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What can you do 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 money from passive courses using self-hosted platform?

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The Misconceptions of the Third Party LMS Platforms

You might agree with this statistic that shows is 57% percent designers determine their courses' success through student satisfaction. 23% take into account student participation and 21% focus on the income of students.

This is the reason why some course creators think it is better to use third party LMS platforms such as Udemy, Teachable, and Kajabi due to:

  • They are hoping it will reduce their marketing expenses, thereby reducing the requirement for huge upfront investments in software and hardware.
  • They believe it will help to launch their business into the world 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 the course, start it, and then manage their courses.

 But, these advantages come at a steep cost for example:

  1. A growing revenue-sharing expense.
  2. 75% of course creators make less than $1,000 each year. Only 1 percent of instructors earn more than $50,000 annually.
  3. Courses might get missed in the crowd, requiring additional marketing expenses to get your message out to the right audience.
  4. Limited opportunities to nurture relationships with students outside the portal.
  5. Your page cannot be personalized or brand on these platforms
  6. It's difficult to keep track of your students' progression through the funnel.
  7. Insufficient engagement opportunities because of the lack of gamification and community-oriented integrations.

Introduction to Self-hosted Course Platforms

If you're an online-based course creator frustrated with the high prices and restrictions in SaaS LMS platforms, you're not the only one. Numerous educators have the same challenges.

But there's a better way that is self-hosted platforms for courses.

When you choose to host your courses, you can take control of your content as well as save on the cost of revenue sharing and discover fresh ways to make money.

Think about it...

Imagine the possibility of being able to design your classes in the way you like, and keeping more of your hard-earned earnings.

Making the switch to self-hosted platforms doesn't only mean cutting down on expenses, it's about unlocking the potential you have and creating the most profitable and long-term enterprise.

You're still not convinced? Check out this explanation below.

The Cost High in Revenue Sharing

When using well-known SaaS LMS platforms to sell and run your online classes It is essential to know their revenue-sharing models.

The platforms typically take a large percentage of the earnings and can accumulate fast and consume the profit you make.

Here's a breakdown of the typical revenue-sharing models of some well-known SaaS LMS platforms:

 1. Teachable

Teachable has a variety of pricing options, and their revenue sharing model is different based upon which plan you pick. The following is the annual cost of their plans will look like:

  • Free Plan: charges $1 + 10% per transaction.
  • Basis Plans ($39/month): 5 percent transaction cost.
  • Professional Plan ($119/month) and Business Plan ($499/month) There are no fee for transactions, but a limited course publishing cap.

 2. Thinkific

Thinkific provides several pricing tiers with different revenue-sharing implications

  • Free Plan: No fee for transactions however, it has limited options.
  • Basic Plan ($49/month) The Basic Plan has no fee for transactions but only digital downloads.
  • Premier Plan ($99/month) as well as Premier Plan ($499/month): No transaction fees, but limited options for online community functions.

 3. Udemy

Udemy operates on a different 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 keep 97% of the profits from sales generated by their own promotional efforts (using coupons for instructors) and Udemy charging a three per cent administration fee.
  • Paid User Acquisition For sales that are made via Udemy's pay-per-click efforts, instructors only receive 25 percent of the profits.

 4. Kajabi

Kajabi combines subscription costs with 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.
  • Plan for Growth Plan ($199/month) and the Pro Plan ($399/month) The Growth Plan has no transaction fees, but a limited number of active students enrolled.

These revenue-sharing models highlight the costs associated with making use of third party LMS platforms. These platforms are convenient and robust features, the annual fees and cuts to revenue can significantly reduce your earnings.

In contrast, a self-hosted solution can help you keep more of your income and allow you to be more flexible in how you manage and present your course.

Here's a thorough comparison of both platforms.

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

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

 SaaS LMS Platform Example:

  •   Teachable (Basic Plan):  If you charge an average transaction fee of 5 that means you'd be losing $5 for each sale.
  • Profits per sale: $95
  • Monthly membership Monthly subscription: $39
  • If you sell 20 courses per 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 lose 50 cents per sale.
  • Profits per sale: $50
  • If you sell 20 courses per month the following formula is used: $50 x 20 = $1,000

 Self-Hosted Solution Example

  • Monthly membership for (Most Popular Plan) Cost: $33.
  • Per sale, earnings of $100.
  • If you are able to sell 20 courses per month the following formula is used: $100 x 20 times $33 = $1,967

 Comparison:

  1.   Teachable (Basic Plan):
  • SaaS LMS Earnings: $1,861/month
  • Self-Hosted Earnings: $1,967/month
  • Differential: $106 more when self-hosted
  1.   Udemy (Organic sales):
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • Differential: $967 more for self-hosted

Over a year, these differences will add up to a significant amount. This is about $11,604 saved over one year!

