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How can you earn more passive earnings from online courses

Jun 6, 2024

     Reader Disclosure

We could inform that you can make more cash from passive courses by using self-hosted platforms for your class?

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Untruths regarding Third Party LMS Platforms

You might agree with this statistic and illustrates that 57% course developers evaluate their course's success according to student satisfaction. 23% consider student participation while 21% concentrate on the income of students.

This explains why many course designers believe it's best to choose an alternative to third-party LMS platforms such as Udemy, Teachable, and Kajabi for the following reasons:

  • They are hoping it will decrease their marketing costs, thus and reduce the need for huge initial investments for hardware and software.
  • They're convinced they can assist the company get its name on the market in a quicker rate.
  • It's assumed that it's simple and requires little technical expertise, which makes it simple for instructors to create courses, develop, and maintain their courses.

However, these advantages have a high price and include:

  1. The price of revenue sharing is growing.
  2. 75% of course designers earn less than $1000 per year, whereas just 1percent of instructors make more than $50,000 a year.
  3. Some courses may get overlooked among the masses, and require extra marketing costs in order to communicate your message to the correct people.
  4. The program has limited opportunities for building relationships with students who aren't on the platform.
  5. You cannot personalize your page or brand's profile through these platforms.
  6. It's difficult to track the progress of your students throughout the funnel.
  7. The limited engagement possibilities are due to the absence of gamification as well as integrated community services.

     Introduction to self-hosted course platforms    

If you're an online-based class creator dissatisfied with the exorbitant costs and features of SaaS LMS platforms, you're not alone. A lot of educators are confronting similar issues.

There's an alternative to go to self-hosted course platforms.

When you choose to host your own classes, you'll be able to take charge of your classes, cut down the cost of revenue sharing and find fresh opportunities to earn profits.

Take a moment to think about it...

Imagine the possibility of being able to personalize your training in accordance with your own preferences and earning more of the hard-earned money you earn.

Moving to self-hosted platforms doesn't only result in a reduction in costs It's about realizing the potential that you possess in creating a successful, long-lasting and sustainable business.

Are you still not you are convinced? Check out this explanation in the following.

     The High Cost of Revenue Sharing    

If you are using one of the top SaaS LMS platforms to sell and manage online courses, it's crucial to be aware of the revenue sharing model they use.

They usually charge a significant percentage of the earnings that can accumulate quickly and take into the profit you make.

Here is a brief summary of common revenue-sharing plans that are offered by a handful of popular SaaS LMS platforms:

     1. Teachable

Teachable provides a range of pricing options as well as a revenue sharing model that varies depending upon the plan you select. The prices for the year look as follows:

  • Plan for free: It costs $1 and 10% per transaction.
  • The Basic Plan ($39/month): 5 percent transaction cost.
  • Professional Plan ($119/month) and Business Plan ($499/month) There's charges for transactions. however, there is a publishing limit.

     2. Thinkific

Thinkific provides a wide range of pricing levels with varying revenues-sharing implications

  • Free Plans: There is fees for transactions but there are limitations on options.
  • Basis Plan ($49/month) The Basic Plan is free for transactions. However it is restricted to downloads only.
  • Pro Plan ($99/month) or the Premier Plan ($499/month): There are no transaction costs, however only a few online community features.

     3. Udemy

Udemy has a unique revenue-sharing model compared to Teachable and Thinkific:

  • Sales from organic sources: Udemy receives 50% of the revenues from the transactionsmade through their marketplace.
  • Promoting Instructors get 97% of their earnings through the sales they earn via their own promotions (using coupons for instructors) as well as Udemy paying an administration charge.
  • Paid User Acquisition for purchases that are made using Udemy's pay-per-click methods, instructors only receive 25% of the earnings.

     4. Kajabi

Kajabi offers subscriptions that include an additional cost based on plan

  • Kickstarter ($69/month) and The Basic Plan ($149/month) The Basic Plan is $49/month. There is no charge for transactions, however they have a limited number of options and features.
  • The Growth Plan ($199/month) as well as the Pro Plan ($399/month) This Plan has no fee for transactions, but a limited amount of students enrolled in active classes.

Revenue-sharing models highlight the expenses associated with making use of third party LMS platforms. Although these platforms provide convenience as well as robust capabilities, annual fees and cuts to revenue will significantly lower your revenue.

A self-hosted solution will allow you to generate the bulk of your earnings in addition to giving you more flexibility the way you present and manage your classes.

This is a comprehensive study of the two platforms.

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

Example: Imagine you offer your online course for $100.

SaaS LMS Model Platform:

  • Teachable (Basic plan): If you offer an amount of 5% for transactions, the seller loses $5 for each transaction.
  • The average earnings per sale is $95.
  • Monthly membership: Monthly subscription $39
  • If you sell 20 courses per month: $95 x 20 - $39 = $1,861
  • Udemy (Organic Sale): In the event of a profit percentage of 50%, part, you'll have to pay 50 cents for each sale.
  • Profits per sale: $50
  • If you are able to make 20 sales per month 50 times 20 equals $1,000

Self-Hosted Solution Example

  • Membership for a month (Most Well-liked Plan): $33
  • Per sale, earnings of $100.
  • If you are selling 20 courses per month, then the following formula is used 100 per course x 20 times the amount of $33 = $1,967

Comparison:

  1.       Teachable (Basic Plan):      
  • SaaS LMS Earnings: $1,861/month
  • Self-Hosted Earnings: $1,967/month
  • There is a difference of $106 when you host the site yourself.
  1.       Udemy (Organic sale):      
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • The difference is $967 higher with self-hosted

Over the course of a time the difference can add up significantly. That's around $11,604 saved in a single one year!

