How to Earn More Passive Income from Your Online Courses |

Jun 6, 2024

     Reader Disclosure

Are you convinced that you can earn a higher than passive income through your online course using self-hosted courses?

What's Inside? Toggle

A Misperception of the Third Party LMS Platforms

You might agree with this statistic which shows that five percent of course designers assess their course's effectiveness based on satisfaction of students, whereas 23% consider student enrollment as the primary factor. 21% of course creators focus on student income.

This is the reason why many course designers believe it's more advantageous to work with third-party LMS platforms like Udemy, Teachable, and Kajabi because:

  • They believe it can reduce the cost of marketing, thus cutting down on the necessity for huge upfront investments for hardware and software.
  • They believe it can help the brand's introduction to markets in a quicker manner.
  • It's assumed that it's easy to use and does not require technical expertise, making it easier for course creators to design courses, make courses, and keep them up to date.

But, these advantages come at a price, which include:

  1. An ever-increasing revenue-sharing cost.
  2. 75 percent of instructors earn less than $1000 every year. Just 1 percent of instructors earn more than $50,000 per year.
  3. It's possible that the course will be overlooked by the masses, and that implies that you'll have to invest extra marketing dollars to spread your message to the correct audience.
  4. Limited opportunities to nurture connections with students beyond the website.
  5. It's not possible to tailor your profile or brand through these platforms.
  6. It's hard to follow the student's progress as they go along the funnel.
  7. Insufficient engagement opportunities because of the absence of gaming and integrated community services.

     Introduction to self-hosted course platforms    

If you're a class creator who is frustrated by the high cost and limitations that come with SaaS LMS platforms, you're not the only one. There are many educators confronted with the same dilemmas.

There's a better approach to go: self-hosted courses platforms.

If you choose to run your own course, you'll be in the control of your course content as well as able to save money on fees-sharing as well as discover ways to make more income.

Take a moment to think about it...

Imagine being able to tailor your plan exactly as you'd like it and also keep your hard-earned dollars you earn.

Moving to a self-hosted service doesn't only mean cutting costs - it's about maximizing the capabilities of your company and creating an efficient, long-lasting and viable enterprise.

You're still doubtful? Check out this review below.

     The cost is high for Revenue Sharing    

When you're the use of well-known SaaS LMS platforms to sell and manage online courses It is essential to know the revenue sharing models they use.

The platforms usually make a substantial portion of your income, and this could quickly add up and take away the profits that you can earn.

Below is a summary of the typical revenue-sharing programs of a few popular SaaS LMS platforms:

     1. Teachable

Teachable provides a range of pricing plans, and their revenue sharing model is different based on the plan you select. This is how the annual costs of their plans could look like:

  • Free plan: Costs are $1 plus 10% per transaction.
  • It is the Basic plan ($39/month): 5 per cent transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month) There is no charge to make transactions, but restricted publication of course.

     2. Thinkific

Thinkific offers a variety of pricing levels that carry distinct implications on revenue sharing:

  • Free Plan: There's fees for transactions but it does have limited capabilities.
  • The Basic Plan ($49/month): No fee for transactions but only downloads via digital media.
  • Premier Plan ($99/month) in addition to Premier Plan ($499/month) Professional Plan There are no transaction costs However, it is limited in terms of on-line community services.

     3. Udemy

Udemy is founded upon a different system of income sharing rather than Teachable and Thinkific:

  • Organic sales Udemy gets 50 percent of their profits through purchasesmade through their marketplace.
  • Promotion of Instructors: Teachers get 97% of profits from sales generated by their own marketing efforts (using an instructor coupon) as well as Udemy is required to pay an administrative fee of 3 percent.
  • Paid User Acquisition For the sales generated through Udemy's paid advertisement strategies, instructors only receive 25% of the sales.

