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A Guide To Learning Management System Pricing Models

LMS pricing is anything but straightforward. Most pricing schemes, fortunately, can be classified into kinds. You can compare costs between models and pick the price point that works best for you. However, this is possible only if you have a strong understanding of LMS pricing models.

If you’re a first-time LMS buyer, chances are you’ve tried to decipher the various price structures offered by different suppliers and come up with more questions than answers.There are a lot of providers in the LMS industry, and each one has their own price scheme.

For the most part, terminology like Per Active User, Registered User, and Actual User cause misunderstanding. And, to be honest, the definitions of these phrases will differ from one vendor to the next.

LMS platforms are licenced by corporations (who train their employees and extended enterprise) and training companies (who sell courses to the general public).

Many LMS providers serve both of these groups, with pricing strategies tailored to one of them. The goal is to understand your own usage patterns as well as what you want to instil in your learners as the L&D Head/Manager. Only then can you determine what option suits you the best..

Learning Management System Pricing Models

Here are the most prevalent LMS price structures offered by LMS companies. Understanding them can assist you in selecting the one that best meets your needs:

Pay-Per-ACTIVE-User

The term “user” is more precisely defined to encompass only active users. Now, depending on the option you choose, what is called “active” may differ, so read the terms carefully. Docebo LMS or Thinkific Pricing for example, defines active users as during the 30-day billing term, all users who open a course learning object for the first time.

Pay-Per-Users

You will be charged a nominal fee for each user on your LMS. When you pay for users, you’re helping to offset the LMS host’s storage costs. This price mechanism is a little out of date, and you won’t see it very often these days.

Freemium

This concept entails receiving a stripped-down version of the learning management system for free, with limited support. You must subscribe to a paying subscription to receive better priority service and other features.

Pay per Licenses

For product support and updates, you pay a one-time fee. To keep receiving these products, you must have an active licence, which usually entails renewing it. Many providers may give you a discount if you renew your licence. This model may also have costly upgrade options if you want to get more features.

When it comes to choosing a learning management system, price is a primary priority for schools and organisations. The aim is to educate students and develop personnel while staying within their financial constraints.

It’s critical to recognise that learning management systems might be on-premise, cloud-based, or hosted. For each, the pricing model is a little different. Similarly, the pricing model that best matches your needs will vary depending on the number of users, features required, and so on.

Conclusion

With the vastness of the LMS market, the only consolation is that big stockholders follow certain basic models, which makes comparison a little easier. Buyers have a lot of options, and while understanding pricing models is a fantastic method to learn more about the LMS market, it still presents a skewed perspective on LMS choosing.

The final decision should be based mostly on needs in contrast to pricing, implementation methodologies and support provided. This also includes experience of the implementation team, and other variables such as the vendor’s market value and general opinion.

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