As course creators, it’s tempting to plug our content into the biggest marketplace or a ready-made LMS and start selling. It’s fast, it’s easy, and the platform takes care of hosting, payment processing and a chunk of marketing. But beneath the convenience there are hidden costs—financial, strategic and reputational—that can quietly erode your margin, control and long-term value. This article walks UK course creators through the real trade-offs so you can make smarter choices.
Third-party platforms (marketplaces like Udemy or hosted LMS providers like Teachable/Thinkific) promise low friction: no server setup, built-in checkout, and an audience. They also scale instantly. The UK e-learning market is growing fast — estimated at around USD 11.3 billion in 2024 — so demand is real.
But convenience hides compromises. Before you commit, ask: how much of my revenue will I keep? Who owns the learner relationship? What happens to my brand when the platform changes rules or has an outage?
Many marketplaces take a cut or use revenue-share rules that favour platform-led sales. Some models reward instructors more for driving their own traffic, but pay far less for students the platform brings. That split can vary wildly — and that’s a direct income leak for course creators. For example, revenue-share rules on major marketplaces can leave instructors with a small fraction of marketplace-driven sales.
Hidden fees can compound: processing charges, “promotion” fees, referral commissions and tiered subscription costs for advanced features. As you scale, those percentages bite harder, turning growing sales into only modest profit.
One of the most valuable assets a course creator can build is a direct relationship with learners — email addresses, course engagement data, cohort progress. Third-party platforms often limit access to raw learner data or make exporting clunky. That leaves course creators dependent on the platform for future marketing, upsells, or nurturing repeat customers.
In the UK, where data rights are governed by GDPR and scrutiny of EdTech data practices is rising, handing over control of learner data can present regulatory and ethical headaches — and potential reputational risk if data practices are opaque. Academic and policy research has raised concerns about how EdTech providers handle learner data and recommended greater transparency.
When your course lives on a marketplace, your brand can be swallowed by the platform. Marketplaces spotlight their own search & discovery — which helps you find buyers but also pits you against thousands of competitors and algorithm changes. That means you’re vulnerable to shifts in the platform’s promotion algorithms, pricing rules, or featured categories.
For course creators focused on reputation and premium pricing, losing brand control can reduce perceived value and make premium positioning difficult.
Outages and downtime are not theoretical. Large cloud or service interruptions can knock a platform offline, costing sales and damaging learner trust. Recent major outages affecting cloud providers had ripple effects across many online businesses — a reminder that platform dependency is also infrastructure dependency.
Imagine a cohort-launch day and the platform is down — refunds, angry learners, and a brand hit you can’t easily fix.
You might start on a low-cost tier, but as your business needs grow — advanced assessments, SCORM import, deeper analytics or integrations with CRM systems — hosted platforms start charging for add-ons or higher tiers. Migrating off a platform can be costly and technically difficult: export formats don’t match, community data is locked, and embeds break.
That “move-cost” gives platforms pricing power against course creators who have built audiences there.
Course completion rates for online learning can be low without intentional design and direct learner engagement. Platforms offer tools, but the onus is on the creator to use them well. Moreover, third-party marketplaces measure success differently (page views, clicks, short-term conversions) than creators focused on long-term learning outcomes and lifetime value. UK learners increasingly favour video and micro-learning, but designing courses that retain learners requires data control and experimentation that platform constraints can impede.
Each of the items on this checklist will help you to count the cost of third party LMS platforms and make an education decision. Goster can help walk you through putting together an LMS for your business during your free discovery call.
Audit the true revenue split — include taxes, processing, and promotion fees. Model net profit at scale.
Demand data access — check export formats and API access for learner emails, progress and assessments. Document what you can and can’t export.
Keep direct channels — build an email list, host part of your course on your own domain or a white-label platform, and use evergreen funnels to own repeat business.
Plan for outages — keep backups, downloadable resources, and a contingency communication plan.
Negotiate or choose tiers wisely — when platform fees rise, know your break-even point and the true cost of moving.
Marketplaces are stellar for discovery and testing course ideas quickly. For new course creators looking for initial product-market fit, the trade-offs can be worth it — provided you use the platform as a launchpad and simultaneously build owned channels.
Third-party platforms accelerate go-to-market—but convenience comes with a tax. Treat platforms as partners, not permanent homes. Protect your learner data, model long-term profitability, and keep ownership of your brand and channels. With that mindset, you get the best of both worlds: the reach of platforms and the freedom to scale profitably.
Reach out to us for a free 15 minute discovery call to explore some options for putting together your own bespoke LMS.
(These were used to research UK statistics and employee engagement referenced in the article.)
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