If you’re current in the online teaching industry at all, you’ve probably heard that Udemy is implementing a new pricing policy.
Overall, I like the policy, but I’ve seen several other Udemy experts make false claims regarding what the new pricing policy means; so it seems that people don’t really get what’s going on (lol).
Anyway, Here’s What The New Pricing Policy Means
There are a few important changes.
- First, the pricing cap of $50 has been lifted to $200. Prices must be from $20 – $200, in $5 intervals.
- Second, the previously instituted 50% coupon rate limit has been increased to 75%. So if you’re a teacher, you can have coupons with discounts up to 75%, as long as the price doesn’t fall below $10; $10 is the lowest you may offer your courses on Udemy (and to be priced below $20, the price must be the result of a promotional price; $20 is the lowest point when outside of a promotion).
- Also – Udemy is bringing back “fixed price promotions”, upon which they can list all courses for $10, $15 or any other quantity above $10 during site-wide promotions. It’s important to note, that the “fixed priced promotions” will allow Udemy to exceed the 75% coupon limitation that the “percentage promotion” dictates.
Why The Sudden Udemy Price Policy Change?
This is Udemy’s SECOND major pricing alteration over the last year. Back in April, Udemy changed their relatively liberal pricing policies which allowed courses to be priced anywhere up to $300, to a limitation of $10 – $50 in $5 intervals. Additionally, Udemy limited coupons to 50%, and eliminated “fixed priced promotions”.
The switch went terribly, and many of the Udemy instructors were up and arms and many reported loss of earnings. Some panicked instructors even left the marketplace all together.
I found the changes to be appropriate, and didn’t notice any loss of revenue, though I’m not one of the heavy hitting Udemy instructors with hundreds of thousands of students, so my results are probably negligible.
In any event, as a result, now roughly 4 months after the change, Udemy has crunched the numbers and is making yet another sweeping change to their pricing policies.
What Will Occur As A Result Of This Change?
The biggest variable I see here, is that larger “fixed priced” promotions are going to happen more frequently on Udemy.
Additionally, you can deploy more liberal promotions of your own courses, and can slap a 75% sales discount on all of your courses.
So, if you have a course for $100, you can then attach a 75% discount on the course and sell it for $25, and Udemy can even implement a “fixed price promotion” and offer your course for $10, upon which, sales will probably increase dramatically.
(To be honest, I think the “fixed priced promotions” that occur site wide is the biggest change, and will result in the most new sales for all Udemy instructors, so I’m happy to see this implemented.
Why Do Sales Increase Dramatically During Massive Discounts?
I know what you’re thinking.
“People don’t spend more just because of sales! That’s crazy talk!”.
In my experience, however, people are motivated by the fear of loss more than just about anything.
If prospective students feel like that they can get a massive deal if they buy NOW, they’re probably going to buy now.
Whereupon, if students have no sense of urgency to buy, they probably won’t buy as much because they know they can buy later.
Because, in my opinion, people buy due to a fear of loss more than logic and reason.
That’s why massive discounts will probably help Udemy, and I expect sales to increase overall as a result of the Udemy pricing policy change, but only time will tell.
Thanks for reading this, and we’ll talk later.