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Choose The Best LMS Pricing Model for Your Business

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The optimal LMS (Learning Management System) pricing model is crucial if your company is seriously considering investing. The cost of an LMS may be a deal breaker when determining which provider to engage with; thus, the big question is, what kind of pricing model is ideal for your business? However, the LMS market is competitive since many companies offer different products at different prices. Terms like “per active user,” “per registered user,” and “per actual user” are the primary sources of concern. The truth is that these terms’ definitions will change from one provider to the next. Many LMS providers lease their platform to large corporations and training providers. Many LMS providers aim to please both customers, but their pricing strategies favor one group. 

Below are the most popular LMS pricing models, have a look:

Each potential pricing model has its advantages and disadvantages. You should weigh them against your goals, your available funds, and the features you need in an LMS.


The pay-per-user model requires businesses to pay cash whenever an employee logs into the learning management system. Typically, the LMS provider will host the LMS platform on the cloud. This service provides regular updates and improvements, freeing you up to concentrate on what matters: creating and delivering effective online training for your target audience. Registered or active users can be the basis for a pay-per-user system. Every user who signs up for your system will cost you money under the pay-per-user approach. Instead, with a pay-as-you-go model, you only have to cover the costs of people who make actual use of the system. Users at an organization may sign up for accounts despite having little need for them.


    • The pay-per-active user model only requires payment for those users accessing the system rather than for the overall number of users in your business.
    • It makes it possible to fulfill duties requiring education, such as periodic compliance training.


    • Organizations with significant employees may not get a return on investment since some individuals may not need the training or only utilize it occasionally. Employees who sign up for the system but rarely access it could get paid.
    • Your company’s budgeting will be difficult if the number of employees constantly changes.

The pay-per-user subscription model is a simple and clear option for small and medium-sized businesses (SMEs) with mandatory training. You can avoid the problem of paying for customers who never log in by switching to a model that only charges you for those who use the service. On the other hand, the pay-per-learner model can work well if your staff is extremely motivated or required to participate.

Custom pricing:

Large businesses would rather have a tailored LMS and pricing structure than purchase anything ready-made. There are a few LMS providers that focus solely on this sector. For large organizations, establishing such a system can be time-consuming and laborious. The Learning Management System is completed following numerous discussions, requests, and adjustments. The business’s benefit is receiving a product tailored specifically to its requirements. The lengthy procedures and high prices are the main drawbacks. For this reason, several large corporations are also adopting LMSs that are already built and available for purchase.


Using this pricing model for learning management systems, customers can access an LMS’s core functionality for no cost. They will only be required to pay for additional capabilities if they prove useful. This is excellent news for small businesses with limited resources and a desire to cut costs early in implementing a learning management system (LMS) that meets their fundamental requirements. Some free LMSs lack vital capabilities, while others have a hefty price tag that may be beyond reach for small businesses.

One-Time Payment:

In the case of passive courses, this LMS pricing option is a wonderful place to start because of its simplicity. Whereas In most cases, you will only have to pay for a course’s materials once as a student. In light of this, program participation necessitates financial support. Once you’ve paid the one-time fee and gained access to the learning materials, you may typically review them as much as you like at no further expense.


    • This manner of payment is straightforward. Having the ability to pay for a course upfront and then finish it without having to pay again is the simplest option possible.
    • You don’t have to take time out of your busy schedule every month or regularly to make a one-time payment, unlike with a subscription, which is why it’s so much handier.


    • You’ll have access to course-specific materials throughout your enrollment in that class. If you finish the course and find the system to your liking, you can sign up for another program on the same platform, but you’ll have to pay for it again. Therefore, this is the best payment method if you’re interested in watching a particular lecture series.


There are a variety of approaches you can take when determining prices. Of course, what’s ideal for one company isn’t necessarily the finest for another. Before settling on a course of action, you should evaluate your organization, business, and clients. You should also remember that you are not stuck with just one choice. You can try one of the versions and then switch to another if you like. Each of these is a viable choice with the potential to bring about positive outcomes.

Featured Image by Dirk Wouters from Pixabay