How Much Does It Cost to Develop an Online Course

Creating and selling online courses is one of the greatest ways to generate passive and recurring revenue. And when it comes to developing your course, one of the most common questions is how much it would cost you. 

The great news is that the biggest investment you need to make is your time. And you can still launch a successful course even if you are on a tight budget. How is that possible? Let's break down the whole process into stages and discuss the costs involved in each of them. 

How much do I need to create an online course?

The exact amount of money needed to develop your online course depends on many factors, including your final goal behind creating that course. And if we are being straight, you can develop a profitable online course with only $300 in your bank account. And if you want to allocate more than this starting budget, your average course creation costs can go up to $18,000 with the sky being the limit. 

The range is pretty extended, isn't it? That is because there are several factors involved, including

• All the materials your course involves. For example, will you create animations, include voiceovers, and provide additional eBooks and case studies? Any type of media you decide to include adds to the costs, your time and efforts being the biggest of them. 
• Your course length. Is it going to be a mini course or a comprehensive A-Z guide. 
• Your team. Will you be handling creating the content, building the audience, and marketing the course all by yourself? If we are speaking of a beginner budget, this might be your case. Yet, if you need professional assistance at any given point, for example, to manage social media accounts, to develop course content, etc, you need to hire a professional. 
• Your audience. This factor does not directly affect the amount of money you need to invest in creating the course. Yet, whether it is intended for corporate training or a solo individual who just wants to get better at a certain skill can tell a lot. 
• Your course type. For example, let’s say it is a course that provides certification to health professionals. In this case, you will also need to accredit your course, which comes with additional costs. 

Step-by-step cost breakdown for online courses  

However, there is no need to get anxious. We broke down the whole process into stages, and we will consider the costs for each of them. Before we dig deeper, the main course creation costs will include those for 

• Acquiring hardware. Not necessarily the most expensive ones. Sometimes, all you need is just your smartphone. 
• Getting software. If you plan on designing your materials without professional assistance, you need at least some tools to help you with that. 
• Your platform. This is where you create and manage your courses. 
• Marketing. If you are a solopreneur, marketing is what you are likely to invest in the most. 

“The scope of expenses can get really high really fast. And there are a lot of people and agencies that make big promises about what they can make for your course business. My biggest advice is to stay within what works for you”.

Helen Hicks, 

Parenting coach, course creator

Course planning costs 

Let’s start by calculating your online course courses in the initial planning stage. 

Hardware costs 

Let’s suppose you already have a laptop, a smartphone, and a good internet connection. What else do you need for creating video and audio material for your online course? 

Video camera - this should be on your top list.  

If you are on a tight budget, you can start with a smartphone. Yet, you can still find affordable video camera options that do the job quite well. High-quality video is crucial because it directly impacts how professional your course appears. Clear, sharp visuals help keep your students engaged and focused on your content.

When it comes to cameras, if you're ready to invest a bit more, consider options like the Canon EOS M50 or the Sony ZV-1. Both are compact, user-friendly and offer excellent video quality without complex settings. For something more budget-friendly, the Logitech C920 HD Pro webcam is a solid choice, especially if you’re primarily recording in front of a computer. 

You can find options on Amazon starting at $60. 

✔️ Camera costs on Amazon: $60-$800

Microphone 

Let’s agree, poor audio quality can distract from even the best video content.

If you’re looking for a reliable microphone, the Blue Yeti is a popular choice among course creators for its ease of use. If you need something more budget-friendly, the Fifine USB Microphone offers great performance at a lower price point. And if you need portability, a lavalier mic like the Rode SmartLav+ is a fantastic option for recording on the go or in different settings.

✔️ Microphone costs on Amazon: $30-$100 

Lighting

Proper lighting ensures that your content is bright, clear, and visually appealing, helping to keep your audience focused on what matters.

For a simple and effective solution, you can consider a ring light like the Neewer 18-inch LED Ring Light, which provides consistent, flattering lighting for your face and setup.

If you want more control over your lighting, softbox kits like the Fovitec StudioPRO offer adjustable brightness and direction, allowing you to create the perfect lighting environment for your videos. 

And if you are on a tight-budget, a couple of well-placed desk lamps with daylight bulbs can also do the trick.

✔️ Lighting costs on Amazon: $60-$100 

TIP: Don’t get overwhelmed by thinking you need the most expensive equipment. There is something for every budget and goal. 

Related: Best Equipment You Need For Creating Your Online Course

Software costs 

If you intend to create all your teaching materials, film and edit videos, make presentations, etc, you will surely need some tools to help you with that. The greatest thing about the software part is that you can always find a free version of any tool you need. Here are some tools that will not add too much to the course creation costs. 

