7 Tips To Calculate The LMS Implementation Budget For Training Companies

Calculate Your LMS For Training Companies Budget
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Summary: How much do you need to set aside for your new Learning Management System? Are there any common mistakes that might dig into your profit margin? Let’s look at 7 top tips to calculate the LMS implementation budget for training companies.

How To Calculate The Cost Of Implementing An LMS

You need to create a realistic budget before you secure funding for your new LMS for training companies. The accounting team probably won’t sign off until they know how much it will cost and how it will benefit your bottom line. The tricky part is looking for those hidden fees that might put you in the red as well as finding a Learning Management System that gives you the most value for money and minimizes maintenance costs. These 7 tips can help you calculate an accurate LMS implementation budget that’s easy to stick to because it includes all the essential expenses.

eBook Release: Building Your eLearning Brand 101: Tips To Choose And Implement An LMS For Training Companies That Exceeds Your Expectations
eBook Release
Building Your eLearning Brand 101: Tips To Choose And Implement An LMS For Training Companies That Exceeds Your Expectations
Invest in an LMS that will assist in building your eLearning brand.

1. Research Popular Pricing Models

Is a one-time licensing fee best for your organization? Or should you choose monthly subscription fees to avoid high startup fees, even if that means paying more in the long run? The pricing model is the basis for your LMS for training companies budget. It tells you how much you must pay upfront versus monthly so that you can plan accordingly. Free options are another consideration but keep the customization and maintenance costs in mind. Free may end up costing you more than paid LMS options when all is said and done.

2. Factor In Startup Fees

I mentioned startup fees briefly, but they warrant their own section since there are so many factors in play. It’s not just purchasing the eLearning tool and investing in equipment, such as PCs or tablets for online training. You must also consider the time it takes to overcome the LMS learning curve and hosting fees. Do you need any add-ons or upgrades right off the bat to maximize functionality? Are there support services you should purchase to ease the transition for your team? These all belong to your LMS implementation budget. Another item to add to the expense sheet is unexpected implementation delays. A minor setback could push back your launch and dig into your budget.

3. Determine The Best Pricing Structure For Your Online Training Course Sales

There are two key reasons why you need to set your pricing structure before choosing your new LMS. The first is that you know how much is coming in. You can estimate your profits to invest in an LMS that broadens your margins. For example, you want to sell subscriptions to your online training course catalog. You may not have enough room in your budget to purchase an LMS outright. However, a subscription-based LMS is more feasible, since you’ll have sales trickling in every month. The second reason is that you can find an LMS that fits your pricing structure. Some allow you to sell multiple seats while others are restricted to individual online training course access.

4. Calculate Online Training Content Creation

Regretfully, you can’t just invest in an LMS today and launch an online training course tomorrow. The Learning Management System is the framework, but you still need memorable online training content to offer paying customers. How much will it cost to develop online training resources? Does the eLearning authoring tool have built-in eLearning templates to simplify the process? What about multimedia assets? Or will you have to invest in a third-party eLearning authoring tool to create online training courses?

5. Tally The True Cost Of Your In-House Team

Salespeople, admins, and Instructional Designers are just a few of the people you need on the team. And they probably won’t work for free. As such, you must tally the cost of hiring these key individuals to develop, deploy, and sell your product. Do you need to hire an IT expert to set up the LMS? How about a support team to field questions/calls from clients or paid learners? Will they be given a salary or taken on board as consultants? Do you need to account for payroll and a benefits package?

6. Estimate Your Marketing Costs

Marketing costs aren’t directly related to your LMS purchase. However, you need to promote your virtual product in order to make the Learning Management System worth your while. You don’t want to spend all that money implementing your LMS to have the online training course collect dust. How much does it cost to launch an online marketing campaign? How much time will it take, and which marketing pros do you need to bring onboard?

7. Account For Upkeep

An online training course doesn’t run itself. Sure, online learners can pay for the online training course and automatically access the online training content with minimal online instructor/facilitator involvement. However, you must still maintain the online training course and keep it updated. For example, develop tie-in modules to generate extra revenue. Or modify the current compliance course to incorporate new regulations. Even monitoring LMS reports to identify gaps requires resources. Resources that come directly out of your LMS for training companies budget. Another cost to think about is product upgrades and integrations. The eLearning tool may suffice today, but what about a year from now when you need to add more users?

If you’re getting dizzy from all the costs swirling around, remember that the right LMS can be a money-making machine. It just needs a steady stream of quality online training content, sound marketing strategy, and regular upkeep to maintain the cash flow. That, and a reliable team of salespeople, admins, and in-house experts. You should also re-evaluate your LMS budget periodically to ensure it’s still realistic based on your evolving needs. Business success might force you to upgrade your LMS package or purchase additional integrations. This way, you can keep up with growing demand and skyrocket sales instead of limiting your potential.

Finding the ideal LMS for your organization is a must when you need to employ an effective online training strategy with maximum ROI. The eBook Building Your eLearning Brand 101: Tips To Choose And Implement An LMS For Training Companies That Exceeds Your Expectations will help you discover everything you need to know when opting for an LMS for training companies in order to achieve your business objectives.