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 its 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 to a digital learning platform. 

Within a few months of the venture, Udemy attracted 1000 instructors with nearly 2000 courses.  Now, there are over 1,80,000 courses on the platform, with 65,000 instructors and 44 million learners enrolled for various lessons. 

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, an instructor panel, and a 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 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 course details and getting approval from the admin.
  • Once they get approval, the course will be visible under the respective category for 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 the courses on Udemy and pick the one they wish to learn. 
  • They can register on Udemy, purchase the course package they want, and use it conveniently.

Value Proposition of Udemy

Udemy focuses on factors like accessibility, price, convenience, etc., and provides users with the best experience. By offering these value propositions, Udemy comes across as an online learning platform that effectively meets user needs. 


The courses in Udemy are easily accessible to learners worldwide. Lessons ranging from software to photography and music are available for people to access. Further, the online learning platform provides courses in over 75 languages. So, it makes it easy for the audience to choose the language of their choice. 


Udemy offers a value proposition in terms of cost. Courses are available at a far lower price compared to most other platforms, leading to user satisfaction.


The online learning platform offers the convenience of making an extensive range of topics available to users. Learners can find almost any topic they want, all in one place. 


Instructors can personalize their courses on Udemy by using the various design tools available on the Udemy app and website to achieve the desired look. They can explore, experiment, and choose the one that best suits their needs. 

Why do 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, as there are no time constraints, 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 to enroll. They do have multiple payment gateways for the convenience of learners from all over the world. 

Course Certification: 

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


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

More about EduStar

EduStar works the same way as 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 is mandatory for Educational businesses. 

Reach out to us and build your online learning platform.

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