In today’s professional landscape, alternative credentials have become increasingly popular to enhance and demonstrate skills development and work readiness.
These alternative credentials encompass various forms, including digital badges, microcredentials, and industry or professional certifications. As organizations and learners increasingly appreciate the value of these diverse credentials, the focus on exploring monetization opportunities becomes imperative.
In fact, an average of $1.7 million in gross revenue was generated from alternative credentials, reported by 25 institutions in the Alternative Credentials Business and Program Models study.
This factsheet specifically delves into the benefits and strategic considerations associated with monetizing digital credentials, offering insights that can elevate your program and drive revenue for your organization.
Upskilling and reskilling have become global agenda in recent years, especially with the rise of AI. Individuals and business leaders are looking for ways to prepare for the future. It was reported that most US workers plan to upskill in 2024. A similar trend can be found in the UK, with 52% willing to invest in learning and development in their own time.
As the demand for upskilling and reskilling grows, individuals are not only eager to develop new skills but also seek ways to verify, share, and witness tangible outcomes from their learning endeavors. In response to this multifaceted need, digital credentials have emerged as a pivotal solution. Among students and recent graduates surveyed in the US, 86% agreed that earning an industry micro-credential will help them stand out to employers and get a job after graduation.
Learners are recognizing the tangible benefits of digital credentials, presenting providers with a significant opportunity to align their offerings with this growing demand. Beyond enhancing value for learners, digital credentials can also empower providers to bolster financial sustainability through diverse monetization strategies.
Monetizing digital credentials refers to generating revenue by leveraging their value. By strategically implementing monetization strategies, programs can reduce operating costs or create an additional revenue stream for your organization. Common monetization strategies include:
Monetizing digital badges establishes a new source of income by charging learners for earning valuable badges.
$1.7 million in gross revenue with a median of $833,000 were generated from alternative credentials (reported by 25 institutions in the Alternative Credentials Business and Program Models study)
Implementing a fee for learners to receive badges can improve the cost efficiency of issuing organizations while granting learners the flexibility to choose whether they want to pay for the badges.
Monetizing badges ensures the financial viability of your credentialing program, covering development, maintenance, and infrastructure costs.
Revenue from badge monetization can be reinvested to enhance content quality and the learning experience, allowing the development of new programs and badges.
To ensure the success and longevity of your monetization initiatives, consider the following best practices: