Changing the Skillshare Teacher Fund Back to Revenue Share (December 2023)

While the Skillshare Teacher Fund had its benefits, we’ve heard from many teachers that it actually feels more opaque. As a result, we will be shifting back to a percentage of revenue model starting in January 2024.

In this article:

What is happening with the Skillshare Teacher Fund?

Starting in January 2024 and reflected on your February 2024 payment, we will be shifting back to a percentage of revenue model, paying approximately 20% of our subscription revenue (less transaction fees and taxes) to teachers. In keeping with how we have allocated subscription revenue, those payments will continue to be allocated to teachers based on their share of paid minutes watched.

This is similar to the teacher payment model we used before we implemented the Skillshare Teacher Fund in October 2022. As with the Skillshare Teacher Fund, in this % share model we will continue to pay only for paid minutes watched and at a variable rate depending on the geography of the member watching your class.

Why is Skillshare moving back to a percentage of revenue?

There are a number of reasons why we’re shifting back to a revenue share model: primarily to maintain teacher earnings and to address the feedback we’ve consistently heard from teachers to provide increased transparency and shared success.

Will my monthly payment change?

Based on our forecasts, we expect the total payout next year to be roughly the same as 2023, both in total amount and as a percentage of sales. If we had used this 20% model for 2023 instead of the Skillshare Teacher Fund, we would have paid out roughly the same amount.

To give you a sense of what to expect in terms of your own earnings going forward, we are forecasting that the shift from the Teacher Fund to approximately 20% of subscription revenue will be a neutral shift. Ultimately this is not a change that we expect will impact teacher earnings in the immediate term, but is a change back to a structure that teachers prefer and we agree is more transparent. To the extent our sales rise, so will the amounts we pay to teachers.

Will the 20% revenue share be consistent every month?

20% is the rate that we're budgeting for 2024, but as with all parts of our business, we may need to revisit this allocation from time to time.

What is the timeline for this change?

The changes will go into effect beginning January 1, 2024, with the February 16 payment the first to reflect the updated model.

The payout scheduled for January 16, 2024 will continue to operate from the Skillshare Teacher Fund model given that January’s payout is reflective of December earnings.

Will you continue to pay out engagement bonuses to Top Teachers and Rising Teachers?

Yes, we will continue to pay a monthly engagement bonus to teachers who receive at least 1 positive review each month, $250 to Top Teachers and $100 to Rising Teachers.

 

If you have additional questions about this change, feel free to reach out to us at teach@skillshare.com.