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We’ve all heard about the rise of MOOCs and online learning platforms. But is there a way for individual professionals to create their own online courses – and actually make money? You can’t simply expect to slap something up online and watch the dollars roll in, but with effort and strategy, online courses can become a revenue engine and powerful lead generator.
That’s been the case for Lili Balfour, a financial advisor for startups. She’s created six courses on Udemy, including How to Crowd Fund a Million Dollars and Finance Boot Camp for Entrepreneurs. Some of her courses are as short as 30 minutes, but most run between 2-3 hours; she sells them for between $47-$197. The courses have given her an opportunity to spread her message more widely. “The goal is to help entrepreneurs understand finance in a fun way,” she says. Here are the key questions she’s answered in the process of creating and selling her courses.
How much will I make?
The average instructor brings in $7000 from Udemy courses, though there is a wide range of outcomes. I’ve met one instructor whose class earns him only $60 per month, but elite instructors - generally those with very large followings on social media who can mobilize their own audience to buy - can generate six figures annually from their courses.
How long does it take to create a course?
Creating an online course can be a substantial time investment. “In my opinion, it takes about the same amount of time as writing a book,” says Balfour. “Of course, if you’ve already written a book and are doing a course about it, it takes a fraction of that time. If somebody is coming in with their own content, such as blogs and workshops they’ve already created, they can probably sit down in one weekend and create a 2-3 hour course.” But if you’re still nailing down your material, budget your time accordingly.
What are the technical skills required?
Balfour did all the filming and editing for her courses by herself. But it wasn’t easy. “The most difficult aspect is the video editing,” she says. “Like most people, I didn’t initially understand how to shoot video the right size, how to export it, upload it, and fix the noise.” She used the screen recording and video editing software Camtasia, which she describes as “pretty user-friendly, but it did take time.” All of her videos are screencasts – videos of her computer screen – but if you’re planning to do a “talking head” style video, you may want to hire a professional crew. “Those are more complex,” she says, “so I’d suggest you go into a studio and get good lighting and audio.”
How do you market the courses?
Balfour estimates that Udemy generates about 50% of her sales through its own built-in audience and promotions ; Udemy now has more than three million students. She’s occasionally been featured on their homepage, which also spurs sales. The other half is the result of marketing to her own list, as well as cross-promotions she’s independently arranged with other Udemy instructors. “People who are already on the [Udemy] platform are the easiest sell,” she says. She’s also marketed successfully by answering questions on Quora, creating YouTube videos, and doing Q&As on Spreecast, a social video platform. “Quora and YouTube are the best revenue generators because that’s where people go for education,” she says.
Who should consider creating an online course?
Anyone can benefit from taking the time to codify and circulate their ideas. But Balfour says the biggest winners are those who already have a large following. “The key to making a lot of money on Udemy is huge YouTube channels and Facebook pages,” she says. “I’ve tried Twitter and Facebook ads, but you need the base to begin with to sell against. You can’t just sell to strangers.” How can you build that audience in the first place? Balfour suggests laying the groundwork by blogging and creating YouTube videos to introduce readers to your ideas and get them hungry for more. “There’s this idea that you put a course up there and it sells itself,” she says. “But it’s like a book. You can’t just write a book and expect people to find out about it. You have to do a book tour and generate press.” Your online course needs a similar marketing campaign.
Have you created an online course? What’s worked for you? Or have you purchased one? What compelled you to buy?
Dorie Clark is a marketing strategist who teaches at Duke University’s Fuqua School of Business. She is the author of Reinventing You and Stand Out, and you can receive her free Stand Out Self-Assessment Workbook.
