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What can you do to earn more passive Income from Your Online Courses |

Jun 4, 2024

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What if we told you that you could earn more passive income from your online courses with self-hosted course platforms?

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Untruths about Third Party LMS Platforms

You might agree with this statistic, that 57% of 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 course designers believe it's best to choose third-party LMS platforms like Udemy, Teachable, and Kajabi due to:

  • They are hoping it will reduce their marketing expenses and reduce the requirement for huge upfront investments in hardware and software.
  • They think it will aid the brand to be introduced onto the market in a quicker manner.
  • It is assumed that it's easy to use and needs no technical skills, making it easier for course creators to develop, launch, and manage their course.

 But, these advantages have a high price which includes:

  1. The cost of revenue sharing is growing.
  2. 75 percent of course creators make less than $1,000 annually, while only 1 percent of instructors make more than $50,000 a year.
  3. Courses might get lost in the crowd which means you'll need to spend more marketing in order to reach the audience you want.
  4. There aren't many opportunities to build friendships with students that aren't on the platforms.
  5. It is not possible to personalize your profile or your brand's image on these platforms.
  6. It's difficult to keep track of your students' journey in the funnel.
  7. Limited engagement opportunities due to the absence of gaming or community-based integrations.

Introducing self-hosted course platforms

If you're an online-based course creator frustrated with the high cost and limitations in SaaS LMS platforms, you're not all alone. Many educators face the same challenges.

But there's a better way: self-hosted course platforms.

If you decide to host your own course, you'll be in the control of your course content and save money on fees for revenue sharing and discover fresh ways to make more money.

Take a moment to think about this...

Imagine being able to tailor your course in the way you like, while earning more of your hard-earned income.

Moving to a self-hosted service isn't just about cutting costs - it's about unlocking the full potential of your business and creating the most profitable and sustainable enterprise.

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

The high cost in Revenue Sharing

In the case of using popular SaaS LMS platforms to sell and run your online classes It is essential to know their revenue-sharing model.

They typically charge significant percentage of your earnings and can accumulate rapidly and deplete your profits.

Below is a detailed breakdown of most common models for revenue sharing of famous SaaS LMS platforms:

 1. Teachable

Teachable has a variety of pricing plans, and their revenue-sharing structure varies based upon which plan you pick. The following is their pricing for the year is:

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

 2. Thinkific

Thinkific provides several pricing tiers that have different implications for revenue sharing:

  • Free Plan: No transaction fees, but with limited capabilities.
  • Basis Plan ($49/month) The Basic Plan has no fee for transactions but only digital downloads.
  • Plan Pro Plan ($99/month) or Premier Plan ($499/month): No fee for transactions, but with limited access to online community services.

 3. Udemy

Udemy has a unique revenue-sharing model compared to Teachable and Thinkific:

  • Organic sales: Udemy takes 50 percent of their profits from the salesmade through their marketplace.
  • Instructional Promotions: Teachers only retain 97% of earnings from sales that they make through their own promotion (using coupons for instructors), with Udemy paying a 3 per cent administration fee.
  • Paid User Acquisition In the case of sales that are made via Udemy's pay-per-click strategies, instructors only receive 25% of the revenue.

 4. Kajabi

Kajabi offers subscriptions that combine other fees that are according to the following plan:

  • Kickstarter ($69/month) and Basic Plan ($149/month): No transaction fees, but limited offerings and features.
  • The Growth Plan ($199/month) and the Pro Plan ($399/month) There are no transaction fees, but a only a limited amount of active students enrolled.

The revenue sharing models are designed to emphasize the expenses 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 will significantly lower your profits.

Self-hosted option can allow you to keep the majority of your earnings and provide greater flexibility in the way you present and manage your classes.

Here is a detailed comparison of both platforms.

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

 Scenario: Suppose you offer an online course at $100.

 SaaS LMS Platform Exemple:

  •   Teachable (Basic Plan):  If you charge an average transaction fee of 5, you'd lose $5 per transaction.
  • Per sale, earnings of $95.
  • Monthly membership Cost: $39
  • If you are able to sell 20 courses a month: $95 x 20 + $39 = $1,861.
  •   Udemy (Organic Sales):  With a 50% revenue share, you'd be losing the equivalent of $50 for each sale.
  • Per sale, earnings of $50.
  • If you can sell 20 courses a month: $50 per course x 20 = $1000

 Self-Hosted Service Example:

  • Monthly subscription for (Most Well-liked Plan): $33
  • Profits per sale: $100
  • If you're selling 20 courses per 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
  • Difference: $967 more with self-hosted

In the course of a year they will add up to a significant amount. That's about $11,604 saved in one year!

