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What can you do to earn more passive income from your online courses |

Jun 4, 2024

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Would you believe that you could get more than passive revenue from your online courses using self-hosted platform?

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The Misconceptions of Third Party LMS Platforms

You might agree with this statistic that shows is 57% percent makers evaluate their course's success through student satisfaction. 23% consider student enrollment while 21% concentrate on income.

This is why a lot of course creators think it is best to choose third-party LMS platforms like Udemy, Teachable, and Kajabi due to:

  • They are hoping it will reduce their marketing costs reducing the requirement for huge investment in the beginning for hardware and software.
  • They are convinced that it can help them launch their brand onto the market at a faster pace.
  • It is assumed that it's easy to use and doesn't require any technical expertise, making it easier for course designers to create courses, create, and maintain their course.

 But, these advantages are not without a price for example:

  1. The cost of revenue sharing is growing.
  2. 75 percent of course creators earn less than $1000 annually, while only 1% of instructors earn over $50,000 per year.
  3. Courses might get missed in the crowd and require additional advertising costs to reach your target audience.
  4. There aren't many opportunities to build friendships with students that aren't on the platform.
  5. Your page cannot be personalized or brand on these platforms
  6. It's difficult to track your students' progression through the funnel.
  7. Insufficient engagement opportunities because of the lack of gamification and community-oriented integrations.

Introduction of Courses that are self-hosted

If you're an online class creator frustrated with the high costs and limitations in SaaS LMS platforms, you're not alone. Numerous educators have the same issues.

But there's a better way that is self-hosted platforms for courses.

When you choose to host your courses, you can take charge of your courses, save on revenue-sharing costs as well as discover new opportunities to earn money.

Consider the idea...

Imagine being able to design your classes exactly how you want and keeping more of the hard-earned money you earn.

Switching to a self-hosted platform doesn't only mean cutting down on expenses - it's about maximizing the full potential of your business and creating a more profitable, viable enterprise.

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

The high cost for Revenue Sharing

In the case of using well-known SaaS LMS platforms to sell and run your online classes, it's essential to understand their revenue-sharing model.

The platforms typically take a large percentage of the earnings that can mount up quickly and eat into the profits you earn.

This is a summary of most common models for revenue sharing of famous SaaS LMS platforms:

 1. Teachable

Teachable offers multiple pricing plans. Their revenue-sharing model varies depending on the plan you choose. This is how the annual cost of their plans looks like:

  • Free Plan: costs $1 plus 10% per transaction.
  • The Basic plan ($39/month): 5% transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month): No charges for transactions, however they have a the publishing of courses.

 2. Thinkific

Thinkific offers a variety of pricing levels that have different implications for revenue sharing:

  • Free Plan: No charges for transactions, but limited options.
  • Basic Plan ($49/month): No fee for transactions but only digital downloads.
  • Pro Plan ($99/month) or Premier Plan ($499/month) Pro Plan: No fee for transactions, but with limited options for online community functions.

 3. Udemy

Udemy has a unique revenue sharing model than Teachable and Thinkific:

  • Organic Sales: Udemy takes 50 percent of their revenue from salesmade through their marketplace.
  • Instructional Promotions: Teachers only retain 97% of earnings from sales that they make through their own promotion (using an instructor coupon) and Udemy paying a 3% administration fee.
  • Paid User Acquisition: In the case of sales that are made via Udemy's pay-per-click efforts, instructors only receive 25% of the revenue.

 4. Kajabi

Kajabi combines subscription costs with extra charges according to the following plan:

  • Kickstarter ($69/month) and Basic Plan ($149/month) There are no fee for transactions, but with limited features and products.
  • Plan for Growth Plan ($199/month) and the Pro Plan ($399/month): No transaction fees, but a only a limited amount of active students enrolled.

The revenue sharing models are designed to highlight the costs associated with making use of third party LMS platforms. Although these platforms provide convenience as well as robust capabilities, regular fees and reductions in revenue could significantly decrease your income.

A self-hosted solution will allow you to earn more of your income as well as give you more flexibility the way you present and manage your classes.

Here is a detailed comparison of both platforms.

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

 Scenario: Let's say you offer an online course for $100.

 SaaS LMS Platform Exemple:

  •   Teachable (Basic Plan):  If you charge the transaction fee of 5 the seller would lose $5 on each sale.
  • Per sale, earnings of $195
  • Monthly subscription Cost: $39
  • If you are able to sell 20 courses per month, the following formula is applicable: $95 x 20 - $39 = $1.861.
  •   Udemy (Organic Sales):  If you had a 50 percent revenue share, you'd be losing the equivalent of $50 for each sale.
  • Per sale, earnings of $50.
  • If you are able to sell 20 courses per month the following formula is used: $50 20 x 20 = $1,000

 Self-Hosted Solutions Example:

  • A monthly subscription to (Most Popular Plan) The cost is $33
  • Per sale, earnings of $100.
  • If you are able to sell 20 courses per 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 sales):
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • Differential: $967 more for self-hosted

In the course of a year the difference can will add up to a significant amount. That's about $11,604 saved in one year!

