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

Jun 4, 2024

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If we could tell you that you can earn a higher than passive revenue from your online courses by using self-hosted platforms for your course?

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The Misconceptions of the Third Party LMS Platforms

You might agree with this statistic that shows 57% of course makers evaluate their course's success by student satisfaction, while 23% take into account student participation and 21% focus on income.

This explains why many instructors believe it's better to use third party LMS platforms like Udemy, Teachable, and Kajabi because:

  • They believe it can reduce their marketing expenses, thereby reducing the need for large upfront investments in software and hardware.
  • They believe it will help to launch their business onto the market at a faster pace.
  • It is assumed that it's easy to use and requires minimal technical knowledge which makes it easy for course designers to create the course, start it, and then manage their courses.

 However, these benefits are not without a price for example:

  1. A growing revenue-sharing expense.
  2. 75 percent of course creators make less than $1,000 per year, whereas only 1 percent of instructors make more than $50,000 annually.
  3. Some courses may get missed in the crowd which means you'll need to spend more marketing in order to reach the audience you want.
  4. The platform has limited opportunities for building connections with students beyond 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. The limited engagement possibilities are due to the absence of gamification or community-based integrations.

Introduction of Self-hosted Course Platforms

If you're an online course creator who is frustrated by the expensive prices and restrictions of SaaS LMS platforms, you're not the only one. Many educators face the same challenges.

But there's a better way: self-hosted course platforms.

When you choose to host your courses, you can take the control of your course content, save on revenue-sharing costs, and open up new ways to make money.

Think about the idea...

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

Making the switch to self-hosted platforms isn't just about cutting expenses - it's about maximizing the potential you have and creating a more profitable, long-term business.

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

The High Cost for Revenue Sharing

In the case of using the most popular SaaS LMS platforms to sell and manage your online courses it is crucial to be aware of the revenue sharing models they use.

The platforms typically take a significant percentage of your earnings, which can add up fast and consume the profits you earn.

Below is a detailed breakdown of most common models for revenue sharing of well-known SaaS LMS platforms:

 1. Teachable

Teachable provides a range of pricing plans. Their revenue-sharing model varies depending upon the plan you select. This is how the annual cost of their plans is:

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

 2. Thinkific

Thinkific has a range of pricing tiers that have different implications for revenue sharing:

  • Free Plan: No transaction fees, but with limited capabilities.
  • Basic Plan ($49/month) The Basic Plan has no fee for transactions but only digital downloads.
  • Plan Pro Plan ($99/month) and the Premier Plan ($499/month) Pro Plan: No charges for transactions, however there are some options for online community functions.

 3. Udemy

Udemy operates on a different income-sharing system than Teachable and Thinkific:

  • Organic sales: Udemy takes 50% of the revenue from salesmade via their marketplace.
  • Promoting Instructors: Instructors only keep 97% of the earnings from sales that they make through their own promotional efforts (using coupons for instructors) as well as Udemy charging a three per cent administration fee.
  • Paid User Acquisition For purchases made through Udemy's paid advertising initiatives, instructors only receive 25 percent of the profits.

 4. Kajabi

Kajabi combines subscription costs with other fees that are according to the following plan:

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

The models that are based on revenue share expose the cost of using third-party LMS platforms. These platforms are convenient and robust features, the regular fees and reductions in revenue can significantly reduce your earnings.

A self-hosted option can allow you to keep the majority of your earnings and provide greater flexibility in how you manage and present your classes.

Here's a thorough review of both platforms.

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

 Scenario: Suppose you sell your online course for $100.

 SaaS LMS Model Platform:

  •   Teachable (Basic Plan):  In the event of the transaction fee of 5 that means you'd be losing $5 for each sale.
  • Earnings per sale: $95.
  • Monthly subscriptions Cost: $39
  • If you can sell 20 courses per month: $95 divided by 20 - $39 = $1,861
  •   Udemy (Organic Sales):  In the case of a 50% income share, your company would have to pay the equivalent of $50 for each sale.
  • Profits per sale: $50
  • If you can sell 20 courses per month the following formula is used: $50 20 x 20 = $1,000

 Self-Hosted Solution Example

  • Monthly subscription for (Most Well-liked Plan) The cost is $33
  • Earnings per sale: $100
  • If you are able to sell 20 courses per 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
  • The difference is $106 more for self-hosted
  1.   Udemy (Organic sales):
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • Difference: $967 more with self-hosted

In the course of a year they are significant. This is about $11,604 saved over an entire year!

