The e-learning revolution – Inside the $1 trillion online education boom

The online education industry is seeing unprecedented growth, with the e-learning market expected to reach $1 trillion in a few years. At GetResponse, we’ve done the homework for you, conducting an in-depth survey with 1,000 course creators and 1,000 students.

The results? Nothing short of eye-opening.

Here’s a taste of what we’ve discovered:

1. An impressive 93% of course creators are generating income from their online courses. This isn’t just a hobby – it’s a viable business model.
2. The top 8% of performers in the field are bringing in over $10,000 monthly. The potential for significant earnings is real.
3. But it’s not all about the money. For 56% of creators, sharing knowledge is the primary driver. Passion fuels this industry.

Our research dives deep into the key aspects shaping online course creation:

• The addictive nature of course creation, with 90% of creators developing multiple courses
• The generational shift in online learning, led by tech-savvy younger generations
• The power of social proof – 80% of potential students rely on online reviews when choosing courses
• Strategies for pricing courses to maximize both value and appeal
• The most effective marketing channels making waves in 2024

Whether you’re a seasoned course creator looking to refine your strategy or an aspiring educator considering your first course, this data offers valuable insights. We’re not just presenting numbers – we’re providing actionable information to help navigate the dynamic landscape of online education.

As the digital learning sector continues to evolve, understanding these trends and strategies is crucial. This exploration of the online course ecosystem aims to equip creators with the knowledge to thrive and help learners make informed decisions.

Inside the minds of course creators

The world of online education is changing quickly. What was once a small interest has exploded into a worldwide trend, with creators and learners coming together in this exciting, always-changing space.

Dr. Carrie Rose, bestselling author and EdD in Educational Leadership, puts it this way:

In this deep dive, we’ll explore the fascinating trends, motivations, and strategies shaping the future of online course creation.

Why creators create

Creating an online course is no longer just a casual side project. Today, it’s a serious commitment that demands dedication, skill, and a lot of heart. That being said, it’s also addictive. According to our survey, almost 90% of course creators create multiple courses.

But what drives educators to keep pushing forward? Is it the promise of making money, the excitement of sharing what they know, or something more meaningful?

When you look closely, you’ll find that the reasons behind this online course boom are as varied as the courses themselves. Sure, the potential for extra income is a big draw. Who wouldn’t want to turn their knowledge into a profitable business? But for most creators, it goes much deeper than that.

While earning extra income is undeniably a key motivator, it’s not the primary reason most creators are drawn to this field. The desire to share knowledge and expertise tops the list, with 56% of respondents citing this as their main reason for creating courses. This passion for teaching and helping others is the core driver for many creators, making the process as rewarding as the outcome.

Michaela Alexis, an official LinkedIn Learning Instructor and renowned LinkedIn trainer, agrees with this sentiment.

In addition to teaching, many creators see online courses as a powerful tool for building their personal brand and expanding professional opportunities. With 47% of respondents focused on brand building and 46% looking to broaden their career prospects, it’s clear that course creation is more than just a financial endeavor—it’s a strategic move for long-term growth and influence.

The cost of course creation

Creating a high-quality online course typically requires a significant investment of both time and money.

Most creators spend between $101 and $1,000 on developing their courses. This range allows them to balance affordability with the need for professional-grade tools and resources. For those starting out on a tighter budget, it’s possible to create courses for under $100 by leveraging free tools and doing much of the work, such as video editing or graphic design, themselves.

But it’s not just about the money. Making an engaging, informative course takes time – a lot of it. Most creators spend between 1-6 months bringing their vision to life, with 36% taking 1-3 months and 27% spending 4-6 months. For some, the process can be even quicker – 17% of respondents managed to create a course in less than a month. These creators likely employed streamlined processes or focused on concise, targeted content that could be developed and delivered rapidly.

Embracing online education

As creators pour their hearts into making exceptional courses, learners are responding with equal excitement. The demand for online education has skyrocketed, with two-thirds of our survey respondents saying they’ve taken more than one online course. This strong trend toward continuous learning suggests that once individuals experience the benefits of online education, they are likely to pursue further learning opportunities.

Digital natives leading the charge

When we examine the data by generation, a clear pattern emerges: younger generations are at the forefront of the online learning revolution. Gen Z, in particular, shows a marked preference for online courses, with 73% of respondents in this group having taken multiple courses. 

