The Thousand Solutions Blog

How to Earn More Passive Income from Your Online Courses |

Jun 4, 2024

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If we could tell you that you could earn more 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 five-seven percent of the course designers determine their courses' success according to student satisfaction. 23% take into account student participation while 21% concentrate on the income of students.

This is why a lot of course creators think it is more beneficial to utilize third-party LMS platforms such as Udemy, Teachable, and Kajabi for the following reasons:

  • They are hoping it will reduce their marketing expenses and reduce the need for massive upfront investments in hardware and software.
  • They think it will aid them launch their brand to the public with a speedier pace.
  • It is assumed that it's easy to use and doesn't require any technical expertise This makes it much easier for course creators to design the course, start it, and then manage their course.

 However, these advantages have a high price which includes:

  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 per year.
  3. The course may be overlooked in the crowds, requiring additional marketing expenses to reach your target audience.
  4. There aren't many opportunities to build relationships with students outside the platform.
  5. It is not possible to personalize your profile or your brand's image on these platforms.
  6. It's difficult to track your students' journey in the funnel.
  7. Limited engagement opportunities due to the absence of gaming or integrated community services.

Introduction to Courses that are self-hosted

If you're an online course creator unhappy with the excessive costs and limitations that come with SaaS LMS platforms, you're not all alone. Numerous educators have similar challenges.

However, there's a better option: self-hosted course platforms.

By choosing to self-host your classes, you will be able to take charge of your courses as well as save on the cost of revenue sharing, and open up new ways to make money.

Take a moment to think about the idea...

Imagine having the freedom to tailor your course in the way you like, and keeping more of your hard-earned earnings.

Moving to a self-hosted service does not just mean you can cut costs - it's about unlocking your full potential and building a more profitable, sustainable company.

Still not convinced yet? Check out this overview below.

The high cost of Revenue Sharing

In the case of using popular SaaS LMS platforms to sell and administer your online course It is essential to know the revenue sharing models they use.

They typically charge substantial percentage of your profits that can mount up fast and consume your profits.

Below is a detailed breakdown of typical revenue-sharing models of some famous SaaS LMS platforms:

 1. Teachable

Teachable offers multiple pricing plans. Their revenue sharing model is different based upon the plan you select. This is how their pricing for the year is:

  • Free Plan: costs $1 plus 10% for each transaction.
  • The Basic plan ($39/month): 5% transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month) The Professional Plan has no transaction fees, but limited publication limits for courses.

 2. Thinkific

Thinkific offers a variety of pricing levels with different revenue-sharing implications

  • Free Plan: No transaction fees, however, it has limited options.
  • Basis Plan ($49/month) Basic Plan: No charges for transactions, however it is limited to digital downloads.
  • Pro Plan ($99/month) and 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 as well as Thinkific:

  • Organic Sales: Udemy takes 50 percent of their revenue from salesmade via their marketplace.
  • Promoting Instructors: Instructors only get 97% of profits from sales generated by their own promotion (using an instructor coupon), with Udemy charging a three per cent administration fee.
  • Paid User Acquisition: For purchases made through Udemy's paid advertising strategies, instructors only receive 25 percent of the profits.

 4. Kajabi

Kajabi offers subscriptions that combine additional fees depending on the plan

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

The revenue sharing models are designed to highlight the costs associated with the use of third-party LMS platforms. Although these platforms provide convenience as well as robust capabilities, regular fees and reductions in revenue could significantly decrease your income.

A self-hosted solution can help you keep some of your money as well as give you more flexibility how you organize and deliver your classes.

This is a comprehensive comparison of both platforms.

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

 Example: Let's suppose you are able to sell your online course for $100.

 SaaS LMS Platform Exemple:

  •   Teachable (Basic Plan):  If you charge a 5% transaction fee, you'd lose $5 per sale.
  • Earnings per sale: $95
  • Monthly subscriptions Cost: $39
  • If you are able to sell 20 courses per month: $95 x 20 + $39 = $1,861.
  •   Udemy (Organic Sale):  With a 50% income share, your company would have to pay 50 cents per sale.
  • Profits per sale: $50
  • If you are able to sell 20 courses a month: $50 x 20 = $1,000

 Self-Hosted Service Example:

  • Monthly membership for (Most Well-liked Plan) Cost: $33.
  • Per sale, earnings of $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
  • Differential: $967 more for self-hosted

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

Utilizing self-hosted courses platforms such as Courses could reduce your costs by hundreds or even thousands of dollars, depending on the amount of sales.

