LMS Pricing Guide: Finding the Pricing Model that's Right for you

Sep 21, 2021

iCrowdMarketing powered by iCrowdNewswire

If you and your organization are looking for an LMS(Learning Management System), it is important to determine the pricing model that best fits your budget and organizational objectives.

It can be time-consuming to compare different prices online and pick the right one because it needs lots of research. “eLearning Industry” is a platform where you can easily find, choose and compare the  Top LMS Software. You can also compare top LMS reviews and choose the tool that best meets your requirements.

To avoid confusion we have created this comprehensive pricing guide with common payment models that can help you choose the right LMS for your organization.

1)Pay per user:

The most common payment model is pay per user. You need to pay a fixed price for a certain number of learners added to the system. With this model, you can easily calculate your expenses incurred monthly or yearly. Pay-per-learner prices are tiered. As the number of users goes up, the rate goes down.  Vendors might ask for payment to be made monthly or annually.

This form of payment is useful for companies that have certainty about the exact number of users they want to enroll. So, it is optimal for companies with a stable number of employees because it is easier to predict the training costs.

2)Pay per active user:

In the Pay-per-user pricing model, a fee is charged irrespective of usage. But in this model, you’ll only be charged for the users who log into the system during the pay period. In other words, You only pay for those users who voluntarily sign up and create their id and password.

This form of payment is useful for all the companies but particularly benefits when you want to pay only for the active users rather than everyone involved.

3)Licensing:

This is the most hassle-free pricing model where you pay for the license of an LMS which lasts for a certain period. You can add as many courses and users as you want without any particular limit. Although the prices depend on the number of features the concerned LMS offers, it is a bit expensive comparatively.

It is suitable for organizations that have a large number of employees for training and managing. You cannot cancel the license midway, which is a drawback in this pricing model. You have to pay the vendors initially to get the license.

4)Free options:

There are two many options in this LMS plan. They are:

• Freemium source- While this sounds appealing, it has some limitations. It allows you to access basic services for free but there will be some hidden costs involved even though the name suggests otherwise. It is ideal for small-scale industries that want to start with a free LMS.

• Open-source- With this open-source pricing model, you can access LMS regardless of how many users you have. However, this needs some tech experience to handle as its configuration is difficult to understand. It is feasible for organizations that have a tech team that can handle this software.

5)Perpetual Licensing:

This is a pricing model where you pay for the license to have complete ownership over the LMS. It is a one-time payment model that you can use forever. Since you own this software, it allows for more customization, scalability, and integration with other hosted applications.

It is ideal for large organizations as you don’t need to pay per user. However, you need to do proper research before choosing because you can’t cancel it mid-way. Pricing is also expensive, thus one should make a fully informed decision.

Conclusion:

Finding the right balance between price and value can be tricky unless you do proper research about the pricing model. In this article, we’ve tried to explain the most popular LMS pricing models, choose the one that aligns with your organization’s goals.

---