Using self-hosted course platforms such as Courses could reduce your costs by hundreds or even thousands of dollars, depending on your sales volume.

You now know how much you can save and earn through a self-hosted course solution Let's look at some of the benefits from switching to this platform.

Advantages of Self-Hosted Course Platforms

Self-hosted courses are an option to SaaS LMS solutions by giving full control over your course content and operation.

In the list, is regarded as an effective choice, particularly when

Utilizing the power using the strength WordPress It offers unrivaled versatility and options for customizing, enabling you to design the perfect learning experience that is in line with your brand's image and business goals.

If you select self-hosted courses platforms like , you gain many advantages. These include lower expenses, better control and the capacity to employ various monetization strategies to maximize the amount of money you earn.

Watch >>> Courses Feature OVERVIEW

Let's take a look at the benefits of these.

Control and Control of Content Ownership

Having control is one of the most powerful attributes of a creator and is a key element of successful advertising and branding.

With self-hosted course platforms like  the one you use, you are able to customize each aspect of your classes to fit your brand's unique identity.

From the layout and design to the integration of multimedia elements Being in complete control of your content allows you to develop a consistent and professional educational environment that represents the values and style of your company.

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

You can create and offer promo content, bundle course give discounts, or utilize a variety of advertising tools and plug-ins for WordPress.

This flexibility lets you get your message to the right people better and to adjust your plans based on current results and data.

Direct Customer Relationships

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

With no limitations of an intermediary platform, you can engage directly with your students through personalized emails or feedback as well as support.

As the administrator of your platform you have access to extensive data about the students' behavior along with their interests, progress, and preferences.

This is important for understanding what works and what doesn't within your classes.

By analyzing this data, you can tailor the content you teach and your teaching techniques in order to best meet the requirements of your students. This can lead to higher satisfaction with your students and retention rates.

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

If you use a self-hosted service, you are able to implement a comprehensive customer support system, including live chat, forums and direct messaging.

This immediate access to help and support can significantly enhance students' experience, and also address issues before they escalate.

Monetization Through Membership

One of the most effective methods to make money from 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 as students continually find value in their subscriptions.

By providing access to a comprehensive library of content at a cost that is regular that you can provide significant value in enticing more students join.

Community-based features such as forums as well as live Q&A session sessions help build an emotional connection between members, increasing the commitment of your community.

 This approach enhances your value to your students and creates an ongoing stream of revenues.

Base Body Homepage
Base body babes

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

By utilizing , Base Body Babes manages their paywalled content and exclusive offerings on their site, providing customers with access to online as well as gym classes for weight training Tutorials, as well as a recipe library.

The model permits them to earn recurring revenues while also providing value to their community.

Fixed Costs and Unlimited Growth

 Here's a breakdown of the costs involved:

  •   Web Hosting
  •   Domain Registration:
  •   LMS Software/Plugins:
  •     offers four main pricing tiers    :
  • Basic: $179.50/year, suitable for beginners.
  • Additional: $299.50/year, includes additional features and integrations.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • Premium: $499.50/year, great for entrepreneurs and creative creators.
  • Additional Charges:
  • SSL certificates for secure transactions ($0 up to $100/year), often included in hosting packages).
  • Fees for payment gateways (typically about 2.9 percent plus $0.30 per transaction).

Why should you choose ? This is our price and what you stand to gain...

  Pricing:

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

 ROI (ROI):

For a better understanding of the ROI Let's say you decide to go for the Plus option at $299.50/year. If you are able to sell an entire course or a membership for $100 and then sell just 3 memberships per month, your revenue per month is $300.

For a full year, that's $3,600. Subtracting the cost of ($299.50) as well as hosting ($240 per month for $20) that's an annual net income of $3,061.

The calculation shows that even with a small amount of revenue, the return on investment is significant, which makes it a cost-effective choice for you!

 Analyzing the Scalability Potential without additional costs per user or Content

One of the major benefits for self-hosting courses is scalability.