     4. Kajabi

Kajabi provides subscriptions with the option of combining extra charges according to the following plans:

  • Kickstarter ($69/month) as well as the basic Plan ($149/month) The Basic Plan ($149/month) and Kickstarter ($69/month). no fees for transactions, but the options are limited and there are fewer the features are limited.
  • There is the Growth Plan ($199/month) and the Pro Plan ($399/month): There are no transaction costs, however the plan has a limited number of student enrollments.

The revenue sharing models highlight the cost of making use of third party LMS platforms. These platforms are convenient and robust features, the recurring fees and revenue cuts could substantially reduce your revenue.

Self-hosted hosting solutions allow you to earn a portion from your earnings and also allow the flexibility in the way you plan and present the classes.

This is a comprehensive comparison of both platforms.

     Comparative Analysis of Earnings Potential: SaaS LMS vs. Self-hosted course platforms.    

Scenario: Imagine you offer an online class for $100.

SaaS Model for LMS Platform:

  • Teachable (Basic plan): With an average transaction cost of five, you'd lose $5 per sale.
  • Earnings per sale: 95 dollars.
  • Monthly subscriptions Monthly subscription for $39
  • If you can offer 20 courses per month, the following formula will work for you: $95 x 20 + $39 = $1,861.
  • Udemy (Organic sale): If you were to have a 50 percent revenue share, your company would have to pay the equivalent of $50 per sale.
  • Per sale, the profit is $50.
  • If you sell 20 courses per month: $50 20 x 20 = $1,000

 Self-Hosted Solutions Example:

  • A month-long subscription to (Most popular plan) Cost: $33.
  • For each sale, you earn $100.
  • If you're able to sell 20 courses each month 100 (x 20) equals $33 = $1,967

Comparison:

  1.       Teachable (Basic Plan):      
  • SaaS LMS Earnings: $1,861/month
  • Self-Hosted Earnings: $1,967/month
  • It's $106 more for self-hosted
  1.       Udemy (Organic selling):      
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • It is more expensive at $967 when hosted by self.

Over the course of a year the differences can be substantial. That's about $11,604 saved in an entire year!

     Self-hosted classes such as Courses will reduce your costs by hundreds or even thousands of dollars based upon the volume of sales you make.    

When you've calculated the amount you could save and earn from a self-hosted course, let's see some benefits that come with switching to this system.

     Advantages of Self-Hosted Course Platforms    

Self-hosted courses are an effective alternatives for SaaS LMS solutions, as they give you total control over your content and operations.

On the list, it is considered to be a good choice, especially in the event of

Through leveraging the power using the strength of WordPress it gives you unbeatable flexibility and options for customizing which allows you to build an experience for learning that is consistent with your brand's image as well as your business's goals.

If you select self-hosted courses platforms like those provided by e-learning.com There are many advantages. They include reduced costs, enhanced control, and the ability to use various monetization strategies to increase your profits.                Watch >>> Courses Overview of the feature

Let's examine these advantages more in depth.

     Control and the Ownership of Content    

Having control is one of the most important assets of an artist. It is an essential element of successful advertising and branding.

Self-hosted courses like It is possible to customize each aspect of your course to match your unique brand's image.

From layout and style to the integration of multimedia components Controlling the content you create allows you to create a professional and unified learning environment that reflects the values and style of your business.

As the creator of your content allows you to apply a variety of strategies for marketing without restrictions.

You are able to design and promote promotions, create bundles of classes, give discounts as well as use a wide range of marketing tools and plugins available on WordPress.

This flexibility enables you to engage with your customers more efficiently and modify your plan based on real-time outcomes and the data.

     Direct Customer Relations    

One of the biggest advantages of hosting your own courses is the possibility of establishing intimate, unmediated relationships with your students.

Without the constraints of a third party intermediary, you can engage directly with students using personalized email messages or feedback and support.

When you control your platform you gain access to extensive data about the behavior of your pupils, along with their interests, progress, and choices.

This is essential for understanding what's working and what's not working in your courses.

