Online Learning Platform

How Profitable Is An Online Learning Platform? (Updated for 2024)

Updated: July 13th, 2024

How Profitable Is An Online Learning Platform? (Updated for 2024)

So you want to start an online learning platform?

And the first question that came to your mind was, “well, are online learning platforms actually profitable?

With a market size of $188B - there’s plenty of business to go around.

Especially considering:

  • You could start a online learning platform with as low as $60
  • Based on our data, online learning platforms generate an average of $405K per year
  • You could see gross margins as high as 80% with online learning platforms

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 learning platform.

Let’s dive in!

Is an online learning platform profitable?

Yes, an online learning platform 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 $405K per year with an estimated gross margin of 65%, 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 learning platform.

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 learning platform is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an online learning platform worth it?

If you’re wondering if a online learning platform is worth it, the answer is a big YES. With online learning platforms, you have the potential to earn $405K 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 $188B, 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 learning platform 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 learning platforms case studies.

Examples Of Profitable Online Learning Platforms

Here are a few examples of profitable online learning platforms, and a few more details about them:

1. Write of Passage ($300K/year)

After taking Tiago Forte's course, David wanted to help 1,000 people start writing online. He was so excited he even tweeted about it and approached it as a challenge.

Is it profitable? Yes
How much money it makes: $300K/year

Perell's Journey From 2.9 GPA To $3M ARR Writing Course

Unlock the growth strategy of Write of Passage, a business making $25K/month and $300K/year in revenue, with founder David Perell's laser focus on shareable content and driving people to his email list.

Read by 235 founders

2. Learn Azure ($120K/year)

Denis wanted to expand his knowledge of Cloud Computing and Microsoft Azure Services to advance his career. While searching for a mobile solution to facilitate learning on the go, he realized that no suitable mobile app was available. This inspired him to create the "Learn Azure" app, fulfilling his dream.

I searched high and low for a mobile app that could help me prepare for Azure exams, but my search came up empty. Frustrated, I took matters into my own hands and set out to create my own app. And thus, "Learn Azure" was born. — Denis Kazakov (Source)

Is it profitable? Yes
How much money it makes: $120K/year

How Denis Kazakov Built Learn Azure App & Hit $10K/MRR in 4 Months

Case study about how Denis Kazakov built Learn Azure, an educational app that helps learners become Microsoft Azure Certified Professionals, generating an average of $10K/month and $120K/year, showcasing tech stack with Microsoft technologies and growth strategy through strategic promotion resulting in significant increase in downloads.

Read by 190 founders

3. Frontend Mentor ($360K/year)

Matt Studdert, founder of Frontend Mentor, came up with the idea for his business while teaching a front-end web development course. He noticed that his students often struggled to find professional designs and projects to practice their skills and build their portfolios. This led him to create a platform that provides developers with challenges, designs, and optimized assets, ultimately launching Frontend Mentor.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $8K

We Built A $180K/Year Learn-To-Code Community

Online learning community Frontend Mentor has over 200,000 members, with over 1,500 paid subscribers generating over $15,000 MRR, offering professionally designed challenges to improve front-end coding skills with a freemium business model and a focus on real-life experience.

Read by 10,496 founders

Learn more about starting an online learning platform:

Where to start?

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

Need inspiration?

-> Other online learning platform success stories

Other resources

-> Online learning platform tips

How much can you make with an online learning platform?

With a online learning platform, you can make an average of $405K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $60. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a online learning platform make a week?

Based on our data, average weekly revenue for a online learning platform ranges around $8.43K. As such, you could see monthly revenues of $33.7K.

To know if your online learning platform 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 learning platform.

How much do online learning platforms owners make?

The income of an online learning platform 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 learning platform is about $8.43K. 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 learning platform owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Online Learning Platform Profit Margins

Generally speaking, an online learning platform can expect profit margin of around 65%. 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 learning platform, 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 learning platform 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 learning platform owners can ensure long-term sustainability and profitability for their business.

Online learning platform owner salary

The salary of an online learning platform 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 learning platform, in a prime position, might see an average weekly salary around the ballpark of $5.48K.

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, a online learning platform is quite promising if you plan on starting such. With a market size of $188B, you can enjoy a potential revenue of around $405K per year with a gross margin of 65%.

Considering this information, you can enjoy a return of investment within 7 months, especially if you have a monthly profit of $21.9K. Overall, the success of your online learning platform also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this online learning platform is profitable.

Make sure you have a proper online learning platform plan and know how to get clients for your online learning platform.