I learned this the expensive way in 2013 when I built my first course. I budgeted $39/month for Teachable and figured I was good to go. Three months later, I was spending $400+ monthly on tools I "needed" to make the business work.

Key Facts

• Platform fees are 10-15% of total costs - most creators spend $300-800 monthly on additional tools

• Teachery charges 0% transaction fees - while Teachable charges 5% on Basic plans ($39/mo)

• Email tools cost $50-300/month - ConvertKit starts at $29/mo for 1,000 subscribers

• Video hosting averages $20-100/month - Vimeo Pro costs $84/year for basic needs

Here's what nobody tells you: the cost of your online course platform is just the tip of the iceberg. The real money goes to email marketing, video hosting, design tools, payment processing, and dozens of other "essential" services that add up faster than you think.

Let me break down what you'll actually spend so you can budget properly from day one.

The Platform Fee Is Just the Beginning

Most creators obsess over platform pricing and miss the bigger picture. Whether you pay $39/month for Teachable or $89/month for Kajabi, that's not where your money goes.

Here's the real math on platform costs across popular options:

• Teachable Basic: $39/month + 5% transaction fees

• Thinkific Basic: $49/month + 0% transaction fees

• Kajabi Basic: $89/month + 0% transaction fees

• Teachery: $49/month + 0% transaction fees

Let's say you make $3,000/month in course sales. On Teachable Basic, you're paying $189/month total ($39 + $150 in transaction fees). On Teachery, you pay $49/month total.

But here's where it gets interesting - that's still only 15-20% of your actual monthly expenses.

The Hidden Costs That Actually Matter

After tracking hundreds of course creators' expenses over the past decade, I've identified the real cost centers. These are the tools you'll actually need, not the ones platforms try to bundle and upsell you on.

Email Marketing: $29-300/Month

Your course platform handles student emails, but you need a separate tool for marketing to prospects. This isn't optional - it's how you build an audience and sell courses.

Real costs based on subscriber count:

• ConvertKit: $29/mo (1,000 subscribers), $49/mo (3,000), $79/mo (5,000)

• Mailchimp: Free (2,000 subscribers), $10/mo (500), $20/mo (1,500)

• ActiveCampaign: $39/mo (1,000 subscribers), $70/mo (2,500)

Most successful course creators hit 1,000 email subscribers within 6-12 months, putting you at $29-39/month minimum.

Video Hosting: $20-100/Month

Course platforms don't host video - they embed from YouTube, Vimeo, or Wistia. You need a separate video host that won't show ads or suggested videos to your students.

• Vimeo Pro: $84/year ($7/month) for 250 videos

• Vimeo Premium: $20/month for 1,000 videos

• Wistia: $99/month for 50 videos and detailed analytics

• JetPack VideoPress: $9/month for unlimited videos (WordPress only)

Vimeo Pro covers most new creators, but you'll upgrade as your library grows.

Quick aside: This is where platforms like Teachery shine - they make it dead simple to embed videos from any host without wrestling with complicated setups.

Design and Content Creation: $20-200/Month

You'll need tools to create course materials, sales pages, and social content:

• Canva Pro: $15/month for templates and brand kits

• Adobe Creative Suite: $53/month for Photoshop, Illustrator, etc.

• Figma: Free for basic use, $15/month for teams

• Loom: $8/month for screen recording

• ScreenFlow (Mac): $169 one-time for professional screen recording

Most creators start with Canva Pro and add tools as needed.

Payment Processing: 2.9-3.5% of Revenue

Everyone pays credit card processing fees, but the rates vary:

• Stripe: 2.9% + 30¢ per transaction

• PayPal: 2.9% + 30¢ per transaction

• Kajabi's built-in payments: 2.9% + 30¢ (uses Stripe)

On $3,000 monthly revenue, you're paying ~$90/month in processing fees regardless of platform.

The Real Monthly Budget Framework

Here's how to think about your actual costs. I call this the "Course Business Cost Stack" - five categories that account for 95% of what you'll spend:

Tier 1: Platform and Core Tools ($70-150/month)

• Course platform: $39-89/month

• Email marketing: $29-49/month

• Video hosting: $7-20/month

Tier 2: Content Creation ($15-50/month)

• Design tools: $15-25/month

• Screen recording: $0-25/month

Tier 3: Processing and Fees (3-8% of revenue)

• Credit card processing: 2.9% + fees

• Platform transaction fees: 0-5% (varies by platform and plan)

Tier 4: Growth Tools ($0-200/month)

These are optional but common as you scale:

• Analytics: $0-50/month (Google Analytics is free)

• Customer support: $0-89/month (Intercom, Help Scout)

• Affiliate management: $0-97/month (if not included in platform)

• Advanced email features: $20-100/month upgrades

Tier 5: The Big Variable - Advertising

This is where costs explode if you're not careful. Facebook and Google ads can easily become your biggest expense at $500-5,000+ per month. But advertising is optional - plenty of creators build six-figure businesses without paid ads.