     Self-hosted courses on platforms such as Courses could cut your costs by hundreds or maybe thousands dependent on the number of sales you make.    

You now know how much you could save and earn through self-hosted courses Let's look at certain advantages to making the switch to this method.

     Advantages of Self-Hosted Course Platforms    

Self-hosted platforms for courses provide a powerful option to SaaS LMS services, giving total control over the courses' content and operations.

From the above, it is regarded as an efficient choice particularly in the context of

Utilizing the power of WordPress it provides unbeatable opportunities to customize and adapt, which lets you create the perfect learning experience that is in line with your brand's and goals for business.

If you select self-hosted courses platforms like , you gain many advantages. These include lower costs, more control as well as the capability to employ diverse strategies to boost your earnings.                Learn more about the Courses Introduction to the featured

Let's take a look at these advantages more in depth.

     Control and the Control of the Ownership of Content    

Being in control is among the top qualities that a person can possess and is the key ingredient in success in branding and marketing.

Self-hosted courses like the one you use, you are capable of customizing every aspect of your course to reflect the distinctive brand of your business.

From design and layout, to the inclusion of multimedia elements, having full control over your content lets you create a cohesive and professional experience for learning which reflects your values and the style of your business.

The ownership of your content allows you to implement a wide range of methods of marketing without restrictions.

It is possible to create and distribute promotional content bundle course discounts, and utilize a variety of tools for marketing and plug-ins that are available for WordPress.

This lets you connect with your audience better and also to alter your approach in line with the latest results as well as data.

     Direct Customer Relations    

One of the most notable benefits of self-hosted course platforms is the capability to create close, unmediated relations with your students.

In lieu of the limitations of an intermediary, you can communicate directly with students via sending them personalized messages or feedback and also help.

If you are the one who manages your platform, you gain access to extensive details about your pupils and their behaviors, along with interest, their progress, and their preferences.

It's essential to understand how to make the best decisions and what doesn't during your research.

Through analyzing the data you are able to modify the subject you provide and your teaching techniques in order to be most in line with the expectations of your students. This will lead to increased satisfaction for your customers and retention rate.

Intermediaries' platforms often hamper their ability to provide timely and effective customer service.

Self-hosted solutions are self-hosted allows you to build a powerful service that can include live chat, forums and direct messaging.

Being able to access immediate help and assistance can greatly enhance students' experience, and help them deal with any issues prior to them becoming more grave.

     Monetization Through Membership    

One of the best ways to earn money from the online course via a self-hosted hosting service is to package them into an membership-based model.

Memberships have the advantage that they encourage ongoing involvement and result in a higher rate of retention as students continually find value in their memberships.

In offering access to a huge library of material with a monthly cost, this can be a huge benefit in enticing more students to sign up.

Communities-oriented features like forums and live Q&A sessions create a sense of community among members, enhancing the trust of users towards your website.

     This approach increases the value you offer to your students and generates a constant stream of recurring revenues.    

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The company also offers online and person-to-person training sessions at their boutique strength-training facility in Sydney, Australia.

By utilizing Base Body Babes manages their paywalled content as well as their exclusive services on their site, providing users with access to at-home along with workout classes Tutorials, as well as a recipe library.

The model permits the company to make recurring income and provide significant benefits to the customers they serve.

     Fixed costs and unlimited growth    

Here's how to calculate the costs involved:

  •       Web Hosting      
  •       Domain Registration      
  •       LMS Software/Plugins:      
  • The company provides four pricing tiers :
  • Basic: $179.50/year, suitable for beginners.
  • Additional: $299.50/year, includes additional functions and connections.
  • Pro: $399.50/year, ideal for firms that need advanced features.
  • The Elite plan: $499.50/year, great for entrepreneurs and creative creators.
  • Additional Charges:
  • SSL certificates for safe transactions ($0 to $100/year) generally included in hosting plans).
  • Fees are charged by the payment gateways (typically around 2.9 percentage ) plus $0.30 for every transaction).

What are the benefits of choosing us ? Below is the price we provide and the advantages that you get...

Pricing:

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

 ROI (ROI):

To determine the return on investment, let's assume you opt to go with the Plus plan for $299.50/year. If you are able to offer a whole course for sale or membership for $100, and you only sell 3 memberships per month, your revenue monthly is $300.

Over the course of one year, that's around $3600. After subtracting the costs of ($299.50) and hosting ($240 per month for 20 dollars)) You receive $3,061 for a total year-end profit.

The calculation shows that even when revenue is low the ROI is substantial, making it a sensible choice for those of you!

