How Udemy’s Personal Plan is Impacting Instructor Earnings in 2025

Udemy’s “Personal Plan” is their subscription offering for individual learners, designed somewhat along the lines of Netflix for online courses. Instead of buying courses one by one, learners pay a monthly or annual fee to access a curated collection of content. While this gives learners more flexibility, it also changes how instructors get paid. Below we explore how Personal Plan works, how its revenue model differs from the old course-sales model, the effects on instructors, and what instructors can do to adapt.

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What Is Udemy’s Personal Plan?

• Subscription Model: Learners pay a recurring subscription fee (monthly or annually) to get access to selected courses, rather than buying each course à la carte.
• Content Curation: Only certain courses are included. Typically, high-rated, well-engaged, and relevant courses in professional skills (IT, business, soft skills) are selected. Not all courses on the marketplace are part of Personal Plan.
• Global Expansion: Personal Plan started in some English-speaking markets and is being expanded to more countries and local languages.

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How Instructor Revenue from Personal Plan Is Calculated

Here’s how Udemy pays instructors under Personal Plan:

Factor	Description
Revenue Pool	A portion of the subscription revenue is set aside for instructors. Under Udemy Business and Personal Plan, there’s a shared “subscription instructor revenue pool.”
Engagement-Based Earnings	Instructors earn based on how much time learners spend using their courses (minutes viewed, quizzes, coding exercises, etc.). If your course has, say, 5% of total consumption across Personal Plan content, you get ~5% of the instructor revenue pool.
Revenue Share Rate	Usually about 25% of net subscription revenue is allocated to instructors under Personal Plan (and Business) in many markets.
Timing	Earnings from Personal Plan show up about 30 days after month ‐ end, labeled in reports as “Individual Subscription.” Annual plan payments are prorated monthly.

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Differences vs “Course Purchase / Marketplace” Earnings

To understand the impact, it helps to compare with the traditional Udemy model (where students buy individual courses):

Aspect	Marketplace / Course Purchases	Personal Plan / Subscription Model
How you earn	When someone buys your course (one-time purchase), or via instructor coupon/referral → you may get a high % if via coupon, lower if via Udemy’s promotions.	Based on minutes viewed (engagement) rather than number of purchases.
Revenue share rate	For non-coupon purchases, instructors get ~37% of net sale. For instructor-coupon/referral sales, up to ~97% in many cases.	~25% (or similar) of subscription revenue pool, divided by proportion of minutes consumed.
Stability	Purchase model gives upfront payment.	Subscription revenue is based on continuing engagement and retention—earnings more spread out over months.

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How Personal Plan Affects Instructor Earnings: Pros & Cons

Pros

1. More Learner Engagement
   Personal Plan users tend to watch more (minutes), explore more courses. If your content is good and engaging, you benefit because engagement drives earnings.
2. Recurring Income Potential
   Instead of one-off course purchases, Personal Plan can create more stable, recurring income because subscribers continuously use content.
3. Additional Bonus for Referrals
   If your coupon or referral link leads to students subscribing via Personal Plan, you may receive a “Subscriber Signup Payment” bonus.
4. Broader Audience Reach
   Some learners prefer subscription models; offering Personal Plan may bring them to your courses who might not buy individual courses due to price.

Cons / Challenges

1. Lower Effective Per-Minute Payout
   Because instructors are paid per minute of consumed content, courses that are longer but less frequently watched may earn less than shorter highly-purchased courses under purchase model.
2. Revenue Share Cut
   The share for subscription pools is lower than some high coupon/referral purchases. For example, you may get more revenue if a student buys your course via your own coupon than via subscription usage.
3. Uncertainty Over Consumption Volume
   Engagement is unpredictable. If many subscribers don’t watch your courses much, your share of the consumption pool may be low.
4. Risk of Cannibalization
   Some students who might have bought the course individually might instead use Personal Plan. This can reduce course purchase revenue.
5. Reduced Transparency (initially)
   At least initially, the revenue from Personal Plan is reported as lump sum (not always course-wise breakdown), which makes it harder for instructors to see exactly which courses are driving consumption and earnings.

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Evidence & Instructor Responses

• Udemy’s own internal reports indicate that learners bound to Personal Plan are more consistent in learning behavior, consuming more content than average purchase-only learners.
• Some instructors have reported that their marketplace sales have reduced, or that even with Personal Plan, the total income has not increased significantly compared to when many learners bought individual courses. (Reddit threads show instructors expressing concern.)
• Class Central’s analysis shows that while Udemy revenue is growing, the share passed to instructors has been declining (especially from subscription revenue). Class Central

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What Instructors Can Do to Adapt & Optimize Earnings

Here are strategies that instructors can adopt to make the Personal Plan model work better for them:

1. Focus on Engagement
   • Create content that keeps learners engaged: quizzes, exercises, projects, frequent updates.
   • Shorter, well-structured courses may see more views per minute; long courses that drag may have low minute consumption.
2. Course Quality & Relevance
   • High production values, good audio/video, clear content.
   • Cover in-demand topics where learners likely watch many related courses.
3. Promotion & Referrals
   • Use your referral links & coupons to attract learners into Personal Plan, so you get signup bonuses.
   • Encourage existing students to subscribe or consume more content.
4. Diversify Income Streams
   • Don’t rely solely on subscription revenue. Continue promoting individual course sales, use platforms, offer services, etc.
   • Hybrid strategy helps hedge risk.
5. Monitor Metrics Closely
   • Use Udemy’s revenue reports to understand which courses generate most consumption.
   • Identify courses with low consumption and consider revising content or promotion.
6. Optimize for Retention
   • Make content that motivates learners to keep watching month after month.
   • Tutorials, progressive series, and paths help retain subscriber interest.

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Conclusion

Udemy’s Personal Plan changes the game for instructors. It shifts the earnings model from one-time purchases to subscription + engagement-based revenue. For instructors who produce high-quality, engaging content and can attract consistent consumption, there is opportunity. But many instructors will likely see reduced revenue per minute or weakened earnings for courses that do not get much engagement under subscription.

As with any marketplace shift, the outcome depends a lot on course strategy, quality, promotion, and content relevance. Teachers who adapt to these changes, optimize for engagement, and balance income sources are more likely to thrive in the new model.

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