Crealanta Magazine

How to Get More Passive Earnings from Online Courses |

Jun 4, 2024

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Would you believe that you could earn more passive income from your online courses by using self-hosted platforms for your course?

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Untruths about third Party LMS Platforms

You might agree with this statistic which shows that 57% of course creators determine their courses' success according to student satisfaction. students' enrollment is a third of the focus while 21% concentrate on income.

This is the reason why some instructors believe it's more beneficial to utilize third-party LMS platforms such as Udemy, Teachable, and Kajabi because:

  • They are hoping it will reduce their marketing expenses and reduce the need for massive upfront investments in software and hardware.
  • They believe it will help them launch their brand to the public in a quicker manner.
  • They assume it's user-friendly and requires minimal technical knowledge This makes it much easier for course creators to develop, launch, and manage their courses.

 However, these benefits have a high price for example:

  1. An ever-increasing revenue-sharing cost.
  2. 75% of course creators have less than $1,000 each year. Only 1% of instructors earn over $50,000 annually.
  3. Courses might get lost in the crowd, requiring additional marketing expenses to reach your target audience.
  4. The platform has limited opportunities for building friendships with students that aren't on the platforms.
  5. You cannot personalize your page or even your logo on these platforms.
  6. It's difficult to track the students' progress through the funnel.
  7. Limited engagement opportunities due to the absence of gaming or community-based integrations.

Introduction of Courses that are self-hosted

If you're an online course creator unhappy with the excessive cost and limitations of SaaS LMS platforms, you're not the only one. Numerous educators have the same issues.

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

If you decide to host your own courses, you can take charge of your courses and save money on fees for revenue sharing as well as discover new opportunities to earn money.

Think about it...

Imagine being able to design your classes exactly how you want and earning more from your hard-earned income.

Moving to a self-hosted service isn't just about cutting expenses, it's about unlocking the full potential of your business and creating a more profitable, viable company.

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

The Cost High of Revenue Sharing

In the case of using the most popular SaaS LMS platforms to sell and administer your online course it is crucial to be aware of their revenue-sharing models.

They typically charge significant percentage of your earnings, which can add up quickly and eat into your profits.

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

 1. Teachable

Teachable has a variety of pricing plans, and their revenue-sharing model varies depending upon the plan you select. The following is their pricing for the year is:

  • Free Plan: charges $1 + 10% per transaction.
  • Basis Plan ($39/month): 5% transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month): No charges for transactions, however they have a the publishing of courses.

 2. Thinkific

Thinkific provides several pricing tiers with different revenue-sharing implications:

  • Free Plan: There are no fee for transactions but limited capabilities.
  • Basic Plan ($49/month): No charges for transactions, however it is limited to digital downloads.
  • Premier Plan ($99/month) or Premier Plan ($499/month): No charges for transactions, however there are some access to online community services.

 3. Udemy

Udemy is based on a distinct income-sharing system than Teachable as well as Thinkific:

  • Organic Sales: Udemy takes 50% of the revenue from salesmade via their marketplace.
  • Promoting Instructors: Instructors get 97% of revenue for sales made through their own promotions (using an instructor coupon) and 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 efforts, instructors only receive 25% of the sales.

 4. Kajabi

Kajabi offers subscriptions that combine additional fees depending on the plan

  • Kickstarter ($69/month) and Basic Plan ($149/month) There are no transaction fees, but limited options and features.
  • Plan for Growth Plan ($199/month) as well as the Pro Plan ($399/month) The Growth Plan has no charges for transactions, however a small number of students enrolled.

These revenue-sharing models expose the cost of making use of third party LMS platforms. Although these platforms provide convenience as well as robust capabilities, recurring fees and revenue cuts can significantly reduce your earnings.

In contrast, a self-hosted solution can help you keep the majority of your earnings and allow you to be more flexible in how you organize and deliver your courses.

Here is a detailed analysis of the two platforms.

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

 Scenario: Suppose you are able to sell your online course for $100.