 Evaluation of Scalability Potential with no additional costs per Content or User

One of the main benefits of self-hosting your courses with is the possibility of scaling.

Contrary to SaaS platforms, which charge per user or cost a share of your revenue, can enable you to expand your company without incurring costs.

Here's how:

  • Unlimited users Once your site has been created, it's possible to allow an unlimited number of members without incurring extra costs. Your costs remain fixed, no matter how much your member base grows.
  • Flexible Content: You are able to design and host unlimited classes or lessons as well as membership levels. It lets you expand the scope of your services and increase the number of sources of revenue without worrying about the increase in costs.

The fixed-cost model of self-hosted services such as they are able to be studied and provides a lot of possibilities for growth.

A scalable platform with free per-user charges, you will be able to increase the number of members you have as well as content, which will increase the profitability of your business and also making sure that you can sustain your growth.

There's more.

     Integration with Tools for Business Tools    

Self-hosted sites like these give the flexibility to integrate with numerous business tools, enhancing overall operations and insights on the behaviour of students and the performance of their courses.

Here's how:

     2. CRM Systems:

     3. Analytics Tools:

     4. Calendar/Scheduling Tools:

     5. Form/Survey Builders:

     6. Payment Gateways:

More details are provided about how you can integrate your business account to instruments.

Learn how you can boost the performance of your membership site using add-ons & integrations

     Moving to Self-Hosted Hosting Switch to self-hosted    

Once you've convinced yourself of the many benefits of moving from SaaS LMS Platforms to self-hosted platforms, here's the information you should do next:

Switch into HTML0!

Switching between an SaaS LMS platform to self-hosted courses such as these can seem daunting, but it's achievable if you've the right plan.

The following step-by-step instructions are given to guide you through the steps:

     Step 1: Start with a plan    

  • Assess Your Present Platform Review your current SaaS LMS platform's features, information, and limits.
  • Establish objectives Set out what you want to achieve through the transition (e.g. lower costs or greater control).
  • Develop a Migration Plan outline your timeline, the tasks you have to complete, as well as your responsibilities. Make sure you backup of your data.

     Step 2. Install Your Self-Hosted Platform

  • Install Purchase and install the plugin from your WordPress site.
Take note of this: How Do I Install the Plugin?

     3. Export the data from SaaS Platform

  • Backup information: Ensure you have backups of the entire course's contents, including information about the user the course material, and other relevant details.
  • Export Content Use the tools for export offered by your SaaS-based LMS to download all the required information such as personal information of the user as well as other media files.

     step 4: import data to    

  • Import Users Make use of tools or manual techniques to import user data in order to provide seamless access for the students who are already in school.

     Step 5: Configure    

  • Membership Levels Create membership levels which suit your business model.
  • Payment Gateways Create payment gateways like Stripe or PayPal for secure transactions.
  • Customization Modify the layout and style of your site to match your branding.

     6. Test Everything

  • Testing of functionality Verify that all functions, like the access to courses, levels of membership and payment methods, work perfectly.
  • users experience: Test the course experience when they sign up to the course until completeness to ensure an unbeatable user experience.

Now, it's time!

     7th Step Start and Promote    

  • Information users Your current clients be informed about the new platform with explicit instructions and help for navigating the platform.

5 tips to smooth transition

  • Plan complete, with exact timelines and backups of your data.
  • The version of HTML0 will inform the changes in a clear manner for people using the service and give help.
  • Examine all functions thoroughly and in order in order to prevent disruptions.
  • Utilize the existing resources as well as guidebooks. Begin by reading a portion of the information that focuses on the issues in the early stages.
  • Give constant support with FAQs and help desks, and evaluate the efficiency of your system and adjust according to the comments.

If you follow these rules by following these steps, you'll be able to transition seamlessly from to an SaaS LMS to a self-hosted service such as, having total control over your content while maximizing your earnings.

     A Quick Review    

Find out how far we've gotten it.

We started by looking at the disadvantages of using third party LMS platforms for managing the revenue generated by your online courses.

We also discussed the important advantages self-hosted platforms for courses provide, like total ownership of your contents, reduced costs and increased control of the marketing and branding of your course.

Additionally, we made several comparisons, and could prove to you that making the decision to invest in self-hosted learning platforms such as Courses can be a game changer for the creative enterprise you run.

It is also important to keep in mind that when you eliminate the costly costs of revenue-sharing, and utilize tools such as Courses, you could build a successful and growing online educational company.

Consider evaluating the costs of your website in relation with the advantages. If you're on WordPress think about it this as a viable option for maximizing the potential for growth as well as profitability.

Please let us know in the comments if you're thinking of changing to self-hosted courses, such as Courses. We're looking forward to answering all questions you might be having.

Sarah O Sarah is passionate in reducing the technical nitty-grittys of plugins, websites, and digital marketing. As a content writer at Member Press, she has an eye for creating captivating and insightful written content. Sarah is a key person in educating and motivating users with the full power of Member Press plugins. Combining creativity and technical expertise her goal is to ensure that every piece not only informs but also inspires. In her spare time, she likes to keep up-to-date with the latest technological advancements and trends in marketing. She's always seeking creative ways to improve the experience for users.

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