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272
March 26, 2025
Episode #272: Why More Colleges Are Forgoing Revenue-Share OPMs

Why More Colleges Are Forgoing Revenue-Share OPMs

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About the Episode

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About the Episode: 

In this episode, Brady Colby, a market research expert at Validated Insights, joins the podcast to break down their latest report on the Online Program Management (OPM) market. Brady shares key insights on how institutions are moving away from revenue-share OPM models in favor of fee-for-service partnerships, why colleges now have more control over their online programs, and what this means for the future of digital education. If your institution is considering launching or scaling online programs, this episode is packed with data-driven takeaways you won’t want to miss!

Why Is Higher Ed Shifting to Fee-for-Service OPM Models?

For years, revenue-sharing agreements dominated the online education market, with institutions partnering with OPMs to provide marketing, enrollment management, and instructional design in exchange for a percentage of tuition revenue. However, this model is declining.

Brady Colby explains that institutions have developed more in-house capabilities for online program management, reducing their reliance on full-service OPM providers. Additionally, regulatory scrutiny and financial pressures have made schools more cautious about long-term revenue-sharing contracts. Instead, many institutions are now opting for fee-for-service agreements, which allow them to retain more control while still getting targeted support where needed.

This shift signals a new era where colleges and universities are treating digital education as a core function rather than outsourcing it entirely to third-party providers.

How Does Data Shape Online Education Strategy?

A major challenge in higher education is the reliance on outdated data. Traditional sources, like IPEDS, often have an 18-month to two-year delay, making it difficult for institutions to make timely, informed decisions about online education.

Validated Insights takes a different approach by leveraging alternative market data, such as website metadata, institutional strategic plans, and publicly available partnership information. This more granular and real-time approach helps schools understand trends in digital education as they’re happening, rather than looking at data from years past.

By incorporating up-to-date market intelligence, institutions can:

  • Identify emerging student demand for specific programs.
  • Track shifts in OPM partnership models.
  • Make data-driven decisions about program expansion and marketing strategies.

What Does the Future of Digital Education Look Like?

The growth of online education has created a more competitive landscape, meaning institutions must now think strategically about their digital offerings. Simply launching an online program is no longer enough to attract students. Schools must differentiate themselves by focusing on their strengths, aligning with workforce needs, and refining their messaging.

Some key trends shaping the future include:

  • More specialization in online programs – While MBAs remain a top choice, institutions are increasingly looking at niche programs that fill gaps in the market.
  • Greater institutional control over online education – Schools are investing in their own digital education infrastructure rather than relying entirely on third-party OPMs.
  • More focus on affordability and flexibility – As competition increases, institutions will need to ensure their online offerings are cost-effective and meet the needs of non-traditional learners.

What Should Higher Ed Leaders Do Next?

Brady’s advice for institutions is clear: online education is no longer a differentiator on its own. Schools must refine their digital strategy by:

  1. Understanding their unique value proposition – What does your institution do better than others? How can you highlight that in your online offerings?
  2. Focusing on workforce alignment – Programs that directly connect to career opportunities will be more attractive to prospective students.
  3. Leveraging real-time data for smarter decision-making – Institutions need to move beyond outdated reporting and incorporate alternative market insights to stay ahead.

With digital education evolving rapidly, colleges and universities that take a proactive, data-driven approach will be best positioned for long-term success.

About the Show: The Higher Ed Geek Podcast explores the impact of edtech on the student experience by speaking with diverse leaders from institutions, companies, and nonprofit organizations. Each week we aim to provide an engaging, fun, and relevant dose of professional development that honors the wide range of work happening all across the higher ed ecosystem. Come geek out with us! The Higher Ed Geek Podcast is hosted by Dustin Ramsdell and is a proud member of the Enrollify Podcast Network.

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About The Enrollify Podcast Network:
The Higher Ed Geek is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too!  

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Enrollify is produced by Element451 — the next-generation AI student engagement platform helping institutions create meaningful and personalized interactions with students. Learn more at element451.com.

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People in this episode

Host

Dustin Ramsdell is a leading content creator and influencer in the Higher EdTech space, and the host of Higher Ed Geek.

Interviewee

Brady Colby

Brady Colby is the head of the market research practice at Validated Insights.

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