Real Examples: What Successful Creators Actually Spend

Let me show you three real budgets from course creators I know personally. Names changed, numbers are real.

Sarah - Photography Course ($4,000/month revenue)

• Teachery: $49/month

• ConvertKit: $79/month (5,000 subscribers)

• Vimeo Pro: $7/month

• Canva Pro: $15/month

• Credit card processing: ~$120/month

• Total: $270/month (6.8% of revenue)

Mike - Marketing Course ($12,000/month revenue)

• Kajabi: $149/month (Growth plan)

• ActiveCampaign: $70/month (2,500 subscribers)

• Wistia: $99/month

• Adobe Creative Suite: $53/month

• Intercom: $89/month

• Facebook ads: $800/month

• Credit card processing: ~$360/month

• Total: $1,620/month (13.5% of revenue)

Jenny - Business Course ($25,000/month revenue)

• Kajabi: $399/month (Pro plan)

• ConvertKit: $199/month (15,000 subscribers)

• Wistia: $199/month

• Full design team: $2,000/month

• Customer success manager: $3,000/month

• Facebook ads: $3,500/month

• Credit card processing: ~$750/month

• Total: $10,047/month (40% of revenue)

Notice the pattern? Platform costs stay relatively flat, but everything else scales with revenue and ambition.

How Platform Choice Actually Affects Your Budget

The platform you choose influences your total costs in ways that aren't obvious from pricing pages.

The Kajabi Trade-off

Kajabi costs more monthly ($89-399) but includes email marketing, landing pages, and pipelines. If you'd otherwise pay $49 for ConvertKit plus $49 for a course platform, Kajabi's $89 might save money.

But Kajabi's email tools aren't as powerful as dedicated platforms like ConvertKit or ActiveCampaign. Most creators outgrow them and add a separate email tool anyway.

The Teachable Trap

Teachable's Basic plan looks cheap at $39/month, but the 5% transaction fees kill you. On $5,000/month revenue, you're paying $289/month total - more than most higher-priced platforms.

Teachable Pro ($79/month) eliminates transaction fees but costs more than Thinkific or Teachery.

The Teachery Advantage

Teachery hits a sweet spot: $49/month with 0% transaction fees and unlimited everything. The lifetime deal at $550 means you stop paying monthly fees entirely after 11 months.

For comparison, here's what you'd spend over 3 years on different platforms (assuming $5,000/month average revenue):

• Teachable Basic: $10,404 ($39/mo + 5% fees)

• Kajabi Basic: $3,204 ($89/mo)

• Teachery Monthly: $1,764 ($49/mo)

• Teachery Lifetime: $550 one-time

Smart Ways to Minimize Costs

You don't need every tool on day one. Here's how to start lean and scale smart:

Year 1: The Essentials ($100-200/month)

• Course platform with 0% transaction fees

• Email marketing (start free, upgrade as you grow)

• Basic video hosting

• Canva Pro for design

• Free tools wherever possible (Google Analytics, social media schedulers)

Year 2: Adding Growth Tools ($200-400/month)

• Upgrade email marketing for automation features

• Better video hosting with analytics

• Customer support tools

• Affiliate management (if not included in platform)

Year 3+: Professional Operations ($400+/month)

• Dedicated team member salaries

• Advanced analytics and attribution

• Paid advertising budget

• Enterprise-level tools

The One-Time Costs You're Forgetting

Monthly subscriptions aren't your only expenses. Budget for these one-time costs:

• Course creation equipment: $200-2,000 (camera, microphone, lighting)

• Professional course design: $500-5,000 if you hire help

• Legal setup: $200-1,000 (business registration, terms of service)

• Brand design: $300-3,000 (logo, colors, fonts)

• Website setup: $100-1,000 if you need help beyond the platform

Most creators can start with $1,000-3,000 in one-time costs and basic equipment.

