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If you are planning to invest in LMS for your company or thinking of upgrading to a new one, there are plenty of factors that are required to be considered.
Finding the perfect models that align with your organization is not the only factor to keep in mind when making this decision. The price of this LMS could be the deciding factor for you to figure out which vendor you should choose to partner with.
Comparing prices for varied LMS software can be a tedious process. While you can find some costs on the website of vendors, some require you to connect with them, thus taking up a lot of your time.
Making your process easier, we have curated a comprehensive guide below that talks about common models of payment and aids you in this decision-making process.
Pricing models to keep in mind when investing in an LMS
- Pay Per User Model
Pay per user model includes the cost that your company will have to bear for each person that is a user with the Learning Management System. This cost is incurred irrespective of whether they are actively using it or not. Hence, this is the perfect model for you if the training in your company is obligatory.
The LMS is mostly cloud-based. Cloud-based services are offered by the LMS vendor, for instance, JoomlaLMS, who hosts the LMS platform. The vendor ensures that regular upgrades and updates are provided. This gives you an opportunity to focus on developing and executing the training content.
- Pay Per Active User Model
If your organization is looking for something more economical, then paying per active user is the way to go. With this pricing model, you are given a chance to add an unlimited number of users, but will only be charged for those who log in and are actively using the software during the entire billing cycle.
One thing to keep in mind when considering pay per active user model is that the price is usually bundled. For instance, you estimated that you will have 150 active users for a particular, however, only 100 users turn up, you will still incur costs for 150.
Litmos pricing is perhaps the perfect example of this model.
- Subscription Model
This is probably the easiest and most convenient pricing model for LMS. You pay the fee or subscription amount when you buy a periodic license for the software. This type of pricing is mostly a set fee (often annual) with no restrictions on the number of users or courses that you add.
While this helps you to not focus on the number of users, most vendors offer two to three plans of flat-prices to choose from. These rates depend upon the features that are included in the package. With every upgrade, new features are unlocked.
Tovuti LMS pricing is a great example of a licensing fee model.
- Open Sources Model
Open sources are the free alternatives for those organizations that are working on a tight budget. Since the software would be free, there would be limitations and hidden costs attached.
There are two types of LMS solutions that you can choose from, namely Freemium and open-source.
Freemium gives you free access to basic services and limited features. For instance, restriction on the number of users, minimal or no support services, etc. You can add the extra features for a monthly fee as and when needed. Moreover, being tech-savvy is not a prerequisite for this solution.
Open-source software, on the other hand, allows you to access the LMS software, irrespective of the number of users you have. This alternative, however, requires you to have some tech experience as it will require programming and HTML knowledge to configure.
- Licensing Fee Model
This is an unusual but highly effective LMS model. This type of model works best for medium-sized and big businesses that already have an existing data center and IT Staff.
- Pay Per Registered User Model
Once the user has created a login ID on the platform, he/she will have to pay for every user who is registered in the LMS system. Logging in ensures that you are able to access the LMS platform. This is a steal deal for all companies who want to sell their classes online.
- Pay Per Course Model
For all the employees who need special certification within their industry for specialized and customized content, there’s good news for you. You can find LMS Vendors will options to pay for a course, too. Although similar to the pay per price model, the prices are premium for the content that is specialized. In this case, a vendor might either have a repository or collaborate with another party to deliver lessons via the LMS platform. Sounds easy, right? It is! But who does it work best with? If you are a learner who needs to be certified in a compliance-based industry, then this model is ideal for you. For example: The safety industry, the healthcare industry or even for a corporate setup – Human Resources.
Conclusion
These are the four major pricing models that you can consider when either planning to get an LMS software onboard or making a decision to upgrade. Each of the models has its own list of pros and cons. You just need to figure out which one aligns best with your goals.
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This content is sponsored by Hubert Dwight.
Photo: Shutterstock