Utilizing self-hosted courses platforms like Courses can reduce your costs by hundreds or even thousands of dollars, based the volume of sales you make.

Now that you know how much you can save and earn using a self-hosted course solution We'll look at the advantages of switching over to this service.

Benefits of Self-Hosted Course Platforms

Self-hosted platforms for courses provide a powerful alternative in comparison to SaaS LMS solutions by giving full control over your content and operations.

Of these, it stands out as an effective choice, particularly in the event of

Through the use by leveraging the power of WordPress, offers unparalleled possibilities for customization and flexibility, enabling you to design the perfect learning experience that is in line with your brand's image and corporate goals.

If you select self-hosted courses platforms like , you gain several advantages. Some of them are lower costs, enhanced control, and the ability to implement various monetization strategies to maximize your income.

Watch >>> Courses Overview of the Feature

Let's take a look at these benefits in detail.

Control and Control of Content Ownership

Having control is one of the greatest strengths of an artist and is a key element of successful brand and advertising.

Through self-hosted platforms for courses such as  You can customize every aspect of your courses to match your company's distinctive style and.

From layout and design to the integration of multimedia components, having full control over your content lets you create a cohesive and professional learning experience that is reflective of your brand's values and aesthetics.

The ownership of your content lets you use a range of marketing strategies without restrictions.

It is possible to create and distribute promotions, bundle classes give discounts, or use various marketing tools and plugins to WordPress.

This flexibility enables you to connect with your audience more effectively and adapt your strategy based on live data and feedback.

Direct Customer Relationships

One of the standout advantages of self-hosted courses is the capability to create direct, unmediated relationships with your students.

In the absence of any intermediary system, you are able to communicate directly with your students through personalized emails or feedback as well as support.

When you control your platform you gain access to a wealth of information about your students' behaviors along with their interests, progress, and preferences.

This information is crucial to understand what works and what isn't working during your studies.

By analyzing this data and analyzing it, you can adjust your content and teaching methods to better meet the needs of your students. This can lead to increased satisfaction for your customers and retention rate.

The use of intermediaries can limit your capacity to offer prompt and effective customer service.

Self-hosted solutions allow you are able to implement a comprehensive service that provides support via live chat, forums, and direct messages.

The immediate accessibility to assistance and help can dramatically improve student experiences and help address issues before they escalate.

Monetization through Membership

One of the best methods of making money off your online courses even more on a self-hosted platform is by bundling them into the model of a membership.

The benefits of memberships are that they encourage ongoing involvement, leading to higher customer retention, as customers continue to find value in their subscriptions.

By providing access to a vast library of content for a regular fee that you can provide significant value, encouraging more students to subscribe.

Community features like forums and live Q&A sessions build a sense of belonging among members, enhancing the loyalty of members to your platform.

 This approach enhances the educational value that you provide your students, and also creates a a steady stream of recurring income.

Base Body Homepage
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They offer both online and in-person sessions through their boutique strength-training facility in Sydney, Australia.

Utilizing , Base Body Babes manages their paywalled content as well as their exclusive services through their website. They provide users with access to at-home and gym-based weight training classes Tutorials, as well as recipes.

The model lets them generate regular revenues while also providing value to their community.

Fixed Costs and Unlimited Growth

 Here's a breakdown these expenses:

  •   Web Hosting:
  •   Domain Registration
  •   LMS Software/Plugins
  •     offers four main pricing tiers    :
  • Basic: $179.50/year, suitable for beginners.
  • Plus: $299.50/year, includes additional features and integrations.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • The Elite plan: $499.50/year, great for companies and creators with ambitions.
  • Additional Charges:
  • SSL certificates to ensure secure transactions ($0 to $100/year), usually included in hosting package).
  • Payment gateway fees (typically around 2.9 percentage plus $0.30 for each transaction).

Why should you choose ? This is our price as well as what you stand to gain...

  Pricing:

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

 Return on Investment (ROI):

To evaluate the ROI Let's say you decide to go for the Plus plan at $299.50/year. If you offer the course bundle or membership for $100 and then sell only 3 memberships a month, the monthly income is $300.

Over the course of a year, it's the equivalent of $3,600. By subtracting hosting costs ($299.50) and hosting ($240 at $20 per month) that's the sum of $3,061 as a net annual profit.

This calculation shows that even with a small amount of revenue, the return on investment is significant, which makes it the most cost-effective option for you!

 Evaluation of the Potential for Scalability Without Additional Costs Per User or Content

One of the major benefits of self-hosting your courses with is the ability to scale.