Millennials are close behind, with 69% having taken multiple courses. This cohort’s strong participation likely reflects their desire to remain competitive in a rapidly evolving job market, as well as their inclination towards personal development.

This generational shift suggests that as digital natives like Gen Z and Millennials become the dominant demographic, the trend toward online learning will continue to grow, driven by its accessibility, flexibility, and the broad range of topics available.

Moreover, this trend shows that online learning has a unique way of keeping people engaged, no matter their age. Once someone takes an online course, they often come back for more. It seems that online learning isn’t just a one-off experience; it tends to become a habit, encouraging people to return and continue their learning journey.

Learning in the post-pandemic era

The COVID-19 pandemic was a major catalyst for the widespread adoption of online learning. What began as a necessary adjustment during lockdowns has now solidified into a preferred method of education for many. The pandemic forced both educators and learners to rapidly adapt to digital platforms, leading to a significant increase in familiarity and comfort with online learning environments.

This experience has likely resulted in a permanent shift in the educational landscape. Institutions and educators have invested heavily in improving digital infrastructure and course delivery methods, making online education more accessible and effective.

In our survey, a majority of respondents — regardless of age — considered online courses to be more effective than traditional face-to-face education, highlighting a growing acceptance and trust in the quality of online education. Learners have discovered the convenience, flexibility, and personalized experience that online education offers, and there’s no going back.

In the words of Anton Voroniuk, a top-rated Udemy instructor with over 700,000 students:

Learning motivations across generations

But not all learners are motivated by the same things. Millennials, always focused on advancing their careers, are rushing to online courses as a way to stay competitive in a rapidly changing job market. Business-related courses are especially popular among this driven group.

Gen Z, on the other hand, is embracing online learning with a mix of practicality and passion. They’re focused on career and personal development, but they’re also more likely than any other generation to take courses simply for the love of learning. And let’s not forget hobbies – Gen Z loves exploring new interests and expanding their horizons.

Even Baby Boomers are getting in on the action, proving that it’s never too late to learn something new. They’re focusing on career and personal development, with a particular interest in health-related courses as they approach retirement.

Cracking the marketing code

For course creators, understanding these generational differences is key to effective marketing. 

Younger generations, especially Gen Z, are deeply embedded in the digital world. They’re discovering courses through social media, word of mouth, and online searches. To reach them, creators need to have a strong online presence tailored to their habits.

Millennials, while also using social media, are most likely to find courses through online searches. This makes search engine optimization  and search advertising crucial for reaching this group.

Gen X relies more on online searches and word of mouth, with social media playing a less central role. And for Baby Boomers, personal recommendations and traditional search methods are most important.

Preferred marketing channels of creators

When we compare how consumers discover courses with how creators market them, several insights emerge. 

Social media remains the most popular marketing channel among creators, with 62% utilizing platforms like Facebook, Instagram, and LinkedIn. This aligns with the preferences of Gen Z and Millennials, though there’s a risk of oversaturation as more creators focus heavily on these platforms.

Email marketing, through newsletters, is a key channel, used by 45% of creators. This method is crucial for direct communication, allowing creators to build deeper connections with their audience and maintain engagement over time. With its ability to reach a targeted audience consistently, email marketing remains a powerful tool for driving conversions and fostering loyalty.

Lechon Kirb, founder of Market Theory, recomends leveraging both of these channels for optimal growth.

Paid advertising, employed by 45% of creators, reaches consumers effectively via online searches and social media. Success in this channel hinges on precise targeting and efficient budget management to maximize return on investment.

Content marketing, including blogs and videos, is used by 39% of creators. Despite its proven effectiveness, this channel has more potential for growth. As many learners discover courses through related content, investing in high-quality, informative pieces can increase visibility and establish authority.

SEO, a channel used by 34% of creators, is vital as online searches are a primary discovery method across generations. There’s a significant opportunity for more creators to optimize their content for search engines, capturing more organic traffic.

Paid newsletters and webinars, used by 30% and 29% of creators, respectively, are not the primary discovery methods but excel in nurturing leads and fostering deeper engagement once interest is established.

