Choosing the best Learning Management System is crucial, but calculating the costs that are involved may be a challenging task for organizations. When determining the cost of customized e-learning applications irrespective of whether you are a private organization or corporate training sector, it is vital to consider certain factors. As every member of the organization will access the LMS platform to online training resources, it should be effective and should meet all your expectations. Here are some important factors that you should consider while calculating your LMS budget.
Set up expenses:
The setup cost for LMS usually varies greatly and depends on the features of the LMS and the add-on and also the upgrades. In some cases, the LMS vendors take a one-time fee while others ask for annual payment or some monthly charges. In case of any extra support, you might have to pay some extra charges. So, before selecting an LMS, find out if there are any hidden upfront costs so that it does not exceed your budget.
Pre-learner fee:
Some LMS platforms need a pre-learner fee and you will have to pay a certain amount for every user. In simple words, every learner that signs up for your e-learning course will log into your LMS and the result is an additional fee. This might get costly if you have too many users.
Training fee:
If your users are unfamiliar with the LMS platform, then you have to offer them some level of training and even the most user friendly tools need some guidance. Some vendors offer free training tutorials while others offer one on one support and may charge for their support services. This may increase your costing, but you will be able to take full advantage of all the features of the application.
Annual or monthly charges:
There are platforms that require an annual or monthly renewal fee. If your license lapses, then you will be denied access to the platform to avail certain privileges. The vendors might offer different subscription packages that are based on the number of users and features. So, before going for a long term contract, it is good to test the application for best results.
Compatible authoring tools:
You may already have some eLearning authoring tools, but they may not be compatible with the new LMS. In that case you have to replace and purchase a replacement software to create training materials that can be uploaded to the LMS. All such things should be considered in your LMS budget.
Maintenance:
This is often one of the most significant costs that you have to undertake while using an LMS. The maintenance cost may roughly be around 15 to 20 percent of the base cost of the application and you have to update the training content also to keep it fresh and also add some new multimedia to remain advanced. Ongoing maintenance may include payroll hours, fees structure and etc.
Learning and Development staff:
Even if your organization is a small e learning company, you still need to have expert staffs on hand so as to meet the various requirements of your LMS. Hiring an instructional designer, Elearning content manager and IT specialist will help you develop the courses, but this will also increase the cost of implementing an LMS in your organization.
Upgrades and add-ons:
If your organization is not so big, you have to opt for a basic LMS package, which you can always upgrade later on. For this, you need a more flexible and robust LMS and also more advanced support services to customize your application. Consider this point while choosing your LMS solution.
Mobile friendly:
As the world is becoming more and more technologically oriented, it is important to consider an application that can be accessed easily on mobile devices. Creating content for various handheld devices can be a challenging task as the devices have varied features. If you want your present content on mobile devices, then the costs may increase accordingly.
Integration with other applications:
Try to have a clear understanding of how your learners will access the e-learning content and make sure that the application can easily be integrated with the tools that you already have or are considering. Your LMS software should satisfy all your future needs as your abilities grow or as the organization matures. Don’t limit your future with today’s choice.