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How to Get More Passive income from your online courses |

Jun 4, 2024

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Would you believe that you could earn more than passive revenue from your online courses by using self-hosted platforms for your course?

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Untruths about third Party LMS Platforms

You might agree with this statistic which shows that 57% of course creators decide the success of their courses by student satisfaction, while 23% consider student enrollment and 21% focus on income.

This is why a lot of course designers believe it's best to choose third-party LMS platforms such as Udemy, Teachable, and Kajabi for the following reasons:

  • They believe it can reduce their marketing costs reducing the requirement for huge upfront investments in hardware and software.
  • They believe it will help them launch their brand to the public in a quicker manner.
  • It is assumed that it's easy to use and needs no technical skills This makes it much easier for course creators to design courses, create, and maintain their courses.

 However, these advantages have a high price, including:

  1. An ever-increasing revenue-sharing cost.
  2. 75% of course creators make less than $1,000 each year. Only 1% of instructors earn over $50,000 annually.
  3. The course may be overlooked in the crowds and require additional advertising costs to reach your target audience.
  4. The platform has limited opportunities for building friendships with students that aren't on the platform.
  5. Your page cannot be personalized or even your logo on these platforms.
  6. It's difficult to keep track of your students' journey in the funnel.
  7. Limited engagement opportunities due to the absence of gaming or community-oriented integrations.

Introduction to Self-hosted Course Platforms

If you're an online-based course creator unhappy with the excessive costs and limitations of SaaS LMS platforms, you're not all alone. Numerous educators have similar challenges.

But there's a better way to go: self-hosted courses platforms.

If you decide to host your own courses, you can take charge of your courses as well as save on the cost of revenue sharing as well as discover new ways to make money.

Consider this...

Imagine being able to customize your courses precisely to your preferences and keeping more of your hard-earned income.

Moving to a self-hosted service isn't just about cutting expenses - it's about maximizing the potential you have and creating an efficient, long-lasting and sustainable enterprise.

You're still not convinced? Check out this overview below.

The Cost High in Revenue Sharing

When using well-known SaaS LMS platforms to sell and administer your online course, it's essential to understand their revenue-sharing model.

They typically charge substantial percentage of your profits that can mount up fast and consume your profits.

Here's a breakdown of the typical revenue-sharing models of some famous SaaS LMS platforms:

 1. Teachable

Teachable offers multiple pricing plans. Their revenue-sharing model varies depending upon the plan you select. The following is the annual cost of their plans will look like:

  • Free plan: charges $1 + 10% per transaction.
  • The Basic Plans ($39/month): 5% transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month): No transaction fees, but limited the publishing of courses.

 2. Thinkific

Thinkific provides several pricing tiers with different revenue-sharing implications

  • Free Plan: No charges for transactions, but with limited capabilities.
  • The Basic Plan ($49/month): No fee for transactions but only digital downloads.
  • Plan Pro Plan ($99/month) and Premier Plan ($499/month) Pro Plan: No fee for transactions, but with limited access to online community services.

 3. Udemy

Udemy is based on a distinct revenue-sharing model compared to Teachable as well as Thinkific:

  • Organic Sales: Udemy takes 50% of the revenues from transactionsmade through their marketplace.
  • Promoting Instructors: Instructors keep 97% of the earnings from sales that they make through their own promotional efforts (using an instructor coupon) as well as Udemy charging a three per cent administration fee.
  • Paid User Acquisition For purchases that are made via Udemy's pay-per-click initiatives, instructors only receive 25% of the revenue.

 4. Kajabi

Kajabi combines subscription costs with other fees that are based on the plan:

  • Kickstarter ($69/month) and Basic Plan ($149/month) There are no transaction fees, but limited features and products.
  • The Growth Plan ($199/month) and the Pro Plan ($399/month) There are no transaction fees, but a limited number of active student enrollments.

The models that are based on revenue share emphasize the expenses associated with the use of third-party LMS platforms. These platforms are convenient as well as robust capabilities, annual fees and cuts to revenue can significantly reduce your earnings.

In contrast, a self-hosted solution can help you keep the majority of your earnings as well as give you more flexibility how you organize and deliver your courses.

Here is a detailed analysis of the two platforms.

Comparative Analysis of Earnings Potential: SaaS LMS vs. Self-Hosted Course Platforms.

 Example: Let's suppose you offer your online course for $100.

 SaaS LMS Platform Example:

  •   Teachable (Basic Plan):  If you charge a 5% transaction fee the seller would lose $5 on each transaction.
  • Profits per sale: $95.
  • Monthly subscriptions Monthly subscription: $39
  • If you can sell 20 courses a month: $95 x 20 - $39 = $1.861.
  •   Udemy (Organic Sales):  In the case of a 50% profit share you'd lose the equivalent of $50 for each sale.
  • Earnings per sale: $50
  • If you sell 20 courses a month the following formula is used: $50 20 x 20 = $1,000

 Self-Hosted Solution Example:

  • Monthly subscription for (Most Well-liked Plan) The cost is $33
  • Earnings per sale: $100
  • If you sell 20 courses each month 100 x 20 = $33 = $1,967

 Comparison:

  1.   Teachable (Basic Plan):
  • SaaS LMS Earnings: $1,861/month
  • Self-Hosted Earnings: $1,967/month
  • Difference: $106 more with self-hosted
  1.   Udemy (Organic Sale):
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • The difference is $967 higher with self-hosted

In the course of a year they are significant. This is about $11,604 saved over an entire year!

