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Editor's Note: Take a look at our featured best practice, Pricing Strategy (38-slide PowerPoint presentation). Pricing Strategy is a core pillar of Marketing and Product Strategy. It is 1 of the 4 Ps of Marketing (also known as the Marketing Mix - Product, Price, Placement, and Promotion). As such, knowing how to properly price your product is extremely important to the commercial success and viability of [read more]
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eLearning courses are now becoming popular. People are not only using them but also creating them. Are you also new to the circle of developing your eLearning courses? Then, you must research how to price your course appropriately. What costs to consider and what to balance should be a topic of discussion with your team.
Pricing them too high would not convince learners to invest in the course, and a low price would not be beneficial enough to earn revenue. What is the way out?
We have you covered! Here is the article you need to understand the pricing model for eLearning courses.
For contemporary associations, pricing eLearning programs is a significant challenge. There are many ways to approach this, from pricing individual courses to how the total price is organized.
Since membership growth through retention and recruiting is the long-term objective and education is the short-term strategy, it is especially crucial. To set pricing, you’ll need to go further into your courses’ costs and perceived value if you’re just getting started.
In any case, you need to follow the following few considerations to decide the price. Let us see what those are.
Volume and Seat Time
The length of the course and the total number of course components are two crucial factors that affect how much it costs to construct an eLearning project. Basic training can be delivered using short, straightforward, text-only courses, whereas advanced training demands a little more.
While the former is quite simple, the latter calls for integrating a number of complicated course components, including interactivities, videos, evaluations, surveys, etc., to help students retain their knowledge. Therefore, it is quicker and easier to create shorter, simpler courses than longer programs.
LMS Costs
While choosing an LMS like Adobe Connect, have you considered, for example, how Adobe Connect costs were decided? How will it affect your course’s cost?
Consider the cost of your LMS, how it charges, and the time spent interacting with the LMS and marketing your course. You should also consider the fee of LMS administrators and any other administrative costs included in your course’s development.
You want to maintain these costs because they will improve your course’s quality. For example, SMEs will ensure quality content, and marketers will take the course to the right audience. Thus you have to analyze how much you can spend on them and how you will be able to incorporate it into your charges.
Development Model
You have two options for constructing your eLearning project: in-house or by outsourcing the work to a qualified partner. Depending on the model you select, eLearning will have a different cost.
In-house development is frequently more expensive; you will need to include in operating expenses the cost of purchasing cutting-edge gear and the cost of retraining current employees for development.
Economies of scale, pooled resources, and tried-and-true procedures can all be used by outsourced partners to build efficiency and reduce costs.
Perceived Value
Last but not least, consider how much the association’s members are willing to spend on a course. The following courses may have a lower perceived value:
You can conduct a focus group, survey members, or even look at how other associations charge for courses with comparable difficulty and thoroughness to learn more about this. The trick is to consider what your members value and are interested in. How does that fit into your courses?
Pricing is a very important part of the development process. You want to give it a thorough thought, discuss it with your team, spend some time reflecting on it, and then come to a final decision. This article will help you come to a comprehensive cost.
You can download in-depth presentations on Pricing Strategy and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.
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