10 eLearning Pricing Models Online Teachers Must Know


Pricing Online Teachers

Before you create your course online you need to decide how you will monetize your training or if you are going to give it away for free. There are multiple methods of monetizing your training that are simple and this article will help you decide what is best for you.

Here are the pricing models you can use to make money on your course:

  1. Free
  2. Monetized with Ads
  3. Monetized with Affiliates
  4. Once Off Membership
  5. Recurring Membership
  6. Pay Per Course
  7. Pay Per Registered User
  8. Concurrent Licensing
  9. Monthly Subscription
  10. Payment Plans

Now that you know what ways you can monetize your training let’s dig into these and get more specific on exactly how you might do that with your course.

1.  Free

If you are running a non-profit or you are running community service training or just don’t want to charge for a course you can give it away for free. There is plenty of free training on different subjects out there on the internet.

You may be surprised though that while some seem free it is monetized with ads and/or affiliates.  So therefore the person making the training still earns an income from creating the course.

We will discuss these methods in the next two sections.

Example: Courses on YouTube, Courses on Content Management Systems (CMS) like Drupal, Joomla or WordPress, On your custom website, Or a Learning Management System (A specialist form of CMS).

Advantage:  Cheap to set up for the cost of cheap hosting and a domain name or getting a free WordPress website or free website from other providers.

Disadvantage: You will pay the costs for the ongoing maintenance.  These are small and your time creating and maintaining your content will be where the major effort is.

2.  Monetize with Ads

This is very similar to the Free version but now you can put on your ads throughout the training to pay for the cost of creating the training course.  Most people start with Google Ads which pays very little money but is a good way to start seeing some money coming in the door.  There are plenty of other ad networks you can use and which one you use depends on your website traffic.

Here are some ad networks you can use:

  • 0 to 10,000 – Google Ads – $1 to $5 / 1000 page views
  • 10,000 to 100,000 – Ezoic – $5 to $20 / 1000 page views
  • 100,000 and up – Mediavine – $10 to $30 / 1000 page views

There are heaps of ad networks out there these days and be careful to test them before committing as they will slow your website down and that will affect growth.  So getting decent traffic is always the best advice before including ads.  The second thing is that not all ad networks are as honest in reporting or commissions as they may seem.  The ones recommended above have good industry standing.

IMPORTANT: There are certain topics in the YMYL (Your money or your life) that the ad networks won’t go near like sex, guns, finance, medical. If you are a certified expert in Finance or a Doctor they will put ads on your website or otherwise you are likely to be rejected.

NOTE: The amounts above are only indicative of what you may get and depending on your training course category you may get way more or way less depending on the supply and demand of advertisers and how much they are willing to pay.  You can browse these in Google AdSense and see how much you would be charged for each category.  Keep in mind it won’t show you the competition in that area.

3.  Monetize with Affiliates

An Affiliate sale is where you recommend a product or service in your training material.  If someone clicks on that link and purchases that product or services then you get a kickback just like if you were a salesperson selling that product.  This is very common and there are heaps of companies that offer affiliate programs directly or through an affiliate network.

You will often see Affiliates used in conjunction with Ads on most websites these days and what used to be the most popular was Amazon but recently they have yet again dropped their commissions.  So it is very risky to ONLY use Amazon as the program may not be around for much longer or the commissions are just not worth it and you will make more money with other affiliate programs.

Here are some Affiliate Networks you can check out:

  • ShareASale
  • ClickBank
  • FlexOffers.
  • Pepperjam.
  • Rakuten Marketing (formerly LinkShare)
  • CJ Affiliate (formerly Commission Junction)
  • Amazon Associates.
  • eBay Partner Network (EPN)

For more information on each of these networks check out this article:

https://smartblogger.com/affiliate-networks/

4.  Once Off Membership

There are lots of websites that will charge you a normally high price once-off membership payment for access to all the training and resources on the website.  This style of payment is where they get access to a set amount of content like a training course and a community of peers. You will put in a lot of effort upfront to create the content and then you will just do basic maintenance and admin of the website.

Advantage: This is simple to manage and with the higher price membership you can add more value for your members.  You will have to make sure the training and resources you provide are of the same value as the membership for people to value it.  Once you have created the content you will generally go low maintenance and just update this material.  Your members won’t expect more content as it is a single payment for access.

Disadvantage: You need to keep marketing your website as your revenue only comes from new sign-ups. So it is good to know your Customer Acquisition Cost on this one that is a lot less than your membership fee.

5.  Recurring Membership

This method of payment is similar to the payment method above but with one slight change.  You will be charging normally a yearly membership fee.  This will change the expectations of the customers.  Firstly you are not charging for access to a set amount of content like above you are charging access for the initial and extra content you will add each year.

Advantage: This means you have a steady income with yearly renewals happening every month and to increase your income you just need to attract new members.  But once you have a certain amount of members you will have more than enough income to continue growing the website.

Disadvantage: Every year for members to stay you will have to show you are providing more value to them.  You will have to engage with your members and make sure they are feeling they are getting real value from your products and services.

