The first supply was a case study
I wrote about Udemy in a March 3, 2021 First 1000 issue. The useful part was not a clever creator acquisition trick. It was the decision to build a small piece of supply before asking strangers to trust an empty marketplace.
The issue says Gagan spent the first six months cold-calling instructors. Udemy had no reputation and no success stories to point to, so the calls produced no courses. That is the ugly version of the chicken-and-egg problem: creators are being asked to supply a product that has not yet proved anyone wants it.
The workaround was Startup Digest University, an offline paid event built on a newsletter with roughly 50,000–70,000 subscribers. Gagan asked investors for talks with concrete examples, data, and practical advice, recorded the material, and used those talks as Udemy’s first courses. The first supply was not a grand catalog. It was a credible case study.
Borrow trust before you ask for trust
The event gave Udemy two things the marketplace did not have on its own: recognizable instructors and a distribution channel. The source says the early course promotion ran through investors, Startup Digest, friends, and acquaintances.
That sequence is different from announcing that anyone can upload a course. A creator does not need to believe in the whole marketplace yet. They only need to see one example that looks real, useful, and worth joining.
If I were starting a marketplace today, I would ask what small transaction or artifact could become the proof for the next supplier. It might be one paid workshop, one completed job, one customer story, or one useful template. The point is to create evidence before the pitch.
Turn recruiting into a funnel
Once the case study existed, Gagan built a three-step funnel for instructors. The issue says Udemy used 5–10 outsourced data miners at $3 per hour to find authors around searches like “learn Python,” collected hundreds of emails a day, and sent messages one by one rather than using a mass-mail tool.
After roughly 500 emails, the team switched to the better-performing email. They then followed up with instructors who had signed up but had not finished their courses. The message was simple: Udemy wanted to promote the course in three weeks. A deadline made an unfinished commitment concrete.
I would not copy the contact-collection method. I would copy the structure: find a narrow supplier profile, test the first message, watch where people stall, and give the stalled step a real reason to happen now.
The founder checklist
If I were seeding a marketplace, I would ask:
- What is the smallest credible supply example you can create yourself?
- Which existing audience or trusted person can distribute that example?
- What does the next supplier need to believe before they join?
- Where does the funnel stall: discovery, reply, signup, or completion?
- Can a real deadline turn an unfinished promise into a finished asset?
The takeaway
Udemy did not solve creator trust with a better pitch. It made one credible course case study, used borrowed distribution, and only then turned supply recruitment into a repeatable funnel.
Sources and original research
Adapted from my original Udemy First 1000 issue, published March 3, 2021. The six-month outreach, Startup Digest event, 50,000–70,000 subscriber range, $3/hour sourcing, 5–10 contractors, 500-email test, and three-week promotion deadline are historical claims from that issue; the marketplace checklist is my adaptation. No current Udemy metrics or new study is claimed.
Updated September 21, 2026. Based on original First 1000 reporting and the sources listed above.