To choose an LMS platform that fits your budget, it is essential to assess the associated costs, such as installation, licensing, maintenance, and technical support fees. Opting for a SaaS solution with a subscription based on the number of active users can offer financial flexibility, by aligning expenses with the actual use of the platform.
Your choice is made: you are going to invest in a learning management system (LMS) for your organization! But now the question of the price arises..
Faced with the multitude of solutions available to you, which one should you choose? Which tool will be the cheapest? What payment method is best for you? We have deciphered for you the question of financing your LMS. Follow the guide!
What is a Learning Management System (LMS)?
A Learning Management System (LMS), or “Learning Management System”, is a solution for centralizing a company's training activities. It allows you to host your online educational content, modify it and monitor the evolution of your learners in real time.
It is also a way to be able to manage the access of all training actors (trainers, learners, administrators), and to give them the opportunity to provide their expertise on certain training content, if the solution offers an integrated authoring tool.
What pricing model should I choose for my future LMS?
There are all kinds of LMS, with more or less high price ranges depending on the features offered.
- The lifetime license (+ maintenance fees)
The lifetime license was very common before the arrival of subscription-based SaaS (which we will discuss just below). It allowed you to become the owner of your training solution and to avoid paying a monthly subscription.
It is an attractive solution for very large companies who benefit from internal teams to deploy and manage the maintenance of their LMS. But for smaller structures, this solution requires too many resources (budget, teams and time), and is therefore not profitable.
- SaaS subscription according to the number of users
This is the formula most often offered by the developers of training solutions. The subscription can then take several forms: depending on the number of users, the number of registered users or the number of active users.
- Cost per user: here, we pay fees for each user or user group. The company does not have to manually add or remove users. LMS developers often talk in “ranges” of users (fewer than 20 employees, between 21 and 50, etc.)
- Cost per registered user: this formula works thanks to an identifier and a password. Each user has personalized access, so administrators need to remove old users to add new ones. This takes more time, but allows for better customization of the interface.
- Cost per active users: for this last model, you pay for access to the LMS platform in the form of a cycle (monthly, quarterly or annual). This is quite interesting for companies that do not want to create training courses on a regular basis.
- The SaaS subscription with unlimited users: This type of plan offers a monthly, quarterly or annual subscription with an unlimited number of users. It is a good solution for reduce the administrative management of your training platform. Generally, prices will change according to the number of features chosen by your company.
- The personalized rate
If your training project is very specific or your organization has specific needs, personalized pricing is surely a good solution. In this case, the publisher will schedule a call to understand your challenges and will send you a tailor-made quote.
How much does an LMS cost per user per year?
Pricing cannot be settled by comparing two advertised subscriptions, because vendors do not bill the same unit. The only comparable figure is the full cost per user per year, which you work out yourself from your own rollout.
Cost per user per year = (annual subscription + amortised implementation + content production + internal admin time) divided by the number of people actually trained during the year.
Two details drive the whole result. Implementation (configuration, HRIS integration, content migration, admin training) is paid once: amortise it over the commitment period, usually three years. And the denominator has to be the number of people actually trained, not the number of accounts created: that is where two platforms with identical list prices diverge.
Worked example for 500 employees on a three-year commitment, with a 15,000 euro annual subscription, 9,000 euros of implementation amortised over three years, 6,000 euros of content production per year and 0.2 full-time equivalent of internal administration valued at 10,000 euros: the full annual cost comes to 34,000 euros. If 500 people train, that is 68 euros per user per year. If only 200 log in, the same contract costs 170 euros per person trained.
