Startup cost
$2k–$20k
TRUiC Business Ideas
How to Start an eLearning Business
Decision Snapshot
Elearning
Idea Score
66
Profit margin
22%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Flexible
Part 1 - How to start an eLearning business - Background
Online courses have increasingly become the go-to method for learning a variety of skills and knowledge. The benefits of online learning for students and instructors are numerous, and for entrepreneurs, the financial potential can be significant. In fact, the eLearning industry is expected to reach $325 billion by 2025.
eLearning businesses may deliver formal education opportunities or informal opportunities. On the more formal end of the spectrum, accredited colleges and universities offer fully online degrees. On the less formal end, other eLearning businesses offer instruction on practically every subject, from basket weaving to gardening. If you can think of a subject, chances are you can find someone attempting to teach it online.
Our guide is in 3 parts:
- Part 1 - How to start an Elearning business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening an elearning business?
Getting started with an eLearning business doesn’t have to cost a lot. If you create your own courses and build your own platform, you will only need to pay for course production equipment (audio/visual), website hosting, and your platform. On the cheap end, you could record audio/video on your phone, edit in a free video editor, post videos on YouTube, and use WordPress for your site – all of which will cost very little.
If you want to hire others to create your coursework, the estimate for an hour of basic eLearning content in 2017 was around $4,500 at the low end. For more comprehensive content, the estimated cost of an hour of content was $10,054.
What are the ongoing expenses for an elearning business?
The ongoing costs for an eLearning business include platform maintenance and hosting as well as course creation. By far the most expensive cost is course creation. As mentioned before, the cost of an hour of course content can cost thousands of dollars or more. You can mitigate the cost of course creation somewhat by hiring salaried staff to do most of the work, but you will still need to pay experts to oversee the course creation and give final approval.
Who is the target market?
The target market for your eLearning business will vary greatly depending on what kind of courses you are offering. A course like Microsoft Excel Secrets will probably appeal to office workers while Making Homemade Sauerkraut will likely appeal more to hobbyists. There is value in both markets. Corporate clients and their employees are great consumers of online learning products, but you could also attract passionate and committed customers in the hobbyist area as well.
How does an elearning business make money?
An eLearning business usually makes money in one of two ways. The first is known as the night school model. In this model, the business charges a one-time fee for access to a course. The student follows the course outline, takes quizzes and tests to measure progress, and eventually completes the course.
The second business structure is the academy model. In this model, the business charges users a recurring fee for access to all of the courses they offer.
How much can you charge customers?
The amount you can charge customers depends on what courses you are offering and the market you are serving. For example, you can find basic eLearning courses for $9.99 on some platforms. Courses that lead to certification in a high-demand area can cost $10,000. Then you have eLearning platforms that offer Academy-style subscriptions, which may charge $19.99 a month to $49.99 a month.
How much profit can an elearning business make?
According to the eLearning hosting platform UScreen, the most profitable eLearning businesses use the Academy model. While charging hundreds of dollars for a single course can appear to be the most lucrative option at first, over time the subscription model adds up to more profit. UScreen claims that users applying the subscription model earn an average of $5,700 a month.
How can you make your business more profitable?
You can make your business more profitable by creating more courses. Each course you create will earn you some income and continue to earn income for as long as it is desirable to the consumer. As an example, your first course might make you an average of $100 a month. If you created 10 courses over a year, you could make ten times that amount. Another option for making your business more profitable would be to increase the variety of courses you offer. This is particularly useful in the Academy model because the more variety you offer for the monthly fee, the more attractive your subscription service becomes to customers.
Day-to-Day and Growth
What happens during a typical day at an elearning business?
Running an eLearning business requires juggling a lot of things, including course design, course implementation, instructor needs, tech issues, and marketing. If you are in charge of the business, you are probably not the only one creating courses. You may not even be involved in building courses. Instead, you might be working with multiple instructors to offer various courses on your platform. That means you need to keep the wheels rolling on different projects to get courses launched on time and ensure that your customers can use your platform as intended.
What are some skills and experiences that will help you build a successful elearning business?
The skills and experience you will need to be successful with an eLearning business depend somewhat on how you plan to structure your business. If you will be the instructor in all of your courses, you need enough authority to attract learners. For instance, if you want to teach journalism, you should have some journalism credentials so people want to learn from you.
If you are looking to create something bigger and more substantial like an eLearning platform with a variety of courses, you will need good management skills. As mentioned earlier, you will be working with various instructors and possibly developers to build courses and deliver those courses through an online platform. You will need to be capable of recognizing quality instruction and desirable platform design.
What is the growth potential for an elearning business?
The growth potential for an eLearning business is significant. While you may start with only a few courses, over time you can develop numerous courses and increase your customer base with each offering. One advantage this business idea has is that once you finish work on a course, that course can keep making you money for as long as it is of interest to the market. Depending on how evergreen the course is, you may have to make few if any changes to the course year after year.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
What are some insider tips for jump starting an elearning business?
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Choose a niche. If you are starting your own eLearning business and doing most of the work yourself, you definitely want to narrow down to a specific niche to avoid being overwhelmed with possibilities.
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Identify a need and fill that need with a course. For those that love certain subjects, creating courses for those subjects can be fun and satisfying. But the goal here is to make money, so you need to make sure you can sell your courses to consumers. Identify a need first – before building a course – to ensure you have a market for your product.
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Offer a user-friendly platform. The best course in the world is not going to be enough to keep customers around if your platform is difficult to use. If you have the skills, it is possible to create your own platform. However, remember that you can also use an established platform for eLearning by paying a monthly fee.
How and when to build a team
Running your own eLearning business solo will be challenging and maybe impossible if you are successful. Developing courses is time-consuming. So is creating and maintaining a platform, not to mention the time requirements for proper marketing. If you don’t build a team at the beginning, you should seriously consider doing so after your first course is successful. Expanding your business will require at least a few other team members, including someone to maintain your platform, someone to curate courses, and someone to handle marketing.
Part 2 - Is an eLearning business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Elearning business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Elearning Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your eLearning business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.