Six LMS Pricing Models To Consider while selecting an LMS

There has been a significant increase in the demands of an LMS which has led to many edtech companies like the Adobe Captivate Prime price to up their game a notch higher and beat the competition by providing learning management systems with updated features. The majority of these cutting-edge learning management system platforms are cloud-based. They work by utilizing virtual cloud resources. As a result, cloud-based LMSs help institutions reduce total eLearning expenses by removing the need to establish and operate an onsite IT infrastructure. There are various pricing models available each with its own set of pros and cons, which you can consider while choosing the perfect LMS for your organization.

Here are Six LMS Pricing Models To Consider while selecting an LMS-

Pay-as-You-Go Pricing

Pay-as-you-go (PAYG) is one of the most common cloud computing pricing models. The PAYG pricing model, as the name implies, allows institutions to employ cloud-based LMS software while only paying for the units consumed. This is maybe one of the LMS price models that are mostly related to resource use. When the number of learners is small, a corporation might save money by lowering eLearning rates. However, when the number of learners and courses is taken into account, it is required to invest more. When it is hard to accurately predict the number of participants, most businesses opt for PAYG pricing.

Pay per Active Users

Despite the fact that this is a prevalent pricing method, the pay-per-learner pricing model does not take resource usage or consumption into account when pricing. The pay-per-active-user pricing structure helps businesses overcome this major weakness of the pay-per-learner pricing strategy. When an organization chooses this LMS pricing model, it must only pay for customers that access the cloud-based LMS platform on a regular basis within a certain pay cycle or billing term. Many firms are already using this LMS pricing model to improve the learning experience for all types of employees and customers while avoiding paying for inactive learners.

Open Source Licenses

An institution might use and even personalize the experience of an open-source LMS solution without incurring any license fees.

However, additional expenses must be invested in order to set up, customize, and run the LMS solution. IT people must be deployed to customize, manage, and improve the LMS solution in line with emerging eLearning trends. The nicest thing about open-source LMS is that it may be used while there is a considerable rise in the number of users while remaining vendor-independent.

Pay per Learner/Course Pricing

This pricing model requires universities to use an LMS solution with a cost structure based on the number of learners or courses. Pay-per-learner or pay-per-course edtech companies commonly provide trainees with access to a cloud-based LMS that has been created with various modules, courses, features, and tools. They also allow businesses to establish individualized profiles for each learner. Customers can also employ individual features, modules, and courses to customize the LMS to their own eLearning methodologies.

Perpetual License

Perpetual license is one of the most prevalent pricing models for on-premise LMS software. The LMS pricing model enables an institution to gain access to an on-premise LMS after paying a one-time licensing fee. However, in order to improve and expand the LMS software in accordance with the most recent eLearning trends, the institution must pay a monthly maintenance fee.

License Fee/Subscription

Periodic licensing is frequently confused with perpetual licensing, but the two are distinct in that the former requires institutions to pay license expenses on a monthly or annual basis in order to access and utilize the LMS system. Unless the membership is renewed within the time range stated, the subscriber will be unable to access the LMS solution. Large institutions select this LMS pricing plan to maximize the number of learners and courses while incurring no additional fees.


As long as you are sorted when it comes to the type of LMS you want, there would not be any difficulty in choosing the best LMS pricing model. So these are the pricing models that one should definitely consider when looking for a good LMS.

Leave a Comment