Now, if you were to outsource video editing, for example, that would cost you $200-$2000. Yet, if you are a beginner and need to make your videos professional-looking, iMovie (for Mac users) and Windows Video Editor (for PC users) are easy options to go with. Both offer all the basic tools you need to cut, trim, and edit your videos. Did we mention both are free? 

Adobe Premiere Pro is also a popular choice among professionals for its more advanced features. It offers a wide range of editing tools and effects. 

You may also need screen recording tools, especially when you like doing talking heads. With screen recorders, you can integrate your slides, software demonstrations, or any visual aids directly into your video. For this, you can use Camtasia or  OBS Studio, which is a free, open-source option that’s better for more tech-savvy users. 

Let’s not forget presentations. PowerPoint is a classic choice. Yet, if you prefer something more dynamic, Prezi offers a unique, zoomable canvas that can make your presentations more interactive.

✔️ Software cost for creating the course content: $0-$30 

Related: 26 Must-Have Course Creation Tools and Software

Platform costs

Now, when it comes to presenting your online course to the students, you usually have three options. 

Firstly, you can self-host your course. When you choose to self-host your course, you’re essentially building your own platform. This gives you total control over the design, functionality, and user experience. However, it also means you’ll need to hire professionals to ensure your website is there and it is easy to navigate.

While this option allows for full customization, it comes with higher initial costs. You’ll need to budget for 

• web hosting, with shared hosting, you can expect to pay $1-$55 monthly, and for WordPress hosting, the price is $2-$45 monthly.

• domain registration, where you can pay starting from $5 to unlimited, depending on the domain name you want. 
• and potentially ongoing maintenance and updates. Plus, you will have to pay for the development and design costs if you do not want to use a website builder. 

If you are looking for something more affordable, you can start with an online course platform or a Learning Management System. Such platforms are designed specifically for delivering online courses, so they come with built-in features like student management, quizzes, and progress tracking. The best part is that you can start selling with minimal technical know-how. 

With Uteach, for example, you do not have to think about hosting, maintenance, or any technical issues. You can choose to start with one of the three main plans.

• Free: $0
• Launch: $39, plus 10% from each sale
• Grow: $99 without commissions

The pricing is suitable even if you are just starting your first course, as you mostly pay based on the amount of sales you make. You can get started on a free plan, which offers all the basic features you need for your online school business, including courses, products, emails, websites, etc. 

The next choice is getting started on an online course marketplace. 

This way, you can host your course on the marketplace websites, where millions of potential students are already browsing for courses.

The advantage here is that you don’t need to worry about marketing, hosting, or setting up payment systems. However, you should keep in mind that marketplaces take a significant cut of your earnings and have more control over pricing and promotions. 

✔️ Platform costs: $0-$1000

Related: Best 7 White-Label Online Course Platforms

Content creation costs 

Are you a solopreneur who prefers to create all the content yourself? In this case, you can allocate almost $0 to create your course content. 

Yet, if you need a team of professionals to help you plan your course content, design it, and make it engaging and presentable, here is what you should know. 

You can hire a graphic designer, video editor, copywriter, instructional designer, and subject matter expert. 

1. If you’re not an expert in course design, then an Instructional Designer is who you need. They specialize in creating learning experiences that are structured and effective, ensuring your students can easily absorb and apply the material. 

According to ZipRecruiter, the average hourly salary in the US is $38.32/hour. You can expect to pay at least $800 for a small course. 

1. For subjects outside your area of expertise, you need a Subject Matter Expert (SME). Yet, if you are the instructor, you are most likely the one who specializes in your subject. Again, ZipRecruiter reports the salary range for the SMEs to be $40 an hour. And for the whole course, that can make up to $900. 
2. Also, depending on the course materials you want to include, such as infographics, illustrations, and slide designs, you can hire a graphic designer. In the US, on average, you can pay $20 for an hour. Yet, you can always find your experts on freelancing platforms. 
3. If you lack editing skills, then hiring a professional video editor comes with additional costs. The hourly salary range is anywhere between $12-$60. Meaning the longer your course is, the longer it will take to edit. 

✔️ Hiring professionals costs: $0-$4000

Marketing and sales costs 

If you have just enough budget, investing in marketing is one of the best decisions. After all, even the greatest course will not succeed if no one knows it exists. 

But here’s the good news: marketing does not have to mean spending huge amounts of money. 