The importance of social proof

In a world where anyone can create a course, how do learners tell the good from the bad? The answer lies in social proof. 80% of potential students consider online reviews an important factor when deciding whether to enroll in a course.

These reviews often provide insights into the quality of the course content, the effectiveness of the instructors, and the overall learning experience, which can greatly influence a student’s choice. As a result, positive online reviews can be a powerful tool in attracting new students, while negative reviews can deter potential enrollments.

The power of a personal brand

But it’s not just about the course itself. Learners want to know who’s behind the content. More than two-thirds of our respondents said they look into the instructor’s background before signing up for a course, while almost one-third said they do extensive research before pulling the trigger. A strong personal brand—one that shows expertise, trustworthiness, and a commitment to student success—can make all the difference.

Alexis Haselberger – a time management and productivity coach – suggests that course creators shouldn’t shy away from developing their unique public persona if they want to succeed in a saturated market. 

Mastering online course creation

Creating an online course that engages learners and drives student success requires careful consideration of several key factors.

From choosing the right platform to understanding audience preferences, incorporating essential features, and addressing common challenges, the path to creating a successful online course is filled with important decisions and potential obstacles.

Finding the perfect platform

One of the first and most crucial decisions in the online course creation journey is selecting the right platform to host and deliver the course. Each platform brings its own unique set of strengths and caters to different types of course creators and audiences.

YouTube has emerged as the leading platform among course creators, with 56% leveraging its vast audience and video-centric format. This makes it a top choice for those looking to expand their reach and engage viewers through compelling video content.

Personal websites are the next popular option, with 42% of creators opting for self-hosted platforms. This choice is driven by a desire for complete control over the learning experience and branding, allowing creators to offer a tailored and unique presentation to their audience.

Teachable and Skillshare are equally favored by creators. Teachable is known for its user-friendly interface and strong branding features, making it ideal for those who want to maintain a distinct personal brand. Skillshare, on the other hand, is popular among creatives like artists and designers, thanks to its vibrant community and engaging features.

Coursera attracts creators who want to align their courses with prestigious institutions and established educational standards. Meanwhile, Udemy, known for its extensive marketplace and high visibility, remains a go-to for many creators, although the platform’s competitive nature can be challenging for newcomers looking to stand out.

Tailoring content for each generation

Understanding the learning format preferences of different generations is key to creating courses that resonate with target audiences.

Gen Z learners show a strong affinity for video tutorials, but also a surprisingly high interest in written guides. Millennials gravitate towards interactive formats, with a significant portion favoring live Q&A sessions. For Gen X and Baby Boomers, video tutorials are consistently the top choice, with Baby Boomers showing the highest preference.

The building blocks of effective online learning

Creating an engaging and inspiring online learning experience requires a strategic mix of essential features. These components, when effectively integrated, can transform a course from a simple content collection into an immersive and impactful journey.

Video lessons are often the cornerstone of successful online courses, enabling learners to connect with the instructor and absorb information dynamically. According to the data, 55% of respondents consider video content crucial.

However, effective learning extends beyond videos. Progress tracking tools help learners monitor their progress and stay motivated, with 45% of respondents emphasizing their importance. Interactive quizzes also play a key role by reinforcing knowledge and keeping students engaged—40% of respondents recognize their value.

Discussion forums add a social dimension, allowing learners to connect and share ideas, with 39% highlighting their importance. Finally, hands-on tasks enable learners to apply what they’ve learned in real-world contexts, a feature valued by 29% of respondents.

Navigating the challenges of course creation

While the building blocks of effective online learning may be clear, putting them together is not always a smooth process. Course creators face a range of challenges and obstacles that can make the journey from idea to implementation a bumpy one.

Technical difficulties are the most common roadblock, reported by half of the survey respondents. Whether it’s wrestling with unfamiliar software, dealing with glitches and bugs, or simply trying to create a seamless, user-friendly experience. Engaging learners and keeping them interactive can also be a major challenge, especially when teaching remotely.

Marketing and promotion is another area where many course creators struggle. After all, even the most brilliant course will fail to make an impact if no one knows it exists. Figuring out how to reach and attract the right audience can be a daunting task.

Content planning and organization is yet another hurdle to overcome. How do you structure your course in a way that makes sense, flows logically, and keeps learners engaged from start to finish? It’s a puzzle that requires careful thought and planning.

