Learning Management System Pricing

by Jeff Cobb on June 22, 2010

I just posted the following information on average LMS pricing on the ASAE profesional development listserve and then realized that I should post a version of it here.  Basically, an earlier question to the list about the costs of Web-based learning systems prompted me to re-calculate some of the pricing averages in our learning management system (LMS) report based on some new companies entering the field. Here’s what we come up with for Year 1 cost averages for various user levels. These are all for solutions hosted by the LMS company (i.e., software as a service) and they include e-commerce capabilities (though transaction fees are not covered):

  • Up to 500: $22,083 (Low: $1,740, High: 43,500)
  • Up to 2500: $43,395 (Low: $3,540, High $123,000)
  • Up to 5000: $62,203 (Low: $4,440, High $183,000)
  • Up to 10,000: $93,103 (Low: $8,940, High: $300,000)
  • Up to 25,000: $125,220 (Low: $14,400, High $430,750)
  • Unlimited: $163,650 (Low: $14,400, High: $300,000)

LMS pricing has always been all over the map – as the big gap between low and high prices above reflects – but the very encouraging change in the past few years is that there have been a number of high quality entrants at a much lower price range. So, you have to be careful about putting too much weight on the averages – a solid, full featured LMS is actually well within the reach of even smaller organizations at this point.

The above averages, I should note, are based on pricing from the following providers which we have found to be very active in the association sector:

A free copy of the overview from our LMS report – which contains the old version of the numbers above and variety of other information about web-based learning systems is available on our resources page. Anyone interested in learning management systems might also be interested in our ongoing series of audio interviews with LMS providers.

Jeff

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