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

Jun 4, 2024

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What if we told you that you could get more than passive revenue from your online courses by using self-hosted platforms for your course?

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Untruths about the Third Party LMS Platforms

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

This is why a lot of instructors believe it's better to use third party LMS platforms such as Udemy, Teachable, and Kajabi due to:

  • They believe it can reduce their marketing costs reducing the need for large initial investments in software and hardware.
  • They think it will aid to launch their business onto the market at a faster pace.
  • The assumption is that it's simple and requires minimal technical knowledge, making it easier for course creators to develop the course, start it, and then manage their courses.

 But, these advantages are not without a price, including:

  1. A growing revenue-sharing expense.
  2. 75% of course creators earn less than $1000 each year. Only 1 percent of instructors earn more than $50,000 a year.
  3. Some courses may get missed in the crowd, requiring additional marketing expenses to reach your target audience.
  4. The platform has limited opportunities for building relationships with students outside the portal.
  5. You cannot personalize your page or your brand's image on these platforms.
  6. It's difficult to track your students' progression through the funnel.
  7. The limited engagement possibilities are due to the absence of gamification or community-oriented integrations.

Introduction to Courses that are self-hosted

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

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

If you decide to host your own courses, you can take control of your content, save on revenue-sharing costs, and open up new possibilities to earn money.

Think about the idea...

Imagine being able to tailor your course exactly how you want and keeping more of your hard-earned income.

Switching to a self-hosted platform does not just mean you can cut expenses, it's about unlocking your full potential and building an efficient, long-lasting and viable enterprise.

Still not convinced yet? Check out this breakdown below.

The Cost High in Revenue Sharing

If you are using the most popular SaaS LMS platforms to sell and administer your online course, it's essential to understand the revenue sharing models they use.

They typically charge large percentage of the earnings that can mount up fast and consume the profits you earn.

Here's a breakdown of the common revenue-sharing plans of a few famous SaaS LMS platforms:

 1. Teachable

Teachable has a variety of pricing plans, and their revenue-sharing model varies depending on the plan you choose. The following is the annual cost of their plans is:

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

 2. Thinkific

Thinkific provides several pricing tiers with different revenue-sharing implications

  • Free Plan: There are no transaction fees, but with limited options.
  • The Basic Plan ($49/month) The Basic Plan has no charges for transactions, however it is limited to digital downloads.
  • Plan Pro Plan ($99/month) or the Premier Plan ($499/month) There are no charges for transactions, however there are some online community features.

 3. Udemy

Udemy operates on a different revenue sharing model than Teachable as well as Thinkific:

  • Organic Sales: Udemy takes 50% of the profits from the salesmade through their marketplace.
  • Promoting Instructors: Instructors only keep 97% of the earnings from sales that they make through their own promotions (using an instructor coupon) and Udemy paying a 3 percent administration charge.
  • Paid User Acquisition: For sales made through Udemy's paid advertising efforts, instructors only receive 25% of the sales.

 4. Kajabi

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

  • Kickstarter ($69/month) and Basic Plan ($149/month): No transaction fees, but limited offerings and features.
  • Plan for Growth Plan ($199/month) as well as the Pro Plan ($399/month) There are no charges for transactions, however a small number of student enrollments.

The models that are based on revenue share highlight the costs associated with the use of third-party LMS platforms. While these platforms offer convenience and a variety of features, annual fees and cuts to revenue could significantly decrease your income.

In contrast, a self-hosted solution will allow you to earn the majority of your earnings and provide greater flexibility in how you manage and present your courses.

Here's a thorough review of both platforms.

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

 Example: Let's suppose you sell an online course at $100.

