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Learn How to Make More Passive income from your online courses |

Jun 6, 2024

     Reader Disclosure

If we told that you can earn more than passive earnings via your online courses creating self-hosted platforms for your course?

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A Misunderstood View of third Party LMS Platforms

You might agree with this statistic, that five-seven percent of course creators decide the success of their courses on the basis of student satisfaction. 23% take into account the participation of students, while 21% concentrate on the income of students.

This is the reason a majority creators believe it's more advantageous to use third-party LMS platforms such as Udemy, Teachable, and Kajabi due to the following reasons:

  • They are hoping it will reduce their marketing expenses and lessen the requirement for huge initial investments in hardware and software.
  • They are hoping it will help the launch of their brand the public with a speedier rate.
  • The assumption is that it's simple to use and doesn't require any technical expertise It is much simpler for course creators to create courses, begin it and continue to manage their course.

However, these advantages come at a price, which include:

  1. A rising revenue-sharing cost.
  2. 75 percent of course creators earn less than $1000 annually. Just 1 percent of instructors earn over $50,000 per year.
  3. The course may be overlooked among the throngs of people, and requires additional marketing expenses to reach your target audience.
  4. There's not many chances for students to make connections on other platforms.
  5. It is not possible to tailor your profile, or brand's appearance on these platforms.
  6. It's very difficult to trace your students' journey in the funnel.
  7. Insufficient opportunities for engagement due to the absence of gaming or connected community service.

     Introduction to Courses hosted by self-hosted    

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

However, there's a better option: self-hosted course platforms.

If you decide to host your own classes, you'll be able to take charge of your classes in addition to reducing the cost of revenue sharing and also open up new ways to make money.

Give yourself a few minutes to think about the idea...

Imagine being able to design your own course your own way, and keeping more of your hard-earned earnings.

Moving to a self-hosted service is not only about ensuring cutting costs, it's about unlocking your full potential and building a more efficient, long-lasting business.

You're not sure? Check out this summary below.

     The high cost of Revenue Sharing    

In the case of using popular SaaS LMS platforms to sell and run your online courses it is crucial to understand how they earn revenue through the models they utilize.

These companies typically take a large percentage of the profits you earn, and this will quickly accumulate and eat up your earnings.

Below is an in-depth breakdown of typical revenue-sharing models of some famous SaaS LMS platforms:

     1. Teachable

Teachable provides a range of pricing options. The revenue sharing structure differs based on the plan you select. This is how their pricing for the year will be:

  • Free Plan costs $1 plus 10% for every transaction.
  • A Basic Plan ($39/month): 5 per cent transaction fee.
  • Plan Professional Plan ($119/month) as well as Professional Plan ($119/month) and Business Plan ($499/month) The Business Plan includes no transaction costs however, it has limited publishing limits on courses.

     2. Thinkific

Thinkific offers a variety of pricing options with different revenue-sharing implications

  • Free Plan: There are no charges for transactions, but it comes with very few choices.
  • Base Plan ($49/month) Basic Plan: No fees for transactions, however it's restricted to downloads only.
  • Pro Plan ($99/month) as well as the Premier Plan ($499/month) Premier Plan Free for transactions. However, there are some options for on-line community services.

     3. Udemy

Udemy is based on an entirely different sharing of income than Teachable along with Thinkific:

  • Organic sales: Udemy gets 50% of its revenue from the salesmade via their marketplace.
  • Teaching Instructors Promoting: Instructors only earn 97% of the earnings from sales generated through their own promotion (using an instructor coupon) and Udemy costing a three percent administration fee.
  • Paid User Acquisition: For transactions made through Udemy's paid advertising methods, instructors only receive 25 percent of the revenue.

     4. Kajabi

Kajabi offers subscriptions that combine extra charges based on the plan

  • The Kickstarter ($69/month) as well as the basic plan ($149/month) There are no fee for transactions, but with limited possibilities and features.
  • Plans for Growth Plan ($199/month) as well as Pro Plan ($399/month) and Pro Plan ($399/month) There there is no cost for transactions, but there is a limited amount of student enrollments that are active.

The revenue sharing models are specifically designed to show the cost associated with the use of Third-party LMS platforms. While these platforms offer convenience and robust features but regular charges and decreases in revenues could drastically reduce the amount you earn.

A self-hosted solution will allow you to save some of your money in addition to giving you more flexibility how you plan and conduct your classes.

This provides a thorough review of the two platforms.

     A Comparison of Potential Earnings: SaaS LMS vs. Self-Hosted Course Platforms.    

Example: Imagine that you could sell your online course for $100.

 SaaS Model for LMS:

  • Teachable (Basic Plan): If you offer a 5% transaction fee, you'd lose $5 per sale.
  • Per sale, earnings of $95
  • Monthly memberships: $39
  • If you are able to make 20 sales per month that is $95 divided by 20 plus $39 = $1,861.
  • Udemy (Organic Sale): With a 50% share of the income that means your business would need to pay 50 cents for each sale.
  • Profits per sale: $50
  • If you're able to make 20 sales per month, the following formula is applicable: $50 x 20 = $1,000

Self-Hosted Service Example:

  • Monthly membership for (Most Well-liked Plan) Cost: $33.
  • Per sale, earnings of $100.
  • In the event that you're selling twenty classes a month, 100 x 20 = $33 = $1.967

Comparison:

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

In the course of the year they add up significantly. It's around $11,604 for the entire year!

