This video will dive into the four main buckets of cost associated with an LMS, so you are prepared and informed as you move forward in implementing an LMS into your business. After watching this video, you will have a comprehensive knowledge of what the cost of implementing an online training platform is.
Transcript
Hello, my name is Stephanie, and I’m a team member here at Knowledge Anywhere. And today I’m going to be answering, what is the cost of implementing an LMS? Now, of course the price of every LMS is going to be different. And I can’t tell you exactly what you’re going to spend. What I will be doing is breaking down the cost of an LMS, so you’re prepared and informed as you move forward in implementing an LMS into your business.
The cost of implementing an LMS can be divided into four main buckets. Implementation.an LMS can be divided into four main buckets. Implementation, ongoing monthly maintenance and support, content curation, and integrations. Before we dive in, it is important to note that a majority of the costs we will be discussing are associated with the first year. After year one, the costs will drop significantly, as you will typically only be paying for your monthly LMS fee and any additional content you need. All right, now that we’re all on the same page, let’s take a closer look at the categories of costs that are associated with implementing an LMS. First, we’ll start.
Now that we’re all on the same page, let’s take a closer look at the categories of costs that are associated with implementing an LMS. First, we’ll start with implementation costs. Once you’ve chosen the right LMS for your organization, you will begin the process of implementation. This includes things like branding the platform, registering users, and setting up user groups. Part of the costs associated with implementation comes from the internal costs of hiring or assigning employees to get the platform up and running. The other part is the one-time set-up fee your LMS provider will most likely charge you. Make sure to ask about these costs so you’re not caught off guard. Your LMS will also need ongoing monthly maintenance, so you’re not caught off guard.
Your LMS will also need ongoing monthly maintenance and support. These costs will come from internal employees who will need to manage users and upload courses. The LMS provider might also charge you a monthly maintenance fee that includes support, hosting, and licensing. Although this cost will continue after the first year, we mention it here because it takes up about 30% of your LMS cost during the first year of implementation. Content costs can fluctuate greatly depending on what your business needs and the content it already has. If you already have courses that can be uploaded intoContent costs can fluctuate greatly depending on what your business needs and the content it already has. If you already have courses that can be uploaded into your LMS, that’s fantastic and your content costs should be pretty minimal.
However, if you’re like most businesses and do not have content for your new LMS, you will need to acquire some. In general, there are three ways to curate e-learning content. The first is to license off-the-shelf courses, which will give you general content. This is typically cheaper depending on the amount you’re licensing. The second way is through outsourcing custom content. This will require more time and money, but the content will be specific to your company.
Finally, your business can alsobut the content will be specific to your company. Finally, your business can also create its own content. This can be anything from recording webinars, videotaping classroom training, or narrating slideshows. You know the type of content that your business is going to need, so make sure to budget in those costs when planning for your new LMS. The sooner you can get content into your LMS, the sooner you can start getting value out of your investment. We suggest starting with easily accessible content, like off-the-shelf courses. This will give you time to create more personalized content while still being able to use your LMS.off-the-shelf courses. This will give you time to create more personalized content while still being able to use your LMS.
Another area of cost to consider are integrations. Some integrations with well-known tools, like Salesforce or ADP, might come standard with an LMS, requiring minimal or no extra costs. However, if you’re interested in requesting an integration with a more unique tool, or one that the LMS company doesn’t currently integrate with, it can get more expensive.
Make a list of the integrations you want your LMS to have, and be sure to ask the LMS provider if those integrations are compatible with their platform. Congratulations, you now have the comprehensive knowledge of what the cost of implementing an LMS is.
Congratulations, you now have the comprehensive knowledge of what the cost of implementing an LMS is. We know the initial price of implementing an LMS can be intimidating, but keep in mind that the long-term benefits of a training platform will outweigh the costs.
The next step in implementing a learning management system is to get approval from your organization, so be sure to watch our video on the best strategies to get approval for an LMS. You can also visit our website at knowledgeanywhere.com for more information and resources.