| Model | How the invoice is calculated | Best when | Watch out for |
|---|---|---|---|
| Per registered user | A price per existing account, active or not | Headcount is stable and people actually log in | Dormant accounts and leavers keep being billed |
| Per active user | A price per account that logged in during the month | High turnover, seasonal staff, franchise networks | The definition of active varies by vendor |
| Per user tier | A flat fee per band, for example 0 to 100 then 101 to 500 | Headcount is known and close to the top of a band | One extra user tips you into the next tier |
| Platform flat fee | A fixed subscription, unlimited or capped users | Large learner populations, heavy usage | High unit cost if the rollout drags |
| Perpetual licence | A one-off purchase plus annual maintenance | Self-hosting is mandatory, long horizon | Maintenance, upgrades and infrastructure fall on you |
| Usage-based | A price per module completed or certificate issued | Occasional use or very mixed populations | Budget hard to forecast year on year |
Registered users or active users: the gap that changes the invoice
On high-turnover populations, seasonal food production staff, agency workers in logistics, retail sales teams, the gap between the number of accounts and the number of people actually trained in a month commonly reaches a factor of two to three. Billed per registered user, that contract pays for accounts which will never be used.
Three questions to ask during negotiation:
- What exactly counts as an active user: a login, a module opened, a module completed, and over what reference period?
- What happens if you exceed the cap mid-year: pro-rata billing, automatic move to the next tier, or enrolment blocked?
- Are deactivated accounts removed immediately or only at the contract anniversary?
Hidden costs to factor in before signing
- HRIS integration: sometimes included, often billed as consulting days. Without it, account management is manual.
- Migrating existing content: SCORM conversion, reformatting, compatibility testing.
- Producing new content: frequently the largest real cost line, ahead of the subscription itself.
- Support and onboarding: service level, response times, whether a named contact is included.
- Internal time: administration, community management, reminders, reporting. A fifth of a full-time equivalent often weighs more than the licence.
- Exit: data retrieval, export formats, reversibility at end of contract.
A comparison only makes sense once these lines are added. The full return on investment calculation is covered in How to measure the ROI of your LMS, and the acquisition cost breakdown in How do you assess the cost of an LMS.
What are the factors to consider when choosing my LMS?
Before you start, and choose the LMS that will accompany you in the training of your teams, it is essential to take into account various factors.
Average and variable costs
Many LMS providers will give you a minimum price: “from... € HT” according to specific criteria. It could be the number of users, the size of the company, or even selected functionalities.
For example, some rates do not include maintenance fees, or dedicated customer service. Others will charge an additional price if you exceed the number of users provided for in the original formula. In short, don't be fooled, and read the fine print at the bottom of the contract carefully!
The impact of features and services on pricing
The same is true with the features included in your package. Some subscriptions will offer a more attractive rate, but in removing some flagship features of the solution (data monitoring, integration, customization, Gamification...)
At Beedeez, all our rates are 100% transparent and include all features, regardless of the package chosen. For more information, do not hesitate to contact us!
The factor that weighs most on real cost: the usage rate
At identical list prices, two rollouts can show a cost per person trained that differs by a factor of three. The deciding variable is not the negotiated price but the share of the workforce that genuinely trains. A cheap subscription used by a third of the teams costs more than a standard one used by everyone.
This is particularly true for frontline populations with no dedicated workstation and no corporate email address. Beedeez is built for those contexts: access from a personal smartphone, login without a company email, short capsules and offline mode. Capsule completion reaches up to 95 %, against the 20 to 40 % typically observed in the sector, with 92 % employee engagement at Picard. Measured as cost per person trained, that gap matters more than a few euros of licence.
Request a Beedeez demo and quote based on your own headcount.
Practical tips for choosing the right LMS
Before you start the Choosing an LMS for your organization, be sure to ask yourself these few questions:
- Is the platform scalable and compatible tremblant ?
- Does it offer a data analysis service?
- Does she have a intuitive user interface?
- Does it allow a customizing the visual identity?
- Does the provider of this LMS offer a dedicated customer follow-up?
- Does the rate include all the “hidden fees” (installation, handling, etc.)?
- Will this LMS be able to adapt to the potential growth of my business?
If you answered “Yes” to all of these answers, then this may be the solution for you! And if you are interested in the Beedeez LMS, but you are still hesitating, do not hesitate to contact us by clicking here !