When to Upgrade (And When Not To)

Every tool will try to upsell you. Here's when upgrades actually matter:

Upgrade Your Course Platform When:

• You're paying more in transaction fees than a higher plan costs

• You've hit student or product limits

• You need specific features for your business model

• The design limitations hurt conversions on your sales pages

Don't Upgrade Your Course Platform When:

• You haven't launched yet (pick something and start)

• The new features won't directly increase revenue

• You're just comparing features on paper

Upgrade Your Email Marketing When:

• You hit subscriber limits

• You need advanced automation (behavioral triggers, complex sequences)

• Deliverability becomes an issue

Don't Upgrade Your Email Marketing When:

• You're not using the features you already have

• Open rates are good and sales are happening

• The upgrade is just for vanity metrics

Planning Your Budget Reality Check

Here's my framework for realistic budget planning:

The 10-15-25 Rule

• 10% minimum: Platform, email, and basic tools

• 15% realistic: Add content creation and growth tools

• 25% growth mode: Include advertising and team members

If you're projecting $5,000/month in course revenue, budget $500-750/month in operating costs minimum, $1,250/month if you want to grow aggressively.

The Monthly Expense Audit

Every quarter, review your subscriptions and ask:

1. Did I use this tool in the past 30 days?

2. Could I get the same result with a free or cheaper alternative?

3. Is this tool directly contributing to revenue or significantly saving time?

Cancel anything that doesn't pass all three tests.

The Real Cost of Different Course Types

Your costs vary significantly based on what type of course you're building:

Simple Information Courses

Think PDF guides, basic video lessons, straightforward delivery. Examples: photography courses or productivity systems.

Monthly costs: $100-200 (low-touch delivery, minimal support needed)

High-Production Courses

Professional video, custom graphics, interactive elements. Examples: technical training or creative skills.

Monthly costs: $200-500 (higher hosting costs, design tools, possibly team members)

Community-Driven Courses

Includes coaching, live calls, active student interaction. Examples: business coaching or marketing courses.

Monthly costs: $300-800 (support tools, scheduling software, possibly virtual assistants)

Platform Comparison: Total Cost of Ownership

When evaluating platforms, calculate total cost over 24 months including transaction fees:

For $60,000 Total Revenue (24 months)

• Teachable Basic: $4,336 ($936 monthly fees + $3,000 transaction fees)

• Kajabi Basic: $2,136 ($2,136 monthly fees + $0 transaction fees)

• Teachery Monthly: $1,176 ($1,176 monthly fees + $0 transaction fees)

• Teachery Lifetime: $550 one-time

The numbers don't lie. Higher monthly fees often cost less than "cheap" plans with transaction fees.

For a detailed platform comparison, check out our Teachery vs Kajabi breakdown or explore Thinkific alternatives.

What Success Actually Costs

Real talk: successful course businesses aren't cheap to run. But they're profitable if you budget correctly.

The creators making $10,000+/month typically spend $1,500-4,000/month on operations. That sounds like a lot until you realize they're keeping $6,000-8,000/month in profit.

The key is growing your costs in proportion to revenue, not ahead of it. Start with the essentials, prove your concept, then invest in growth.

Your course platform choice matters, but it's not make-or-break. Pick something that charges fair fees and gets out of your way so you can focus on creating great content and serving students.

If you want a platform that won't nickel-and-dime you with transaction fees and gives you complete design control, start your free Teachery trial. You'll know within 14 days if it's the right fit for your business and budget.

Frequently Asked Questions

What is the average cost of an online course platform?

The average cost of an online course platform ranges from $39-149 per month for most creators. Teachable starts at $39/month but charges 5% transaction fees, while Kajabi costs $89/month with no transaction fees. Teachery offers a middle-ground at $49/month with 0% transaction fees, or a one-time $550 lifetime deal.

How much should I budget monthly for running an online course business?

Budget 10-25% of your projected monthly revenue for operating costs. New creators should expect $200-400/month minimum including platform fees, email marketing, video hosting, and basic tools. Successful creators earning $10,000+/month typically spend $1,500-4,000/month on operations including advertising and team members.

Are transaction fees or monthly fees more expensive for course platforms?

Transaction fees become more expensive than higher monthly fees once you're making consistent sales. For example, Teachable's 5% transaction fee costs $250/month on $5,000 revenue, while Teachery's $49/month plan with 0% transaction fees saves you $201/month at that revenue level.

What hidden costs should I expect when starting an online course business?

The biggest hidden costs are email marketing ($29-300/month), video hosting ($20-100/month), design tools ($15-50/month), and credit card processing fees (2.9% of revenue). Most new creators underestimate these and spend 3-5x more than their platform fee alone.