LMS Pricing Models – Find the Right Pricing Model for you

The LMS pricing model is imperative when it comes to choosing the cost-effective LMS for a higher ROI. According to studies, people overspend on their learning management system by 59%. Whether your business is just starting to use eLearning or you want to switch LMS providers, determining the overall cost of LMS deployment may seem like a major undertaking.

This eLearning pricing model blog post will examine several LMS pricing models and cost structures and provide step-by-step guidance on how to select the LMS that will best serve your training objectives.

What Is an LMS?

Learning management systems (LMS) are digital platforms for managing, documenting, tracking, reporting, automating, and delivering educational programs, training materials, and courses. The idea of an LMS was born out of e-Learning. As a result, the market for eLearning systems is dominated by learning management systems.

LMSs were created using analytical data and reporting to pinpoint training and learning gaps. Although they enable various functions, LMSs primarily focus on delivering online learning. They serve as a platform for online content, including synchronous and asynchronous courses. An LMS may provide classroom management for instructor-led instruction or a flipped classroom in the higher education setting.

Popular LMS Pricing Models

Most modern LMS solutions are primarily hosted in the cloud. Therefore, by removing the requirement to set up and manage on-site IT infrastructure, cloud-based LMSs make it simpler for corporates to reduce overall eLearning expenditures. By 2022, every educational institution will be able to select from various cloud-based LMS options.

But there will be a lot of differences between the software packages, including pricing. Most LMS firms give companies a variety of LMS pricing structures to select from.

• 1. Pay per learner

  According to this LMS pricing model, organizations must employ an LMS system and make payments based on the number of employees or courses. Learners frequently have access to a cloud-based LMS that has been designed with various modules, lessons, features, and tools from the edtech businesses supporting the pay-per-learner or pay-per-course pricing choices. Additionally, they enable enterprises to set up individual accounts for each learner.

• 2. Pay per active users

  The pay-per-learner LMS pricing model, despite being one of the most used ones, does not consider resource consumption or usage. If a company chooses this LMS pricing model, it is only responsible for paying for the customers who actively use the cloud-based LMS solution within a particular billing cycle or pay period.

• 3. Pay as you go

  A popular pricing strategy for cloud computing is pay-as-you-go. As its name suggests, this LMS pricing model enables educational institutions to employ a cloud-based LMS solution by only paying for the services they use. One of the LMS pricing schemes directly related to resource utilization is this one.

• 4. License Fee

  Periodic licensing requires academic institutions to pay monthly or yearly licensing costs to access and use the LMS system. After the allotted period, the customer must renew their subscription to continue using the LMS system. Major corporates choose this LMS pricing plan to expand without spending more money. Additionally, by modifying the cloud-based LMS by its eLearning requirements, this pricing option enables a business to use pertinent features and resources.

• 5. Custom Pricing

  Many companies and educational institutions don’t have enough resources to start and maintain eLearning. Therefore, they do not consider these typical LMS pricing models feasible. Nowadays, many edtech businesses and startups provide customized pricing structures to help consumers overcome financial limitations to use LMS solutions.

How to Choose the LMS Best Pricing Model?

It may appear that navigating the various eLearning pricing model’s bewildering maze of users, courses, and features is impossible. So, before making an LMS purchase, use our guidelines to choose the best plan for your requirements.

• Step 1: Compile a list of the users you intend to train

  Determine how many employees will use the system throughout a payment cycle, such as a month, before choosing a specific LMS. Will this sum remain the same during the course of the year?

• Step 2: Estimate how long each user will use the LMS

  Will all of your users be the same individuals, or will they fluctuate in number? For example, the total number of active users may be more or less steady if you intend to utilize an LMS for onboarding courses, but the users will differ.

• Step 3: Predict the Number of Courses You’ll Upload

  The number of uploaded courses and the amount of storage space required frequently determine the LMS cost. Look for a supplier and a plan with a high or limitless data storage allowance if you often perform training throughout the day.

• Step 4: Identify Crucial Components and Integrations

  Conduct some preliminary research to create a list of the qualities you require. Due to this homework, you’ll save time on talks with suppliers who don’t provide the necessary features. Additionally, this list will assist you in determining the actual value offered with each pricing plan.

Top 10 Popular LMSs – 2022

• 1. Paradiso

  Paradiso LMS is the best LMS platform for corporate training with customized learning needs, this LMS can meet all your learning goals. This LMS also offers the best eLearning platform for educational institutes with lots of advanced options and plug-ins.
  Outstanding features:
  1. Paradiso LMS offers the best features such as gamification, blended learning, multi-tenancy, mobile learning and more to deliver efficient online training programs.

  2. Paradiso LMS platform provides over 100 valuable integrations with eCommerce, CRMs, HRIS, and ERPs that can simplify your online learning experiences.

  3. It offers customized learning paths, robust reports, and dashboards for reviewing performance.

• 2. Absorb LMS

  Absorb LMS is one of the best LMS which is suited well for businesses training including onboarding and development of employees, customers and partners training, and more. It offers multiple languages and a content library with over 1000 prebuilt courses on various topics.
  Outstanding features:
  1. Absorb LMS offers social learning features that keep your employee engaged and motivated.

  2. A multilingual LMS with user friendly interface which offers sheer features like scheduling reports, mobile learning and rich course library.

  3. This LMS facilitates rapid onboarding programs and employee training.

• 3. Mindflash

  Mindflash is ideal for training customers, partners, resellers or employees of large companies. It allows you to edit live courses easily and utilize existing content including voice, video, animation and more.
  Outstanding features:
  1. When it comes to Onboarding, Virtual Classroom, and Compliance Training, Mindflash LMS works best.