 SaaS LMS Platform Example:

  •   Teachable (Basic Plan):  In the event of an average transaction fee of 5 that means you'd be losing $5 for each sale.
  • Earnings per sale: $95
  • Monthly subscriptions: $39
  • If you can sell 20 courses a month: $95 divided by 20 - $39 = $1.861.
  •   Udemy (Organic sales):  If you had a 50 percent income share, your company would be losing the equivalent of $50 for each sale.
  • Per sale, earnings of $50.
  • If you are able to sell 20 courses a month: $50 per course x 20 = $1000

 Self-Hosted Solution Example

  • Monthly subscription for (Most popular plan) The cost is $33
  • Earnings per sale: $100
  • If you're selling 20 courses each month the following formula is used: $100 x 20 times $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 sales):
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • Differential: $967 more for self-hosted

Over a year they add up significantly. This is about $11,604 saved over one year!

Utilizing self-hosted courses platforms like Courses can reduce your costs by hundreds or even thousands of dollars, depending on your sales volume.

Now that you know how much you can save and earn using a self-hosted course solution Let's look at some of the benefits from switching to this service.

Benefits of Self-Hosted Course Platforms

Self-hosted platforms for courses provide an effective alternative for SaaS LMS solutions by giving the complete control of the content you publish and your operations.

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

Through the use using the strength WordPress, offers unparalleled possibilities for customization and flexibility, enabling you to design the perfect learning experience that aligns with your brand and goals for business.

When you opt for self-hosted course platforms, such as those offered by e-learning.com, you enjoy numerous advantages, including reduced costs, enhanced control, and the ability to implement different strategies for monetizing to increase your income.

WATCH >>> Courses Feature OVERVIEW

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

Control and Ownership of Content

Having control is one of the most powerful attributes of a creator and is a key element of successful branding and marketing.

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

From layout and style to the inclusion of multimedia components Being in complete control of your content lets you develop a consistent and professional learning environment that reflects the values and style of your company.

Ownership of your content also means you can implement a wide range of strategies for marketing without limitations.

You can create and offer promotional content, bundle courses offer discounts and make use of various marketing tools and plugins available for WordPress.

This allows you to get your message to the right people efficiently and adjust your strategy based on live feedback and analytics.

Direct Customer Relationships

One of the most notable benefits of self-hosted courses is the ability to build direct, unmediated relationships with your students.

With no limitations of an intermediary service, you can communicate directly with your students by sending them personalized messages or feedback as well as support.

When you control this platform, you will have access to a wealth of information about your students' behaviors as well as their preferences and performance.

This information is crucial in understanding how to make the best decisions and what isn't working within your classes.

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

Intermediary platforms often limit your capacity to offer prompt and reliable customer service.

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

Instant access to help and help can dramatically improve students' experience, and also address issues before they escalate.

Monetization through Membership

One of the best methods to make money from your courses on a self-hosted platform is to package them into a membership model.

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

In offering access to a vast catalog of contents with a monthly cost that you can provide significant value and encourage more students to subscribe.

Community features like forums and live Q&A sessions create an identity between members, increasing their commitment to your platform.

 This strategy increases your value to your students and creates the possibility of steady recurring revenue.

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They also offer online and individual sessions in their private fitness center in Sydney, Australia.

Utilizing , Base Body Babes manages their paywalled content and exclusive offerings through their website. They provide members with access to home as well as gym classes for weight training, tutorials, and a recipe library.

This lets them generate regular income while providing significant benefits to their communities.

Fixed Costs and Unlimited Growth

 Here's a breakdown of these expenses:

  •   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 functions and connections.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • Premium: $499.50/year, great for enterprises and ambitious creators.
  • Additional costs:
  • SSL certificates to ensure secure transactions ($0 to $100/year), usually included in hosting plans).
  • Fees for payment gateways (typically about 2.9 percentage plus $0.30 for each transaction).

What are the benefits of choosing us ? Below is the price we offer and the benefits you benefit from...

  Pricing:

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

 ROI (ROI):

To evaluate the ROI we'll assume that you sign up for the Plus option at $299.50/year. If you are able to sell a course bundle or membership for $100 and then sell just 3 memberships per month, the monthly income is $300.

For a full year, that's $3,600. After subtracting the costs of ($299.50) as well as hosting ($240 at $20 per month) that's the sum of $3,061 as a net annual profit.

