Reaching your goals through running has become a challenge before the Corona pandemic. You can be a professional with years of experience or a student who has left college and wants to join the workforce. After the epidemic, companies are only looking for the best talent across the board. Therefore, you must acquire new skills based on the requirements of your industry. But there is a challenge. WEATHER. Do you want to join an institute or university for new courses? Then, you have to juggle between your work (as a professional) or, attend classes (as a student). But, online digital platforms like Udemy meet your needs by offering more than a million online courses from reputable instructors for a modest price. With that said, after browsing the Udemy website and being satisfied with the courses offered, are you thinking about the Udemy business model? How does this platform generate money? Then you have come to the right place. Stay tuned and you can get the perfect details. Let us know about Udemy first and then we’ll move on to the topic of this article, okay?
Udemy:
A combination of two words: you and Academy, this platform has gained worldwide recognition. The reason, facilitates the online learning process devoid of a physical institution. Little did its founder do, Eren Bali knew, his idea will unleash a wave of online digital platforms that will change the very landscape of education. Currently, it has 1.30,000 online courses. With the last sentence, let’s fast forward to the Udemy business model.
Udemy Market Place Business Model
Like Amazon and Flipkart, Udemy also hosts the courses of various instructors on its online platforms and sells them to deserving students. Udemy is a simple platform for instructors to display their courses, and according to their policies, it does not own the content. In fact, even the prices of each online course are decided by the instructor. But Udemy charges for administrative services and various marketing options. Let us now focus on this topic.
How does Udemy make money through its business model?
Udemy even offers free courses. However, it is on the basis of paid courses, this platform generates revenue of 2 billion every year. A student can choose courses in more than 80 languages. Also, the business model is divided into two flawless types. The first type is for an individual and the second, for companies.
There is no fee for the instructor to organize their course on the platform. However, a student may have to pay fees to attend a specific course. The cost structure of a course through which Udemy generates revenue is through the acquisition of a student. The process is the following:
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A popular instructor will get the majority of his students through word of mouth marketing or rave reviews. The instructor can also advertise their own courses and have students sign up for the course using a coupon. In this situation, you receive 97 percent of the total course fee. Udemy charges a minimum 3% administrative fee.
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Udemy can also promote a course through YouTube, Google, Facebook, and various methods. If a student opts for a course through a channel, the instructor will have to part with 75 percent of the total fees. However, Udemy gives the instructor the freedom to limit the number of times a course is shown on a channel. The instructor can also decide the type of channel where his courses can be shown to the public.
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If a course is selected through the Android or iOS app, the platform gets 30 percent of the total fees.
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Let’s say a student comes to the Udemy website and opts for a course without any instructor coupons. The course fees are then shared 50 percent between the instructor and Udemy.
Are you familiar with the Udemy business model designed exclusively for small and medium-sized businesses and large organizations? Called “Udemy for Business,” it focuses on empowering employees to develop their skills. In this type, there are two plans called Team Plan and Business Plan.
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Team plan: it is aimed at companies with a staff of 5 to 20 employees. Yes, there is an annual membership and the minimum requirement must be five users.
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Business plan: designed for companies and organizations that have more than 20 employees. Prices may vary with the selected courses and the duration of the training.
Udemy has also granted a two-week trial period for both plans. If the Company does not find the training satisfactory, then it may choose other options.
conclusion
Udemy’s income-generating model is flawless and extremely attractive not only to the instructor but also to the students. The main reason Udemy achieves success is because it provides value, convenience, cost reduction, brand awareness, and easy access not only for the student but also for instructors. In addition, the platform offers a wide variety of free technical features for instructors to take their courses and provide training to students.
Overall, Eren Bali has made his dream of offering online courses to those in need come true through his digital learning platform. His model has caused more than a million active professionals and students to acquire new skills through courses on the Udemy Platform. According to recent news on the website, the payment structure for instructors is bound to change. Yes, there will be more changes in the future, but until then, let’s salute Eren Bali and his platform for causing a revolution in the education industry.