In contrast to SaaS platforms that are priced per user or make a percentage of the profits, this platform allows you to scale your company without incurring additional expenses.

Here's how:

  • unlimited users: Once your site is set up it is possible to have an unlimited number of members without incurring additional costs. Your expenses will remain fixed, no matter the extent to which your membership increases.
  • Flexibility of Content: You can create and host unlimited courses, lessons, and membership levels. This allows you to expand your options and diversify your income streams without worrying about increased fees.

In short, the fixed cost structure of self-hosted platforms like this one provides predictable costs and a significant expansion possibilities.

With scalable infrastructure and no additional per-user costs, you can expand the number of members you have and your the content you offer, increasing profitability and guaranteeing sustainable increase.

There's more.

Integration with other Business Tools

Self-hosted websites like those also give the flexibility to integrate various business tools, enhancing the overall efficiency and providing insights into student behavior and course efficiency.

Here's how:

 2. CRM Systems:

 3. Analytics Tools

 4. Calendar/Scheduling Tools:

 5. Form/Survey Builders:

 6. Payment Gateways:

More details are provided on how to integrate your account into business tools.

check out how to boost your memberpess site by integrating add-ons and integrations

Making the Switch to self-hosted

Now that you're convinced by all the advantages of changing from SaaS LMS Platforms to self-hosted platforms, here's what you need to do following:

 Make the switch!

Moving from the SaaS LMS platform to self-hosted courses like these can be overwhelming, but it's doable when you have a strategy.

 The following step-by-step instructions are provided to guide you navigate the procedure:

First step: Start with a strategy

  • Assess Current Platform: Review your currently installed SaaS LMS platform's features, information, and limits.
  • Definition of goals Define the goals you want to accomplish through the transition (e.g., lower costs and greater control).
  • Make a Migration Plan: Outline timeframes, tasks and the responsibilities. Ensure you have an archive of all your data.

Step 2: Configure the Self-Hosted platform you have created.

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

Step 3. Export Data from SaaS Platform

  • backup data: Ensure you have backups of the entire course's content, user data, and other relevant information.
  • Export Content Use the export tools provided by your SaaS LMS to download the necessary information such as personal information of the user and other media documents.

Step 4: Import Data

  • Import Users: Use tools or manual techniques to import data from users, ensuring an uninterrupted access to students who are already enrolled.

Step 5 Step 5: Setup

  • Members Levels You can set up levels of membership that fit your company structure.
  • Payment Gateways Configure payment gateways like Stripe or PayPal for secure transactions.
  • Customization You can customize the look as well as the layout on your web site to reflect your brand.

Step 6: Try All

  • Functionality Testing Make sure that all features like accessibility to courses, membership levels and payment processing are working properly.
  • user experience: Test the user journey from signup through course completion in order to guarantee a seamless journey.

It's the right time!

Step 7: Launch and Promote

  • inform users Let your current users about the transition with clear instructions as well as help to access the new technology.

 5 Tips for a smooth transition

  • Plan fully, with precise timelines and backups of data.
  • Communicate changes clearly to users and offer support.
  • Test all functionalities extensively in order to prevent disruptions.
  • Utilize existing resources and migrate guides. Begin with a small section of information to tackle the issues before they become.
  • Offer continuous support via FAQs and help desks, and track the performance of your system, and make adjustments based on the feedback.

By following these steps by following these steps, you will be able to transition seamlessly from an SaaS LMS into a self-hosted system that gives you full control of your content while increasing your profit.

A Quick Review

Look how far we have come.

The first issue we discussed was the drawbacks of using third-party LMS platforms for online course's monetization.

Then we shared the significant advantages that self-hosted platforms for courses offer, such as complete content ownership, reduced costs, and increased control over marketing and branding efforts.

We also did some comparisons and were able to convince you that utilizing self-hosted learning platforms such as Courses can be a game changer for your creative business.

It is also important to keep in mind that if you cut out the high cost of revenue-sharing and leverage tools like Courses, you are able to create a scalable and profitable online educational business.

Make sure you evaluate the cost of your current platform vs. the benefits. If you're using WordPress you should consider a robust solution to maximize the potential for growth and profitability.

Let us know in the comments if you will be switching to self-hosted courses such as Courses. We're looking forward to responding any queries you may be having.

Sarah O       Sarah is passionate about reducing the technical nitty-grittys of web-based sites, plugins and digital marketing. As a writer for content at Member Press, she has a keen eye for crafting interesting and useful writing. Sarah has a significant role in teaching and inspiring users with the full power that are available through Member Press plugins. Combining technical knowledge and creative flair her goal is to ensure that each article not only informs but also encourages. When not writing, she enjoys exploring the newest technologies and trends in digital marketing, always seeking new methods to improve the user experience.