Online courses are one of the most effective ways of generating income online. There are typically two ways of generating revenue from courses:
- Single launch.
- Monthly recurring revenue from a subscription-based model.
All in all, the revenue you generate from an online course is typically generous no matter which method you choose to go with. However, how you generate that income plays a huge role into how useful online courses truly are for your business. If you already have a full schedule, you may not be able to include them in your business strategy if they take up too much of your time. This leads us to one single question and the topic of this article:
Are online courses a form of passive income?
What is Passive Income?
In technical terms, passive income can be defined as “income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.” This means while it may require a lot of work upfront, the actual revenue generated from passive income doesn’t require “active” or continuous work.
Let’s compare pre-made and custom-developed WordPress LMS themes as an example. A pre-made theme is developed before it’s launched. You’ll collect revenue from thousands of customers without having to create a new product every time. You’ll also release updates every now and then and offer support.
Custom theme development, on the other hand, requires constant work. Payment isn’t received until the work is complete, and if you want more revenue, you’ll need to develop a new custom theme for a new client.
Blogs, video content, and podcasts are among the most popular forms of passive income. You spend time producing content, which you typically insert affiliate links into. That content receives more and more traffic over the years, and it generates revenue along the way without you having to lift a finger.
Are Online Courses Passive Income?
Are online courses passive income? In short, yes and no, but let’s elaborate. Consider the process it takes to create and manage an online course as well as the many different routes you can take.
Here’s one route you can take with your course:
- Create course.
- Launch course.
- Offer support to existing students.
- Update course with fresh content every now and then.
This process can be as passive as you need it to be.
Why Are Online Courses Passive Income?
You’ll spend a lot of time creating your course and some of your time offering support for it, so why are online courses considered a form of passive income? Basically, you’ll collect revenue long after you launch it and don’t need to spend nearly as much time managing it.
When Are Online Courses Not a Form of Passive Income?
When you’re providing daily support to your students, your course is no longer a form of passive income. If you find this overwhelming, consider pricing it at a lower rate and offering it “as is.” This means no support or ongoing interaction from you. You can add this as a premium feature when you can afford to hire a proper support staff.
So, when it comes to whether or not online courses are a form of passive income, the answer is yes, but only as much as you’d like them to be.
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