The Course Pricing Model of Udemy how to use it to your advantage
This article was revised to reflect the Udemy course pricing model in 2020. Enjoy!
One of the main issues that Udemy instructors faced was the way the change would influence their revenue and the sale. Prior to the change in pricing, there were many courses available which were offered by Udemy could be purchased for a price of couple hundred dollars (up at $300). Due to the adjustments made Udemy had to reduce the price of their courses to a maximum of 50 dollars for every course. This shouldn't be surprising as most Udemy instructors weren't happy about the limitations on pricing, to which Udemy finally reacted by agreeing with a minimum fee for their courses at $199.99 dollars for every course sold on the site ( see their current price policies below for prices of courses). below).
Before we start, let's review Greg Smith's initial reaction to the Udemy pricing changes in the year 2016. Although Udemy is introducing new changes to their pricing structure in the past, Greg Smith's suggestions for using Udemy's pricing model to benefit you are still relevant in today's market.
Why is it that Udemy changed its price?
The majority of Udemy users never spend the full amount to purchase the course. This is what Gregory Boutte, the VP of Content for Udemy said about the current pricing system:
"Today prices vary and are difficult for students. Prices can range from $9- $300. However, the reality is that the majority of sales occur through coupons but with prices under $50."
Since the beginning, Udemy has been notorious for its sales that provide huge discounts on courses. You'll often see them advertise courses for up to 90% discount for the databases of their clients. This way, they've taught clients to avoid purchasing the course. Instead of paying the full cost the majority of customers will wait to receive emails from the company offering a discount prior to purchasing.
The information has been verified by top instructors active on Udemy and they agree with their conclusion that massive discounting caused problems. John Colley, who is an instructor in entrepreneurialism, as well as business strategy, believes that the revised pricing policy will resolve this problem according to Udemy instructors.
"I believe that Udemy has shifted its positioning toward the market to avoid this very heavily discounted strategy. This is going positively for the educators."
Scott Duffy, A major proponent of their pricing model believes that in the event that the discount culture which has become so commonplace goes away instructors will notice an increase in impulse purchases that are priced at full costs.
"We must see increasing numbers of people visiting the site to purchase items. These aren't looking for coupons or special offer or marking classes, instead, they see an item they are interested in, and purchase the product right away. This will require some amount of time to build."
Phil Ebiner (one of the most popular instructors on Udemy) The teacher of this course which was able determine the cost of the courses he offers online for $300, told us that he does not typically get sales from natural sources for that sum. Therefore, Ebiner decided to test the new pricing system and drop his course prices down to $25. The results showed a rise in natural sales through the course.
"By reducing the cost of the courses to less than $50 while limiting the course to 7 choices between $20 and $50 , instructors are able to get a clear concept of how much they should charge for their course, and only based on of the few choices. Students will feel more comfortable to take courses at any time and not just in sales. I'm eagerly awaiting the next price adjustments and think this is the most effective option to ensure the Udemy's growth (and the achievement of instructors)."
The reason why some instructors aren't happy with the change in price
It's clear that having a reduced price for courses doesn't affect the sales of courses in the event that instructors don't sell at the full cost regardless. There's also a smaller percentage of instructors that actually get a full profit from their classes (at $300).) They're the instructors who weren't happy about changes in pricing.
James McAllister is an instructor for this type of. McAllister teaches online courses for business and enterprise. In addition, the company has been continuously profitable within the range of $197 at his rate. We spoke with him regarding this and here's what we heard from him:
"The difficulty with the latest pricing strategy is that it totally ignores the Udemy instructors' base, which brings its students on their platform. We have all invested some months or years in gaining trust among our customers and are successful in justifying our higher costs - not because our students have been loyal to us over the years However, we're additionally able to advertise our courses' value."
"Selling my course at fifty dollars or less, will reduce the contents and people begin to question whether the course is actually of worth in the first place. It is important to note that, contrary to the majority of cheap or free financial classes that are available on Udemy my course is not taking students to a more expensive course. What you'll find in my course will provide an entire set guidelines about how to trade all through. This is the reason I just created one course, and why I believe it's superior than the plethora of courses some instructors seem to create."
Simon has a very good argument as we've observed that pricing plays significant impact on the customer's perception of the worthiness of a certain course. The courses with higher prices generally seem to be more reputable over those that are priced less. This is the same logic that makes people invest hundreds of dollars in an authentic iPhone instead of buying a low-cost knock-off.
"On Udemy, I was providing a six-week arts-related educational course, which involved me communicating directly with students, as well providing hands-on critiques on homework assignments. A student's salary of $225 ($50 plus Udemy's 50 percent cut) isn't even the minimum wage for my duration."
So, what's the last word?
Clearly, there are positives as well as negatives with the pricing system in place. Certain instructors believe that it can bring in greater organic sales. Others correctly point out the fact that it devalues high-end training.
In addition Is Udemy's pricing program positive or negative for Udemy instructors?
Well, it depends.
If your aim is creating a course that is accessible to those who are taking for the course, posting it on Udemy (or similar marketplaces on the internet for course) is a good idea. It has some benefits.
How do you use Udemy's pricing structure for courses that will help you
When you're an instructor with Udemy and you're a current instructor, making a change in the structure of pricing for your courses isn't a good thing. Even though you're not permitted make your courses available for sale for more than $199.99 USD does not necessarily indicate that you don't have a reason to offer courses on Udemy.
This is what we'll give to you:
Thus, you will get visibility through their website as well as provide valuable guidance, advice and information with a decent price. Still, you make a few dollars also. If your goal is getting your course noticed that you can offer, consider offering your Udemy course for no cost. If your students who attended this course want to up their education a notch, invite students to take a look at an expanded edition of the class an online platform which you own (just ensure that you're following guidelines of Udemy's guidelines for usage).
You may make a profit selling your course through Udemy but that should not be the primary goal. A better reason to have your course in the marketplace online is that it gives you an possibility to engage with large audiences and grow your brand. A marketplace for online courses is more of a marketing channel for creators of online courses as compared to other.
After you've got this exposure and established a brand name, you're capable of bringing visitors to your custom site, which will be where you'll promote your high-end programs.
Are you looking to make your course available for sale for the price of more than $50?
It's likely that you've been working for a long time to develop the experience and abilities that enabled you to create your own course in the first place. If you've created enough quality for your course to justify the cost (a cost the student is ready to pay to pay) Then you'll definitely be able to decide the amount you'd like to charge.
Choose an online platform, for example, one which provides you with complete control over your courses, including the students, their pricing, as well as instructors. There's no one that can restrict your ability to raise the cost of your course. You can design an online course at the same price as Arel Moody is offering the course on a six-month installment plan , which costs 375 dollars each month.
The line that ends
In the end, Udemy is an open marketplace. Similar to any other marketplace , Udemy is entirely in charge of their policies and limits and the costs of the courses that are sold on their platform. It's the way they operate and they're in a position to change the rules when they think they are beneficial to their customers and instructors and their students.
Teachers have the option of. There is no requirement to sign up with Udemy even it's not your intent to. There's no agreement with Udemy which means you're allowed to market your course through your website, with your own pricing.
The issue to ask is... are you able to provide courses on Udemy or through your own platform?
Our suggestion:you aren't required to select either one or one of them.
Utilize Udemy to market your company and get people to visit your website with a brand name that helps you establish a long-lasting and sustainable company that you are in charge of. Through Udemy, you can design your own web page with a branded logo within a matter of minutes!
What do you think of Udemy's pricing structure?
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