Using self-hosted course platforms such as Courses will save you hundreds to thousands of dollars, based the volume of sales you make.

You now know how much you can save and earn with self-hosted courses We'll look at the advantages that come with switching to this platform.

Advantages of Self-Hosted Course Platforms

Self-hosted courses are a powerful alternative in comparison to SaaS LMS solutions by giving the complete control of your course content and operation.

Among these, stands out as a robust option, particularly in the event of

Utilizing the power of WordPress it offers unbeatable possibilities for customization and flexibility that allow you to create the perfect learning experience that aligns with your brand and corporate goals.

When you opt for self-hosted course platforms such as these, you will gain several advantages. Some of them are lower costs, enhanced control, and the capacity to employ diverse monetization strategies that can increase your income.

Watch >>> Courses Overview of Featured Courses

Let's examine these advantages in greater detail.

Control and Control of Content Ownership

Being in control is among the greatest strengths of an artist and the foundation of effective branding and marketing.

Through self-hosted platforms for courses such as  the one you use, you are able to customize each aspect of your classes to match your company's distinctive image.

From the layout and design to the inclusion of multimedia components Being in complete control of the content you create allows you to build a professional and cohesive educational environment that represents your brand's values and aesthetics.

Being the owner of your content means you can apply a variety of marketing strategies without restrictions.

It is possible to create and distribute promotional content, bundle courses give discounts, or make use of various marketing tools and plugins available to WordPress.

This flexibility lets you connect with your audience more effectively and adapt your plans based on current results and data.

Direct Customer Relationships

One of the standout advantages of self-hosted learning platforms is the ability to build direct, unmediated relationships with your students.

With no limitations of an intermediary system, you are able to engage directly with your students by sending them personalized messages or feedback as well as support.

When you control this platform, you gain access to extensive data about the students' behavior as well as their preferences and performance.

This is important for understanding what works and what isn't working during your studies.

By analyzing this data, you can tailor your content and teaching methods in order to best meet the requirements of your students. This will lead to higher satisfaction with your students and retention rate.

Intermediary platforms often limit the ability of providing timely and effective customer service.

With a self-hosted solution, you can implement a robust service that provides support via live chat, forums as well as direct messaging.

The immediate accessibility to assistance and assistance can greatly enhance the student experience and solve issues before they become more severe.

Monetization through Membership

One of the best methods of making money off your online course through a self-hosted service is to bundle them in the model of a membership.

Members encourage continuous engagement, leading to higher customer retention as students continually find value in their subscriptions.

By providing access to an extensive library of content at a cost that is regular, you offer significant value, encouraging more students to subscribe.

Forums as well as live Q&A session sessions help build an identity between members, increasing the loyalty of members to your platform.

 This strategy increases the value you offer to your students and creates a steady stream of recurring revenue.

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They provide online as well as in-person sessions through their boutique fitness center in Sydney, Australia.

Utilizing , Base Body Babes manages their paywalled content and exclusive offerings through their website. They provide customers with access to online and gym-based weight training classes Tutorials, as well as recipe libraries.

The model permits them to earn recurring revenue while offering significant benefits to their communities.

Fixed costs and unlimited growth

 Here's the breakdown of the costs involved:

  •   Web Hosting:
  •   Domain Registration
  •   LMS Software/Plugins:
  •     The company offers four pricing tiers    :
  • Basic: $179.50/year, suitable for beginners.
  • Additional: $299.50/year, includes additional features and integrations.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • Elite: $499.50/year, great for entrepreneurs and creative creators.
  • Additional Costs:
  • SSL certificates for safe transactions ($0 to $100/year), usually included in hosting plans).
  • Fees for payment gateways (typically approximately 2.9% + $0.30 for each transaction).

The reason why you should choose us ? Here is our pricing and what you stand to get...

  Pricing:

  • Basis Plan $179.50/year
  • Plus Plan: $299.50/year
  • Pro Plan: $399.50/year
  • Elite: $499.50/year

 Return On Investment (ROI):

To determine the return on investment, let's assume you opt for the Plus plan at $299.50/year. If you offer an entire course or a membership for $100 and sell just 3 memberships per month, your revenue per month is $300.

In a year, that's 3600 dollars. After subtracting the costs of ($299.50) and hosting ($240 for $20/month) that's $3,061 in net profit annually.

The calculation shows that even with low revenues, the returns are impressive, and it is the most cost-effective option for you!

