Exploring the Power of Kajabi: An All-In-One Platform for Online Business
The growth of the digital education market is soaring, and people are increasingly relying on the internet for both business and personal learning needs. Many creators are emerging to meet this demand for online education content, creating businesses that range from tutorials on home improvement to makeup tips to coding best practices. Despite the vast array of content being created to meet various learning needs, building and scaling an online business presents challenges for most entrepreneurs. Though these creators have extensive knowledge of their areas of expertise and can create high-quality content, they often lack the know-how to transform their knowledge into a digital format or master web design, marketing, and data analytics, which are essential components of a successful online business.
Kenny Rueter, the co-founder and CEO of Kajabi, faced these problems himself when he attempted to scale his digital business. When he looked for software solutions to assist him, he discovered a market filled with point solutions that solved some issues but were not interoperable and were collectively cost prohibitive. To bridge this gap, he and his team built Kajabi, an all-in-one platform that simplifies creating online courses, designing effective websites, launching marketing campaigns, and building landing pages. By consolidating the digital solutions of creating and maintaining an online business into a single platform, Kajabi saves entrepreneurs time and resources, allowing them to focus on creating content that their customers appreciate.
At Spectrum, we have been closely monitoring the above-mentioned trends and observed how Kajabi’s unique platform allows its subscribers to capitalize on this market opportunity. That is why we are excited to welcome Kajabi to the Spectrum Equity portfolio today.
We are thrilled to partner with the Kajabi team, whose success stems from a strong customer focus, resulting in a world-class product. Kajabi takes personal pride in helping subscribers achieve their visions of success, driving the team to innovate continually and provide value to its subscribers.
The demand for digital educational materials continues to rise, and the online education market now represents a $220 billion market. This market opportunity arises in part because the internet has become the preferred medium through which people want to learn. Additionally, the vast majority of people are willing to pay for educational content (78%), as demonstrated by our survey work. That interest extends beyond professional training to hobby-related educational interests, with 57% of individuals interested in pursuing these educational opportunities.
The demand not only propels the overall market growth but also necessitates content catering to diverse human interests. People are no longer searching for conventional and broad subjects but want to learn about a highly diverse and specific set of topics.
The internet has made it possible for any individual to share their thoughts, ideas, or expertise with a vast audience, although reaching a broad audience is not necessarily easy. Today, over 500 hours of content are uploaded to YouTube every minute, serving 2 billion monthly active users. Although not all of this activity is related to education, it highlights that people are becoming more comfortable creating shareable content, and there is a vast audience for user-generated content. Approximately 30% of individuals surveyed believe they have something valuable to share, and nearly 40% are willing to share it online.
As individuals become more comfortable creating and sharing content, they are also increasingly comfortable starting their own businesses. Outside their primary careers, 35% of American workers are involved in some “side hustle.” For all the reasons we have listed, online education represents an appealing market for these individuals to pursue. Moreover, many people find that educational content is valuable for growing their existing businesses. Individual entrepreneurs and SMBs use content to showcase their expertise, build a loyal following, add digital revenue streams, and drive offline results.
Kajabi’s subscriber base of approximately 25,000 entrepreneurs is an excellent example of the aforementioned points. The company is meeting can save valuable time and resources that would otherwise be spent managing multiple platforms and tools. This allows them to focus on what they do best: creating high-quality educational content that their customers love.
Spectrum Equity recognizes the tremendous potential in Kajabi’s all-in-one platform for online course creators and entrepreneurs. By providing a comprehensive solution to the challenges of creating and maintaining an online business, Kajabi is poised to continue its growth and expansion in the rapidly growing digital education market.
In summary, the demand for online education content continues to grow, and Kajabi’s unique platform offers a valuable solution for creators and entrepreneurs looking to capitalize on this market opportunity. Spectrum Equity is excited to be partnering with Kajabi and looks forward to supporting the company’s continued success.