     Self-hosted course platforms like Courses can cut costs by hundreds or even thousands of dollars, based on how much you sell.    

You now know the amount you can save and earn using a self-hosted course solution Here are a few reasons to switch to this type of service.

     Benefits of Self-Hosted Learning Platforms    

Self-hosted courses can be viable alternative to SaaS LMS solutions by giving you complete control of the material that you make available and also your operation.

In the list, is considered to be a reliable option, particularly in the case of

Utilizing the power using the strength WordPress, offers unparalleled possibilities for customization and flexibility that allow you to create the perfect learning experience that matches the image of your company and objectives.

If you select self-hosted course platforms like those provided by e-learning.com, you enjoy numerous benefits such as reduced costs, better control as well as the capability to employ a variety of monetization strategies that can increase your income.                Learn >>> View an overview of the featured courses.

We'll look at the advantages of these.

     Control and Control of Content Ownership    

Controlling your emotions is among the greatest strengths of an artist and is the basis of successful marketing and branding.

Self-hosted courses like You can tailor every aspect of your course to match the distinctive design of your business and.

From layout and design to the integration of multimedia components and having complete control over the information created lets you create a cohesive and professional educational environment that represents your brand's aesthetics and values.

The ownership of your content permits you to use various marketing techniques without limitations.

It is possible to create and share promotional content bundle courses that offer discounts or use various advertising tools and plugins that work with WordPress.

This allows you to connect with your audience more efficiently and adjust your plans based on current data and feedback.

     Direct Customer Relationships    

One of the main benefits of self-hosted courses is the capacity to create intimate, unmediated relationships with your students.

If you do not have an intermediary service, you can communicate directly with your students via personalized email or feedback and support.

If you manage the platform, you will are able to access comprehensive information regarding your student's behavior as well as their preference and their performance.

It's essential to understand how to make the best decisions, and what's wrong with the courses you take.

Analyzing this data allows you to tailor the material you provide as well as your methods of teaching to better meet the needs that your pupils. This leads to better rate of retention and satisfaction with your students.

Intermediary platforms often limit the capacity of providing prompt and reliable customer support.

If you use a self-hosted service, you'll be able to set up a powerful service which provides assistance via live chat, forums, as well as direct messages.

Being able to access immediate help and support can significantly enhance students' experiences and help concerns before they getting more severe.

     Monetization through Membership    

One of the most effective ways to earn money from your online course using self-hosted systems is to package them into an arrangement that resembles the membership.

Benefits of memberships include that they promote ongoing engagement and increase customer retention, as they continue to discover the value of their memberships.

If you can provide access to a vast catalog of information at a fee which is regularly scheduled, provides significant value, encouraging more students to subscribe.

Community features like forums as well as live Q&A session sessions help create the emotional bond between users, increasing their loyalty to your website.

     This technique increases the educational value that provides your students and also creates a continuous stream of income.    

Base Body Homepage
The base body-loving girls

They offer both online and individual sessions at their own private gym for strength training in Sydney, Australia.

Utilizing a platform , Base Body Babes manages their content that is paid for as well as exclusive offers through their website. The members have access to home and gym exercises, tutorials on weight lifting and also recipes.

The model permits the owners to make recurring income while also providing benefits to their community.

     Fixed costs and unlimited growth    

HTML0 Here's a breakdown of the costs associated with it:

  •       Web Hosting      
  •       Domain Registration      
  •       LMS Software/Plugins      
  • Four pricing levels are available. :
  • Basic: $179.50/year, suitable for beginners.
  • Additional: $299.50/year, includes additional options and additional features.
  • Pro: $399.50/year, ideal for companies that require advanced technology.
  • Premium: $499.50/year, great for companies and creators with ambition.
  • Additional Costs:
  • SSL certificates that guarantee safe transactions ($0 to $100/year), usually included in hosting packages).
  • Fees for payment gateways (typically about 2.9 percent plus $0.30 (per per transaction).

What are the advantages of selecting us ? This is the price we offer along with the benefits you can expect...

Pricing:

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

HTML1Return On Investment (ROI):

To get a clearer understanding of the ROI we'll assume that you join the Plus plan at $299.50/year. If you sell a course bundle or membership for $100 and sell three memberships each month, your revenue per month is $300.

In the course of a year, this is $3600. After subtracting the costs of ($299.50) in addition to hosting ($240 for $20/month), you get the sum of $3,061 for a total per-year profit.

It is evident that even with a small amount of revenue the ROI is significant, which makes it a financially viable option!

Examining the Scalability Potential without additional costs per Content or User

One of the major benefits of self-hosting classes is their ability to grow.

