How EdX Plans to Earn, and Share, Revenue From Free Online Courses - Technology - The Chronicle of Higher Education - 0 views
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Doris Reeves-Lipscomb on 26 Feb 13Interesting explanation of business model for how nonprofit and forprofit MOOC partners--edX, Coursera, and Udacity--will make money along with the universities. Implications for other, smaller online learning partnerships? Excerpt on two models (large-scale efforts) According to Mr. Agarwal, edX offers its university affiliates a choice of two partnership models. Both models give universities the opportunity to make money from their edX MOOCs-but only after edX gets paid. Related Content What You Need to Know About MOOCs Document: The Revenue-Sharing Models Between edX and University Partners The first, called the "university self-service model," essentially allows a participating university to use edX's platform as a free learning-management system for a course on the condition that part of any revenue generated by the course flow to edX. The courses developed under that model will be created by "individual faculty members without course-production assistance from edX," and will be branded separately in the edX catalog as "edge" courses until they pass a quality-review process, according to a standard agreement provided to The Chronicle by edX. Once a self-service course goes live on the edX Web site, edX will collect the first $50,000 generated by the course, or $10,000 for each recurring course. The organization and the university partner will each get 50 percent of all revenue beyond that threshold. The second model, called the "edX-supported model," casts the organization in the role of consultant and design partner, offering "production assistance" to universities for their MOOCs. The organization charges a base rate of $250,000 for each new course, plus $50,000 for each time a course is offered for an additional term, according to the standard agreement. Although the edX-supported model requires cash upfront, the potential returns for the university are high if a course ends up making money. The university gets 70 percent of any revenue gen