Despite these challenges, success is possible. In fact, 11% of course creators report encountering no significant issues at all. The key is to approach the process with a strategic mindset, armed with the right tools, techniques, and support systems.

Student engagement and retention 

Creating an amazing online course is a major accomplishment, but it’s only half the battle. The real challenge lies in keeping students engaged, motivated, and on track from beginning to end.

There are many reasons why learners may fail to complete a course. Generic, one-size-fits-all content that fails to resonate with their specific needs and interests is a common culprit. Time constraints and competing priorities can also make it difficult for learners to keep up with the pace of a course.

A lack of human interaction and support can leave learners feeling isolated and disconnected, while a mismatch with the instructor’s teaching style or personality can be a major turnoff.

Fortunately, there are proven strategies for overcoming these retention challenges. Regular communication, such as email check-ins and progress updates, can help to keep learners engaged and accountable. Interactive, multi-format content can make the learning experience more dynamic and engaging.

Progress tracking tools give learners a clear sense of their accomplishments and what’s left to achieve, while completion incentives like certificates or badges can provide extra motivation to cross the finish line.

Building a strong sense of community and peer support is another powerful retention tool. When learners feel connected to their classmates and part of a shared learning journey, they’re more likely to persevere through challenges and stay committed to their goals.

Finally, personalized support, whether through one-on-one tutoring, coaching, or just-in-time assistance, can make all the difference for learners who need a little extra help.

The monetization and protection of online courses

Monetizing online courses is a crucial step in transforming knowledge into a sustainable business. Course creators employ a variety of strategies to generate revenue, each with distinct advantages and challenges. Understanding these strategies, addressing the difficulties, and safeguarding intellectual property are essential for success in the competitive online course market.

Popular monetization strategies

According to the data, the one-time payment model is the most common, with 46% of respondents using this straightforward approach where students pay a single fee for lifetime access to the course content. This makes sense, as not everyone taking online courses is interested in joining a community – or, as Leila Bulling Towne, course creator in the leadership niche, puts it:

Another popular method is the freemium model, employed by 45% of respondents. This strategy involves offering free content to attract a wider audience, with premium features or additional resources available for purchase. This approach lowers the barrier to entry and increases the likelihood of students upgrading to the full course experience.

Subscription-based models are also widely used. By charging a recurring fee, either monthly or annually, course creators can generate a steady income stream while encouraging long-term engagement. This model is particularly effective when new content and resources are added regularly, incentivizing students to remain subscribed.

For creators with a strong following or niche expertise, sponsored content and brand partnerships offer a lucrative opportunity. Partnerships allow creators to generate additional revenue while providing exclusive content, discounts, or supplementary resources to students.

Webinars and live sessions are another effective way to monetize courses. These events create a sense of exclusivity and offer direct interaction with the instructor, enhancing the perceived value of the course.

Although less common, paid newsletters are still a viable option for 27% of respondents. These newsletters can offer ongoing value through exclusive insights, updates, or supplementary materials, appealing to learners eager for continuous education beyond the initial course content.

When selecting a monetization model, course creators are influenced by several factors. Audience preferences and feedback play a pivotal role, as noted by 46% of respondents, ensuring that the chosen strategy aligns with what learners are willing to pay for.

Ease of implementation is also a significant consideration for 45% of respondents, as simpler models can be more manageable to set up and maintain. Additionally, revenue potential is a major factor for 43% of respondents, with creators seeking strategies that maximize their earnings.

The challenges of monetizing courses

Despite the opportunities, monetizing online courses comes with its own set of challenges. Building a large enough audience is a common hurdle, a lot of course creators struggle to attract sufficient numbers of students. This challenge is further complicated by competition with free content, a concern for 44% of respondents who find it difficult to stand out in a crowded market.

Setting the right price is another significant challenge. Striking a balance between affordability and perceived value is crucial for attracting and retaining students.

For those using subscription-based models, retaining subscribers over time is a key concern. Maintaining a steady flow of fresh, relevant content and fostering a sense of community among learners can help mitigate this issue.

Safeguarding intellectual property

As the online course market expands, protecting intellectual property and securing content have become top priorities for creators. A combination of safeguards is essential to deter unauthorized use and maintain control.