Utilizing self-hosted courses platforms such as Courses could save you hundreds to 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 see some benefits of switching over to this system.

Advantages of Self-Hosted Course Platforms

Self-hosted platforms for courses provide a powerful alternatives in comparison to SaaS LMS solutions by giving you complete control over the content you publish and your operations.

In the list, is regarded as a robust option, particularly when

Utilizing the power using the strength WordPress, offers unparalleled flexibility and customization options which allows you to build the perfect learning experience that is in line with your brand's image and business goals.

If you select self-hosted courses platforms such as these, you will gain many advantages. These include lower cost, improved control and the capacity to employ various monetization strategies to maximize your earnings.

Learn >>> Watch Overview of the Feature

Let's examine these benefits in detail.

Control and the Ownership of Content

Control is among the greatest strengths of an artist and is a key element of successful brand and advertising.

With self-hosted course platforms like  the one you use, you are able to customize each element of your course to reflect your unique brand identity.

From layout and design to the inclusion of multimedia elements Being in complete control of your content allows you to create a cohesive and professional learning experience that is reflective of your brand's aesthetics and values.

The ownership of your content lets you implement a wide range of marketing techniques without any restrictions.

You can create and offer promo content, bundle course offer discounts and make use of various marketing tools and plugins on WordPress.

This flexibility lets you get your message to the right people better and to adjust your strategies based on real-time data and feedback.

Direct Customer Relations

One of the major benefits of self-hosted learning platforms is the capability to create personal, non-mediated connections with your students.

Without the constraints of an intermediary service, you can communicate directly with your students through personalized emails, feedback, and support.

If you manage this platform, you have access to extensive data about the students' behavior along with their interests, progress, and preferences.

It is essential to understand what works and what doesn't within your classes.

When you analyze this information, you can tailor the content you teach and your teaching techniques in order to best meet the requirements of your students. This can lead to higher satisfaction with your students and retention rate.

Intermediary platforms often limit your ability to provide timely and effective customer service.

With a self-hosted solution, you can implement a robust support system that includes live chat, forums as well as direct messaging.

The immediate accessibility to assistance and help can dramatically improve student experiences and help solve issues before they become more severe.

The Monetization of Membership

One of the most effective ways to monetize your courses on a self-hosted platform is to bundle them in a membership model.

Members encourage continuous engagement and increase customer retention as students continually benefit from their memberships.

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

Forums and live Q&A sessions create an emotional connection to your members and increase the loyalty of members to your platform.

 This approach enhances the value you offer your students, and also creates a the possibility of steady recurring income.

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They offer both online and individual sessions in their private strength-training facility in Sydney, Australia.

By utilizing , Base Body Babes manages their paywalled content as well as their exclusive services through their website. They provide customers with access to online as well as gym classes for weight training Tutorials, as well as a recipe library.

The model permits them to earn recurring income while providing significant benefit to their customers.

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.
  • Plus: $299.50/year, includes additional functions and connections.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • Premium: $499.50/year, great for companies and creators with ambitions.
  • Additional Costs:
  • SSL certificates for secure transactions ($0 to $100/year), usually included in hosting plans).
  • Fees for payment gateways (typically approximately 2.9% + $0.30 for each transaction).

What are the benefits of choosing us ? Here is our pricing and the benefits you benefit from...

  Pricing:

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

 ROI (ROI):

For a better understanding of the ROI we'll assume that you sign up for the Plus option at $299.50/year. If you offer an entire course or a membership for $100 and then sell three memberships each month, your monthly revenue will be $300.

Over the course of a year, it's the equivalent of $3,600. Subtracting the cost of ($299.50) and hosting ($240 at $20 per month), you get the sum of $3,061 as a net annual profit.

It is evident that even with a small amount of sales, the ROI is impressive, and it is an economical choice!

 Analyzing the Scalability Potential with no additional cost per User or Content

One of the major benefits that self-hosting your course with is scalability.

Unlike SaaS platforms, which cost per user, or that make a percentage of the revenue generated, SaaS allows you to scale your business with no additional cost.

