Because the pre-construction and publicity of online education is very expensive. Before they really enroll students, they have to recruit many excellent teachers to help them record courses, and these all require expensive costs. Nowadays, there are many tutoring softwares that need celebrity endorsements, so in the development of new education, it is necessary to burn money in the early stage to follow up.

First, the pre-construction of online education platform is very expensive. Every industry needs a certain amount of principal at the beginning of its business. The reason why these education industries burn so much money is because their preparatory work in the early stage requires huge expenses. Although I only saw a teacher lecturing on the opposite screen behind the online teaching and research class, I didn't see the efforts behind them. Online education companies should build their own network to ensure that the network is good when many people attend classes together. They also need a big company to run other departments, so the upfront cost is huge.

Second, the company needs to operate before enrolling students, and it also needs a lot of publicity. The platform of online education company is being built, and it needs to have its own operation department in the future. This operation department will give the trend of the future platform and spend a lot of money on the operation in the early stage. These educational platforms have to record some high-quality videos to attract students before they start their business, that is to say, they have to recruit these excellent teachers before enrolling students, but these excellent teachers are often expensive. If these online education platforms want to win at the beginning, they must invite some people with public influence to speak for them. The price of each endorsement of these public figures is also relatively expensive, so the online education platform really burns money in the early days of its launch.

Third, there are many online education platforms, and we must win by price war. At present, there are many entrepreneurial companies of the same category in every industry. If they want to win among many brands, they must rely on price to attract consumers in the early stage. The cost of online education platform has been very high from the beginning. In the later operation process, it is necessary to lower its selling price to gain more consumers, which will lead them to face losses for a long time and win the trust of consumers. The length of the price war is often unknown, so these online education platforms must be prepared to fight price wars with others in the early stage, and they must also be prepared to accept losses for a long time in order to meet future profits. Therefore, they will prepare a large amount of funds in the early stage, which will also ensure their long-term and stable development.