The Open Course Conundrum: Monetizing MOOCs

Massive open online courses give the masses the chance to take courses from some of the world’s top institution of higher education for free, while the very same institutions charge tens of thousands of dollars in annual tuition to students on campus. If that statement leaves you scratching you head, you are not alone. Most people I tell about free MOOC providers wonder why the institutions offer free courses and how the MOOC platforms can be financially sustainable. During 2014, the big 3 MOOC providers—Udacity, Coursera and edX—began a major shift toward creating sustainable, revenue- generating businesses. All of the courses on these sites remain free for the time being, but each platform is rolling out new paid course options. Why should you pay when you can still take the courses for free? That’s the million dollar question. MOOC providers have established themselves as place to go for free education and now their survival depends on convincing people to pay for it.


Udacity, Coursera and edX surely foresaw the need to monetize at some point, but they spent their first couple years of existence (2012 and 2013) building a catalog of courses, refining their content and drumming up demand. Now that they have a product and a customer, they need to monetize. Offering credentials to paying students in the form of verified course completion certificates and min-degrees appears to be the route that MOOC providers are going. After all, students already pay thousands of dollars to go to college—paying a few hundred bucks to take some online courses and earn a credential doesn't sound too bad in comparison. The main challenge is convincing students—and employers—that the credentials are worth something. MOOC providers need to use their connections with universities and the tech industry to get their credentials recognized by employers and help their students succeed. Ironically, if MOOC providers are able to create industry-recognized credentials, it may threaten the educational status quo and hurt some of the very institutions that put courses online. It seems more likely, however, that top universities like the ones featured in MOOCs will continue to thrive, while lower-tier schools and for profit colleges suffer.


It will be interesting to see how the paid credential route plays out in the coming years. I wouldn't be surprised to see all MOOC providers drop free certificates like Udacity did last spring, but it would be a shame if they were to drop free courses entirely.

If you’re curious about paid online courses, credentials and benefits, here’s a list of what the big 3 have to offer:

Coursera

    -A “signature track” option on select courses that grants a verified certificate of completion. The intro price is typically $49 per course. The certificate is verified to your identity and may be shared via a secure URL.

    -Paid specializations are available in select subject areas. A specialization is a series of related courses offered by the same institution; you have to earn a verified certificate in each of the courses required for a specialization to earn a specialization certificate. Specializations may also involve a capstone project. Paid specializations launched with a 9-course data science track offered by John Hopkins in 2014 and it appears Cousera is planning to offer more than 20 specializations in 2015.

    -Most Coursera courses offer free non-signature track certificates.

Udacity

    -Verified certificate option. Subscription cost is $199 per month, it isn't clear whether a single subscription gets you access to all Udacity content or if each course requires a separate subscription. A subscription gives you a variety of enhanced features like personalized coaching, code feedback and access to special projects and assessment.

    -Nanodegrees, a new credential set to launch in 2015 available with a $200 subscription. The program will start with 4 degree options: front-end web developer, full stack web developer, data analyst and iOS developer. The goal seems to be to provide students with the skills, support and online portfolio necessary to get a job in the field relevant within 9-12 months.

    -Udacity dropped free certificates in the first half of 2014.

edX

    - Offers a “Verified Certificate” option on select courses. Cost varies depending on the course although the minimum cost is typically in the $50-$100 range. edX is the only non-profit of the bunch so they also accept donations.

    -No specializations or mini-degrees.

    -Most edX courses offer free honor code certificates.