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Business Operations Business Models

How Does MasterClass Make Money (Business and Revenue Model)

The MasterClass business model

How Does MasterClass Make Money?
Here’s what you should know:
  • What is MasterClass, and how does MasterClass work?
  • How does MasterClass make money?
  • Subscriptions (Annual Memberships)
  • MasterClass For Business
  • MasterClass’ profit and revenue
  • What is the MasterClass business and revenue model?
  • MasterClass’ funding and valuation

How does MasterClass make money? Well, here is a full, in-depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the MasterClass business model, their profit and revenue, and how MasterClass works.

What is MasterClass, and how does MasterClass work?

MasterClass is an online subscription based learning platform in which students can learn from world renowned experts across various fields.

Founded in 2014 by David Rogier and Aaron Rasmussen, MasterClass now has more than 100+ world renowned and or famous instructors teaching over 100+ classes on the platform.

How MasterClass works is: MasterClass does not offer free classes and is a subscription based only platform. Meaning, only users who pay can access their courses. Once a user is a paying member, they have access to over 100+ classes taught by 100+ experts across various fields that are available to watch through both their website and mobile app.

Some of MasterClass’ competitors include Coursera, Udemy, edX, and other online course providers.

MasterClass Google Play App | MasterClass Business Model | How Does MasterClass Make Money?
Source: Google Play | MasterClass

How does MasterClass make money?

Although MasterClass does not release how many subscription members they have paying for their classes, they do confirm offering over 100+ classes on the platform. So how does MasterClass make money from this?

Below is a breakdown of how much money MasterClass makes and its revenue model. Including how they make their money and how much they from doing it.

Here are the 2 ways of how MasterClass makes money (in 2021):

MasterClass generates revenue for the company in two (2) ways – by selling annual memberships to both individuals and businesses.

#1. Subscriptions (Annual Memberships)

MasterClass makes all of its money by selling subscription memberships to its users in exchange for unlimited access to over 100+ classes and instructors on the platform.

The company offers three (3) tiers for its annual memberships: Standard, Plus, and Premier. All of which offers its own set of perks like the number of devices a user can watch classes on at the same time and the ability to download classes to watch offline.

According to MasterClass, each class has an average of twenty lessons. And each lesson is an average of ten minutes. Which comes out to over roughly 300+ hours of video content on the MasterClass platform.

MasterClass Subscription Cost:

  • Standard: $180 annually ($15 per month)
  • Plus: $240 annually ($20 per month)
  • Premier: $276 annually ($23 per month)
MasterClass Subscription Cost | How Does MasterClass Work | MasterClass Business Model | How Does MasterClass Make Money?
Source: MasterClass

Note: MasterClass does not offer free classes, unlike other online course providers like Coursera and Udemy.

#2. MasterClass For Business

In addition to MasterClass selling annual subscriptions to customers through a business to customer (B2C) business model, the company also sells bulk subscriptions to companies through a business to business (B2B) model.

MasterClass for Business requires the purchase of 5 or more annual memberships and offers group discounts of 5% to 35%.

MasterClass For Business Pricing:

  • $900+ annually (5+ memberships)
MasterClass For Business | How Does MasterClass Work | MasterClass Business Model | How Does MasterClass Make Money?
Source: MasterClass

MasterClass’ profit and revenue

MasterClass has not released any official revenue numbers for the company.

Note: Because Yanka Industries, Inc. (MasterClass) is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the MasterClass business and revenue model?

MasterClass makes money through a few revenue models that they combine within their company, they are:

  • Subscription based business model
  • Business-to-business (B2B) business model

MasterClass’ funding and valuation

According to MasterClass’ Crunchbase profile, MasterClass has raised $461.4 million over 8 rounds and has an estimated valuation of $2.5 billion.