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How to Get More Passive income from your online courses |

Jun 4, 2024

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If we could tell you that you could earn more passive income from your online courses by using self-hosted platforms for your course?

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The Misconceptions of Third Party LMS Platforms

You might agree with this statistic which shows that five-seven percent of the course creators determine their courses' success through student satisfaction. 23% take into account student participation while 21% concentrate on the income of students.

This is the reason why some instructors believe it's best to choose third-party LMS platforms like Udemy, Teachable, and Kajabi for the following reasons:

  • They are hoping it will reduce their marketing expenses, thereby reducing the requirement for huge investment in the beginning for software and hardware.
  • They are convinced that it can help them launch their brand to the public in a quicker manner.
  • They assume it's user-friendly and needs no technical skills This makes it much easier for course creators to develop courses, create, and maintain their courses.

 However, these advantages come at a steep cost which includes:

  1. A growing revenue-sharing expense.
  2. 75 percent of course creators earn less than $1000 each year. Only 1 percent of instructors earn more than $50,000 annually.
  3. Some courses may get lost in the crowd, requiring additional marketing expenses to reach your target audience.
  4. There aren't many opportunities to build relationships with students outside the platforms.
  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. Limited engagement opportunities due to the lack of gamification and integrated community services.

Introduction to Courses that are self-hosted

If you're an online course creator who is frustrated by the expensive cost and limitations in SaaS LMS platforms, you're not alone. A lot of educators are facing similar 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 discover fresh possibilities to earn profits.

Think about this...

Imagine the possibility of being able to customize your courses exactly how you want while earning more of your hard-earned income.

Moving to a self-hosted service doesn't only mean cutting down on expenses, it's about unlocking the potential you have and creating a more profitable, long-term enterprise.

Are you still not convinced? Check out this explanation below.

The Cost High for Revenue Sharing

If you are using the most the most popular SaaS LMS platforms to sell and run your online classes It is essential to know the revenue sharing models they use.

These platforms often charge a substantial percentage of your profits that can mount up quickly and eat into 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 has a variety of pricing plans, and their revenue-sharing structure varies based upon the plan you select. This is how their pricing for the year looks like:

  • Free Plan: charges $1 + 10% for each transaction.
  • Basis 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 the publishing of courses.

 2. Thinkific

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

  • Free Plan: No charges for transactions, but limited capabilities.
  • Basis Plan ($49/month): No charges for transactions, however it is limited to digital downloads.
  • Pro Plan ($99/month) and Premier Plan ($499/month): No transaction fees, but limited online community features.

 3. Udemy

Udemy is based on a distinct revenue-sharing model compared to Teachable as well as Thinkific:

  • Organic sales: Udemy takes 50 percent of its revenues from transactionsmade via their marketplace.
  • Promoting Instructors: Instructors retain 97% of revenue for sales made through their own promotions (using an instructor coupon) as well as Udemy taking a 3% administration fee.
  • Paid User Acquisition: In the case of sales made through Udemy's paid advertising strategies, instructors only receive 25 percent of the profits.

 4. Kajabi

Kajabi offers subscriptions that combine other fees that are depending on the plan

  • Kickstarter ($69/month) and Basic Plan ($149/month) Basic Plan: No transaction fees, but limited features and products.
  • Growth Plan ($199/month) and Pro Plan ($399/month) The Growth Plan has no transaction fees, but a only a limited amount of active student enrollments.

The revenue sharing models are designed to emphasize the expenses associated with making use of third party LMS platforms. Although these platforms provide convenience as well as robust capabilities, recurring fees and revenue cuts can significantly reduce your earnings.

A self-hosted option can allow you to keep some of your money and allow you to be more flexible in how you organize and deliver your course.

Here is a detailed analysis of the two platforms.

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

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

 SaaS LMS Platform Exemple:

  •   Teachable (Basic Plan):  With a 5% transaction fee, you'd lose $5 per sale.
  • Profits per sale: $95.
  • Monthly subscription Monthly subscription: $39
  • If you are able to sell 20 courses a month, the following formula is applicable: $95 x 20 + $39 = $1,861.
  •   Udemy (Organic sales):  In the case of a 50% profit share you'd be losing $50 per sale.
  • Earnings per sale: $50
  • If you sell 20 courses a month: $50 20 x 20 = $1,000

 Self-Hosted Solutions Example

  • Monthly membership for (Most Well-liked Plan) The cost is $33
  • Earnings per sale: $100
  • If you're selling 20 courses a month 100 x 20 = $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
  • The difference is $967 higher with self-hosted

For a period of time, these differences are significant. That's about $11,604 saved in one year!

