The online courses industry, also known as e-learning, has emerged as a dynamic and transformative force in education. This article delves into the question that many educators, creators, and entrepreneurs are asking: Is selling online courses profitable?
The rapid advancement of technology has revolutionized the way we access information and learn new skills.
And it’s quite normal that you’ve been hearing about people taking courses online, leveling up their skills sitting at any part of the globe, and growing at the pace they want.
This makes people like you curious about the demand for such courses in varied niches, and how much potential it has for people who already have a skill or good knowledge, and are thinking about sharing the same with the online world, thereby making a side hustle or an even an entire living out of it.
So, let me tell you that it’s indeed possible and you know that!
This is the reason why you’re here, deep diving into the current stats, predictions, and amount of profitability in this industry. Let’s go straight into it then…
The Rise of E-Learning
The concept of e-learning dates back to the 1960s, but it wasn’t until the 2000s that technological advancements truly paved the way for its explosion.
With the advent of high-speed internet, video-sharing platforms, and learning management systems, the accessibility and feasibility of online courses significantly improved.
The convenience of learning from anywhere, at any time, along with the ability to cater to diverse learning styles, contributed to the surge in popularity.
The growth of the e-learning industry has been nothing short of remarkable.
According to a report by Statista, the global e-learning market size is projected to reach $400 billion by 2026.
Statista
Then came the COVID-19 pandemic, which further accelerated this growth as educational institutions and individuals turned to online platforms for uninterrupted learning.
These statistics underscore the immense potential for profitability in the online courses market.
Is Selling Online Courses Profitable?
Selling online courses can be a profitable business, depending on various factors such as the quality of the content, the marketing and promotion strategy, the pricing, and the target audience.
The current market for online courses is ROBUST and DIVERSE.
From academic subjects to specialized skills like digital marketing, coding, and creative arts, there is a demand for courses catering to various interests and needs.
One of the keys to profitability lies in identifying the right niche.
Niche courses tend to attract much more dedicated and motivated learners, than broad niche folks, who are willing to invest in quality education that addresses their specific goals.
As I mentioned before, different types of course creators have different levels of revenue and profitability from their online courses.
For example, hobbyists earn an average of $560 per year, while edupreneurs earn an average of $452,000 per year from their online courses.
This is why you need to understand 2 important stuff at this moment:
- What exactly is the goal you are coming in with? (Like for side hustle or full-time)
- What kind of model you wanna go with? (As an Individual or Business)
These two points will make sure how much you’re gonna earn and how much work you’ll have to do to make some good dollars online.
However, revenue is not the same as profit. Profit is the difference between revenue and expenses.
To calculate the profitability of an online course, you need to consider both the income and the costs involved in creating and selling it.
Some of the common expenses for online course creators are:
- Tools and platforms: These are the software or services that you use to create, host, and deliver your online course. For example, you may need a course platform like Flowclass, Teachable, or Thinkific, video editing tools like Camtasia or Filmora, a graphic design tool like Canva or Photoshop, etc.
- Content creation: This is the time and effort that you spend on creating the content for your online course. This may include researching, writing, recording, editing, etc. The cost of content creation may depend on the length, complexity, and quality of your course content.
- Marketing and promotion: This is the money that you spend on advertising and promoting your online course to your target audience. This may include using channels such as email marketing, social media marketing, influencer marketing, SEO, etc.
- Customer service and support: This is the money that you spend on providing customer service and support to your customers. This may include answering questions, resolving issues, providing feedback, etc.
Calculate Online Course Profitability
To estimate the profitability of an online course, you can use the following formula:
Profit = Revenue – Expenses
Revenue = Number of Enrollments x Price of Course
Expenses = Tools and Platforms + Content Creation + Marketing and Promotion + Customer Service and Support
The average course creator on their platform earns $5,426 in annual revenue from their courses.
According to Teachable, an online course platfrom.