Through analyzing the data by analyzing this data, you can modify your teaching materials as well as your methods of teaching to meet the specific requirements of your students. This could result in greater satisfaction from your customers as well as a greater retention rate.

Platforms for intermediaries often hinder your ability to provide timely and efficient customer support.

If you are using a self-hosted service it is possible to implement a comprehensive support system that includes live chat, forums as well directly messaging.

Quick access to assistance and support can significantly improve student experience and address issues before they escalate.

     Members can earn money through membership    

One of the best ways to monetize your online course using a self-hosted system is to bundle them in an membership model.

Memberships foster ongoing engagement which leads to higher retention as customers continue to find the value of their memberships.

If you're able to give access to an extensive selection of information at an affordable monthly fee, will be of great benefit in encouraging more students sign up.

Forums and other community-based functions like forums as well as interactive Q&A sessions on live TV help build a sense of connection between the members of your platform, improving loyalty among members of your website.

     This method increases the value of education you provide to your students, and also creates an opportunity for steady revenue.    

Base Body Homepage
Base body girl

They offer online training as well as individual session in their personal training facility for strength situated in Sydney, Australia.

Utilizing a platform , Base Body Babes manages their paid-for content as well special offers on their website. Members have access to home and gym classes to help with weights along with tutorials and recipes.

The model allows them to generate regular revenue while offering significant advantages to their local communities.

     Fixed costs and unlimited expansion    

Here's the details of the cost involved:

  •       Web Hosting      
  •       Domain Registration      
  •       LMS Software/Plugins      
  • Four pricing levels are available. :
  • Basic: $179.50/year, suitable for beginners.
  • Additional cost: $299.50/year, includes additional functions and connections.
  • Pro: $399.50/year, ideal for companies that require advanced technology.
  • The Elite plan: $499.50/year, great for entrepreneurs and creatives who have ambitions.
  • Additional Charges:
  • SSL certificates to ensure secure transactions ($0 up to $100/year) are often part of hosting plans).
  • Fees for payment gateways (typically about 2.9 percent, plus $0.30 for each transaction).

What are the benefits of choosing us ? We'll tell you our cost and the benefits you can expect by...

Pricing:

  • Basis Plan $179.50/year
  • Plus Plan: $299.50/year
  • Pro Plan: $399.50/year
  • Elite: $499.50/year

Return On Investment (ROI):

To calculate the rate of return on investment, let's assume you decide to sign up for the Plus plan for $299.50/year. If you sell the bundle of courses or membership at $100, and you sell just 3 memberships per month, your monthly revenue is $300.

In a year, that's 3600 dollars. After subtracting the costs of ($299.50) and hosting ($240 per month, for the price of $20) The result is a net of $3,061.

The evidence is clear that despite the low income, the return on investment is impressive, and it is an economical choice!

Evaluation of the Scalability Potential without additional costs for Content or users

One of the main benefits in self-hosting is its scalability.

In contrast to SaaS platforms which are priced per user or take an amount of profit, this platform lets you to scale your company without incurred additional expenditures.

Here's how:

  • unlimited users When your web site is running smoothly when it is functioning you can add any number of members without additional costs. Costs will be affordable regardless of how the number of members you have.
  • Content Flexibility: You can create and host unlimited courses, lessons and levels of membership. This allows you to expand your options and diversify your income streams without worrying about fees that will increase.

Fixed cost structures for self-hosted websites like this gives predictable prices and substantial expansion opportunity.

With an scalable platform and free-of-cost per user, you can expand the number of members you have and your contents products, while also maximizing profit while ensuring sustainable growth.

There's more.

     Integration with Tools for Business Tools    

Self-hosted platforms like also offer the ability to connect various enterprise tools to improve the overall operation, while also providing insight into student behavior as well as course performance.

