This is a question that is in the minds of many entrepreneurs, who are eager to upgrade their existing technology implemented in their business, so as to improve overall worker productivity. It is very much crucial to select the very best LMS (Learning Management System). However, cost calculation can be quite challenging for many organizations. While trying to determine customized e-learning application costs, be it a corporate training sector or private organization, it is extremely important to take into consideration several aspects. The LMS platform is likely to be accessed by every member to avail online training resources. Hence, it is expected to be effective, smooth and efficient, while meeting all expectations.
Some factors to comfier when calculating LMS budget
- Pre-learner fee: Few elearning authoring and LMS platforms do require pre-learner fee to be paid for every user, which is certain amount. This means, every learner is to register for the elearning course and log into the LMS, thus resulting in additional charges. Too many users will mean additional costs.
- Set up cost: LMS setup cost is likely to vary, depending upon the features, add-ons and upgrades required. LMS vendors in few cases will charge one-time fee and others may require monthly or annual charges. For extra support, additional fees might be necessary. Hidden upfront costs are to be noted down, as it will exceed the set budget.
- Training expenses: In case, the users are not familiar with LMS platform, some training will be required. Some guidance has to be provided even to the user-friendly tools. Free training tutorials are offered by some vendors and others may provide one-on-one support with some charges for support services. Although it will increase the expenses, it is sure to provide full benefits of the application features used.
- Compatible elearning development tools: There may exist few elearning authoring tools, which can be inadequate or incompatible. Then it becomes necessary to have them replaced and avail a replacement software for training material creation purpose, to upload to LMS. This should be taken within the LMS budget.
- Monthly/annual charges: Some platforms may need monthly/annual renewal fee. For license expiries, access will be denied to the platform and certain privileges will be lost. Various subscription packages may be offered by vendors based upon features offered and number of users. Hence, prior to choosing any long term contract, there is a need to test application to ensure better results.
- Maintenance: This particular aspect is likely to entail a good amount of cost when using the LMS. Maintenance expenditure is likely to be around 15% – 20% of application base cost. Also, there is the need to updated training content, so as to make it fresh, while adding in few multimedia, so as to be advanced. The ongoing maintenance can include fee structure, payroll hours and much more.
Therefore, the above are just few of the many factors that the entpreneuer should be aware of when calculating LMS costs and trying to establish them in the business.