What Makes Udemy Successful? Udemy’s Business Model And How It Generates Revenue — A Deep Analysis

  1. Commission sharing with Instructor: Udemy is just a mediator that offers instructors a platform to create their own courses, though Udemy does not sell any products, it commissions the instructors for using their platform for selling courses. The commission rate depends on the number of students enrolled in that particular course. So, every time a student buys a course, the company earns money.
  2. Revenue Sharing Model (Instructor Revenue Share): Also known as the performance-based income model, the revenue sharing model is the distribution of the total revenue generated by the sale of products/services between the contributors/stakeholders.
  3. Udemy Organic: Organic sales occur whenever a student browses the Udemy platform and finds a course he/she is interested in. Furthermore, no instructor coupon is used when purchasing the course. In this scenario, Udemy and the course instructor share 50 percent of the course sales. Udemy charges a 30 percent fee for any sale made through the company’s Android or iOS app.
  4. Instructor Promotion: The student discovers the course through a coupon or referral link issued by the instructor. In this case, the instructor receives 97 percent of the course revenue. An additional administration fee of 3 percent is applied by Udemy.

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