For example, let’s say you have an online course that sells for $100 and you have 100 enrollments per month. Your monthly revenue would be:
Revenue = 100 x $100 = $10,000
Let’s say your monthly expenses are:
Tools and Platforms = $200 Content Creation = $500 Marketing and Promotion = $1,000 Customer Service and Support = $300
Your monthly expenses would be:
Expenses = $200 + $500 + $1,000 + $300 = $2,000
Your monthly profit would be:
Profit = Revenue – Expenses Profit = $10,000 – $2,000 = $8,000
Your monthly profit margin would be:
Profit Margin = Profit / Revenue x 100% Profit Margin = $8,000 / $10,000 x 100% = 80%
This makes us think about the benefits of selling online courses and I have come up with the top 3 benefits that you need to know before going anywhere.
Top 3 Benefits of Selling Online Courses
Taking a look at the benefits is one of the most important parts before entering any niche, question, or project.
As a human, we all tend to look at the benefits & how they can relate to our goals with a project.
So, without wasting any time, let’s dive into those top 3 benefits:
The Digital Profitability Factor
Selling online courses can be highly profitable due to several factors. Unlike traditional classrooms, online courses eliminate geographical constraints, allowing instructors to reach a global audience.
This expanded reach can translate to higher enrollment numbers and increased revenue.
Moreover, online courses often have lower overhead costs compared to physical classes, contributing to better profit margins.
Course Creation Cost-Effectiveness
Creating and selling online courses can be cost-effective. While there might be initial investments in quality equipment, such as microphones and cameras for recording, these costs are relatively minor compared to setting up a physical learning space.
Additionally, once a course is developed, it can be sold repeatedly without incurring significant additional costs, making it a lucrative long-term investment.
Scalability in Selling Digital Courses
Scalability is a significant advantage of online courses. With the right technology and platform, instructors can enroll thousands of students without the need for extra resources.
Automation can handle enrollment, content delivery, and even assessments. This scalability further enhances profitability as the incremental cost of enrolling additional students is minimal.
Due to these awesome benefits which align with my upcoming goals for monetization, I’m also planning to create an online course for the creator audience of mine, by the need this year.
And you know which platform I’m using to create my website??? Give it a guess…
It’s Flowclass!!! Yes, we have our own platform where we can build an entire course website in just 15 minutes and launch our course ASAP. An ecosystem where we try our best to help creators ship their course asap!!!
Give it a try if you’re also coming in as a newbie. Don’t forget to subscribe to our newsletter and stay tuned with our weekly content for all course creators.
Which Online Courses Are Most Profitable?
The profitability of online courses is often tied to the demand within specific niches.
Courses that teach practical and sought-after skills tend to attract more learners. Some of the most profitable niches include:
- Technology and Programming: With the digital age in full swing, courses on programming languages, web development, and data science are in high demand.
- Business and Entrepreneurship: Courses on starting and scaling businesses, digital marketing, and financial management cater to aspiring entrepreneurs and professionals.
- Health and Fitness: Wellness-focused courses, such as yoga, nutrition, and fitness training, have gained traction, especially after the pandemic heightened health awareness.
- Creativity and Arts: Courses in graphic design, photography, writing, and music production attract both hobbyists and those looking to enhance their creative skills.
- Personal Development: Self-improvement courses covering topics like time management, communication skills, and mindfulness are consistently popular.
These are the top 5 most popular online course-creating niches that are getting great clicks and interest from people.
Especially, I have put the Personal Development part at the bottom showing how fundamental and important this niche is, on the Internet.
There are more niches that are getting good traffic. Check them out by clicking here.
Conclusion
In the landscape of modern education, online courses have risen as a powerful means of disseminating knowledge and acquiring new skills.
The question of whether selling online courses is profitable can be answered with a resounding “yes.”
The e-learning industry’s rapid growth, coupled with the benefits of reduced costs, scalability, and the potential to tap into various profitable niches, makes online course creation an attractive venture for educators and entrepreneurs alike.
As technology continues to evolve, the demand for online education is likely to intensify.
Those considering entering the online course market should conduct thorough research, identify promising niches, and invest in producing high-quality content.
By understanding the needs of their target audience and leveraging the tools available, educators can embark on a profitable journey into the world of online course sales.
In closing, the world of online learning is vast and full of opportunities.
As you contemplate your next educational or entrepreneurial pursuit, consider the immense potential of creating and selling online courses.
A pathway that not only imparts knowledge but also holds the promise of substantial profitability.
Best wishes in your future endeavors.
