Udemy for Business launched in 2014 to bring amazing Udemy instructor content to employees at some of the world’s leading companies. Over the last year, we’ve seen a 200% growth of this customer base. Over 1,000 organizations, including companies like Apple, Mercedes-Benz, Paypal, Lyft, and Booking.com, now rely on Udemy for Business to train and upskill their teams.
We’re committed to continuing to grow this program into a sustainable, scalable business. To enable this next phase of growth, we’re making a few updates to the terms of the Udemy for Business Content Subscription Program:
- Updating Udemy for Business instructor revenue share from 50% to 25% to match revenue share on other marketing programs where Udemy makes significant investments (e.g., paid ads, affiliates).
- Improving the way we calculate monthly instructor revenue from this program to increase transparency and reduce volatility in instructor payouts. As part of this improvement, we are also launching Udemy for Business Analytics to give instructors more information on how their revenue is calculated.
Why are we making these updates?
- Updating Udemy for Business instructor revenue share from 50% to 25%: Udemy’s revenue share percentages are based on the investment required to acquire and retain students. When instructors bring students to their own courses on the Udemy marketplace, instructors earn 97%. When Udemy bears the cost of acquiring students (for example, through paid ads or affiliates), instructors earn 25%. Udemy makes significant investments in acquiring and retaining Udemy for Business customers, as well as encouraging employee engagement with courses. It is important to update the instructor revenue share to reflect these investments so that we can build a sustainable business that generates a growing stream of revenue for instructors. While this change will result in a temporary drop in instructor revenue, we’re confident that it will lead to long-term growth that will more than make up for the short-term revenue dip.
- Improving the way we calculate monthly instructor revenue: We’re improving the formula for calculating Udemy for Business monthly revenue so that it is based on course consumption as a percentage of overall minutes of consumption across all customers. Until now, this instructor revenue has been calculated based on how much of a course was consumed per customer. See below to understand this update better. By improving this formula, courses with more overall consumption across Udemy for Business customers will see better earnings, and instructors will see less volatility in their payouts.
- Launching Udemy for Business Analytics: Many instructors have asked us for better data and more transparency on how revenue is calculated. Udemy for Business Analytics will provide more visibility on how students engage with instructors’ content and more transparency on why instructors are earning what they’re earning each month.
What does this mean for you?
- The adjusted revenue share and the improved monthly revenue calculation will go into effect starting with your December Udemy for Business payment, which will show up on your revenue report in early January, 2018.
- Udemy for Business Analytics will also be released in early January, 2018. This dashboard will give you more details on how your revenue is being calculated and how students are engaging with your course.
Udemy for Business is growing rapidly. While these updates are significant, we strongly believe that they will help us take this business to the next phase of growth and generate a significant revenue stream for our instructors. We have ambitious plans for the next year, from expanding to international markets to driving greater employee engagement with courses. We encourage you to continue to participate in the Udemy for Business program and join us in helping employees around the world build and improve their careers. If you’d like to opt out of this program you can do so by updating your preferences. Learn how to do this here.