How Much Do Udemy Instructors Make? Breaking Down the Real Income

Udemy is an online platform where people can learn various skills through courses. Instructors on Udemy earn money by creating and selling courses on topics they are knowledgeable about. 

Instructors make money by setting prices for their courses and getting a share of the sales. How much they earn depends on how many students buy their courses and if Udemy helps in selling the course with its marketing efforts.

source: Udemy community

The short answer: Udemy instructors can earn anywhere between $1,000 and $3,000,000 in lifetime earnings, depending on factors like the number of courses produced, audience size, course quality, and time on the platform

Udemy’s Business Model

The revenue-sharing model between Udemy and its instructors is structured in various ways to ensure a fair distribution of earnings based on different scenarios:

Udemy provides instructors with two primary methods to earn money from their courses: by becoming an instructor on the platform or by participating in Udemy for Business.

Model 1: Instructor on the Platform

  • Instructors receive a 30% commission from the sale of their course, while Udemy keeps 70%.
  • Utilizing a unique referral code allows instructors to lower Udemy’s take to 3% for sales generated through this code.
  • Course creators have the freedom to set their prices. However, higher prices might limit their course’s eligibility for Udemy’s discount promotions.

Model 2: Udemy for Business Instructor

  • Instructors involved with Udemy for Business earn based on how much students engage with their courses. A total of 25% of the monthly subscription revenue goes to instructors under this model.
  • This approach benefits instructors more when their courses engage learners effectively.

Revenue Sharing and Earnings Potential

  • The way Udemy shares revenue with instructors changes based on how students access a course. Instructors get to keep varying percentages of the revenue from different sales scenarios.
  • The average yearly earnings for Udemy instructors stand at $3,306, with 75% earning less than $1,000 annually. Only a small group, about 1%, makes more than $50,000.
  • Achieving success on Udemy depends on the demand for the course, the quality of teaching, and active participation in Udemy’s promotional activities.

How Much Do Udemy Instructors Make

There are two ways for instructors to earn: directly through the platform and by being part of Udemy for Business. When selling a course on the platform, instructors get 30% of the sale price if a student buys their course.

If an instructor uses a special code to sell their course, Udemy only takes a 3% cut. For Udemy for Business, instructors earn based on how much students engage with their courses.

Udemy shares money with instructors differently, depending on how students find and buy a course. On average, instructors on Udemy earn about $3,306 a year. Yet, most instructors, about 75%, earn less than $1,000 annually. Only a small group, about 1%, makes more than $50,000 in a year.

Factors Affect the Earnings

The money Udemy instructors make comes from different sources, each affecting their total earnings.

Economic Factors

  • State of the Economy: How well the economy does affects Udemy. When the economy is not doing well, people might not spend much on courses. But, when the economy is stable, more people are willing to pay for learning new skills.
  • Inflation Rates: If prices go up, making and delivering courses could cost more. This situation can change how many courses are sold on Udemy.
  • Exchange Rates: Udemy works all over the world. Changes in how much money is worth in different countries can change how much income comes from those places.

Social Factors

  • Demographics: Udemy offers courses for many kinds of learners. Making courses that fit what learners of all ages and skills need is important.
  • Social Trends: Nowadays, people always look to learn new things quickly. Udemy’s courses that you can take any time fit well with this need, helping people move up in their careers.
  • Education Quality: Having courses that are trustworthy and of high quality keeps learners coming back and helps Udemy grow.

Platform-Specific Factors

  • Revenue Sharing: The way Udemy shares money from course sales and how much students interact with a course plays a big part in how much instructors earn.
  • Udemy for Business: Instructors in this part earn based on how much students use their courses, with a part of the monthly money from subscriptions going to instructors.

How to Improve Earnings on Udemy

Here’s a way to make more money teaching on Udemy.

Choose a Good Course Topic
Start by picking a subject lots of people want to learn. Topics like tech, business abilities, or self-help are good choices. If your course answers a big need or fixes a common issue, more students will join.

Make Your Course Better
Your course needs to look and sound great. This means videos should be clear, sound should be good, talks should be interesting, and the information valuable. Top-notch courses get more likes and suggestions, which means more sales.

Tell People About Your Course
Sharing news about your course can really help you earn more. Use websites like Facebook or email to tell others. Also, using Udemy’s ads and joining its sales events can make more people see your course.

Price Your Course Well
It’s important to put the right price on your course. The price should show how valuable your course is but also be something students want to pay. Try different prices to see what fits best for the people you want to reach.

Talk to Your Students
Being involved with your students is important. Answer their questions fast, keep your course fresh, and ask for their opinions. Courses that have lots of student activity and good comments get seen more and can draw in new students.

Use Student Suggestions
Hear what your students say and improve your course with their advice. Making updates based on what students suggest can make them happier and lead to better comments, which can bring more students.

FAQ

What is the average income for a Udemy instructor?
The average yearly income for Udemy instructors is around $3,000, but this can vary widely.

Can Udemy instructors make a lot of money?
Yes, some instructors earn over $100,000 annually, especially those with popular courses.

How do Udemy instructors get paid?
Instructors receive payments via PayPal or electronic bank transfer, depending on their chosen payout method.

Does it cost anything to become a Udemy instructor?
No, there is no fee to create and host a course on Udemy.

What factors affect how much money I can make on Udemy?
Your earnings depend on course demand, quality, pricing strategy, and how effectively you market your course.