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LMS (Learning Management System) Pricing Models: What’s Right For You

LMS (Learning Management System) Pricing Models: What’s Right For You

Technological advancements and innovations have gradually paved their way into most of the industries and rehashed the ideas business operations performed. And, the learning space is no exception. With the introduction of online learning platforms, e-Learning applications, and cloud-based and on-premise Learning Management System solutions, the learning space has witnessed substantial changes.

The application of learning management systems is no longer limited to corporations and large-scale enterprises. Now, even small and medium scale businesses are planning to unleash the ultimate potential of an LMS to drive greater business success, growth, and ROI.

With the growing popularity and adoption of LMSs, there is a myriad of LMS options available in the market to choose from. LMS vendors are employing full-fledged R&D activities to offer LMSs with unique features at an unbeatable price. Price is one of the key factors to consider while choosing an LMS, and thus, here we are going to discuss some of the major LMS pricing models.

1. Licensing Fee + Set Up Costs + Maintenance

Under this pricing model, businesses planning to integrate an LMS into their training requirement have to incur the purchase cost for the LMS along with the initial set up cost. If the LMS is going to install in the premises of the organization, and installation team requisite hardware and infrastructure are required. Considering the complexity of the LMS, businesses may have to pay annual maintenance costs to the LMS vendor for the upkeep of their LMS.

Also Read: Rapid Application Development (RAD) Model: What are the benefits?

2. Setup Costs + Monthly Subscription

This LMS pricing plan eliminates the need for maintenance costs, monthly or annually. Businesses have to incur the initial setup cost and have to opt for monthly subscription plans. Monthly subscription plans allow businesses the flexibility to customize their LMS usage based on their learning need. The monthly subscription pricing model allows the businesses to make the switch between LMS vendors easy as they are not going to incur losses in terms of annual payments.

3. SaaS Model – Only Subscription Fee

SaaS LMS is nothing but an LMS hosted on a remote cloud server that can access with a subscription plan. This LMS pricing model eliminates the setup and maintenance costs and offers the greatest cost-saving advantage. Usually, Learning Management System vendors offer custom subscriptions. Businesses have the flexibility to choose what are the features they would require and how many learners need access to the LMS platform. Based on the requirement, they can opt for the best-suited subscription for them.

4. Pay based on needs (Subscriber based or feature/course-based)

This LMS pricing model offers the maximum flexibility to the businesses in terms of customizing the subscription as per their learning need. Customizing features and scaling up subscriber/learner usage is easy, quick, and convenient with this pricing structure.

Also Read: Apple Keyboard Shortcuts (20): Business Users Must Know

5. Freemium Model

This LMS pricing model requires less tech know-how and offers access to limited features only. When we say limited features, it might be the case that the LMS vendor provides the basic version of the LMS instead of the paid version that offers unlimited access and a multitude of features. Under this pricing model, Learning Management System vendors might not extend round-the-clock support services to the businesses. However, companies can always have access to additional features with an additional monthly LMS fee or subscription.

6. Custom Pricing:

The learning and development requirements vary from business to business based on the variety and volume. To cater to this situation, LMS vendors have come up with a custom pricing model under which businesses can choose the features they would need in the LMS, customize certain features, and the pricing would be calculated based on the customization efforts.

Businesses must undertake LMS pricing comparison along with other requisite details before making a decision. There is nothing like a right or wrong pricing model. Businesses have a say to decide which works best for them. For further queries on LMSs and pricing models, do get in touch with the experts at Alpha Learn to understand Alpha Learn pricing and Alpha Learn LMS cost.

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