Considering that most teachers (including me) charge $50 per hour for personal lessons at home it's actually a pretty good deal. For $49.95 per month you've got my personal attention as many times as you want for the whole month as opposed to just sitting in front of me for an hour and trying to memorize everything, then having to leave when your times up and the next student walks in. I correspond with each student numerous times a week and usually end up spending a couple of hours on each email writing out tabs and recording MP3's showing how to do it.
There's no commuting involved, no equipment to carry and you get to keep a copy of exactly what the lesson involves and study it at your own pace instead of struggling to get it done in time for the next lesson.
Plus I keep an ongoing database on your progress and keep every MP3 you send me so I always know how well you're improving.
It's a great alternative for those that either can't commute or live out in the sticks somewhere.
I'm also open to any kinda lessons you want, including just learning riffs and tricks or figuring out solos for ya..

Think of it this way... I've got some guys who show up for lessons here who take 5 minutes to set up and tune their guitar, spend another 10 minutes showing me that they didn't learn their last lessons properly. They're all uptight about playing in front of me so they can't do it properly... Then the rest of the lesson is spent trying to show the guy how to do as he watches me and I try to show him over and over again how to do it.
An hour later his dad picks him up and he forgets half of what I've taught him.

If you take lessons from me online, I spend about 2 or 3 hours on it...you get a hard copy of each lesson, a complete description of how to play it and why it's played in a certain way. You get an MP3 of me playing it at several speeds, plus homemade background music if necessary.
Then your lesson involves doing your own MP3 at home and sending it to me. When I hear you I criticize it and send you another MP3 showing where you're making the mistakes etc... take parts out of your lead and repeat them in my software and put them on one channel while I play it the right way on the other channel... You can study this stuff as many times as you want and you don't have to wait a week to see if you got it right.
With some students they're getting the equivalent of 20+ hours worth of lessons each month.