The calculation shows that even with minimal revenue, the return on investment is significant, which makes it the most cost-effective option for you!

 Analysis of Scalability Potential without additional costs per user or Content

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

Contrary to SaaS platforms which are priced per user or charge a portion of the revenue generated, SaaS 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. Your expenses will are predictable regardless of how much your member base 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 charges.

In short, the fixed-cost structure of self-hosted services like these can be analyzed and provides a lot of development potential.

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

There's more.

Integration with other Business Tools

Self-hosted platforms like also offer the possibility of integrating with numerous enterprise tools to improve overall operations and insights into the behavior 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 regarding how to connect your account with business tools.

check out >> Supercharge your memberpess website with integrations and add-ons

Moving to Self-Hosted Hosting Switch to self-hosted

After you've been convinced by the numerous benefits of switching from SaaS LMS Platforms to Self-hosted platforms, here's what you should do next:

 Change it!

The transition from an SaaS LMS platform to self-hosted courses like these can be daunting, but it's manageable when you have a strategy.

 This is a step-by-step tutorial to guide you with the process

First step: Start with a plan

  • Review Your Current Platform: Review your present SaaS LMS platform's features, data and restrictions.
  • Define goals Define what you aim to achieve by implementing the change (e.g., lower costs and more control).
  • Develop a migration Plan Outline your timeframes, tasks and responsibilities. Ensure you have an archive of all your data.

Step 2. Set-Up Your Self-Hosted Platform

  • Install Buy and install the plugin on your WordPress site.
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 as well as user data and any other information that is relevant.
  • Export Content: Utilize the tools for export offered by your SaaS-based LMS to download the necessary information that includes information about the user, as well as media documents.

Step 4: Import Data to

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

Step 5: Configure

  • Membership Levels: You can set up levels of membership that are compatible with your business model.
  • Payment Gateways Set up payment gateways like Stripe or PayPal for safe transactions.
  • Customization You can customize the look as well as the layout on your website to reflect your brand.

6. Test Everything

  • Functionality Testing Make sure that all features including the access to courses, levels of membership and payment processing are working correctly.
  • user experience: Test the user journey from signup until course completion, to make sure you have a seamless experience.

It's time!

7th Step Start and promote

  • inform users Let your current users of the change by providing clear directions and help to access the new platform.

 5 Tips to seamless transition

  • Plan thorough, including specific timelines and backups for data.
  • Make modifications clearly to users, and provide support.
  • Try all functionalities extensively so that disruptions are not caused.
  • Make use of existing resources and migrate guides. Begin by introducing a tiny section of information to tackle issues early.
  • Give ongoing support through FAQs and help desks, and also monitor the performance of your system, and make adjustments in response to the feedback.

By following these steps it is possible to smoothly transition from a SaaS LMS to a self-hosted solution like , gaining full control over the content you publish and maximizing your profitability.

A Quick Review

We're amazed at how far we've been.

The first issue we discussed was the drawbacks of relying on third party LMS platforms to manage your online course monetization.

In the following, we discussed the important advantages self-hosted course platforms like offers, including full ownership of content, lower costs, and increased control over marketing and branding efforts.

We also conducted some comparatives and were able convince you that investing in self-hosted course platforms like Courses is a major game-changer for the creative enterprise you run.

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

Consider evaluating the costs of your platform in comparison to the benefits. If you're using WordPress you should consider a robust solution to maximize your profits and increase growth.

Please let us know in the comments section if you're planning on switching to self-hosted course platforms like Courses. We're eager to answer any questions you may have.

Sarah O       Sarah is adamant about making simpler the technical details of plugins, websites, and digital marketing. As a content writer at Member Press, she has a keen eye for crafting interesting and useful content. Sarah has a significant role in educating and empowering users on the full potential of Member Press plugins. Combining creativity and technical expertise her goal is to ensure that each article not only educates, but also stimulates. While she is not writing her favorite content, she is interested in exploring the most recent developments in technology and marketing. She is always looking for new ways to improve user experience.