6.  Pay Per Course

This has to be the most popular model for training delivery online due to its simple nature.  You pay for a course and you get access to that course.  With so much competition though and normally hosting your content on eLearning platforms you lose the ability to price and discount your training. 

You also are at the whim of the website you put your content on.  They own your audience.  This is great if you want them to do your marketing for you, but they will charge you for it.  Examples of websites like this are Udemy and Skillshare.

The alternative is for you to set up a similar website like this of your own where you can get people to pay per course as well. This will mean however that you will have to market the website yourself and build your audience. You could simply do this on an LMS like Moodle or with any of the CMS products like WordPress, Joomla, or Drupal.

Very few people create a custom website anymore because it adds a layer of complexity to when you want to sell your business.  It means they have to hire a web developer for changes or have to have those skills themselves.

Advantage: Students only pay for the courses they want.  You can keep creating courses to build a library of them to sell to students and if you host them yourself you can set the value of the training course yourself.  It is a lot easier if you use Udemy or Skillshare if you just want to concentrate on content and students but you give up pricing and they own the students.

Disadvantage: There will be a lot more marketing if you are selling multiple courses and you won’t be able to charge as much with the current expectations for most online training being at $10 to $20 USD per course.  To get a hirer price per course you need to add more perceived or real value to the equation.

7.  Pay Per User

This is common with big companies or whole universities where they will register all of their staff for access to the training material and pay per head regardless of whether they access the material or not.  You will see this as enterprise licensing on websites like PluralSight or Udemy as well as many other websites.  This style of access is normally in line with corporate requirements to provide staff with opportunities to add courses to their Professional Development Plans (PDP).

If a single-user access to the website is $30 a month for instance then corporate get a bulk discount for enrolling all of their staff and may only pay $100 per year for each staff member.  This wholesale pricing in this model is normally based on large student numbers.  Another website that is well known for doing this is LinkedIn Learning (formally Lynda.com).

Advantage: This means you will be aiming at the big fish and a few customers with many enrolments will be a huge amount of revenue for you. You can still have another payment model for single users coming directly to the site.

Disadvantage: You will have to have a lot of training courses to entice those big fish and this is normally done only when a website gets to a large enough size with a reasonable amount of content.  Losing a single large customer can mean a huge change in revenue.

8.  Concurrent Users

This is not a pricing model seen much in the educational sphere but more by software licensing but it worth a quick discussion.  Instead of having huge amounts of enrolments to manage you could give a company access to your training with only 10 users at a time for instance.

They may have 1000 employees but only the first 10 get access until a user signs out of the training platform.  You can see why this is not as popular as you could earn much more with the above model and how you manage the concurrent users and why go to that effort. 

But here are some specialist scenarios where you may only have 10 real-world physical training kits they can use so you are limited to 10 concurrent users due to these restrictions. If they wanted more users at a time you may have to buy more equipment. You could manage this scenario with an access schedule.

Advantage:  Great for specialist training scenarios.

Disadvantage: Limits your income so you would have to charge more.

9.  Monthly Subscriptions

This style of access to training materials and any products and services has fallen out of favor.  Just ask anyone that has had a gym membership they never used. You are much better getting the person to buy a single course or commit to a yearly membership. 

With a monthly membership, you need to add new content each month to keep your students.  If you make it a yearly membership then at least you have a breathing room and can add content throughout the year when it suits you and you will still have a steady income.

Advantage: Easier to sell as it is only a small cost per month.

Disadvantage: Harder to justify as the student sees it on their credit card each month and that reminds them to either use it or cancel it.  It also puts pressure on you to release new content each month. Currently out of favor with most people.

10.              Payment Plans

If you have a large course that is either Government recognized like VET Training or University training this is a great option for students.  It is also great for private training companies that are teaching someone how to be a specific job role as a programmer.

These types of large cost courses need to have a big outcome for the student and it is not just an impulse buy like you might do with a low-cost pay per course scenario.  They often come with an employment guarantee or skill set that matches a real-world job.

You can pick a payment plan that suits the income of your students to make the payments more palatable to the student.  You can even get paid upfront for this style payment by handing the management on the debt over to the payment plan provider. These are different in each country but if you just search for “credit card payment plan provider”.

They pay you the course fee minus their fee and will look after the debt from there with the student.  Or alternately they will manage the installment payments and just let you know if they don’t pay.  For small training businesses, this gets rid of the headache of chasing debt and managing payments this can have.

There are also plugins for Content Management Systems (CMS) and Learning Management Systems (LMS) that will handle this for you as well.

Advantage: Great for large courses where there is real-world job value or training value for the students and it allows you to even out your income over many months rather than having huge payment months and some with no income at all.

Disadvantage: Managing the payment plan and what you do with students that complete the training but fail to pay the rest of the payments.  Or never start and want refunds.  You need to be very careful about your refund policy on these styles of payments as they are large sums.

Glen Brown

I am a Technical Trainer and Manager with over 20 years experience in IT, Education and Business. I have multiple qualifications on each topic including post graduate qualifications. I have a passion for sharing knowledge and using technology to do this. If you would like to know more about me please see the about page of the website.

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