You now know the amount you could save and earn using a self-hosted course solution Let's look at some of the benefits from switching to this service.

Advantages of Self-Hosted Learning Platforms

Self-hosted courses are a powerful alternatives for 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 in the event of

By leveraging the power of WordPress, offers unparalleled flexibility and customization options, enabling you to design a learning experience that perfectly is in line with your brand's image and corporate goals.

When you choose self-hosted course platforms, such as those offered by e-learning.com, you enjoy numerous advantages, including reduced expenses, better control as well as the capability to use diverse monetization strategies that can increase your income.

Learn >>> Watch Overview of Featured Courses

Let's examine the benefits of these.

Control and Control of Content Ownership

Being in control is among the superpowers of a creator and the foundation of effective branding and marketing.

Self-hosted courses like  You can customize every element of your course to match your company's distinctive style and.

From layout and design to the integration of multimedia components, having full control over the content you create allows you to create a cohesive and professional learning environment that reflects your brand's values and aesthetics.

The ownership of your content allows you to apply a variety of marketing strategies without restrictions.

It is possible to create and distribute promotional content, bundle courses give discounts, or use various marketing tools and plugins for WordPress.

This flexibility enables you to connect with your audience more effectively and adapt your plans based on current data and feedback.

Direct Customer Relationships

One of the major benefits of self-hosted courses is the ability to build intimate, unmediated relationships with your students.

In the absence of any intermediary service, you can communicate directly with your students through personalized emails or feedback as well as support.

If you manage this platform, you have access to comprehensive data on your students' behaviors as well as their preferences and performance.

It is essential in understanding how to make the best decisions and what doesn't in your courses.

By analyzing this data it allows you to tailor the content you teach and your teaching techniques to better meet the needs of your students. This will lead to improved customer satisfaction and retention rates.

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

With a self-hosted solution, you can implement a robust service that provides support via live chat, forums, and direct messaging.

The immediate accessibility to assistance and help can dramatically improve students' experience, and also deal with issues prior to them becoming more serious.

Monetization through Membership

One of the best methods of making money off your online course using a self-hosted system is to package them into the model of a membership.

The benefits of memberships are that they encourage ongoing involvement, leading to higher customer retention as students continually discover value from their subscriptions.

By providing access to an extensive catalog of contents at a cost that is regular that you can provide significant value, encouraging more students to subscribe.

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

 This method increases the educational value that you provide your students, and also creates a an ongoing stream of revenue.

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

By utilizing , Base Body Babes manages their paid-for content as well as exclusive offers through their website. They provide members with access to home and gym weight training courses Tutorials, as well as recipes.

The model permits them to earn recurring revenues while also providing benefits to their communities.

Fixed Costs and Unlimited Growth

 Here's a breakdown of the costs involved:

  •   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 options and features.
  • Pro: $399.50/year, ideal for companies that require advanced technology.
  • Elite: $499.50/year, great for enterprises and ambitious creators.
  • Additional Charges:
  • SSL certificates to ensure secure transactions ($0 to $100/year), usually included in hosting package).
  • Fees for payment gateways (typically about 2.9% + $0.30 (per transaction).

What are the benefits of choosing us ? Here is our pricing as well as what you stand to get...

  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):

For a better understanding of the ROI we'll assume that you sign up for the Plus plan at $299.50/year. If you sell a course bundle or membership for $100 and then sell three memberships each month, your revenue per month is $300.

Over the course of a year, it's 3600 dollars. After subtracting the costs of ($299.50) as well as hosting ($240 for $20/month), you get the sum of $3,061 as a net annual profit.

The calculation shows that even with a small amount of revenue, the return on investment is substantial, making it an economical choice!

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

One of the significant advantages for self-hosting courses is the ability to scale.

In contrast to SaaS platforms that cost per user, or that make a percentage of the revenue generated, SaaS lets you scale your company without incurring additional expenses.

