Cohort Beats Self-Paced Learning

The reality of online course completion rates reveals a stark contrast between self-paced and cohort-based learning, with most students not completing courses they purchase. This insight comes from direct experience and industry data across various price points and formats.

• Standard Course Completion Rates:

  • Self-paced courses see 6-10% completion rates (Udemy example)
  • Even $5,000 courses see under 30% completion
  • Most customers don't finish but aren't upset about it
    • Usually due to life getting busy, not product quality
    • Customers typically blame themselves, not the course

• Cohort-Based Success:

  • Live, cohort-based courses see ~75% completion rates
  • Key factors for higher completion:
    • Live component
    • Peer group accountability
    • Selective admission process
    • Structured timeline

• Two Schools of Thought on Low Completion:

  • Sam's View:
    • It's not a problem worth solving
    • People won't change their behavior
    • The purchase itself provides some value
  • Shaan's View:
    • It's worth fighting for higher completion
    • Low completion hurts word-of-mouth
    • Impacts business growth and sustainability
    • Believes 30-50% completion should be possible

• Business Model Impact:

  • Most course creators optimize for maximum enrollment
  • Exception: Lambda School model
    • Only gets paid when students get jobs
    • Selective admission process
    • Results in higher completion rates