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The five ways to make money on Skool
Strip away the hype and there are five revenue paths on Skool, in roughly the order owners should layer them in.
1. Paid community subscriptions. $19 to $297 a month, recurring, the base layer. 2. One-time course or cohort sales inside the community. Higher ticket, sold to existing members. 3. Upsells to 1-on-1 coaching or done-with-you services. 3x to 20x the community price, sold to the top 10 to 20 percent of members. 4. Affiliate income from the Skool affiliate program. Skool pays around $0.40 per signup that comes through your link. A side note unless you have a massive audience. 5. Sponsorships from tools, courses, or services your members buy. Only viable past roughly 500 members and only in niches where sponsors exist.
The big mistake most owners make is treating the community subscription as the whole business. It is the entry, not the destination. The 95th percentile of Skool owners run a stack of all five layers, with the community as the funnel rather than the product.
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Subscription revenue, the actual math
Here is what 100, 500, and 1,000 members produce at different price points, after Skool's platform fee ($99 a month) and Stripe's 2.9 plus 30 cents.
100 members at $19 a month: $1,900 gross, minus $99 Skool, minus roughly $85 Stripe = $1,716 net per month.
100 members at $49 a month: $4,900 gross, minus $99 Skool, minus roughly $172 Stripe = $4,629 net per month.
100 members at $97 a month: $9,700 gross, minus $99 Skool, minus roughly $311 Stripe = $9,290 net per month.
500 members at $49 a month: $24,500 gross, minus $99 Skool, minus roughly $740 Stripe = $23,661 net per month, or $283,932 a year.
1,000 members at $49 a month: $49,000 gross, minus $99 Skool, minus roughly $1,450 Stripe = $47,451 net per month, or $569,412 a year.
Note two things. One, Skool's pricing is genuinely operator-friendly because the platform fee is flat, not per-member. Above 50 members the $99 becomes a rounding error. Two, Stripe takes a real cut at scale. A $97 a month community paying through Stripe sends $3.11 per member per month to Stripe, which adds up.
Annual pricing changes the math significantly. If 30 percent of members pay annually at 10x the monthly (two months free), your cash flow gets a one-time injection and your churn drops sharply because annual members rarely cancel mid-term. Most $97+ communities push annual hard in the onboarding.
- 1Price the community correctly
Start at $49 to $97 a month for most niches, not $19. Lower prices attract lower-intent members who churn. Higher prices retain better and fund upsells.
- 2Hit 50 paying members on subscription alone
Do not layer in upsells before month four. Use the first 90 days to validate retention and find your real ICP. Anything else is premature optimization.
- 3Add the first upsell at month four
Pick one of: higher-tier mastermind at 3 to 5x the price, cohort program at $1,500 to $5,000, or 1-on-1 coaching. Sold via DM and application, not public post.
- 4Push annual pricing in onboarding
Offer monthly and annual side by side. Annual at 10x monthly (two months free). Roughly 30 to 40 percent of buyers pick annual, which dramatically improves cash flow and churn.
- 5Automate welcome and churn DMs
Install tools4skool.com around member 30 to 50. Auto-DM new members within minutes of joining, auto-DM cancellers within 60 seconds. Recovers 15 to 30 percent of churners.
- 6Add the second upsell at month seven
Layer in a different format from the first. If month four was a mastermind, month seven is a cohort or done-with-you. Target 40 percent of revenue from upsells by month 12.
- 7Raise prices every six months
Grandfather existing members. New joiners pay the new price. Most communities are underpriced by 50 to 100 percent and only learn this when they finally test a higher tier.
Upsells, where the real money actually comes from
Past month six, most successful Skool owners generate 60 to 80 percent of revenue from upsells, not the community itself. The community is the funnel. The upsell is the business.
The upsell ladder, in order:
1. Higher-tier community at 3x to 5x the price. A mastermind or inner circle inside the community, $297 to $497 a month, capped at 20 to 50 members. Sold quarterly via application. Buyers: the top 10 percent of members who want more access. This is the most reliable upsell.
2. Cohort-based programs. A 6 or 8 week intensive, $1,500 to $5,000 one-time, run twice a year. Buyers: members who want a structured outcome with a deadline. Higher conversion than evergreen courses because of the cohort pressure.
3. 1-on-1 coaching. $500 to $5,000 a month, capped at 5 to 10 clients. Buyers: the top 1 to 5 percent of members. Highest revenue per buyer, lowest leverage, hardest to scale.
4. Done-with-you services. Sometimes called productized consulting. $3,000 to $20,000 one-time or per quarter. Examples: build the LinkedIn profile for B2B operators, set up the ad funnel for ecommerce sellers. Highest revenue per buyer if you can deliver.
5. Certifications and licensing. Members pay to become certified in your method and resell it. $2,000 to $10,000 one-time. Works when your method is repeatable and members want to teach it themselves.
