Coursera will pay the universities 6 to 15 percent of revenues, which will be determined on a per-course basis and dependent upon the duration of the course, the number and quality of assessments. The company also gets 20 percent of gross profits (accounting for costs and previous revenue). Coursera clearly gets the lion’s share of of the profits, but the burden of attracting students and proving the benefit of its new platform also falls most heavily on the company’s shoulders, much like a 2U model formerly 2tor.
So what’s the MOOC model? Here are a few contracts for those interested in reviewing the approach (available through web searches via public postings from the institutions) .
** Contract with Regents of the University of Michigan
** Illinois Senate Task Force on Coursera Initiative
** University of Toronto Coursera Contract
There are 8 possible monetization strategies that MOOC providers like Coursera, or Learning Management System providers could adopt:
1. Certifications - students pay money to receieve a certification after they have achieved competency from their free learning. (i.e. a badge or pdf document provided by a university or from a recognised badging system)
2. Authentic assessments - students pay money to have their learning assessed and certified at a physical testing site. i.e. assessment centers
3. Recruitment - companies pay money to access student course results to identify potential employees that match the company’s recruitment needs.
4. Screening - companies and educational institutions pay money to gain access to student records to verify that a level of knowledge or expertise has been attained. This would allow access to the company’s recruitment processes or ensure a university course acceptance.
5.Human tutoring - students pay a tutor to help them achieve the desired learning outcomes from the free courses.
6. Corporate learning - companies pay money to get customized courses using the free content and to access special features that help their employees gain necessary skills.
7. Sponsorship - sponsors pay money to have their appropriate advertising appear beside course materials. (i.e. textbook publishers)
8. Tuition fees - students pay tuition fees for advanced level learning (afer completing the free introductory course) or gaining specialised skills relating to high paying jobs.