Why Udemy pay their instructors £2.68 for a £100 course

I like Udemy, both as a student and an instructor. As a student, I have done some brilliant courses on there. As an instructor, it has been easy to create courses and make them available for sale.

But there is one downside if you plan on using Udemy to make a living: the payouts are terrible.

Take a look at My IT Contracting Master Class, for example. It is a £100 course. I was excited when the first customer signed up via Udemy. That is until I realised that I would only be getting £2.68.

What is going on here?

First, Udemy discount everything. The £100 price tag is basically a lie. I’m not sure what they do is legal in the UK. They have an advertised price, but you never pay that. In the five months, I have been using them, there has not been a single day when the have not had a sale on. It’s like going to a furniture store with their ever-revolving discounts.

Sometimes the discounts are bigger than others. Sometimes it is £10, sometimes £15. But as a UK customer, you are getting screwed anyway. The US consumer gets a bigger discount. In this case, the course was sold for $9.99.

Then iTunes take a cut, so that’s $3 gone, and then Udemy split the remaining money with you 50/50. There is $7 left, so that makes £3.50 each. Or, translated into Sterling, £2.68.

Technically, I think you can opt-out of these discounts. But, in practice, very few courses do. And this means that you are competing against a market of discounted courses, which makes it impossible to do business. And Udemy is more favourable to the courses who do not opt-out. So, in reality, I don’t feel like I have a choice.

Udemy is a great platform. However, I wish they would be more transparent about their prices. You don’t ever pay the list price and so instructors are paid very little.

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This entry was posted on Thursday, June 15th, 2017 at 11:00 am and is filed under Life. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.