Podcast Summary: The Kate Show — Should You Create an Online Course? Here’s What You Need to Know First (Ep. 271, Dec 2, 2024)

Episode Overview

In this candid and insightful episode, Kate of The Socialite Agency challenges the common belief that selling online courses is an easy, passive path to income for home pros like interior designers, stagers, organizers, and window treatment specialists. Drawing from her own experience and those of her clients, Kate exposes pitfalls and essential considerations before launching an online course, reveals why most fail, and offers an alternative for those seeking to move beyond traditional service work.

Key Discussion Points & Insights

1. The Myth of Passive Income

• Time Stamp: 00:16
• Kate starts with a "rant" on the misconception that online courses are passive income, stating,

  “Building and maintaining a course isn't actually passive at all. And those who approach it like it is end up being not profitable.” (00:39)

• Initial and ongoing costs are involved—creation, hosting, maintenance—all of which can quickly add up while income may not materialize as hoped.

2. Essential Pre-Course Considerations

• Trusted Audience is Vital:
  • Your current clients (service customers) are unlikely to buy a course.

  • “You need to have an audience of qualified potential students before you begin to build your course...You can't make the newbie mistake of creating a course and then trying to scrounge together an audience for it. That's not how it works.” (04:53)

  • Build an audience now via YouTube, podcasting, or a heavy, personal presence on Instagram/Facebook.
• Strong Topic Selection:
  • Courses must provide value that cannot be freely Googled.

  • “Your course should address a specific pain point that someone would normally need to pay a professional to solve.” (06:03)

  • Avoid “choosing a color palette”-style topics; they’re too basic.

• Accessible Yet Impactful Content:

  “Is your course topic teachable to someone with little or no experience?... If your course is too simple, it won't bring results. If your course is too complex, you'll frustrate the student.” (07:06)

3. Marketing: More Intense Than You Think

• Marketing an online course requires much more effort than promoting services.

• “Any marketing you're already doing for your service based business should be multiplied by two or three times over for that of marketing a course.” (08:42)

• A robust digital presence and a formal sales funnel are non-negotiable (media, lead magnets, email sequences, paid ads).
  • Email sequences should be short—about three emails—so as not to overwhelm.
• Most will need a separate business entity and a second website for the course, as it’s akin to starting a new business.

4. Course Delivery & Student Engagement

• Video is essential; Kate asserts:

  “Anything less than video is going to fall flat. Honestly, you personally will need to be on camera 100% of the time...” (10:59)

• Keep any workbook component simple and short.

• A live component is crucial for real success (mastermind, group sessions, Q&A).

  “Every successful course has a live component...you can't use [a Facebook group] as a replacement for sessions that are directly with you, live and on camera. Successful course creators often show up on a weekly basis...” (15:33)

• Gamification rarely saves student engagement or completion rates.

5. Startling Statistics & Brutal Realities

• “The fact is, 90% of people who buy online courses do not complete them.” (15:45)

• Seth Godin’s online courses have a 97% drop off; even with massive budgets, Udemy and Skillshare see 80%+ non-completion rates.

  “Udemy says the average student…completes only a third of the course they purchased, while 70%...never ever start the course.” (16:46)

• Selling a course that no one finishes or benefits from is a failure, regardless of money received.

6. Alternatives: Professional Consultancy Services

• Instead of handing off “professional” skills to overwhelmed newbies, consider group programs, masterminds, or direct consulting (one-to-one or one-to-many via video calls).

  “Don't make inexperienced students the quasi professional at solving their own problems. You can actually keep your guru status while offering one to one or one to many things. So always live, always with you.” (19:41)

• Kate herself shifted to masterminds and consultancy after realizing the limitations and frustrations of conventional courses.

7. Parting Advice

• Courses are not for everyone and definitely not as “passive” as advertised.

  “My suggestion to you, if you've realized that courses are not everything they that you thought they were, consider the consultancy idea...You need to step away from the idea that courses are passive. They're not.” (21:03)

• But if you’re undeterred after learning the full reality, go for it—with eyes open and a plan in place.

Notable Quotes & Memorable Moments

• On Buying and Selling Courses:

  “If they pay for the course but they never finish it or never even sign into it, it's...not helpful.” (17:18)

• On Engagement and Experience:

  “There's so much to be gained when everyone shows up live. ...It's a lot harder to ignore a person than it is to ignore a course.” (20:38)

• Final Encouragement:

  “We can do hard things. Absolutely. So if none of what I said today scared you, then maybe trying to sell an online course is for you. But if any part of this made you think, you know what, this is not what I thought...there is an alternative.” (19:00)

Timestamps for Key Segments

• The passive income myth and course realities: 00:16 – 04:53
• How to know if you should create a course: 04:53 – 10:59
• Essential marketing and sales funnel tips: 08:42 – 10:59
• Course delivery formats and pitfalls: 10:59 – 12:04
• Live engagement, completion rates, and alternatives: 15:33 – 21:49

Takeaways

Kate delivers a tough-love, well-earned perspective: for most in-home pros, launching a profitable online course is far more demanding, precarious, and non-passive than influencers make it seem. A successful course demands a unique audience, robust content, relentless marketing, and ongoing personal engagement. As a more realistic and rewarding alternative, Kate champions live consultancy and masterminds, enabling meaningful income and client results—without the pitfalls of the “passive income” illusion.

For more actionable advice or to book a marketing audit, Kate invites listeners to visit katethesocialite.com.