Here's how:

  • Unlimited users When your web site has been set up it is possible to have an unlimited number of members without incurring any additional cost. That means that your costs 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 lets you expand your options and diversify your revenue streams without having to worry about increasing charges.

The fixed-cost structure of self-hosted services like these offers predictable expenses and substantial development possibilities.

With scalable infrastructure and no fees per-user, you can expand your member base as well as the content you offer, increasing profitability and ensuring sustainable increase.

There's more.

Integration with Other Business Tools

Self-hosted websites like those also give the ability to connect with a variety of 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 on how to integrate your account into business tools.

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

Moving to Self-Hosted Hosting Switch to Self-Hosted

If you're now convinced of the numerous benefits of moving from SaaS-based LMS platforms to Self-hosted platforms, here's what you need to do next:

 Make the switch!

The transition from an 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: Begin with a plan

  • Assess Your Current Platform Examine your current SaaS LMS platform's features, data, and limitations.
  • Define the goals: Determine what you aim to achieve by implementing the change (e.g., lower costs, greater control).
  • Create a Migration Plan Outline your tasks, timelines, and your responsibilities. Make sure you've got an all-data backup.

Step 2: Configure your Self-hosted Platform

  • Install Install and purchase the plugin on your WordPress website.
Pay Attention for How To Install the Plugin

Step 3: Export Data from SaaS Platform

  • Backup Data: Ensure you have backups of the entire course's content as well as user data and other relevant information.
  • Export Content: Use the export tools that are provided by your SaaS-based LMS to download all necessary data, including courses, user details, and media files.

4. Import the Data

  • User Import: Use software or manual methods to transfer user information to ensure seamless access for existing students.

Step 5 Configure

  • Membership Levels: You can set up levels of membership that fit your company design.
  • Payment Gateways: Configure payment gateways such as Stripe or PayPal for safe transactions.
  • Customization: Customize the design and layout of your site to match your branding.

6. Test All

  • Functionality Testing Check that all functions including the access to courses, levels of membership and payment processing function properly.
  • User Experience Test the course's user experience from registration until course completion, to make sure you have a seamless experience.

It's now time!

Step 7 Promoting and Launching

  • Inform Users Inform existing users about the transition by providing clear directions and support for accessing the new system.

 5Tips for a seamless transition

  • Plan fully, with precise timelines and backups of data.
  • Inform modifications clearly to users and offer support.
  • Check all functionalities extensively so that disruptions are not caused.
  • Utilize the available resources and guidebooks, beginning by introducing a tiny part of the content that addresses the issues before they become.
  • Give ongoing support through Help desks and FAQs and track the performance of your system, and make adjustments based on the feedback.

By following these steps by following these steps, you will be able to transition seamlessly from a SaaS LMS into a self-hosted system such as, having complete control over the content you publish and maximizing your profitability.

A Quick Recap

Look how far we have come.

We began by examining the negatives that come with relying on third-party LMS platforms for your online course revenue generation.

We also discussed the major advantages that self-hosted platforms for courses provide, like total ownership of your content, lower costs, and increased control over marketing and branding efforts.

We also conducted some comparatives and we were able to convince you that utilizing self-hosted learning platforms such as Courses will be the gamechanger for the creative enterprise you run.

In the end, it's important to note that when you get rid of high fees for revenue sharing and make use of tools such as Courses, you could develop a viable and sustainable online educational business.

Take the time to evaluate the costs of your platform in comparison to advantages. If you're currently using WordPress, consider as an effective solution for maximizing your profits and increase growth.

Let us know in the comments section if you're planning on switching to self-hosted courses such as Courses. We look forward to answering any queries you may ask us.

Sarah O       Sarah is passionate about reducing the technical aspects of web-based sites, plugins and marketing via digital. As a content writer for Member Press, she has an eye for creating captivating and insightful content. Sarah is a key player in teaching and inspiring users to fully utilize the potential in Member Press plugins. Bringing a blend of creativity and technical expertise She ensures that every piece of content not only informs but also encourages. While she is not writing, she enjoys exploring the most recent technologies and trends in digital marketing. She's always searching for innovative ways to improve user experience.