Here's how:

  • unlimited users: Once your site is up and running it is possible to have an unlimited number of members without incurring additional costs. Your expenses will remain fixed, no matter how much your member base grows.
  • Flexibility of Content: You can create and host unlimited courses, lessons, and membership levels. This lets you expand your options and diversify the revenue streams without worrying about increased fees.

In summary, the fixed cost structure for self-hosted platforms like this one provides predictable costs and a significant development potential.

With a scalable platform and no fees per-user You can increase your member base as well as content offerings, maximizing profitability and guaranteeing sustainable expansion.

There's more.

Integration with other Business Tools

Self-hosted services like these also provide the possibility of integrating with numerous software tools for business, improving overall operations and insights into student behavior and course performance.

Here's how:

 2. CRM Systems:

 3. Analytics Tools

 4. Calendar/Scheduling Tools:

 5. Form/Survey Builders:

 6. Payment Gateways:

Below are additional details about how you can integrate your business account to a number of tools.

Watch how to boost your memberpess website with integrations and add-ons

Making the Switch to Self-Hosted

After you've been convinced by all the benefits attached to moving from SaaS-based LMS platforms to Self-hosted platforms, here's what you need to do the next step:

 Make the switch!

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

 This is a step-by-step tutorial that will guide you navigate the procedure:

Step 1: Start by making a plan

  • Review Your Current Platform Check your present SaaS LMS platform's features, information, and limits.
  • Definition of goals: Determine what you aim to achieve with the migration (e.g. cost reduction, less expense and more control).
  • Develop a migration Plan: Outline tasks, timelines, and your responsibilities. Ensure you have an all-data backup.

Step 2. Set-Up the Self-Hosted platform you have created.

  • Install Install and purchase the plug-in on your WordPress site.
Watch >>> How to Install The Plugin

Step 3: Export Data from SaaS Platform

  • Backup Data Make sure you've got backups of the entire course's content including user information, course content, as well as other pertinent information.
  • Export Content: Utilize the tools for export provided by your SaaS LMS to download all the data you need such as user details, and media documents.

4. Import the Data

  • Import Users: Use tools or manual techniques to import user data to provide seamless access for existing students.

Step 5 Step 5: Setup

  • Members Levels You can set up levels of membership that are compatible with your business model.
  • Payment Gateways Set up payment gateways, such as Stripe or PayPal for safe transactions.
  • Customization You can customize the look and layout of your web site to reflect your brand.

Step 6: Test Everything

  • Functionality testing: Ensure all features like the access to courses, levels of membership as well as payment methods, work properly.
  • User Experience: Test the course's user experience from registration until course completion, to make sure you have an enjoyable experience.

And now, it is time!

Step 7: Launch and Promote

  • inform users: Notify your existing customers about the new platform with clear instructions as well as support for accessing the new system.

 5Tips for a seamless transition

  • Plan fully, with specific timelines and backups for data.
  • Communicate modifications clearly to users and offer support.
  • Test every function thoroughly in order in order to prevent disruptions.
  • Utilize available resources and migration guides. Begin by introducing a tiny portion of content to address issues early.
  • Provide constant support with Help desks and FAQs and track efficiency, making changes in response to the feedback.

Following these steps it is possible to smoothly transition from a SaaS LMS to a self-hosted service such as, having complete control of your content while maximising your profits.

A Quick Recap

See how far we've made it.

We started with the disadvantages that come with relying on third-party LMS platforms to manage your online course monetization.

We also discussed the major advantages that self-hosted platforms for courses offers, including complete content ownership, reduced costs, and increased control of your branding and marketing strategies.

We also conducted some comparatives and were able to convince you that investing in self-hosted course platforms like Courses can be a game changer for your creative business.

It is also important to remember that when you eliminate high revenue-sharing fees and use tools like Courses, you are able to develop a viable and sustainable online education business.

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

Please let us know in the comments section if you will be switching to a self-hosted platform for courses like Courses. We're looking forward to responding any questions you may ask us.

Sarah O       Sarah is adamant about making simpler the technical aspects of websites, plugins, and digital marketing. As a writer for content at Member Press, she has a keen eye for crafting engaging and informative written content. Sarah has a significant role in educating and empowering users on the full potential of Member Press plugins. Bringing a blend of expertise in technology and a creative flare her goal is to ensure that each article not only educates, but also stimulates. When not writing her favorite content, she is interested in exploring the most recent technologies and trends in digital marketing. She's always searching for innovative ways to improve user experience.