Self-hosted courses such as Courses will save you hundreds to thousands of dollars, depending on the amount of sales.

Now that you know how much you can save and earn using a self-hosted course solution, let's see some benefits from switching to this platform.

Advantages of Self-Hosted Course Platforms

Self-hosted course platforms offer a powerful alternative to SaaS LMS solutions by giving the complete control of your content and operations.

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

Utilizing the power of WordPress, offers unparalleled possibilities for customization and flexibility, enabling you to design the perfect learning experience that aligns with your brand and goals for business.

When you opt for self-hosted course platforms, such as those offered by e-learning.com, you enjoy several advantages. Some of them are lower expenses, better control as well as the capability to use various monetization strategies to maximize the amount of money you earn.

Watch >>> Courses Overview of the Feature

Let's examine these benefits in detail.

Control and Control of Content Ownership

Being in control is among the most powerful attributes of a creator and is a key element of successful brand and advertising.

With self-hosted course platforms like  You can customize every element of your course to fit your brand's unique 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 environment that reflects your brand's values and aesthetics.

Being the owner of your content lets you use a range of marketing strategies without restrictions.

It is possible to create and distribute promotions, bundle classes give discounts, or utilize a variety of marketing tools and plugins available for WordPress.

This allows you to connect with your audience more effectively and adapt your strategy based on live feedback and analytics.

Direct Customer Relationships

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

In the absence of any intermediary system, you are able to engage directly with your students by sending them personalized messages or feedback as well as support.

When you control this platform, you will have access to extensive data about the students' behavior, preferences, and progress.

This information is crucial in understanding how to make the best decisions and what doesn't within your classes.

Through analyzing the data, you can tailor your curriculum and teaching strategies in order to best meet the requirements of your students. This will lead to increased satisfaction for your customers and retention rates.

Intermediary platforms often limit your capacity to offer prompt and effective customer service.

Self-hosted solutions allow you are able to implement a comprehensive support system that includes live chat, forums, and direct messages.

The immediate accessibility to assistance and help can dramatically improve the student experience and address issues before they escalate.

Monetization through Membership

One of the most effective ways to monetize your online course on a self-hosted platform is to package them into an e-learning model.

Memberships foster ongoing engagement which results in higher retention because students constantly discover value from their subscriptions.

In offering access to an extensive catalog of contents with a monthly cost, you offer significant value and encourage more students to join.

Community features like forums and live Q&A sessions create a sense of belonging between members, increasing the commitment of your community.

 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
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They offer both online and person-to-person training sessions at their boutique fitness center in Sydney, Australia.

Utilizing , Base Body Babes manages their paywalled content as well as their exclusive services on their site, providing members with access to home and gym-based weight training classes as well as tutorials and recipe libraries.

This model permits them to earn recurring revenue while offering significant value to their community.

Fixed costs and unlimited growth

 Here's a breakdown these costs:

  •   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 options and features.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • Premium: $499.50/year, great for companies and creators with ambitions.
  • Additional Costs:
  • SSL certificates for safe transactions ($0 to $100/year), usually included in hosting package).
  • Payment gateway fees (typically about 2.9 percentage plus $0.30 for each transaction).

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

  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 determine the return on investment we'll assume that you sign up to go with the Plus plan for $299.50/year. If you are able to sell a course bundle or membership for $100 and sell just 3 memberships per month, your revenue per month is $300.

Over the course of a year, it's the equivalent of $3,600. Subtracting the cost of ($299.50) as well as hosting ($240 at $20 per month) that's the sum of $3,061 as a net annual profit.

The calculation shows that even with minimal sales, the ROI is substantial, making it an economical choice!

 Analyzing the Scalability Potential without additional costs per user or Content

One of the main benefits that self-hosting your course with is its scalability.

Contrary to SaaS platforms that are priced per user or take a cut of your revenue, lets you scale your company without incurring additional expenses.