Helen Hicks, who has been running a parenting course for years now, mentions there is no need to break the bank when it comes to marketing. In fact, she did not even post actively on social media when starting her first parenting course and counseling business. 

“You do not have to go into debt, trying to keep up with other people who may be paying thousands of dollars for some kind of marketing help. And you have this mindset that if I put all this money out in there, I’m going to make it back in this amount of time. There is no guarantee. So you really have to stay focused on what you can do with what you currently have until you have more to work with”. 

Helen Hicks, 

Parenting coach, course creator 

Keeping this in mind, there are still basic marketing strategies you can implement without spending too much. Even if that means you have less than $15 dollars for an advertising budget. 

Social media marketing 

If you're working with a tight budget, you can still make an impact with targeted paid ads. Facebook Ads and Google Ads allow you to set daily budgets as low as $1. And if you are being strategic about who you want to reach, aka are well-familiar with their interests, behavior, and demographics, you can reach your audience easily. 

For this purpose, you can use tools such as Buffer or Loomly, starting at $32/monthly. They will help you schedule posts, manage multiple accounts, and analyze your performance. 

Otherwise, you may want to hire a social media manager to help you with this. According to Indeed, the monthly salary for a social media manager starts at $2000/month.

✔️Social media promotion costs: $0-$2000

Search engine optimization and blogging 

One of the most effective ways to drive organic traffic to your course is through blog articles. It is one of the few things you can start with zero budget as well. 

This way you can establish you as an authority in your field and also improve your website’s SEO, making it easier for potential students to find you.

If you're using a platform like Uteach, you get access to SEO tools as well. Uteach comes with built-in SEO features to help your course rank well on search engines without requiring SEO knowledge. To begin, you can just add the relevant metadata for any online course material or blog you post. 

Email marketing 

What is the best way to communicate with potential students, update them on new courses, and share valuable insights that keep them coming back for more? Of course, email marketing. 

When it comes to tools, platforms like Mailchimp and ConvertKit are popular choices for course creators. Mailchimp has a free plan with basic features, perfect if you are just starting out. You can send 1000 emails free every month for 500 contacts. 

✔️Email marketing costs: $0-$300

Course launch costs 

When it comes to launching your course, you can choose to go two ways. First, relying on marketing and social media and trying to reach out to your audience online.  For this, you can use the marketing channels we discussed above. Whether you allocate a $100 or thousands of dollars for your campaigns, you can still drive enrollments. 

Besides social media and email marketing, you can host a webinar for your course launch.  You can use platforms like Zoom, WebinarJam, Google Meet or Demio to host live sessions where you give a sneak peek of your course content, answer questions, and offer special launch discounts. 

Depending on the video conference platform you choose, you might spend around $100 per month. However, if you're working with a smaller group or don’t mind time limits, many tools offer free versions that can still get the job done.

The second way leading to your course launch by speaking at offline events and getting to know your audience face-to-face. Most of the times you can find free events to speak at. Yet, you can also contact the organizers of such events to speak on their stage. And even if they require a payment that will not cost you more than $15-$40. 

✔️Course launch costs: $0-$100

Ongoing  and additional costs

If you're serious about your course business, registering your course or business is a must. This includes setting up a legal entity, trademarking your course name, or even obtaining specific licenses depending on your location. For example, in the US you can pay $50-$200 to get a business license. 

As your course business grows, you will want to keep track of your finances. Hiring an accountant can help you manage your expanses, income and taxes. The average salary for an accountant in the US is almost $30/month. 

Speaking about taxes, depending on where you live and how your business is structured, you will also need to pay income tax, sales tax, or VAT on your course earnings. It's crucial to understand how all these taxes work in order to avoid receiving a defective notice from the government or facing any legal responsibilities.

Low on a budget? Let’s plan your costs 

If you are creating an online course for the first time, there is no need to invest in everything right away.  Here are a few things you can consider. 

• Start with what you have. For example, you can use your smartphone for recording videos, free video editing software, and free presentation tools. 
• Instead of hiring a graphic designer or video editor, you can do it yourself using free tools like Canva for graphics and iMovie for video editing. There are countless tutorials online to help you get the basics down.
• Focus on organic marketing. Building presence on social media, starting a blog, and using email marketing will not cost you much. Especially when there are so many free tools available. 

Finally, start with an online course platform. With Uteach you can create and sell online courses easily. You will not need to spend time on designing a website, or taking up administrative tasks. Instead, you get everything built-in,  including SEO tools, marketing features, integrations, and everything you need to grow your online course business. 

Discover more about Uteach features and start with your 14-day free trial today.