Pricing & Marketing Strategy

Yuanfudao’s aggressive pricing strategy is made possible by AI, economies of scale, and of course, China’s massive population. Group lessons are Yuanfudao’s core business offering. On average, each lesson is priced at CNY 15-30, which is far below offline tuition alternatives that can exceed CNY 500.

To expand its user base, Yuanfudao offers its in-app currency “ape coins”. Members can earn ape coins by inviting their friends, while coupons are also extended to new joiners.

Yuanfudao’s courses are either free or relatively low-cost. Yuanfudao offers competitive pricing to undercut close competitor Zuyebang (e.g. Winter courses at CNY 600-900, lower than Zuoyebang's CNY 900-1,400)

Users can preview full lessons before committing to purchase a course. Furthermore, Yuanfudao initially offered a large number of courses worth CNY 1.