Online courses generate different opinions, some find them super cheap, others find them expensive, but what is the real cost of an online course? Does all that money go to the creator of the online course? What is involved in selling a course?
The creators of online courses have become millionaires thanks to the brilliant ideas of practical courses that have conquered the whole nation. Unfortunately, it is good to know that only a percentage of what you pay will end up in the pocket of the course producer.
Many think that online courses are just recording the computer screen or appearing in front of a camera, then putting it up for sale and becoming a millionaire. If only it were that simple, it generates time, cost and money.
As much as online courses have the advantages of reaching many more people than face-to-face courses, the expenses can exceed proportions that you cannot imagine. See how a course can be very expensive and still be very profitable.- - - - - - - -
Up to 10% of the value goes to the Sales Platform
About 10% of the amount paid for an online course, sometimes less, goes to the payment platform Hotmart, Monetizze or Eduzz. Producers need these platforms to manage and automate course sales.
Some producers even charge additional fees for the card or extra tools that these platforms provide. Luckily large affiliates get a discount on that percentage. I know people who pay 8% tax at Hotmart.
The alternatives Eduzz and Monetizze are often popular for having lower transaction fees. Eduzz charges 4.9% of the total sale or 8.9% when the sale is made by affiliates. The Monetizze has a rate of 9.9% + 1.00 for each sale made.
In addition to the sales tax, both the producer and the affiliate pay a small fee to withdraw or send the money to their bank account. If the amount is in dollars, the rate is usually higher, apart from the rate of the bank that manages the dollar in question.
20 to 60% goes to the affiliate - Partner
Producers who put their courses online on platforms like Hotmart, usually pay a commission that can vary from 15 to 60% for those who advertise this course and sell through the indication of a link.
Basically this is the work I do, watching other people's courses and earning a commission of around 30% on most of the products I advertise. It may seem like a lot, but many sales are made by the producer himself, who takes the full amount.
In one of the products I am affiliated with, the producer said that I am number one in sales, but that I don't even cover 15% of his product's total sales. Some commissions are lost because of the cookie, causing affiliates to chip.
Is it a fair percentage? Do you feel comfortable giving 30% of the money paid for a course just by being referred through a website? If you think this is bad, be prepared that the next topic will show you where your money will end up.
Facebook ADS and Google ADS - Ads
Producers who are millionaires with their courses, only arrived in this place because they spent tons of money through advertisements on Facebook, Google or others. Ads consume a large part of the earnings, it can take more than 50% of a sale.
Of course, producers who invest 5,000 reais a week in paid Facebook ads end up having an income of more than 7 digits per year. The real con artist of digital marketing is Facebook itself that gets everyone's money.
Of course, we should not look badly at this situation. This has always been visible, advertising is the lifeblood of the business. Most of any company's investment goes to marketing and advertising. Want to see an interesting example?
Have you ever wondered why football players from famous teams make so much money? Is it just to kick a ball? Of course not, everything is marketing and advertising, they earn millions just to have a logo on the shirt and in the field.
Companies pay football teams and stadiums for visibility, just as online course producers pay Facebook to showcase their products. There is nothing wrong with that, but it is bad to know that your investment goes to billionaires.
Spending on tools and websites
Maintaining a website is also not simple. In addition to the relatively inexpensive hosting and domain, many producers have to pay article writers or spend much of their time Website SEO.
Many producers of online courses do not have certain skills and cunning like some who constantly touch the computer. They end up spending much more than they should with tools, plugins and themes that make life easier for the sweet ones.
Even though there are good alternatives like the Hotmart Club. Some invest heavily on EAD platforms monthly to manage their students in an online course. In one way or another, these are more expenses to account for.
Another expense that affiliates and producers have is with email marketing tools. Some have gigantic lists that cost more than $ 100 a month to maintain. There are several tools that generate a monthly cost to the company.
Employees, tutors, sales and support staff
Having a large online course requires a great team. One of the courses I am affiliated with has a team of teachers, support, financial managers, sales managers and many other employees.
They even have their own workplace with expensive equipment and expensive maintenance. Having a quality online course is not just about taking a camera and recording. The maximum you will be able to charge for this is about 200 reais.
Many devalue online courses precisely because of the greedy little people who record random things anyway, stuffing sausages and saying the obvious, just to sell and make money. This is not exclusive to online.
Sales, affiliate and product managers
Many teachers who set up online courses end up using a marketing agency that takes care of the entire investment process, creation, advertising, website and so on. Many co-produce and take a large percentage off affiliates.
Some teachers who set up online courses have access to only 50% of the remaining profit amount, excluding the percentage of the platform and affiliate. So he is only concerned with developing the course and taking care of the students.
Think about it, I'm a teacher, I did a 50% co-production with an agency, of the 1,000 reais 10% goes to Hotmart, 30% goes to the affiliate, and of the remaining amount I still have to share 50% with the agency? Apart from the additional costs not mentioned.
Some hire only sales, marketing or affiliate managers. Having an agency or someone managing your product, it is good that it totally reduces the work, headache and the things that an inexperienced person would need to learn.
Is it worth paying 2,000 reais in an online course?
The average ticket for large and famous courses is usually around 2,000 reais. Is it worth paying this amount in an online course? The answer is simple and clear: If that's what you're looking for, you can invest without fear.
As you saw in this article, the expenses behind an online course are high. Especially if the course has its own platform, speakers, team of teachers, support team and more. Do you know that 2000 reais is not expensive?
If you are going to take an in-person English course for a year, you will spend gas to get around the place, pay more than 2,000 reais to have a few classes per week, and take at least 5 years to have satisfactory results.
I have already paid for a 3-year language course. I would spend more than 7,000 reais and learn only the basics of English. So, 2,000 reais is not expensive in a single payment course that can be paid in 12 installments.
Setting a course is a millionaire business
Despite all the expenses, setting up an online course is still a millionaire business. I know people who made 7 digits in a week, only with enrollments of a certain popular course. Unfortunately, not everyone achieves such results.
Not only producers, but affiliates are also in a million dollar market. I already made 6 digits in the year thanks to the digital market for online courses just working as an affiliate. I hope to turn those 6 into 7.
It is interesting to see why online courses are so expensive in the eyes of some. Not as expensive as face-to-face, but it is still expensive for recorded lessons. It will be? In fact knowledge is priceless!
I personally think the online courses are super cheap, but I understand your situation, I also have scorpions in my pocket. But if you have found an online course that catches your eye, invest! You will only regret it if you don't apply it.