That monetization strategy makes sense, though I'd find out what such institutions are looking for in writing software before going too far.

I'd suggest refining who your target audience is. Writers and readers is far too broad. Having a better sense of who would use this will help you develop and position the product much better. As it stands, when I hit the site I can't tell if it's for adults or children. The answer is probably both but when you go to start marketing this you'll have to choose one.