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Reaching your goals through running has become a challenge before the Corona pandemic. You may be a professional with years of experience or a student who has passed out from college and wants to enter the world of work. After the epidemic, companies are only looking for the best talent in all domains. Therefore, you have to acquire new skills based on the requirements of your industry. But there is a challenge. WEATHER. Do you want to join an institute or college for new courses? Then, you have to juggle between your job (as a professional) or attending classes (as a student). But, online digital platforms like Udemy meet your needs by offering over a million online courses from renowned instructors for a low price. With that being said, after browsing the Udemy website and being satisfied with the courses offered, are you thinking about Udemy’s business model? How does this platform make money? Then you have come to the correct place. Stay tuned and you can get the perfect details. Let us know about Udemy first and then we’ll get to the topic of this article, shall we?
udemy:
A combination of two words: You and Academia, this platform has gained worldwide recognition. The reason, facilitates the online learning process devoid of a physical institution. Little did its founder, Eren Bali know, the idea of it will unleash a wave of online digital platforms that will change the very landscape of education. Currently, it has 130,000 online courses. With the latest award, let’s fast forward to Udemy’s business model.
Udemy Marketplace Business Model
Like Amazon and Flipkart, Udemy also hosts the courses of various instructors on its online platforms and sells them to students on the service. Udemy is a simple platform for instructors to display their courses, and as per their policies, they do 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 issue.
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 opt for courses in more than 80 languages. Also, the business model is divided into two impeccable types. The first type is for an individual, and the second, for companies.
There is no fee for the instructor to host your course on the platform. But, a student may have to pay fees to attend a specific course. The cost structure of a course by which Udemy generates revenue is through student acquisition. The process is the following:
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A popular instructor will attract most of their 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 via a coupon. In this situation, he/she gets 97 percent of the total course fee. Udemy charges a 3% administrative fee.
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Udemy can also promote a course through YouTube, Google, Facebook, and various other 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 in a channel. The instructor can also decide the type of channel where their courses can be shown to the public.
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If a course is selected through the Android or iOS app, the platform earns 30 percent of the total fees.
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Suppose a student comes to the Udemy website and opts for a course without any instructor coupon. The course fees are then shared 50 percent between the instructor and Udemy.
Do you know the business model of Udemy designed exclusively for small and medium businesses and large organizations? Called “Udemy for Business,” it offers training for employees to develop their skills. In this type, there are two plans called Team Plan and Enterprise Plan.
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Team Plan – Serves 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 depending on the courses selected and the duration of the training.
Udemy has also provided a two-week trial period for these two plans. If the company does not find the training satisfactory, they can opt for other options.
conclusion
Udemy’s revenue generation model is flawless and extremely attractive not only to the instructor but also to the students. The main reason Udemy achieves success is to provide value, convenience, cost reduction, brand recognition, and easy accessibility not only for the student but also for the instructors. In addition, the platform offers a wide variety of free technical features to instructors to host their courses and provide training to students.
Overall, Eren Bali has realized his dream of providing online courses to those in need through his digital learning platform. Her model has helped over a million professionals and students learn new skills through courses on the Udemy platform. According to recent news on the website, the payment structure for instructors will change. Yes, more changes will happen in the future, but until then, let’s salute Eren Bali and his platform for causing a revolution in the education industry.