How Does Udemy Make Money?

The online learning industry has experienced massive growth over the past decade. With increasing demand for digital education, platforms like Udemy have emerged as dominant players in the market. According to industry reports, the global e-learning market is expected to reach $375 billion by 2026, with Udemy contributing significantly to this growth. The platform has over 62 million learners, 210,000 courses, and 75,000 instructors worldwide.

As one of the largest online learning marketplaces, Udemy operates on a unique business model that generates revenue through multiple streams. In this blog, we will explore Udemy’s revenue model, why it is so popular, and how you can create an online learning platform like Udemy.

What is Udemy?

Udemy is a leading online learning marketplace that allows instructors to create and sell courses on various subjects, including business, technology, personal development, and more. Unlike traditional education models, Udemy offers on-demand courses that students can purchase and complete at their own pace. The platform provides a flexible, affordable, and accessible learning experience for individuals worldwide.

Success Story of Udemy – Year-Wise Growth Timeline

Udemy’s journey from a small startup to a global e-learning giant is inspiring. Here’s a timeline of its key milestones:

• 2010: Founded by Eren Bali, Oktay Caglar, and Gagan Biyani.
• 2012: Raised $1 million in seed funding and started gaining traction.
• 2015: Surpassed 5 million users and expanded globally.
• 2018: Launched Udemy for Business, targeting corporate training.
• 2020: Saw massive growth due to the COVID-19 pandemic, reaching 35 million users.
• 2021: Went public with a valuation of $4 billion+.
• 2024: Continues to expand with new AI-driven learning solutions and course offerings.

Reasons Why Udemy is So Popular

Udemy’s popularity is driven by several key factors:

• Affordable Courses: Frequent discounts make learning accessible to a global audience.
• Diverse Course Selection: Over 200,000 courses in various disciplines.
• Instructor Freedom: Anyone can create and sell courses on Udemy.
• Lifetime Access: Once purchased, users have lifetime access to course materials.
• Udemy for Business: A subscription model tailored for corporate training.

How Does Udemy Make Money?

Udemy has multiple revenue streams that contribute to its profitability. Here’s how the platform generates income:

1. Course Sales Revenue

Udemy allows instructors to sell courses, taking a commission from each sale:

• Organic Sales: Udemy takes a 50% commission when students find courses on the platform.
• Instructor-Promoted Sales: Instructors earn 97% of the revenue if they refer students.
• Udemy-Promoted Sales: If Udemy runs ads for a course, it takes up to 75% commission.

2. Udemy for Business (UFB)

Companies subscribe to Udemy for Business to provide employees with learning resources. Businesses pay a monthly or annual fee, and Udemy shares revenue with instructors whose courses are included in the program.

3. Paid Ads & Promotions

Udemy promotes courses via Google, Facebook, and YouTube ads, covering costs by taking a higher commission on promoted courses.

4. Affiliate & Partnership Programs

Udemy partners with affiliates who earn commissions by referring students to the platform, expanding its audience reach.

5. Instructor Fees & Revenue Sharing

While course creation is free, Udemy offers paid promotional tools for instructors to boost their course visibility.

6. Seasonal Discounts and Promotions

Udemy frequently runs sales campaigns where courses are priced as low as $10-$15, leading to higher volume sales.

7. Mobile App & In-App Purchases

Udemy’s mobile app enables students to purchase courses, with Apple and Google taking a 30% commission on in-app purchases.

8. Subscription-Based Learning

Udemy has introduced subscription models, allowing students to access a curated selection of courses for a monthly fee, creating a recurring revenue stream.

How to Create Your Own Online Learning Platform Like Udemy

There are two approaches to building an online learning platform like Udemy:

1. Development from Scratch

• Requires a dedicated team of developers and designers.
• High development costs and long timelines.
• Customizable but resource-intensive.

2. Using Readymade Software

• Faster launch time with pre-built features.
• Cost-effective compared to custom development.
• Scalable and customizable without starting from zero.

Why Choose Readymade Software Over Development from Scratch?

Feature	Development from Scratch	Readymade Software
Development Cost	High	Affordable
Time to Launch	12+ Months	Few Weeks
Customization	Full but Expensive	Moderate & Flexible
Maintenance	High Effort	Vendor Support Provided
Scalability	Requires Additional Development	Scalable Solutions Available

Popular Readymade Software to Build an Online Learning Platform

If you want to build an e-learning platform quickly, consider these popular readymade solutions:

• Yo!Coach – Best for customized learning platforms with tutor-student interaction.
• Teachable – Ideal for solo educators and course creators.
• Thinkific – User-friendly platform with built-in course creation tools.
• LearnDash – A WordPress-based LMS plugin with great flexibility.
• Moodle – Open-source LMS for schools and universities.

Why Yo!Coach is the Best Readymade Software to Launch Your Online Learning Platform Like Udemy

If you’re looking for a ready-made solution to build an online learning platform like Udemy, Yo!Coach is the ideal choice. Here’s why:

• Pre-Built Features: Comes with essential e-learning functionalities.
• Customizable & Scalable: Modify the platform to fit your business needs.
• Cost-Effective: Saves time and money compared to developing from scratch.
• Multi-Language & Multi-Currency Support: Expand your audience globally.
• Integrated Video Conferencing: Supports real-time interactive learning.

With Yo!Coach, you can launch a feature-rich online learning platform quickly and efficiently, without the hassle of custom development.

Conclusion

Udemy has revolutionized the online learning industry with its unique marketplace model and multiple revenue streams. Whether through course sales, subscriptions, business solutions, or affiliate programs, Udemy continues to be a profitable e-learning giant. If you’re looking to create an online learning platform like Udemy, choosing a readymade solution like Yo!Coach can help you launch quickly and cost-effectively.

FAQs

1. How does Udemy make money?

Ans. Udemy earns revenue through course sales, business subscriptions, affiliate programs, paid ads, and instructor fees.

2. How can I build an online learning platform like Udemy?

Ans. You can either consider a custom solution or use ready-made software like Yo!Coach for a faster and cost-effective launch.

3. What is the best software to create an online learning platform?

Ans. Yo!Coach is a great choice as it comes with built-in e-learning features, scalability, and customization options.

4. Is Udemy for Business profitable?

Ans. Yes, Udemy for Business generates significant revenue by offering companies a subscription-based learning model.

5. How much does it cost to build an e-learning platform?

Ans. Custom development can cost thousands of dollars, while ready-made solutions are much more affordable and efficient.