In contrast to SaaS platforms that cost per user or make a percentage of the revenue generated, SaaS lets you scale your business without having to incur extra costs.

Here's how:

  • unlimited users When your web site has been created, you can have an unlimitable number of members without incurring any additional cost. This means your expenses will be predictable no matter how many members you have. expands.
  • Flexibility of Content It is possible to create and host unlimited courses, lessons as well as membership level. It lets you broaden the possibilities of the revenue streams you earn without worrying about the rising cost of your services.

The fixed-cost model of self-hosted services like these offers the ability to predict costs and a wide range of opportunities for development.

With scalable infrastructure and no costs per user, you will be able to grow your membership and the services you have to offer, thereby increasing profits and ensuring sustainable increase.

There's more.

     Integration with other Business Tools    

Self-hosted sites like these allow you to connect with a variety of enterprise instruments to enhance overall operation and gain insights into the behaviors of students and their course effectiveness.

Here's how:

     2. CRM Systems:

     3. Analytics Tools

     4. Calendar/Scheduling Tools:

     5. Form/Survey Builders:

     6. Payment Gateways:

Here are more details on how to integrate your account into business tools.

Find out how to improve your Memberpess site by integrating extensions and integrations

     Moving from Self-Hosted Hosting to Self-Hosted    

If you're convinced about the numerous benefits of moving from the SaaS-focused LMS platforms to self-hosted platforms What you'll need to do next:

HTML0 Change it!

Moving from a SaaS LMS platform to self-hosted courses like those can be very overwhelming, but it's doable by having the right plan.

This is a step-by -step tutorial that will guide you through the steps:

     First Step: Start with a goal    

  • Assess Your Platform Platform Examine your current SaaS LMS platform's features, data, and limitations.
  • Determine the goal: Determine the goal you intend to attain by implementing the change (e.g., lower costs, greater control).
  • Make a Migration Plan Write down your work, timelines, and your duties. Be sure to have an entire backup of your data.

     Step 2: Configure your self-hosted platform    

  • Install Install and purchase the plugin through your WordPress website.
Pay Attention for How To Install the Plugin

     Step 3: Export Data from SaaS Platform    

  • Backup of Data: Ensure you have backups of your entire course's contents as well as the user data as well as other pertinent information.
  • Export Content Use the export tools which are offered through your SaaS LMS to download all required documents, including course information, user details, and media documents.

     4. Upload the Data

  • Users Import Make use of software or manual methods to import user details to ensure seamless access for current students.

     Step 5: Configure    

  • Membership levels: It is possible to set up levels of membership that fit your company design.
  • Payment Gateways: Configure payment gateways such as Stripe or PayPal to ensure safe transactions.
  • Customization: Customize the design as well as the layout on your web site to reflect your brand.

     6. Test All

  • Functionality Test Check that all functions including the access to courses, levels of membership as well as payment processing are functioning properly.
  • Users Experience Examine the course's users experience starting at registration and continuing until end to ensure you experience a smooth and seamless learning.

Now is the time to get started!

     Step 7 Promotion and Launching    

  • Information Users Current users are informed about the changes by providing detailed instructions and guidance to access the new system.

 5Tips to make a smooth transition

  • Plan fully, with precise schedules, and backups of all data.
  • Let users know about the user of any changes and provide assistance.
  • Check all functionalities extensively so there are no interruptions.
  • Make use of the available resources and guides, starting by introducing a tiny part of the material that focuses on problems before they turn into.
  • Offer ongoing support through Help desks and FAQs. You can also track the performance of your system, and modify your systems based on comments.

By following these steps by following these steps, you will be able seamlessly from a SaaS LMS into a self-hosted system such as you have complete control over the content you create and maximising the profits you earn.

     A Quick Review    

See how far we've come.

The first step was to look at the disadvantages of the use of third party LMS platforms for online course's revenue generation.

We also discussed the major advantages that self-hosted platforms for courses provide, like the complete control of your content, lower costs, as well as greater control of branding and marketing initiatives.

Also, we conducted a few comparative studies and we were able convincing you to believe that utilizing self-hosted learning platforms like Courses will be the gamechanger for your creative venture that you manage.

In the end, it's essential to keep in mind that once you get rid of high fees for revenue sharing, and take advantage of software such as Courses, it is possible to create a viable and sustainable online business for education.

Take the time to evaluate the cost of your website in comparison to advantages. If you're already using WordPress look into it this as a viable option for maximising your profit and accelerating growth.

Please let us know via the comments section if you're thinking of moving to self-hosted classes such as Courses. We're looking forward to addressing all your questions us.

Sarah O Sarah is passionate about reducing the technical aspects of web-based sites including plugins, marketing and digital. As a Content Writer at Member Press, she has an eye for creating captivating and interesting writing. Sarah is a major participant in educating and inspiring users to make the most of the full potential of Member Press plugins. With a unique blend of creative and technical know-how, she makes sure that every article does more than inform but inspires. While she is not writing, she enjoys researching the most current technologies and trends within digital marketing. Her quest is always to find innovative ways to increase user satisfaction.

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