Explore the Different Ways You Can Pay for an LMS

LMS Pricing Models

In the market for an LMS, but you aren't sure how much it's going to cost or how the vendor will charge you?

Today, every LMS vendor will use one of the following pricing models: 

Pricing Model #1: Fixed Fee (Northpass' Model)

• Based on the plan you choose, you'll receive all the features, users, admin, and content that are right for you.

• There are no overage fees and you only pay for the features and level of service that you require.
• With this model, you to select the package that best fits your feature needs and upgrade if/when the time comes.
  
  

Pricing Model #2: Per Learner

• If the LMS vendor you’re talking to has a “pay-per-learning” pricing model, you’ll pay a fixed price based on the number of learners you have in your academy (e.g., customers, employees, channel partners, etc.).

• So, if the LMS charges $5 per learner and you have 200 of them, you’d pay $1,000 a month.

• The downfalls of this pricing model are that you may get charged overage fees when your program becomes more successful.
  
  

Pricing Model #3: Per Active Learner

• If you’re spending on a per-active-learner basis, you’re only paying for people who are actively using the technology.

• Using the same example as above, if only 150 of those 200 people are logging in and learning, you’ll pay $750 a month (rather than the $1,000). This is also called metered pricing.

• Similar to Per Learner pricing, this pricing model also charges you overage fees when your active learner counts increase.
  
  

Pricing Model #4: As You Go

• If your LMS vendor presents a pay-as-you-go pricing model, you’ll be charged depending on how you’re using the technology.

• You can think of a pay-as-you-go LMS pricing model similar to how you would a pay-as-you-go phone plan.

• The same applies to your LMS, which is why it can be appealing to new teams who are still building a foundation and don’t want to pay for the bells and whistles they don’t need yet.