INITIAL EXPENSE Generally, there are four standard LMS pricing methods: • Per learner, per month Per learner , per month Per learner – The most common model is based on the number of learners per month. This is a subscription fee that’s calculated based on the total number of users in the system or the number of active users enrolled in courses. • Per learner, per use Per learner , per use Per learner – This pricing model allows customers to opt out of certain software features and pay only for what they use. • Per course – This option is designed for employees that need certifications for their industry or job. The LMS vendor has specialized content that’s available through their LMS platform, and pricing combines elements of the per use model with premium prices for specialized content. • Licensing fee – This is a license to install LMS software on-premise, instead of hosted in the cloud. There are often additional implementation expenses for installation, data migration and training, and there may also be a charge per learner. Cost UNEXPECTED COSTS Many LMS customers are surprised to find that they’re being charged more than the original quoted price. Additional fees may be charged, based on the final configuration of your system and the services or privileges that your vendor provides. Ask about whether you should expect extra charges for the following: • Implementation. There may be substantial fees associated with consulting, hardware installation, customization, data migration, and integration with your existing systems. • Training. While web-based training may be free, expect to pay for in-person training at your organization. • Support. Most providers offer basic support for free — usually in the form of user forums and a knowledge base. However, email and phone support often comes only as part of a tiered pricing structure. • Maintenance. If you purchase a license instead of a subscription, you should be prepared to pay for the frequent updates, patches, and upgrades. COMMON PRICING MODELS AND WHAT TO LOOK FOR IN LMS PRICING ADDITIONAL FEES MAY ALSO BE CHARGED FOR: • Hosting • Annual renewals • Customizations • Design work • Extra features There may also be an initial service fee for creating an account. In addition, vendors might ask for payment to be made annually, even if prices are broken down monthly. The first thing you’re likely to discover about LMS pricing is that it is impossible to compare products based on cost. Every LMS provider has a different pricing structure, but they’re usually based on a software-as-a-service (SaaS) model. If your association is looking for a lightweight learning system, you should expect to pay a lightweight fee. However, LMS pricing models are rarely straightforward, and it’s important to understand the total costs you could encounter. It is not uncommon to pay $25,000 per year for a basic learning management system A GUIDE FOR ASSOCIATIONS AND SOCIETIES 4