How much money can you make selling online courses?

Realistic US figures: Most course creators earn $50-$500/month on marketplace platforms. Active marketers with their own audience earn $1,000-$10,000/month. Top 1% earn $20,000-$100,000+/month. The median is far lower than the mean — success is heavily concentrated among creators who actively market their courses through YouTube, blogs, or email lists.

Is selling online courses still profitable in 2026?

Yes, but the bar has risen. In 2020, a basic screen recording was enough. In 2026, students expect professional production quality, regular updates, and community support. AI tools have lowered production costs, making it more accessible to create professional courses, but also meaning more competition. Focus on niche topics where you have genuine expertise.

How long does it take to create an online course?

Traditional production: 80-160 hours for a comprehensive course (2-4 months at 10 hours/week). With AI video tools like FluxNote: 45-85 hours (1-2 months at 10 hours/week). The actual filming/production is what AI accelerates most. Course planning, topic research, and marketing setup take roughly the same time regardless of tools.

Udemy vs. self-hosted: which is better for passive income?

Both, in sequence. Start on Udemy for built-in traffic and reviews (expect $100-$1,000/month). Then create an expanded version on Teachable/Kajabi for higher margins (keep 95%+ vs. 37% on Udemy). Udemy provides passive marketplace traffic. Self-hosted provides higher per-sale income but requires your own marketing. The most successful instructors use both.

Guide

Online CoursesPassive IncomeEducationUSA

Passive Income With Online Courses: The $20B Market Reality Check

The online education market is projected at $20 billion in the US alone by 2027. That sounds like a massive opportunity — and it is. But the median Udemy instructor earns less than $500 per year. This guide covers how to build a course that actually sells, with honest numbers about the effort required and realistic income expectations.

Last updated: February 26, 2026

Step-by-Step Guide

Validate your course topic before creating content

Search Udemy for similar courses. If competitors have 1,000+ students and 4+ star ratings, there's proven demand. Create a free mini-course (5-10 lessons) or YouTube series to test interest before committing 100+ hours.

Create a detailed course outline

Map out every module and lesson before recording anything. Aim for 3-8 hours of content total. Structure: Problem → Foundation → Core Skills → Advanced Application → Real Projects. Get feedback on the outline from your target audience.

Produce the course using AI tools

Use FluxNote to create professional video lessons faster. Generate scripts from your outline, produce voiceover and visuals, then review and refine. This cuts production time in half while maintaining professional quality.

Launch on Udemy first for validation and reviews

Publish on Udemy at a promotional price ($9.99-$14.99). Focus on getting your first 50 reviews. Share with your network, offer free enrollment codes to get initial students. Reviews are the #1 driver of Udemy organic sales.

Build your own course platform and marketing funnel

Once you have 100+ Udemy reviews proving demand, create an expanded version on Teachable. Price at $49-$199. Drive traffic through YouTube videos, blog posts, and an email list. This is where passive income scales beyond marketplace limitations.

Platform comparison: where to sell your course

Your platform choice fundamentally determines your business model:

Marketplace platforms (they bring the traffic):

| Platform | Revenue Split | Avg. Course Price | Pros | Cons |
|---|---|---|---|---|
| Udemy | 37% (organic) / 97% (your traffic) | $12-$15 (heavy discounting) | 60M+ users, built-in traffic | Race to the bottom on pricing |
| Skillshare | Per-minute watched | N/A (subscription) | Passive discovery | Low per-student payment ($0.05-$0.10/min) |
| LinkedIn Learning | Flat fee per course | N/A (invitation only) | High-quality audience | Invite only, one-time payment |

Self-hosted platforms (you bring the traffic):

| Platform | Revenue Split | Avg. Course Price | Pros | Cons |
|---|---|---|---|---|
| Teachable | 95%+ (you keep) | $50-$500 | Full pricing control, student data | You drive all traffic |
| Kajabi | 95%+ | $100-$2,000 | All-in-one platform | $149+/month platform fee |
| Thinkific | 95%+ | $50-$500 | Free tier available | You drive all traffic |

The honest recommendation:
Start on Udemy to validate your course topic with built-in traffic. Once you have 100+ reviews and proven demand, create an expanded version on Teachable/Kajabi and drive your own traffic (YouTube, blog, email) to the premium version. This gives you marketplace income + premium course income.

What it actually takes to create a profitable course

Time investment (first course):
- Course planning and outline: 10-20 hours
- Content creation (filming/recording): 40-80 hours
- Editing and production: 20-40 hours
- Platform setup and marketing materials: 10-20 hours
- Total: 80-160 hours for a comprehensive course

Using AI video tools (FluxNote):
- Course planning and outline: 10-20 hours (same — this is the thinking part)
- Script generation and editing: 15-25 hours
- AI video production: 10-20 hours
- Platform setup and marketing: 10-20 hours
- Total: 45-85 hours — roughly half the traditional timeline

Realistic income trajectories:

Udemy course (marketplace):
- Month 1-3: $50-$200/month (initial sales trickle)
- Month 4-12: $100-$500/month (building reviews and ranking)
- Year 2: $200-$1,000/month (established course with 100+ reviews)
- Best case: $2,000-$5,000/month for top-rated courses in high-demand topics

Self-hosted course (your audience):
- Month 1-3: $0-$500/month (depends on existing audience)
- Month 4-12: $500-$3,000/month (with active YouTube/blog marketing)
- Year 2: $1,000-$10,000/month (established funnel with email list)
- Best case: $10,000-$50,000/month for courses with strong brand/audience

The difference between $100/month and $10,000/month is almost entirely about marketing, not course quality.

Course topics that actually sell

Not all courses are created equal. The highest-earning course categories in the US market (2026):

Tier 1: Professional skills ($$$)
- Software development (Python, JavaScript, cloud)
- Data analysis and AI/ML
- Digital marketing (SEO, paid ads, social media)
- Project management and leadership
- Financial planning and accounting

Tier 2: Business skills ($$)
- Entrepreneurship and business planning
- Sales and negotiation
- Real estate investing
- E-commerce and Amazon FBA
- Freelancing and consulting

Tier 3: Creative skills ($)
- Video editing and production
- Graphic design
- Photography
- Music production
- Writing and copywriting

What separates a $100/month course from a $5,000/month course:
1. Specificity — 'Python for Data Science' outsells 'Learn Python' because the buyer knows exactly what they'll achieve
2. Outcome-focused title — 'Build 10 Real-World Python Projects' beats 'Python Fundamentals'
3. Proof of results — Testimonials, case studies, and instructor credentials
4. Production quality — Professional video, clear audio, good pacing. AI tools help significantly here.
5. Regular updates — Courses that update content annually maintain rankings and sales

Pro Tips

Your course doesn't need to be comprehensive — a focused 3-hour course that teaches one specific skill outsells a 40-hour encyclopedia that overwhelms students
Create free YouTube content teaching 20% of your course material — viewers who get value from free content are the most likely buyers
Update your course content annually — outdated courses lose ranking on every platform and generate refund requests
Build an email list from day one — email is 3-5x more effective at selling courses than social media posts
The 'passive' part of course income only works if you have either marketplace traffic (Udemy) or your own marketing funnel (YouTube/blog/email) — without one of these, sales dry up immediately