Online Course Breakeven Analysis
The formula is simple: Breakeven students = Total cost ÷ Net revenue per student, where net revenue = price × (1 − platform fee). The critical mistake most course creators make is forgetting to value their own time. If you spent 40 hours creating a course and your time is worth $50/hour, that's $2,000 of hidden cost before you buy any equipment.
Platform choice dramatically affects profitability. Udemy's marketplace traffic is valuable but fees can eat 50–60% of revenue from organic sales. Self-hosting on Teachable or Kajabi costs a monthly fee but you keep 95%+ of revenue. Run this calculator for both scenarios before deciding — the breakeven difference is often 3–5×.
Frequently Asked Questions
Research 5–10 competitors in your niche. Price 10–20% higher if you offer live support, community access, or a stronger guarantee. A higher price often signals higher quality — courses priced too low can actually hurt conversions.
Career advancement (coding, data, marketing), professional certifications, and business/entrepreneurship courses tend to have the highest willingness to pay. Hobby courses have lower price ceilings but strong emotional demand.