kajabithe video education and web hosting platform for content creators to sell, manage and market online courses announced today that its 60,000 creators have collectively earned $5 billion in lifetime gross merchandising value (GMV).
The company claims its GMV is up 528% since 2019 and more than doubled since the end of 2021. The $5 billion figure is a significant jump from March 2020, when Kajabi had more than $1 billion in creator revenue, former chief marketing officer Orlando Baeza previously told businessupdates.org.
Founded in 2010 by Kenny Rueter and Travis Rosser, Kajabi empowers “How to”, Do-it-Yourself (DIY) and other knowledgeable content creators to monetize their online courses and other digital products such as virtual meetings , coaching programs, membership websites and podcasts.
Kajabi is now valued at more than $2 billion, according to the company.
The GMV milestone comes on the heels of Kajabi’s launch AI Creator Hub product, which gives users access to six AI-powered tools that help generate content such as course outlines, landing pages, sales emails, course lessons, social media content, and sales video script. The tools, which are free for anyone to use, rely on GPT-3, OpenAI’s language model.
Another AI powered feature, Creator Studiorecently launched in beta and transcribes a video, reads through the script and identifies key phrases to create a summary of the video.
“What [AI] does for people who want to build a business is to nudge them in the right direction to actually get started,” Ahad Khan, CEO of Kajabi, told businessupdates.org.[The tools] really help you on your way, which is often the very thing that slows people down.”
Kajabi found that it takes average more than 80 hours to create an online course. By introducing a prompt into the new AI Creator Hub, the company hopes content creators can more easily brainstorm ideas and minimize the time it takes to type email campaigns and other content.
In addition to helping users “sell their knowledge,” so to speak, Kajabi’s toolkit includes a website builder, email marketing software, sales funnel software, a payment gateway, and analytics tools to help creators determine the best sales strategy. Essentially, Kajabi aims to be an all-in-one platform for users by consolidating the necessary tools to run a video education business.
“That [software] toolset has historically been very fragmented,” Khan added. “You use X for your website, use Y for your [products] and use Z to checkout. What Kajabi does is consolidate all those things into one easy-to-use platform… it’s a lot easier to have it under one roof, and a lot cheaper to have it under one roof as well.”
2022, Kajabi launched a built-in live video feature with recording capability, allowing creators to virtually meet their clients face-to-face and have the recorded sessions automatically emailed to them. The company too purchased to roll out the Vibely community platform last year Kajabi Communitieswhere creators can chat with their followers (or students) in real time, as well as live calls, run challenges, leaderboards, and more.
The company plans to venture into the mobile world and eventually launch creator-branded apps, Khan told us.
The most attractive thing about Kajabi is that users keep 100% of their earnings. That said, Kajabi charges a pretty penny for its plan, which has three pricing tiers: Basic ($149/month), Growth ($199/month), and Pro ($399/month). There is also a 14-day free trial.
In comparison: the online course platform Thinking also has a 0% transaction fee but offers plans that range from $49, $99, and $199 per month. However, Kajabi claims to have more marketing tools than Thinkific, such as the ability to build sales funnels, create blogs, and use email marketing with built-in features such as autoresponder, customer relationship management (CRM), email campaign templates, and more. Kajabi also offers one mobile phone application while Thinking need to launch another one.
While some creators continue to rely on advertising or brand deals to make money, other creators are turning to additional sources of revenue such as online education, a market valued at $30 billion by 2021. According to Customized Market Insightsrecently market research studyThe market size and value of online education is expected to reach approximately $200 billion by 2030.
Notable content creators who have signed up for Kajabi include YouTubers Matt Stefanina, a dance choreographer and Cassey Ho (Blogilates), a fitness instructor who specializes in Pilates workout videos. Steffanina and Ho have about 30 million and 10 million followers on social platforms respectively.
“[Kajabi] gave us a place to put content where the rules will never change… ideally you want to have an element of social platforms that also generates income because at the end of the day you never know when the algorithm or the rules are going to change . And that’s something I’ve learned over the years because there were times when I made most of my income from YouTube… and now it’s Kajabi,” Steffanina said in a statement.
Lesser known makers have also found success with Kajabi. For example, in 2019 Wendy Conklin participated in a do-it-yourself chair upholstery course. At first, she had 114 students and made $34,000 in one week, Conklin told businessupdates.org. “I got almost $100,000 in the first year of opening and closing that first course,” she added.
Since then, Conklin has launched several other courses and founded her company, Chair Whimsy. She currently teaches over 7,000 students and has earned a total of over $1.5 million on Kajabi.
Kenny Keller, a certified helicopter flight instructor, launched his business in Kajabi in 2012. Helicopter online ground school (HOGS) provides training videos to people who want to become helicopter pilots. Keller has earned over $2 million in revenue from Kajabi and has over 5,000 customers. HOGS has 37,000 YouTube subscribers.
The average Kajabi creator earns about $40,000 in annual income, according to the company, with one in three full-time content creators making more than six figures a year. Kajabi claims that most users who have reached $100,000 in revenue average at least 400 customers.