What is Udemy Business Model?

The Udemy business model is an online learning marketplace, which acts as a mediator between the instructor and learner. The instructors and tutors can upload their course as a video, and learners can learn it online by buying the desired one. It organizes the courses from instructors and sells them on its website. Anyhow the platform never owns anything listed on their website. Henceforth, the instructor determines the course package and price details, while Udemy only imposes a commission on every purchase.

Statistical Analysis of Udemy’s Financial Growth

In earlier stages, Udemy struggles a lot for funding. Then with the help of some investors, they paved their way in a digital learning platform. 

Within a few months of the venture, Udemy attracts 1000 instructors with nearly 2000 courses. Now, this platform acquires approx. 65,000 instructors with 1,80,000+ courses and 44 million learners enrolled. 

Revenue Analysis of Udemy Business Model

Udemy offers free registration for both Instructors and Learners. The business model of Udemy is such that the course video and learning are possible only on the Udemy platform. Whenever the Student purchases the course, Udemy gets revenue from the instructor based on some criteria fixed within the system. Also, they generate revenue from Ads. 

Work Flow of Udemy Business Model

Udemy business model consists of an Admin panel, Instructor Panel, and Learner Panel. 


  • Admin is the one who takes complete control over the entire process involved within the system. 
  • Everything needs to get approved by the admin before posting to live. 
  • Admin supervises the activity of both the instructors and learners.
  • Admin can set the commission and payment details for instructors from the Admin dashboard. 

Instructors Part 

  • In the Udemy business model, the instructor has to register by furnishing the details regarding the course and needs to get approval from the admin.
  • Once they get approval, the course will be visible in the particular category to the learners. 
  • Instructors can upload the course video with the payment details and set the questions at the end of the course. 
  • Instructors can check the details of the users from this instructor panel.


  • The learner is the end-user of this process, who can learn any new course available on Udemy. 
  • The learner will browse through n number of courses available on Udemy and pick the one they wish to learn. 
  • They can register on Udemy, purchase the course package they want, and use it at their convenience.

Why Learners choose Udemy?

Convenience in learning new skills: 

Udemy gives its students the liberty to decide what and when to study. The Udemy business model acts in a way if a course is available, the students can register for it whenever they need it. Besides, there is no time deadline so, the students can learn in their available schedule. 

All Streams available in one place: 

Udemy, an e-learning platform, has connected instructors from all around the world who teach various topics. It facilitates the students to learn whatever they are interested in by selecting the topic they need. 

Affordable Cost: 

The Udemy business model has courses available at an affordable cost to learn new skills. There are also a variety of discount coupons and seasonal offers which encourage learners to enroll themselves in courses. They do have multiple payment gateways for the convenience of learners from all over the world. 

Course Certification: 

Udemy provides certificates to learners on completing the course successfully. Learners can easily download and save the Certificates in a .pdf or .jpg file. It can also be shared on social media like Facebook, Twitter, and LinkedIn right from Udemy.


Udemy’s unique business model and financial growth prove that virtual learning is the future of the education learning system. Want to develop an e-learning platform like Udemy, then contact Abservetech. We have ready to use a product called EduStar in which you can easily set up an online learning management system. 

More about EduStar

EduStar works on the same model of Udemy for an online learning management system. With this product, you can easily set up your e-learning marketplace. Nowadays, digital learning software simplifies the learning process, and it is mandatory for Educational business. 

Reach us and build your online learning platform.

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