Using self-hosted course platforms such as Courses will save you hundreds to thousands of dollars, depending on the amount of sales.

You now know the amount you could save and earn with a self-hosted course solution, let's see some benefits of switching over to this service.

Advantages of Self-Hosted Course Platforms

Self-hosted course platforms offer an effective option to SaaS LMS solutions by giving you complete control over the content you publish and your operations.

Of these, it stands out as an effective choice, particularly when

Through the use of WordPress it offers unbeatable versatility and options for customizing that allow you to create the perfect learning experience that aligns with your brand and corporate goals.

If you select self-hosted courses platforms, such as those offered by e-learning.com, you enjoy numerous advantages, including reduced costs, enhanced control, and the capacity to employ various monetization strategies to maximize your income.

WATCH >>> Courses Overview of Featured Courses

Let's look over these benefits in detail.

Control and the Ownership of Content

Control is among the greatest strengths of an artist and the foundation of effective advertising and branding.

Self-hosted courses like  the one you use, you are able to customize each aspect of your courses to reflect your unique brand identity.

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

Ownership of your content also lets you implement a wide range of marketing techniques without any restrictions.

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

This flexibility enables you to connect with your audience better and to adjust your strategy based on live data and feedback.

Direct Customer Relationships

One of the most notable benefits of self-hosted learning platforms is the capacity to establish direct, unmediated relationships with your students.

With no limitations of an intermediary system, you are able to engage directly with your students by sending them personalized messages as well as feedback and help.

As the administrator of this platform, you will have access to comprehensive data on your students' behaviors along with their interests, progress, and preferences.

It is essential in understanding how to make the best decisions as well as what's not during your studies.

Through analyzing the data it allows you to tailor your curriculum and teaching strategies to meet the specific needs of your students. This can lead to increased satisfaction for your customers and retention rates.

Platforms for intermediaries often hinder your ability to provide timely and effective customer service.

If you use a self-hosted service, you can implement a robust customer support system, including forums, live chat and direct messaging.

This immediate access to help and support can significantly enhance student experiences and help address issues before they escalate.

The Monetization of Membership

One of the most effective ways to monetize your online courses even more using a self-hosted system is to package them into a membership model.

The benefits of memberships are that they encourage ongoing involvement and increase customer retention because students constantly benefit from their memberships.

In offering access to an extensive catalog of contents for a regular fee, you offer significant value and encourage more students to sign up.

Forums and live Q&A sessions build an emotional connection among members, enhancing their commitment to your platform.

 This strategy increases the educational value that you provide to your students as well as creates the possibility of steady recurring income.

Base Body Homepage
Base body girls

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

Through utilizing Base Body Babes manages their paywalled content and exclusive offerings through their website. They provide customers with access to online as well as gym classes for weight training as well as tutorials and a recipe library.

This lets them generate regular revenue while offering significant benefit to their customers.

Fixed costs and unlimited growth

 Here's a breakdown of these costs:

  •   Web Hosting
  •   Domain Registration
  •   LMS Software/Plugins:
  •     The company offers four pricing tiers    :
  • Basic: $179.50/year, suitable for beginners.
  • Plus: $299.50/year, includes additional options and features.
  • Pro: $399.50/year, ideal for firms that need advanced features.
  • The Elite plan: $499.50/year, great for entrepreneurs and creative creators.
  • Additional costs:
  • SSL certificates for safe transactions ($0 to $100/year), usually included in hosting packages).
  • Payment gateway fees (typically approximately 2.9 percent plus $0.30 per transaction).

Why should you choose ? This is our price and 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 assume you opt to go with the Plus plan for $299.50/year. If you sell the course bundle or membership for $100 and sell just 3 memberships per month, your revenue per month will be $300.

For a full year, that's $3,600. By subtracting hosting costs ($299.50) and hosting ($240 per month for $20) You'll earn an annual net income of $3,061.

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 with no additional cost per User or Content

One of the significant advantages of self-hosting your courses with is scalability.

