Online Course Sales Business

How Profitable Is An Online Course Sales Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is An Online Course Sales Business? (Updated for 2024)

So you want to start an online course sales business?

And the first question that came to your mind was, “well, are online course sales businesses actually profitable?”

With a market size of $15.6B - there’s plenty of business to go around.

Especially considering:

You could start a online course sales business with as low as $100
Based on our data, online course sales businesses generate an average of $936K per year
You could see gross margins as high as 80% with online course sales businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a online course sales business.

Let’s dive in!

Is an online course sales business profitable?

Yes, an online course sales business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $936K per year with an estimated gross margin of 95%, you could expect to recover your investment within 5 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your online course sales business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your online course sales business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an online course sales business worth it?

If you’re wondering if a online course sales business is worth it, the answer is a big YES. With online course sales businesses, you have the potential to earn $936K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $15.6B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a online course sales business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful online course sales businesses case studies.

Examples Of Profitable Online Course Sales Businesses

Here are a few examples of profitable online course sales businesses, and a few more details about them:

1. Taro ($600K/year)

Rahul Pandey came up with the idea for Taro through a combination of his personal experience and feedback from the community he built. Initially, he created a YouTube channel to share career growth advice based on his experiences moving up the ranks in tech companies like Facebook and Pinterest. As his channel grew to 100,000 subscribers, he noticed a significant demand for this type of content, revealing a gap in resources for helping software engineers navigate their careers.

This realization was further validated through seminars he hosted with his co-founder, attracting thousands of engineers and confirming the need for more focused career development resources. Before fully committing to Taro, they refined their concept through the Tech Career Growth community, adjusting their content based on user feedback and the specific concerns raised during events. Despite the challenges of narrowing down a broad idea into a coherent product, Pandey's commitment to addressing a well-defined problem eventually led to Taro’s focused mission of providing insider career growth advice for software engineers.

Is it profitable? Yes
How much money it makes: $600K/year

How 2 Ex-FAANG Engineers Built Taro to $50K MRR in 2 Years

Read this case study

Read by 11 founders

2. Cinquanta Cox-Smith ($120K/year)

Cinquanta Cox-Smith, a Multipreneur from South Carolina, stumbled upon the Print On Demand industry 12 years ago when she wanted to create a unique shirt and discovered Spreadshirt.com. Through her creativity and networking skills, she found success in designing and selling catchy, conversation-starting shirts. This eventually led her to create multiple POD brands on various platforms, generating an impressive $120k per year in revenue.

Is it profitable? Yes
How much money it makes: $120K/year
How much did it cost to start: $100

I Make $120K/Year With My Print On Demand T-Shirt Side Hustle

A multipreneur shares how she built a successful print on demand side hustle, generating $120,000 per year through multiple brands spread over various platforms.

Read this case study

Read by 12,061 founders

3. Custom Creatives ($3.6M/year)

Rahul Alim, the founder of Custom Creatives, initially started his career in sales, but after leaving Realtor.com, he started his own company offering marketing services to real estate agents. However, it wasn't until a client requested a banner ad that he pivoted to focus on digital marketing, and CustomCreatives.com was born. Since then, the agency has grown to serve a wide range of industries, and their emphasis on providing value and superior service has helped them retain clients for over a decade and achieve consistent seven-figure revenue.

Is it profitable? Yes
How much money it makes: $3.6M/year

How I Started A $100K/Month Digital Marketing Agency

Digital marketing agency founder Rahul Alim shares how he grew his business to consistently generate over 7-figures in revenue year-over-year and retain clients for many years through affordable digital marketing strategies that employ the CAP method (Customer Acquisition Program).

Read this case study

Read by 10,680 founders

Learn more about starting an online course sales business:

Where to start?

-> How much does it cost to start an online course sales business?
-> Pros and cons of an online course sales business

Need inspiration?

-> Other online course sales business success stories
-> Marketing ideas for an online course sales business

Other resources

How much can you make with an online course sales business?

With a online course sales business, you can make an average of $936K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 5 months.

How much does a online course sales business make a week?

Based on our data, average weekly revenue for a online course sales business ranges around $19.5K. As such, you could see monthly revenues of $78K.

To know if your online course sales business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your online course sales business.

How much do online course sales businesses owners make?

The income of an online course sales business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established online course sales business is about $19.5K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an online course sales business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Online Course Sales Business Profit Margins

Generally speaking, an online course sales business can expect profit margin of around 95%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an online course sales business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, online course sales business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, online course sales business owners can ensure long-term sustainability and profitability for their business.

Online course sales business owner salary

The salary of an online course sales business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established online course sales business, in a prime position, might see an average weekly salary around the ballpark of $18.5K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a online course sales business may be a promising business to start - but the success of your online course sales business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable online course sales business.

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Starting An Online Course Sales Business: Everything You Need To Know

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