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LMS Pricing Models: How to Choose The Best One?

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LMS Pricing Models: How to Choose The Best One?

These days, there are many various types of learning management systems available used by people and organizations to deliver course materials and manage eLearning to users or employees.

 

Finding The Best Choice For You

How can you determine which of these pricing models is the best one for you and your learners? There are three things to consider:

  • Your number of learners
  • How often you’ll be using the software
  • How long you’ll need the software

 

 

Checkout The Brief History of LMS (Learning Management Systems)

 

 

Pay-Per-Use

This can mean different things depending on the LMS provider, so you’ll want to make sure you understand whether they charge a fee-per-user-per module, fee-per-course-per-user (this is very common), a fee based on elements or materials delivered per course, or a fee based on number of class attendees.

Price Range: Depends on the specific model and your volume, but expect anywhere from $0.50-$10 per learner per course.

 

 

License Fee

This is either a one-time, upfront cost to access the software, or it is a fee to access the software for a specific period of time (monthly, annually, etc.). There may also be an annual support fee.

Price Range: Less than $500 to tens of thousands of dollars (e.g. $20,000 annually).

 

 

Pay-Per-Learner

This is the most common pricing model in which you pay a flat fee per learner (regardless of how much training they’re receiving). Additionally, there’s often a one-time setup fee.

Price Range: Around $5/user/month, but prices go down as you scale, to as little as $0.50/user/month for large companies with many learners.

 

 

Freemium

This model essentially means you get a stripped-down version of the learning management system for free and support is often limited. In order to get higher priority support and additional features you have to upgrade to a paid plan. The paid plan could be based on users, features, or license as discussed previously.

 

 

Free

In this scenario it is free to use the software and often support is community driven. Generally not recommended if you have real business objectives and best suited for users who have (or can pay someone) with considerable technical skills.

 

 What is an LMS? An LMS is the “engine” that powers eLearning, and in the most common form it consists of two separate parts one is server and other is user interface. 

 

 

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