Online Courses Business

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

Pat Walls

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Updated: September 4th, 2024

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

So you want to start an online courses business?

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

With a market size of $144B - there’s plenty of business to go around.

Especially considering:

You could start a online courses business with as low as $140
Based on our data, online courses businesses generate an average of $1.41M per year
You could see gross margins as high as 97% with online courses 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 courses business.

Let’s dive in!

Is an online courses business profitable?

Yes, an online courses 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 $1.41M per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your online courses 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 courses business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an online courses business worth it?

If you’re wondering if a online courses business is worth it, the answer is a big YES. With online courses businesses, you have the potential to earn $1.41M 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 $144B, 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 courses 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 courses businesses case studies.

Examples Of Profitable Online Courses Businesses

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

1. Justin Welsh ($3.8M/year)

After handling loads of stress as an SVP of sales, Justin decided to step down from his job and start a consulting business. He started creating digital content from there on, and have been moving forward ever since, releasing courses, building a massive following, and double down on his solopreneurship efforts.

Is it profitable? Yes
What's the gross margin? 91%
How much money it makes: $3.8M/year
How much did it cost to start: $1K

How Justin Welsh Built A $2M Solopreneur Empire

Solopreneur Justin Welsh built a knowledge business through social media with over $2M in annual revenue and no full-time employees, offering flagship digital courses with a monthly revenue of $80K and $45K respectively, through LinkedIn and Twitter growth as well as organic and affiliate marketing.

Read this case study

Read by 28,457 founders

2. iCodeThis ($30K/year)

Florin Pop noticed new developers lacked a platform to hone their coding skills.

He observed that while beginners watched numerous videos and enrolled in courses, it was not enough to help them become professionals.

Recognizing this gap, he created a GitHub repository where he shared project ideas, which garnered hundreds of thousands of views.

As people began sharing the repository on Twitter, it gained popularity.

Seeing the success of the GitHub repository, Florin Pop was inspired to build a website for app ideas, which today is ICodeThis

Is it profitable? Yes
How much money it makes: $30K/year

How Florin Pop Built A $110K Business Off Of His YouTube Channel

Learn how founder Florin Pop grew iCodeThis from a GitHub repository with hundreds of thousands of views to a thriving business generating $30K/year, leveraging a 35,000-strong email list, social media, and influencer marketing campaigns to reach the right audience and drive growth.

Read this case study

Read by 365 founders

3. Oki Doki Digital Inc ($480K/year)

Marie Poulin came up with the idea for her course, Notion Mastery, after discovering the software tool Notion in 2018. She found that Notion helped her with organization and productivity, and she began sharing her tips and tricks on YouTube. After receiving requests for a course, she launched Notion Mastery, which now generates an average of $40k/month in revenue.

Is it profitable? Yes
How much money it makes: $480K/year

How This Couple Created An Online Course That Generates $40K/Month

Marie Poulin built a digital strategy and design company, Oki Doki, with her husband and pivoted the niche to course creators, culminating in their signature course, Notion Mastery, which generates an average of about $40k/month for the company.

Read this case study

Read by 3,674 founders

Learn more about starting an online courses business:

Where to start?

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

Need inspiration?

-> Other online courses business success stories
-> Marketing ideas for an online courses business

Other resources

How much can you make with an online courses business?

With a online courses business, you can make an average of $1.41M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $140. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a online courses business make a week?

Based on our data, average weekly revenue for a online courses business ranges around $29.4K. As such, you could see monthly revenues of $118K.

To know if your online courses 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 courses business.

How much do online courses businesses owners make?

The income of an online courses 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 courses business is about $29.4K. 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 courses 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 Courses Business Profit Margins

Generally speaking, an online courses business can expect profit margin of around 90%. 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 courses 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 courses 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 courses business owners can ensure long-term sustainability and profitability for their business.

Online courses business owner salary

The salary of an online courses 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 courses business, in a prime position, might see an average weekly salary around the ballpark of $26.5K.

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 courses business may be a promising business to start - but the success of your online courses 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 courses business.

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Starting An Online Courses Business: Everything You Need To Know

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