Introduction
The trade-off Coursera faces between expanding free course offerings for user acquisition or focusing on premium content for revenue growth is a critical strategic decision. This scenario touches on the core of Coursera's business model and its future direction in the competitive online education market. I'll analyze this trade-off by examining the product ecosystem, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.
Analysis Approach
I'll structure my analysis using a comprehensive framework that considers multiple facets of this decision, including business context, user impact, technical feasibility, and resource allocation. This approach ensures we cover all crucial aspects while maintaining a strategic focus.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps determine the urgency of focusing on user acquisition Expected answer: Growth is slowing, below target Impact on approach: Would prioritize user acquisition strategies if growth is significantly below target
Why it matters: Clarifies the financial impact of focusing on premium content Expected answer: 60-70% from premium content Impact on approach: Higher percentage would justify prioritizing premium content development
Why it matters: Indicates the effectiveness of free courses as a funnel to paid offerings Expected answer: 5-10% conversion rate, stable or slightly declining Impact on approach: Low or declining rates might suggest a need to improve free course quality or selection
Why it matters: Assesses our ability to rapidly expand either free or premium offerings Expected answer: Moderately scalable, with some bottlenecks Impact on approach: Limited scalability might favor focusing on one type of content over rapid expansion of both
Why it matters: Determines the feasibility of significantly changing our content strategy Expected answer: 30/70 split free/premium, with some flexibility to adjust Impact on approach: Limited flexibility might necessitate a more gradual shift in strategy
Subscribe to access the full answer
Monthly Plan
The perfect plan for PMs who are in the final leg of their interview preparation
$66.00 /month
- Access to 8,000+ PM Questions
- 10 AI resume reviews credits
- Access to company guides
- Basic email support
- Access to community Q&A
Yearly Plan
The ultimate plan for aspiring PMs, SPMs and those preparing for big-tech
- Everything in monthly plan
- Priority queue for AI resume review
- Monthly/Weekly newsletters
- Access to premium features
- Priority response to requested question