Here's how:

  • Unlimited Users: Once your site is set up and you have it up and running, you are able to add an unlimited number of members without incurring any additional cost. That means that your costs remain fixed, no matter the extent to which your membership expands.
  • Flexibility of Content: You can create and host unlimited courses, lessons and membership levels. It allows you to broaden the scope of your services and diversify your revenue streams without stressing about the increase in charges.

The fixed-cost structure of self-hosted platforms like this one offers predictable expenses and substantial development potential.

With scalable infrastructure and no additional per-user costs You can increase your member base as well as the content you offer, increasing profitability as well as ensuring sustained increase.

There's more.

Integration with other Business Tools

Self-hosted platforms like also offer the ability to connect various business tools, enhancing 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:

Here are more details regarding how to connect your business account to a number of tools.

watch >> Supercharge your memberpess site by integrating add-ons and 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 next:

 Switch to HTML0!

Switching from an SaaS LMS platform to self-hosted course platforms like can seem overwhelming, but it's doable with a clear plan.

 Here's a step-by-step guide to help you through the process:

First step: Begin with a strategy

  • Assess Current Platform: Review your present SaaS LMS platform's features, information, and limits.
  • Set Goals: Determine the goal you intend to attain through the transition (e.g., lower costs, better control).
  • Develop a migration Plan Outline the tasks, timelines, and the responsibilities. Make sure you've got an all-data backup.

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

  • Install Buy and install the plugin on your WordPress website.
WATCH for How to Install the Plugin

Step 3: Export Data from SaaS Platform

  • Backup data You should ensure that you've backups of all course content including user information, course content, and other relevant information.
  • Export Content Use the export tools offered by your SaaS LMS in order to download the necessary information that includes user details, and media files.

Step 4: Import Data

  • Import Users Utilize plugins or manual methods to import user data, ensuring an uninterrupted access to students who are already enrolled.

Step 5: Setup

  • Members Levels You can set up levels of membership that are compatible with your business design.
  • Payment Gateways: Configure payment gateways like Stripe or PayPal for safe transactions.
  • Customization You can customize the look as well as the layout on your web site to reflect your brand.

Step 6: Test Everything

  • Functionality testing Check that all functions, such as course access, membership levels as well as payment methods function correctly.
  • user experience: Test the user journey from signup to course completion to ensure a smooth journey.

And now, it is now time!

Step 7 Start and promote

  • Inform Users: Notify your existing users about the transition with clear instructions as well as help to access the new system.

 5 Tips to seamless transition

  • Plan fully, with precise timelines and backups of data.
  • Communicate changes clearly to users and offer support.
  • Check every function thoroughly in order so that disruptions are not caused.
  • Use existing resources and migrate guides, starting with a small section of information to tackle the issues before they become.
  • Offer continuous support via Help desks and FAQs and monitor performance, making adjustments according to feedback.

If you follow these guidelines by following these steps, you will be able to transition seamlessly from a SaaS LMS to a self-hosted solution that gives you full control of your content while maximising your profits.

A Quick Recap

Look how far we have come.

We began by examining the negatives of relying on third party LMS platforms to manage your online course revenue generation.

Then we shared the significant advantages that self-hosted platforms for courses offer, such as complete content ownership, reduced expenses, and greater control over branding and marketing strategies.

We also conducted some comparatives and were able convince the decision-makers that investing in self-hosted learning platforms such as Courses can be a game changer for the creative enterprise you run.

It is also important to remember that when you cut out the high cost of revenue-sharing and make use of tools such as Courses, you are able to build a profitable and scalable online educational business.

Consider evaluating the cost of your current platform vs. advantages. If you're on WordPress you should consider a robust solution to maximize the potential for growth and profitability.

Tell us via the comments whether you will be switching to a self-hosted platform for courses like Courses. We look forward to answering all questions you might have.

Sarah O       Sarah is passionate about simplifying the technical details of websites, plugins, as well as digital marketing. As a content writer at Member Press, she has a sharp eye for writing interesting and useful written content. Sarah plays a crucial role in educating and empowering users on the full potential of Member Press plugins. Bringing a blend of technical knowledge and creative flair, she ensures that each piece of content not only educates, but also stimulates. 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 enhance the user experience.