 Analyzing the Scalability Potential with no additional cost per User or Content

One of the major benefits of self-hosting your courses with is scalability.

Contrary to SaaS platforms which are priced per user or take a cut of your revenue, can allow you to grow your company without incurring additional expenses.

Here's how:

  • Unlimited Users: When your web site is up and running and you have it up and running, you are able to add the number of users you want to have without incurring extra costs. This means your expenses are predictable regardless of the extent to which your membership increases.
  • Content Flexibility: You can create and host unlimited courses, lessons, and membership levels. It allows you to broaden your options and diversify your income streams without having to worry about increasing charges.

In summary, the fixed cost structure of self-hosted services like these provides predictable costs and a significant development possibility.

With a scalable platform and no extra costs per user You can increase the number of members you have and your contents offerings, while maximizing profits as well as ensuring sustained increase.

There's more.

Integration with Other Business Tools

Self-hosted services like these also provide the ability to connect various enterprise tools to improve the overall efficiency and providing insights into the behavior of students and their course efficiency.

Here's how:

 2. CRM Systems:

 3. Analytics Tools:

 4. Calendar/Scheduling Tools:

 5. Form/Survey Builders:

 6. Payment Gateways:

Below are additional details regarding how to connect your account into business tools.

Watch the video below to see how you can boost your membership site by integrating add-ons and integrations

Making the Switch to Self-Hosted

Now that you're convinced by all the benefits attached to moving from SaaS-based LMS platforms to Self-hosted platforms, here's what you need to do following:

 Switch to HTML0!

Switching from a SaaS LMS platform to self-hosted course platforms like can seem daunting, but it's manageable when you have a strategy.

 Here's a step-by-step guide to guide you navigate the procedure:

First step: Begin by making a plan

  • Review Your Current Platform Check your currently installed SaaS LMS platform's features, data and restrictions.
  • Set Goals: Determine the goal you intend to attain with the migration (e.g. reduced costs, greater control).
  • Create a Migration Plan Outline the timeframes, tasks and responsibilities. Ensure you have a backup of all data.

Step 2. Set-Up Your Self-Hosted Platform

  • Install Install and purchase the plugin on your WordPress website.
WATCH >> How to Install The Plugin

Step 3: Export Data From SaaS Platform

  • Backup Data You should ensure that you've backups of the entire course's content, user data, and any other information that is relevant.
  • Export Content Make use of the tools to export that are provided by your SaaS-based LMS to download all the data you need, including courses, information about the user, as well as media files.

Step 4: Import Data to

  • User Import Utilize tools or manual techniques to import user data, ensuring an uninterrupted access to students who are already enrolled.

Step 5 Setup

  • Membership Levels: You can set up levels of membership that suit your business structure.
  • Payment Gateways: Configure payment gateways like Stripe or PayPal to make secure transactions.
  • Customization You can customize the look and appearance of your website in line with your company's branding.

6. Test All

  • Functionality testing: Ensure all features, such as accessibility to courses, membership levels as well as payment methods are working properly.
  • user experience: Test the user journey from signup to course completion to ensure an enjoyable experience.

It's time!

Step 7: Launch and Promote

  • inform users Inform existing users about the transition, providing clear instructions and support for accessing the new technology.

 5Tips for a seamless transition

  • Plan thorough, including precise timelines and backups of data.
  • Inform the changes in a clear manner to users and offer support.
  • Check every function thoroughly in order so that disruptions are not caused.
  • Make use of available resources and migration guides, starting with a small part of the content that addresses issues early.
  • Provide constant support with Help desks and FAQs and monitor efficiency, making changes based on the feedback.

Following these steps, you can transition smoothly from a SaaS LMS to a self-hosted service such as, having complete control over your content and maximizing your profitability.

A Quick Review

Look how far we have made it.

We started with the disadvantages of using third-party LMS platforms for online course's commercialization.

We also discussed the major advantages that self-hosted platforms for courses provide, like full ownership of content, lower expenses, and greater control over branding and marketing strategies.

Also, we conducted some comparisons and were able to convince you that utilizing self-hosted courses like Courses is a major game-changer for your creative business.

In the end, it's important to remember that when you eliminate high revenue-sharing fees and make use of tools such as Courses, you can create a scalable and profitable online education company.

Make sure you evaluate the costs of your platform in comparison to benefits. If you're using WordPress you should consider a robust solution to maximize your profitability and growth potential.

Let us know via the comments whether you will be switching to self-hosted courses such as Courses. We're eager to answer all questions you might be having.

Sarah O       Sarah is adamant about making simpler the technical details of websites, plugins, and digital marketing. As a writer for content at Member Press, she has a keen eye for crafting captivating and insightful writing. Sarah is a key player in educating and empowering users to fully utilize the potential of Member Press plugins. Combining technical knowledge and creative flair She ensures that every piece of content not only informs but also inspires. In her spare time her favorite content, she is interested in exploring the newest developments in technology and marketing. She's always searching for innovative methods to improve the user experience.