What is the actual cost of LMS?

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While upgrading to a Learning Management System, many organizations focus solely on the upfront expenditures supported by the pricing models. However, every LMS costs both time and money, and determining the actual cost of a Learning Management System is also challenging. Let us break down the actual cost of a Learning Management System.

The cost that everybody knows about

Pricing Models

Learning Management Systems are often broadly split into two categories: cloud-based and self-hosted. Each of those categories has different pricing methods.

Cloud-based Learning Management Systems are often Pay-Per-User, Pay-Per-Use, or charge a licensing fee. Pay-Per-User models add one among two ways. They will charge organizations for every user registered to use the LMS (registered users), and the one who engages with LMS content (active users). License fees are one-time fees to access an LMS for a group period of your time. For instance, a provider may charge a yearly rate for LMS regardless of whether people are using it.

Self-hosted LMSs are Learning Management Systems that are hosted by the organization using them, which may mean they’re hosted on company or 3rd party servers. Pricing models for self-hosted Learning Management Systems include perpetual licenses, periodic licenses, and free models. Periodic Licenses ask Learning Management Systems that charge a monthly or yearly rate for hosting. Whereas perpetual licenses have a singular one-off cost that guarantees the use of the training Management System for as long as the client requires it. Free models are open-source software that is accessible by anyone with no up-front free.

Hidden Costs

Before you get frustrated with an over-budget LMS at hand, The following are a few hidden costs to consider when determining LMS pricing.

  1. Cost of Time: An LMS that initially costs less but consumes a significant amount of your organization’s time is more expensive than one that has a cheap price tag but integrates flawlessly with your operations.
  2. Installation and Configuration Fees for extra hardware and software, such as a writing tool and suitable hardware Single sign-on and connection of the LMS with other systems records, such as your HCM/HRIS system, are included.
  3. System management is a term that refers to the process of Is the LMS so difficult or removed from regular work operations that it necessitates the hiring of a full-time LMS administrator?
  4. Fees for upgrading. If you want to upgrade and add more users, or downgrade if you want fewer seats, some firms may charge you.
  5. Anything that is unique to your company and isn’t typical may incur additional costs.
  6. Maintaining your new online training content, downloading add-ons, and adding new releases are all covered by maintenance fees.
  7. End-user training fees cover help desk assistance, and hand-holding that are always required while supporting new software to ensure long-term configuration and acceptance.
  8. Content creation for online training. If there is no online training content to submit, the new LMS will be useless. As a result, you should consider the cost of creating or curating online training content.
  9. Replacements for tools. If your LMS isn’t compatible with third-party eLearning authoring tools, CRM software, or other important assets. You’ll have to buy new tools as a result of this.

Hard cost + Hidden cost = Actual cost of an LMS

Lessonly is a simple yet powerful training software that assists customer-facing teams in learning, practicing, and doing better work. Learn more about the Lessonly pricing before making the purchase so that you can make a correct decision based on your business size and budget on the best LMS to use.


All Learning Management Systems cost you money, time, or other resources. Too many businesses only consider the hard costs when looking to modify LMS. We need to start including hidden costs within the LMS equation. Because, once you do your due diligence, you’ll feel a sense of relief that you’re getting an LMS that meets both your training and business needs without straining the budget.


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