Here's how:

     2. CRM Systems:

     3. Analytics Tools

     4. Calendar/Scheduling Tools:

     5. Form/Survey Builders:

     6. Payment Gateways:

Additional details are given about how you can integrate your account into business tools.

learn how to improve your Memberpess site with integrations and add-ons

     Moving to self-hosted hosting Switch to self-hosted    

Now that you're convinced by the numerous advantages of moving platforms that are SaaS-based to self-hosted platforms, here's what you need to do in the following stage:

HTML0 Switch to HTML0!

The transition from a SaaS LMS platform to self-hosted courses such as these can be daunting, but it's manageable by having a program.

It is a step by step tutorial to help you with the procedure

     Step 1: Begin by defining a plan    

  • Review Your current Platform: Review your currently installed SaaS LMS platform's features, limitations and data.
  • The goal should be set. Set out what you want to accomplish through the transition (e.g. cost reduction, lower expenses or better control).
  • Develop a Migration Plan Define your goals, timelines, and the obligations. You should ensure that you've an archive of all the data you have.

     Step 2. Set-Up your Self-hosted Platform

  • Install Purchase and install the plug-in to your WordPress website.
Check out the video below for instructions on how to Install The Plugin

     Step 3: Export Data From SaaS Platform    

  • Backup Data Make sure you've got backups of all contents of your course and user information and other relevant information.
  • Export Content: Use the tools to export provided in the SaaS LMS to download all the data you need, including courses, information about users, as well as media documents.

     step 4: import data    

  • Data Import by User Use plugins or manual methods for importing data from users to provide the seamless accessibility of students.

     5. Configuration    

  • Membership Levels You can set up different levels of membership to fit your company structure.
  • Payment Gateways Set up payment gateways, such as Stripe or PayPal to make secure transactions.
  • Customization You can alter the style and design of your site to represent your company's image.

     6. Test Everything

  • Functionality testing Verify that every function, including the access to courses, levels of membership and payment methods, work in a way which is in accordance with.
  • users experience: Test the experience of a user from signing up until finalization of the course to guarantee an enjoyable journey.

It's time!

     Step 7 Begin and promote    

  • Inform users: Notify your current users about the new technology by providing clear directions and help to access the new technologies.

5Tips for a smooth transition

  • Plan thoroughly with particular timelines and backups of information.
  • Create modifications clearly to users and offer help.
  • Check out the function carefully to ensure that there are no interruptions.
  • Use all available resources and guidebooks, beginning with introducing a small portion of the content that addresses issues in the early.
  • Give constant support by means of Help desks, FAQs and help desks. You can also monitor the efficiency of your system and adjust it based on your feedback.

Following these steps, you can easily transition from an SaaS LMS to a self-hosted service with full control over what you publish and maximising your profits.

     A Quick Review    

We're amazed by how far we've come.

The first step was to look at the negatives that come with relying on third-party LMS platforms to manage your online course revenue generation.

Then we shared the significant advantages self-hosted course platforms like offer, such as complete ownership of the content, lower expenses as well as greater control of your marketing and branding strategies.

We also conducted some comparatives and were able persuade you that using self-hosted learning platforms like Courses can be a game changer for your creative business.

Also, it is important to keep in mind that when you get rid of high fees for revenue sharing and make use of tools such as Courses, you are able to build a profitable and scalable online education company.

Be sure to evaluate the costs of your website in relation to advantages. If you're using WordPress you should consider an efficient platform that maximizes the profitability of your business and increase its growth potential.

Comment below in the comments section if you're planning changing to self-hosted courses platforms like Courses. We look forward to answering all questions you might have.

Sarah O Sarah is passionate in reducing technical nitty grittys of plugins, websites, and marketing via digital. As a content writer for Member Press, she has a keen eye for crafting captivating and insightful writing. Sarah plays a major role in assisting users to become knowledgeable and empowered to fully utilize the possibilities that can be accessed via Member Press plugins. With a mix of creativity and technical know-how, she ensures that every article is not just informative but encourages. While she is not writing, she enjoys exploring the latest developments in technology and marketing. She's always searching for innovative ways to improve the user experience.

Article was posted on here