1) Find out the goals of the student. Be careful that you are not just performing homework assignments. This won't be good for you, the student, and everyone else involved, while it may be easier for you. I am still trying to figure this part out. How can you completely trust that any goal the student puts forth is not current university classwork, or that they are not being paid to supply answers for another class? I don't know. Whatever instruction path you take, have at least a general lesson plan. Find out if the student will be able to uphold their end of the deal; eg are they planning on using a TI-80 or some obscure IDE?
2) Have everything in writing. Create a good contract that specifies everything that will happen, including what is expected of the student and what is expected of yourself. If terms & conditions change, document this. Think carefully about loopholes and so-called Acts of God. Document how communication will take place between you and the student. If possible, make a voice recording of the student agreeing to terms & conditions. Don't get yourself stuck in a long-term contract that you cannot uphold. If the student has extenuating circumstances - eg health issues - the time to consider them is now. Consider also how much time you allow for the student to show up. Myself, I feel that it is the student's hour, so I am allowing h/h to show up at any time during that hour. Might need to rethink this, though, if it becomes problematic. If you or the student are remote desktopping, there are security issues to consider as well.
3) Require payment first. Specify how this payment will be made and for what. Remember that payment processing fees may take money out of your pocket. Don't make payment the only issue, though, or you might come off sounding untrustworthy,
4) Follow up. Think about it from the students' perspective; you've just told them that you can perform a somewhat specialized service if they pay you money first. The more you let them know that you have a schedule and a life, the more you will appear a real person. With the crazy life I have watching my 2-y-o, I have to make certain that professionalism is maintained as well.
5) Watch your time. Don't overextend. The more you do, the more will be expected and the less professional you may appear. But do uphold your end of the deal to the best of your ability, and communicate well in writing. (Also, remember that your student may be in another time zone.)
If anyone else is pursuing something similar, please let me know. I'd sure like to trade notes as this goes along.
I'm publishing a book to be released next month for students who are interested in entering the game industry, but I didn't mention online tutors as a resource. How would students find out about you? Is there a central tutoring site?
Thanks for the tips, very helpful.