  2. It offers easy course creation and web conferencing tools to make learning more interactive.

  3. This LMS comes up with blended learning, mobile learning and offers excellent integration with necessary systems.

• 4. SkyPrep

  Small companies with thousands of employees can benefit from SkyPrep training platform. It is a great onboarding tool and is also a good fit for educational institutes. SkyPrep allows you to build and store an unlimited number of courses and assessments.
  Outstanding features:
  1. It offers powerful integration that enhances learning experience. It supports multiple languages, advanced reporting and allows for ease of tracking learner progress.

  2. SkyPrep offers white-labeling options which allows you to customize your domain address, logo, and choose a different color scheme.

  3. This top LMS software provides course creation tools to unlimited training content with real-time reporting. It allows you to customize the course as per the customer’s requirement.

• 5. Knowmax

  Knowmax is best suited for SMBs and growing industries like Telecom & Media, Travel, Healthcare, ISP/DTH and other organizations who are looking beyond LMS & Quiz management. It helps with faster onboarding of employees that saves you time and reduces costs.
  Outstanding features:
  1. Knowmax is one of the top LMS platforms which offers real time reporting and analytics of learning activities course wise, profile wise and assessment wise.

  2. This LMS comes up with white labeling option, where you can customize your LMS as per your choice and you can change logo, colors, theme and more.

  3. Create unlimited diversified content by using its robust course creation tools and you can add quizzes and games for better learning outcomes.

• 6. TalentLMS

  TalentLMS will fit the learning needs of any organization and academic institute no matter its size or training type. It provides onboard training experience and automatically issues certificates and re-assigns training at the appropriate time.
  Outstanding features:
  1.The automation engine feature of TalentLMS allows you to create automatic events without your supervision.

  2.It has a powerful course creation tool that can create courses in just a few clicks. You can use its best features like gamification, blended learning, personalized learning path and more.

  3.A well-integrated LMS offers better mobile accessibility, user-friendly interface, and great flexibility to create custom reports.

• 7. Docebo

  With the power of Artificial Intelligence, Docebo LMS platform is ideal for employee training and a good fit for academic institutions. Those who want to sell their courses online, Docebo offers a perfect market place to attract more customers.
  Outstanding features:
  1. Docebo facilitates social learning, mobile learning, gamified training programs, and blended learning features that create a continuous learning environment in your organization.

  2. It offers a robust reporting feature which allows you to generate scheduled reports and custom reports.

  3. This LMS offers customization functionality and you can create your mobile app. It has a built-in marketplace where you get the right tools for your training needs.

• 8. iSpring

  iSpring works best for small to medium businesses and academic institutes. This is one of the top LMS platforms for corporate training which is ideal for onboarding employees, continuous training and providing online certification with honest results.
  Outstanding features:
  1. It offers an easy user interface, advanced content and user management, and robust reporting feature that makes this LMS popular.

  2. iSpring comes up with great flexibility to customize your LMS. It has seamless integration that provides advanced data of your learner along with advanced reporting.

  3. Get the enjoyable learning experience on both desktop and mobile with simple user interface which is not cluttered with too many buttons or menus.

• 9. Canvas

  Canvas is the best source of LMS, suited well for education and specially designed to better engage users in the training and learning processes and increase the productivity of its users. Canvas has introduced Arc, a new-generation tool that makes educational videos more collaborative.
  Outstanding features:
  1. It has powerful course creation tools to create engaging learning programs. This LMS has features like collaborative learning, gamification and more to enhance the overall learning experience.

  2. Canvas LMS offers comprehensive and high-quality mobile learning experiences. It offers native mobile apps that allow you to get access from anywhere at any time.

  3. This LMS has integrated tools like Google documents, Ether pad and media reporting for better customer experience.

• 10. Blackboard

  Blackboard LMS works best for Director of Learning & Development, Operations, HR Directors, CLOs, Corporate Trainer, Instructional Designer, Sales Trainer. It offers collaboration tools, a mass-notification system and a social media manager for K-12 institutions.
  Outstanding features:
  1. It has intuitive user interface and robust features like virtual classroom tools, social learning, advanced reporting and mobile learning that improves overall learning experiences.

  2. You can create courses on Blackboard easily with a few clicks and add some interesting videos, text, images and notes to make it engaging.

  3. Blackboard has Open Content tool for creating, finding and sharing resources without having to import or export anything, even users can also insert copyrights to their content.

Frequently Asked Questions

• 1. What features usually are common in all pricing plans?

  • Customization/Personalization
  • Learner Progress Tracking
  • Gamification
  • Integrations
  • Alerts and Notifications

  The more upgrades you make on your LMS pricing plan, the number of features you can access to upskill your workforce. It all depends on your project or company requirements.

• 2. After buying the LMS, will I pay more fees?

  To put it another way, check to see if there are any hidden fees. For example, providers may charge extra for the LMS setup, training, technical support, hosting, upgrades, and add-ons.

• 3. How can I make changes to my Pricing Plan? Do any particular requirements exist?

  When you use more people than are covered in your current plan, you may need to upgrade per-user plans. To upgrade from one pricing plan to the other, please contact your LMS vendor’s customer support team and they should be able to help you further.

• 4. What refund do I get if the LMS does not work out for me?

  To avoid becoming trapped with an LMS that might not continue to match your needs in the future, don’t be afraid to inquire about exit fees.

The Bottom Line

As you can expect, the pricing structures of various LMS companies vary. In addition, eLearning pricing models frequently prioritize the seller over the customer, which is a concern. Therefore, we have examined the different eLearning pricing models so that you may choose the one that best meets your needs. Every LMS pricing model has an up and a down. Pick the one that you think may prioritize your eLearning needs.