 SaaS LMS Model Platform:

  •   Teachable (Basic Plan):  With a 5% transaction fee that means you'd be losing $5 for each sale.
  • Profits per sale: $95
  • Monthly subscriptions Cost: $39
  • If you can sell 20 courses a month, the following formula is applicable: $95 x 20 + $39 = $1,861.
  •   Udemy (Organic Sale):  In the case of a 50% profit 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 the following formula is used: $50 20 x 20 = $1,000

 Self-Hosted Solution Example

  • Monthly subscription for (Most popular plan): $33
  • Profits per sale: $100
  • If you're selling 20 courses each 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

Over a year, these differences will add up to a significant amount. That's about $11,604 saved in one year!

Self-hosted courses like Courses can help you save hundreds or thousands of dollars, based the volume of sales you make.

Now that you know how much you can cut costs and earn with self-hosted courses, let's see some benefits of switching over to this system.

Benefits of Self-Hosted Course Platforms

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

Of these, it stands out as an effective choice, particularly in the event of

By leveraging the power using the strength WordPress, offers unparalleled versatility and options for customizing, enabling you to design the perfect learning experience that matches your brand's identity and corporate goals.

When you choose self-hosted course platforms, such as those offered by e-learning.com, you enjoy several advantages. Some of them are lower cost, improved control and the capacity to employ different strategies for monetizing to increase your income.

Learn >>> Watch Overview of the Feature

Let's examine the benefits of these.

Control and Control of Content Ownership

Control is among the superpowers of a creator and is a key element of successful advertising and branding.

Through self-hosted platforms for courses such as  the one you use, you are able to customize each element of your course to match your company's distinctive style and.

From layout and design to the inclusion of multimedia elements Being in complete control of your content lets you create a cohesive and professional educational environment that represents your brand's aesthetics and values.

The ownership of your content allows you to use a range of marketing techniques without any restrictions.

You can make and provide promotions, bundle classes give discounts, or utilize a variety of marketing tools and plugins on WordPress.

This flexibility lets you reach your target audience more effectively and adapt your strategies based on real-time results and data.

Direct Customer Relations

One of the standout advantages of self-hosted course platforms is the ability to build direct, unmediated relationships with your students.

With no limitations of an intermediary system, you are able to engage directly with your students through personalized emails or feedback as well as support.

As the administrator of the platform, you will have access to comprehensive data on the students' behavior, preferences, and progress.

It is essential to understand what works and what doesn't in your courses.

Through analyzing the data, you can tailor the content you teach and your teaching techniques to meet the specific needs of your students, leading to increased satisfaction for your customers and retention rates.

The use of intermediaries can limit your capacity to offer prompt and reliable customer service.

If you use a self-hosted service, you can implement a robust customer support system, including live chat, forums as well as direct messaging.

Instant access to help and support can significantly enhance the student experience and address issues before they escalate.

Monetization Through Membership

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

The benefits of memberships are that they encourage ongoing involvement and increase customer retention because students constantly discover value from their subscriptions.

If you can provide access to a vast collection of information with a monthly cost it is a significant benefit in enticing more students sign up.

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

 This method increases your value to your students as well as creates the possibility of steady recurring revenues.

Base Body Homepage
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They provide online as well as individual sessions in their private training facility for strength located in Sydney, Australia.

Through utilizing Base Body Babes manages their paywalled content and exclusive offerings on their site, providing customers with access to online and gym-based weight training classes Tutorials, as well as recipes.

The model lets them generate regular revenue while offering significant benefit to their customers.

Fixed costs and unlimited growth

 Here's the breakdown of these costs:

  •   Web Hosting:
  •   Domain Registration
  •   LMS Software/Plugins
  •     The company offers four pricing tiers    :
  • 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 companies and creators with ambitions.
  • Additional costs:
  • SSL certificates for safe transactions ($0 up to $100/year), often included in hosting packages).
  • The fees charged by payment gateways (typically approximately 2.9 percent plus $0.30 per transaction).

Why should you choose ? Below is the price we offer 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):

To determine the return on investment, let's assume you opt for the Plus option at $299.50/year. If you sell an entire course or a membership at $100, and you sell three memberships each month, the monthly income will be $300.

Over the course of a year, it's the equivalent of $3,600. After subtracting the costs of ($299.50) as well as hosting ($240 for $20/month) You'll earn the sum of $3,061 as a net annual profit.