The play: pick one upsell, run it for two quarters, see how it converts. Most owners try to launch all five at once, dilute attention, and convert nothing. Pick one, get it to 20 percent of community revenue, then add the next.
The Skool affiliate program, what it really pays
Skool runs an affiliate program where you earn a recurring commission on every paying creator you refer. The published rate has changed over time but currently sits at roughly 40 percent of the $99 a month platform fee for the first year. That works out to about $39 a month per active referral.
This is fine money for content creators with large audiences in the creator-economy niche. It is not a strategy for community owners outside that niche. The math:
- 10 active referrals = $390 a month, recurring
- 100 active referrals = $3,900 a month
- 1,000 active referrals = $39,000 a month (real numbers for the largest Skool affiliates)
If your community is for, say, freelance video editors, your members are not signing up to start their own Skool community, so affiliate income is irrelevant. If your community is for online business owners or creators, affiliate income can be a meaningful side layer because your members are exactly the people who buy Skool.
The top Skool affiliates make six and seven figures a year from this alone, but they also have massive YouTube channels in the make-money-online space. For most owners, affiliate income is the fifth layer, not the first.
Sponsorships and partnerships
Sponsorships work above roughly 500 members and only in niches where sponsors exist (B2B tools, courses, services). Mechanics:
Newsletter sponsorships. If you run a weekly email to your member list, you can sell ad slots for $500 to $5,000 per send depending on list size and niche. 5,000 engaged subscribers in a B2B niche commands $2,000+ per send.
Inside-community sponsorships. A monthly pinned post from a sponsor, an integration in your weekly call, a logo on the about page. Pricing $1,000 to $10,000 a month depending on member count and engagement. Be careful, too much sponsor content erodes trust.
Affiliate partnerships with tools your members already use. Pick three to five tools that genuinely help your members, get the highest affiliate commission you can negotiate, and recommend them in your courses and DMs. Honest affiliate income compounds because it scales with member count. tools4skool.com runs an affiliate program for community owners who recommend it to their members, which fits naturally because most Skool community owners eventually need community automation. Reach out to any tool you actually use and ask about partnerships, most have a program.
Co-promotion partnerships. Trade promotions with other community owners in adjacent (not competing) niches. Less cash, more growth, often more durable than paid sponsorships.
How to stack the layers, month by month
Month 1 to 3. Subscription only. Get to 30 to 50 paying members. Do not even think about upsells. The constraint is positioning and retention, not monetization.
Month 4 to 6. Add the first upsell. Most commonly a higher-tier mastermind at 3x to 5x the community price, sold via application to the top 10 percent. Or a cohort program. Pick one, not both. Target: 10 to 20 percent of community revenue from upsells by end of month 6.
Month 7 to 12. Add the second upsell. If you started with a mastermind, add a cohort. If you started with a cohort, add 1-on-1 or done-with-you. Target: 40 percent of revenue from upsells by month 12.
Month 13 to 18. Add affiliate and sponsorship layers if applicable. Build a newsletter that complements the community (Beehiiv or ConvertKit, ideally on a separate domain). Target: 60 percent of revenue from upsells and side layers by month 18.
Month 18 plus. Optimize. Raise prices, prune low-value layers, hire help. The owners who hit seven figures past month 24 are running 4 to 5 layers each producing 10 to 30 percent of revenue, with no single layer being a single point of failure.
The automation layer to add somewhere around month 4 to 6: welcome sequences and churn DMs become impossible to run manually once you have a subscription product, an upsell pipeline, and a content engine all running at once. tools4skool.com handles the inside-Skool workflow so you can focus on the upsell sales instead of the housekeeping.
Common monetization mistakes
Pricing too low forever. Owners launch at $19 a month, get to 200 members, and never raise prices because they are afraid of churn. Then they wonder why they cannot afford to live on $4,000 a month MRR minus expenses. Raise prices for new joiners every 6 months. Grandfather existing members. Most communities are underpriced by 50 to 100 percent.
Launching upsells before community retention is solid. If your community churns at 12 percent a month, the upsell has the same problem. Fix retention first.
Stacking too many upsells too fast. Three offers visible at once and members buy zero. Pick one, optimize, then add.
Treating affiliate income as a strategy. Unless your niche is creators, affiliate from Skool is rounding error. Build the community business first.
Selling too aggressively inside the community. Members joined a community, not a sales funnel. One promotional post a week is the maximum. The rest is value. Sales happen in DMs and emails, not the public feed.
Ignoring churn-save. Members who hit cancel are recoverable within the first 60 seconds. Manual recovery never happens because owners do not see the cancel in time. Automated cancel-DM is the single highest-ROI automation in the entire business.
Not raising the price for the second tier when the first sells out. If your mastermind at $497 has a 50-person waitlist, the price is too low. Raise it $100 a month and watch the list still convert.
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