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

Here's how:

  • Unlimited Users: When your web site is set up and you have it up and running, you are able to add an unlimited number of members without incurring additional costs. Your expenses will remain fixed, no matter the amount your members base expands.
  • Content Flexibility: You can create and offer unlimited lessons, courses, and membership levels. It allows you to broaden your options and diversify your revenue streams without having to worry about increasing charges.

In summary, the fixed-cost structure of self-hosted platforms like this one offers predictable expenses and substantial development possibilities.

With an infrastructure that is scalable and without extra costs per user You can increase the number of members you have and your content offerings, maximizing profitability as well as ensuring sustained increase.

There's more.

Integration with Other Business Tools

Self-hosted services like these also provide the flexibility to integrate various enterprise tools to improve general operations as well as providing insight on student behaviour and 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 about how you can integrate your account with business tools.

Watch the video below to see how you can boost your membership website with integrations and add-ons

Making the Switch to Self-Hosted

After you've been convinced by the numerous benefits of moving from SaaS-based LMS platforms to self-hosted platforms, here's what you should do the next step:

 Make the switch!

Moving from an SaaS LMS platform to self-hosted course platforms like can seem overwhelming, but it's doable when you have a strategy.

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

1. Start with a strategy

  • Examine Current Platform Examine your currently installed SaaS LMS platform's features, data, and limitations.
  • Set Goals: Determine the goals you want to accomplish by implementing the change (e.g. reduced costs and better control).
  • Create a Migration Plan Outline the deadlines, tasks, and your responsibilities. Make sure you've got a backup of all data.

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

  • Install: Purchase and install the plugin 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, and any other information that is relevant.
  • Export Content Use the export tools that are provided by your SaaS-based LMS to download all necessary data such as information about the user, as well as media documents.

step 4: import data

  • User Import Utilize plugins or manual methods to import data from users to ensure seamless access for existing students.

Step 5 Configure

  • Members Levels Set up membership levels that are compatible with your business structure.
  • Payment Gateways Set up payment gateways, such as Stripe or PayPal for safe transactions.
  • Customization You can customize the look and appearance of your web site in line with your company's branding.

6. Test Everything

  • Functionality Testing: Ensure all features, such as course access, membership levels, and payment processes, work correctly.
  • User Experience Test the experience of a user from signing up to course completion to ensure a smooth user experience.

And now, it is the right time!

Step 7 Promoting and Launching

  • inform users Inform existing customers about the new platform by providing clear directions and assistance for accessing the new system.

 5 Tips for a seamless transition

  • Plan thoroughly with precise timelines and backups of data.
  • Communicate changes clearly to users and offer support.
  • Try all functionalities extensively so that disruptions are not caused.
  • Utilize available resources and migration guides, starting by introducing a tiny part of the content that addresses problems early.
  • Provide ongoing support through Help desks and FAQs and track efficiency, making changes based on the feedback.

Following these steps by following these steps, you will be able to transition seamlessly from a SaaS LMS to a self-hosted solution such as, having complete control over the content you publish and maximising your profits.

A Quick Recap

Look how far we have been.

The first issue we discussed was the drawbacks of relying on third party LMS platforms for your online course's revenue generation.

In the following, we discussed the important benefits that self-hosted courses like offers, including full ownership of content, lower cost, and more control of your branding and marketing efforts.

We also did some comparisons and we were able to convince you that investing in self-hosted course platforms like Courses will be the gamechanger for the creative enterprise you run.

Finally, it is imperative to remember that when you get rid of high fees for revenue sharing and use tools like Courses, you can create a scalable and profitable online educational business.

Consider evaluating the cost of your current platform vs. the benefits. If you're using WordPress, consider as an efficient solution that will maximize the potential for growth and profitability.

Please let us know in the comments if you will be switching to a self-hosted platform for courses like Courses. We look forward to answering any queries you may ask us.

Sarah O       Sarah is passionate about reducing the technical nitty-grittys of plugins, websites, as well as digital marketing. As a content writer for Member Press, she has an eye for creating captivating and insightful writing. Sarah plays a crucial role in teaching and inspiring users to fully utilize the potential 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 inspires. In her spare time she loves to research the newest trends in technology and digital marketing, always seeking new methods to improve the user experience.