Introduction
When two or more creators decide to co-produce a digital course, one of the first and most important questions they face is: How will the business side of this work? Beyond the course content, pricing, and marketing, co-producers must agree on a sustainable, fair, and scalable business model.
In this article, we’ll explore the most common and effective business models for co-producing digital courses, how to choose the right one for your project, and the key financial and operational decisions to make along the way.
1. Revenue Share Model
This is the most common model in co-production. In the revenue share model, partners agree to divide profits based on:
- Equal split (e.g., 50/50)
- Contribution (e.g., 70/30 if one partner does more work or invests money)
- Role-based share (e.g., 60/40 between content creator and marketer)
Pros:
- Easy to understand and implement
- Motivates both partners to promote and maintain the course
Cons:
- May lead to conflict if one partner feels they are contributing more
Best for: Two or more creators working together on equal terms or in complementary roles.
2. One-Time Payment Model
In this model, one partner is paid a flat fee for their contribution, and the other keeps full control and ongoing revenue.
Examples:
- A subject matter expert is paid to record modules, and the marketer keeps all course sales.
- A video editor or content strategist is paid for their work up front, not as a co-owner.
Pros:
- Simple and clear structure
- No ongoing obligations
Cons:
- Limits long-term earning potential for the paid contributor
- Not suitable for true partnerships
Best for: When one partner is hired for their services but not involved in long-term sales or updates.
3. Licensing or Royalties Model
In this model, one partner retains ownership of the content and licenses it to the other for a percentage of revenue or a fixed fee.
Example:
- A coach licenses their course materials to a marketing partner who builds the funnel and runs the sales.
Pros:
- Protects intellectual property
- Allows for long-term income without active involvement
Cons:
- Requires legal agreements and clear tracking of sales
- Less collaboration on course improvement
Best for: When one partner has an existing course and wants help scaling it without giving up ownership.
4. Joint Venture Business Model
In a joint venture, both partners form a new brand or entity to house the course. They may launch under a new domain, share a joint email list, or even open a new business.
Pros:
- Allows for brand building beyond one course
- Creates long-term collaboration opportunities
Cons:
- More complex legally and financially
- Requires deeper trust and shared vision
Best for: Co-producers planning to create multiple courses or a long-term educational platform.
5. Affiliate Collaboration Model
While not a full co-production, affiliate partnerships can simulate some elements of co-production. One creator develops the course, and others promote it as affiliates for a commission (e.g., 30-50%).
Pros:
- No shared ownership—only shared promotion
- Low risk for affiliates
Cons:
- No creative input from the affiliate
- Lower commissions than revenue-sharing partnerships
Best for: Solo creators looking to expand reach without formal partnerships.
6. Hybrid Models
Sometimes, a combination of models works best. For instance:
- Partner A handles content and receives royalties
- Partner B runs ads and gets reimbursed for ad spend plus a percentage
- Partner C edits videos for a one-time fee
Pros:
- Flexible and customized for your team
- Balances effort and reward
Cons:
- More complex to manage
- Requires clear documentation and agreements
Best for: Courses with multiple stakeholders and diverse contributions.
7. How to Choose the Right Business Model
When choosing your business model, consider:
- Your relationship: Is this a one-off or a long-term partnership?
- Your contribution: Are you both equally involved?
- Your goals: Are you building passive income, scaling quickly, or building a brand?
- Your capacity: Can both partners handle long-term support and marketing?
The key is to match the model to the reality of your collaboration—and be honest about your expectations from the start.
8. Document Your Agreement Clearly
Whatever model you choose, make sure it’s documented in a written agreement. Include:
- Roles and responsibilities
- Revenue split details
- Payment schedule and method
- Ownership of content
- Plan for resolving disputes
- Terms for ending the partnership
Having this in writing builds trust and clarity—and protects both sides legally and financially.
9. Use the Right Tools for Managing Finances
Managing co-production finances can be simple with the right tools:
- Stripe or PayPal for payments
- Teachable, Thinkific, or Kajabi for revenue sharing features
- Wave, QuickBooks, or FreshBooks for accounting
- Google Sheets or Notion for tracking contributions and payouts
Agree on how money will be tracked and reported before launch.
10. Review and Adjust as Needed
Your business model isn’t set in stone. Schedule regular reviews:
- After course launch
- At major milestones (e.g., 100 sales)
- When adding new content or bonuses
Adjust terms if the workload changes significantly, or if one partner takes on a new role.
Open communication keeps the partnership strong and sustainable.
Conclusion
A solid business model is the backbone of any successful digital course co-production. It defines how value is created, shared, and protected—ensuring that everyone benefits from the partnership.
Whether you choose a revenue split, licensing, or a joint venture, what matters most is that the model reflects your unique goals and working style. With clear terms, transparent communication, and mutual respect, you can turn your collaboration into a thriving course business.