In contrast to SaaS platforms, which cost per user, or that make a percentage of the revenue generated, SaaS can allow you to grow your business without additional costs.

Here's how:

  • unlimited users: Once your site has been set up, you can have an unlimited number of members without incurring any additional cost. Your expenses will are predictable regardless of the amount your members base increases.
  • Flexibility of Content: You can create and host unlimited courses, lessons as well as membership levels. This allows you to expand your options and diversify your revenue streams without having to worry about increasing costs.

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

With a scalable platform and no extra costs per user You can increase the number of members you have and your the content you offer, increasing profitability and ensuring sustainable expansion.

There's more.

Integration with Other Business Tools

Self-hosted services like these also provide the possibility of integrating with a variety of software tools for business, improving general operations as well as providing insight into the behavior of students and their course performance.

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.

check out the video below to see how you can boost your membership site with add-ons & integrations

Moving to Self-Hosted Hosting Switch to Self-Hosted

After you've been convinced by all the advantages of changing from SaaS LMS Platforms to self-hosted platforms, here's what you need to do following:

 Change it!

Switching from an SaaS LMS platform to self-hosted course platforms like can seem difficult, but you can do it when you have a strategy.

 Here's a step-by-step guide to guide you with the process

1. Start with a plan

  • Review Your Current Platform: Review your currently installed SaaS LMS platform's features, data, and limitations.
  • Define Goals Decide the goal you intend to attain through the transition (e.g. reduced costs or better control).
  • Create a Migration Plan: Outline timeframes, tasks and responsibilities. You should ensure that you've an all-data backup.

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

  • Install: Purchase and install the plugin on your WordPress site.
Pay Attention >> 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 other relevant information.
  • Export Content Use the export tools provided by your SaaS LMS in order to download all the data you need, including courses, information about the user, as well as media files.

Step 4: Import Data to

  • import users Make use of software or manual methods to import data from users, ensuring seamless access for existing students.

Step 5 Setup

  • Members Levels Set up membership levels that fit your company model.
  • Payment Gateways: Configure payment gateways, such as Stripe or PayPal for safe transactions.
  • Customization: Customize the design and appearance of your website to match your branding.

Step 6: Try All

  • Functionality Testing Check that all functions including the access to courses, levels of membership and payment processing function correctly.
  • UX Test the course's user experience from registration to course completion to ensure a seamless journey.

Now, it's now time!

Step 7: Launch and Promote

  • inform users Let your current customers about the new platform by providing clear directions and assistance for accessing the new platform.

 5 Tips for a smooth transition

  • Plan thorough, including detailed timelines and data backups.
  • Make modifications clearly to users and offer support.
  • Try the functionality thoroughly in order to prevent disruptions.
  • Use available resources and migration guidebooks, beginning with a small part of the content that addresses issues early.
  • Provide ongoing support through FAQs and help desks, and track performance, making adjustments based on the feedback.

If you follow these guidelines, you can transition smoothly from to a SaaS LMS into a self-hosted system that gives you full control over the content you publish and maximizing your profitability.

A Quick Review

Look how far we have made it.

We began by examining the negatives of using third-party LMS platforms to manage your online course's commercialization.

We also discussed the major advantages that self-hosted platforms for courses offers, including complete content ownership, reduced cost, and more control over your branding and marketing efforts.

We also did some comparisons and were able convince you that utilizing self-hosted learning platforms such as Courses can be a game changer for your creative business.

It is also important to remember that when you eliminate high revenue-sharing fees and use tools like Courses, you can develop a viable and sustainable online education company.

Make sure you evaluate your current platform's cost versus benefits. If you're on WordPress you should consider an effective solution for maximizing your profits and increase growth.

Tell us in the comments section if you are planning to switch to self-hosted course platforms like Courses. We're looking forward to responding any questions you may ask us.

Sarah O       Sarah is passionate about reducing the technical aspects of web-based sites, plugins as well as digital marketing. As a writer for content for Member Press, she has an eye for creating captivating and insightful content. Sarah plays a crucial role in teaching and inspiring users with the full power that are available through Member Press plugins. Bringing a blend of expertise in technology and a creative flare her goal is to ensure that each piece of content not just educates, but also stimulates. In her spare time her favorite content, she is interested in exploring the most recent developments in technology and marketing. She's always searching for innovative ways to enhance the user experience.