LMS Costing An Overview Of Pricing Structure

by Daniel Par Content writer


Whether you are starting with eLearning in your company or hunting for an appropriate learning management system. LMS costing is a top priority for educational institutes and organizations trying to select a robust learning management system. Several institutes and organizations want to train employees and educate students with the help of LMS while staying within their budgets.

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Poor user experience and training can impact badly on your organizations. When training is provided correctly it helps to maximize your organizations potential and improve profit margins. For this, it’s vital to pick a budget-friendly LMS with a robust feature set. In this article, we will walk you through a detailed analysis of LMS pricing, which will help to pinpoint the best LMS software that would give you the most value for your money.

The Importance of LMS Costing:

Opting for LMS software that matches your organization’s needs is crucial for maximizing your business growth. Some companies waste spend more than they expect to on their LMS. It’s just because of lack of features or over budgeting.

E.g., A company with 100 employees is looking to upgrade a learning management system with advanced features and customization capabilities. Business executives can refer to LMS vendors scorecard that provides a comprehensive outlook on how LMS vendor is operating. After referring to the LMS vendors scorecard business executives can come up with the two LMS solutions, one being an open-source LMS and the other cloud-based LMS. The company’s high authorities made a logical decision and opted for free LMS Moodle as it was highly customizable. However, after spending thousands of dollars and countless hours on this free LMS, the company regrets the decision. But Why?

The widespread dissatisfaction reveals that most LMS can’t fulfill the needs and desires of the organizations. So it’s vital to have a full-scale investigation on LMS cost and analyze whether the LMS meets your company’s needs along with high customization capabilities. Now let’s look at the factors that determine LMS cost.

Factors Determining LMS Cost:

Creating an accurate budget is vital before selecting the right LMS. You can also perform LMS comparisons and evaluate each learning management system cost and determine which LMS fits your organization’s needs. Let’s take an overlook at the essential factors that you must add to your LMS expenses sheet to create a realistic budget.

Sign Up and Installation Fees:

The very first step is to check for sign up or installation fees. Some LMS vendors may charge signup or installation fees. If you are in doubt regarding the installation, ask the LMS vendors to provide you with a list of all associated start up LMS pricing and when they are due.

Fees Per User:

Some LMS providers charge per user fee instead of charging a flat fee. So you will need to consider the number of employees or learners who will access the LMS. Most LMS pricing is based on active users. Thus, you will have to pay only for the number of employees or learners who use LMS to learn or train.

Creation of Online Training Content:

Calculating the LMS costing also depends on the online training content itself. It also calculates the number of courses available, quality of courses, and much more. Therefore, you must assess the expense of developing or curating online training content.

Take The Right LMS Investment Decision:

After evaluating each LMS, check for the LMS pricing model that helps you to shortlist LMS vendors. After shortlisting LMS vendors, you can check for learning plans as some LMS vendors provide plan per user subscription while some have monthly or annual fee structures.

A healthy learning plan enables learners to collaborate with their peers. So choose the right LMS, which is budget-friendly and provides an advanced feature set with high customization capabilities. Moreover, Knowing about all of the major costs involved can help you to select the best LMS that suits your learning needs and your eLearning budget.


Organizations that are looking to change learning management systems should check for the LMS pricing model. You can overview LMS costing that will help you make firm decisions. It will also allow you to develop a more accurate estimate for your eLearning project. LMS pricing model will also enable you to choose the right LMS cost that fits your organization’s budget.

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About Daniel Par Junior   Content writer

3 connections, 0 recommendations, 18 honor points.
Joined APSense since, October 14th, 2020, From Pune, India.

Created on Feb 8th 2021 03:22. Viewed 138 times.


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