Watermarking videos and content is the most common strategy, used by over half of course creators, serving as a clear visual deterrent. Restricting downloads and screen captures further reduces the risk of unauthorized sharing. Monitoring for unauthorized distribution is crucial, allowing creators to promptly remove infringing material found on other platforms. Additionally, Digital Rights Management tools add a layer of protection by controlling access and sharing, effectively deterring piracy.

While no single method offers complete protection, combining these strategies can significantly reduce the risk of intellectual property theft and help creators maintain control over their valuable content.

The value of e-learning

It’s easy to be swept up by the excitement surrounding e-learning. But to truly understand its value in education and skill development, it’s essential to delve into the data and explore the key metrics that highlight e-learning’s real impact and potential.

Learning is the best investment

As part of our research, we wanted to know if there is a correlation between participating in webinars and consuming e-learning newsletters and income. The answer probably won’t surprise you.

Those in the highest income bracket are almost twice as likely to attend webinars on a weekly basis compared to those in the lowest bracket and are more than two times as likely to regularly read e-learning newsletters.

But it’s not just about the frequency of engagement; it’s about making e-learning a habit. Consistency is key, and those who make continuous learning a priority are more likely to reap the rewards in terms of earning potential and career success.

So, what can be learned from this? It’s simple: engaging regularly with e-learning content, whether through webinars, newsletters, or other resources, can be a powerful tool for personal and professional growth. By making e-learning a part of one’s routine, individuals can stay ahead of the curve and position themselves for success in an increasingly competitive job market.

Pricing preferences of students

When it comes to investing in digital courses, learners have a wide range of pricing preferences. Some are willing to pay top dollar for specialized, high-quality content, while others prefer more affordable options or even free resources. Understanding these diverse preferences is crucial for anyone looking to create or invest in e-learning content.

On one end of the spectrum, there are learners who are willing to invest heavily in their education. Nearly 9% of respondents are open to paying over $1,000 for the right course, with some even considering prices above $5,000. This demonstrates that there is a market for premium, high-value content that justifies a higher price point.

The most common price range for learners falls between $51 and $500, with nearly 40% favoring courses in this bracket. This range hits a sweet spot, balancing affordability with perceived value, suggesting a strong demand for courses that provide a solid return on investment without breaking the bank.

The bottom line – profitability

At the end of the day, the true test of e-learning’s value lies in its financial viability. And the data speaks for itself: e-learning is not just a profitable venture, but one that often outperforms other types of online businesses.

A staggering 93% of course creators report earning income from their online courses, with only a small minority indicating zero earnings. This is a testament to the incredible potential of e-learning as a business model, particularly when compared to industries like ecommerce, where profitability can be much harder to achieve.

But it’s not just about earning a little extra cash on the side. For many course creators, e-learning is a significant source of income. Nearly 20% of creators are earning between $1,001 and $5,000 per month, while an elite group of top performers are bringing in over $10,000 monthly.

These figures are a clear indication that e-learning can be a highly lucrative pursuit for those who are willing to invest the time and effort to create valuable content and build a dedicated audience.

So, what sets e-learning apart from other online business models? It comes down to scalability and efficiency. With lower overheads and the potential for repeatable, automated income streams, e-learning offers a unique opportunity to build a profitable business that can grow and evolve over time.

Course creation expert Melissa Guller puts it this way:

Final words

In a world where knowledge is power and continuous learning is the key to success, e-learning has emerged as a force to be reckoned with. By examining the data on engagement, pricing preferences, and profitability, it becomes clear that e-learning is not just a passing trend, but a valuable tool with the potential to transform lives and careers.

For individuals looking to invest in their own growth and development, e-learning offers a flexible, accessible way to acquire new skills and knowledge. By making continuous learning a habit and seeking out high-quality content that aligns with their goals and budget, anyone can tap into the power of e-learning to unlock their full potential.

And for those looking to create e-learning content, the opportunities are vast. By understanding the needs and preferences of their target audience and delivering value at every price point, course creators can build profitable, sustainable businesses that make a real impact in the lives of their learners.

So, whether you’re a learner, a creator, or an investor, the message is clear: e-learning is here to stay, and its value is only going to grow in the years to come. The question is, are you ready to unlock its full potential?