um and then

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the difficult part is making the income increase happen and that’s what you should spend all of your time thinking about got it yeah i i love i mean i would love to hear kind of some case studies some success stories because you’re sharing these all the time on twitter like you know x amount of people got hired today and they’re working for amazing companies right so just so people can get a sense what are two stories you can one or two stories you can speak to oh man uh just the other day i was talking to one of our first students who was ever hired um so he was living in central florida when he attended lambda school um his first job he got hired at was in ann arbor making i think it was 85k so you know immediately his his first job was making 55 000 a year


more than he was before and he paid us thirty thousand dollars over a couple of years um his second job that he took about a year and a little bit after he started the first job was making 150 um so now he’s making more than a hundred thousand dollars a year more than he would have if we ran the math with him the other day and realized that you know hey if he were going to a university he wouldn’t have graduated even yet um so net net he’s up about 470 000 versus where he would have been including university tuition and time by the time he would have graduated school so yeah it works really really well that’s amazing you know the other thing too from like those those marketers are listening to this right now if you think about it you put someone through this they’re they’re forever going to be your ambassadors they’re forever going to be the ones that are out there championing your cause right and that sounds like what they’re doing right yeah i mean we’ve we have you know every every indicator from a marketer’s perspective of you know product market fit we have students with lambda school tattoos we have students that you know will get their entire church for their entire family signed up for lamb to school or you know we’ll have one student will do lamb to school get hired and then their partner does lamb to school so it’s uh it’s pretty wild from that perspective um we can actually track you know this student got hired and then we can watch his entire neighborhood start to apply so it’s it’s pretty effective when you first started uh lambda school what was the what was like the mvp version of this just to see if this was gonna you know make it or not yeah so we started with kind of a hybrid school where basically you could either pay upfront or you could use an income share agreement um and we you know so we had in our first cohort we had like 18 students who were on an income share agreement and like two people who had paid up front and you know we’d found a way between me and my co-founder to you know not take an income and make that work um and then over you know over time the ratio basically became you know 98 of students on an income share agreement and we raised a little vc to make that happen um so the difficult thing about isas is um they don’t start coming in immediately and when they do start coming in it’s much more slow than upfront tuition would be um you can try different ways to finance it or to borrow against isas or something like that generally speaking you have to have some sort of data to really be able to finance it at a reasonable rate um so the early days are all about finding a way to stay alive and show that it actually works for your students got it and you guys have been doing this for how long uh we’re about to hit three and a half years since our first clearly it’s working uh it is working well enough yeah we’re not at the point where 100 of our graduates get hired that’s what we’re working on fixing right now yeah um but but yeah it works it works as well as any other school for sure i bet you austin if you’re saying that right now it’s still a pretty high percentage that are right i i have a high standard um of what is possible for sure i want everybody to get hired and most schools don’t really care so i would hope that we we can do a better job at that how do you make sure that lambda school continues to stay relevant and and up to date because things change so quickly because you guys are teaching uh mainly it’s it was a code school you guys actually teach design and other stuff now as well right uh well that’s one of our lessons um of how to keep it really high quality um is we we turned off the the code program for a little bit or sorry the the design program for a little bit um so we when it started working our instinct was well let’s start doing everything all at once basically um but we hadn’t built in the infrastructure to make changes across everything so we you know when we have one program or two programs we’re always testing we’re always iterating we’re always making it slightly better every day but we found that when if we were doing too much and we didn’t have the infrastructure built up the experience would start to decline because we weren’t able to take what we would learn in one track and apply it to all of the other tracks uh instantly um so now we’re we’ve kind of pulled back we’re just doing web development and data science right now and just in the us um we pulled back from our other countries that we had launched in as well um and we’re building you know systems and infrastructure with software that make it so that when you make a change once it automatically rolls out to all the other you know schools and all the other tracks um so that’s been a learning experience for us of how to go from zero to one is one thing but one to scale is probably ten times as difficult in education um so we’re preparing for that right now don’t forget to check out the next video over there okay over there and before we go open a new tab to learn more about the book we may or may not have other goodies tied to this book all right in a new tab you can check out the next video first in a new tab and we’ll see you later

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