This calculation shows that even with a small amount of revenues, the returns are significant, which makes it the most cost-effective option for you!

 Analysis of Scalability Potential with no additional cost per User or Content

One of the major benefits that self-hosting your course with is the ability to scale.

Unlike SaaS platforms, which are priced per user or make a percentage of the revenue generated, SaaS can allow you to grow your business without additional costs.

Here's how:

  • Unlimited Users: When your web site is up and running and you have it up and running, you are able to add the number of users you want to have without incurring any additional cost. This means your expenses remain predictable, regardless of the amount your members base grows.
  • Flexibility of Content: You can create and offer unlimited lessons, courses as well as membership levels. This lets you expand your offerings and diversify your revenue streams without worrying about increased charges.

In short, the fixed-cost structure of a self-hosted platform like provides predictable costs and a significant expansion possibilities.

With a scalable platform and no additional per-user costs it is possible to expand your member base as well as contents offerings, while maximizing profits as well as ensuring sustained growth.

There's more.

Integration with other Business Tools

Self-hosted platforms like also offer the flexibility to integrate with numerous 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:

Below are additional details regarding how to connect your account into business tools.

Watch the video below to see how you can boost your membership site by integrating add-ons and integrations

Moving to Self-Hosted Hosting Switch to self-hosted

If you're now convinced of all the benefits attached to moving from SaaS-based LMS platforms to self-hosted platforms. Here's the steps you must take next:

 Make the switch!

The transition from the SaaS LMS platform to self-hosted courses like these can be overwhelming, but it's doable by having a plan.

 Here's a step-by-step guide that will guide you navigate the procedure:

First step: Start with a strategy

  • Examine Current Platform: Review your present SaaS LMS platform's features, data, and limitations.
  • Define goals Decide the goal you intend to attain through the transition (e.g. cost reduction, less expense and more control).
  • Develop a migration Plan Outline your timeframes, tasks and your responsibilities. You should ensure that you've an all-data backup.

Step 2. Set-Up your Self-hosted Platform

  • Install Buy and install the plug-in on your WordPress website.
WATCH >> How To Install the Plugin

Step 3: Export Data From SaaS Platform

  • Backup Data: Ensure you have backups of your course's contents including user information, course content, as well as other pertinent information.
  • Export Content Make use of the tools to export offered by your SaaS LMS in order to download all necessary data, including courses, information about the user, as well as media files.

4. Import the Data

  • import users Make use of tools or manual techniques to transfer user information to provide the seamless accessibility of students.

Step 5: Configure

  • Membership Levels: Set up membership levels that are compatible with your business design.
  • Payment Gateways Set up payment gateways, such as Stripe or PayPal to make secure transactions.
  • Customization You can customize the look as well as the layout on your web site in line with your company's branding.

6. Try All

  • Functionality Testing Check that all functions, such as accessibility to courses, membership levels as well as payment methods are working in a way that is correct.
  • UX: Test the experience of a user from signing up to course completion to ensure an enjoyable experience.

It's the right time!

7th Step Start and promote

  • Inform Users Inform existing users about the transition, providing clear instructions and help to access the new system.

 5 Tips to seamless transition

  • Plan fully, with specific timelines and backups for data.
  • Make changes clearly to users and offer support.
  • Test the functionality thoroughly so that disruptions are not caused.
  • Use existing resources and migrate guides, starting by introducing a tiny part of the content that addresses the issues before they become.
  • Provide ongoing support through Help desks and FAQs and track performance, making adjustments based on feedback.

Following these steps, you can transition smoothly from a SaaS LMS into a self-hosted system that gives you full control over your content and increasing your profit.

A Quick Recap

See how far we've made it.

The first issue we discussed was the drawbacks of using third-party LMS platforms for your online course's commercialization.

Then we shared the significant advantages that self-hosted platforms for courses provide, like complete content ownership, reduced costs, and increased control over branding and marketing efforts.

We also conducted some comparatives and were able to convince the decision-makers that investing in self-hosted courses like Courses is a major game-changer to your business's creativity.

In the end, it's important to note that when you get rid of high fees for revenue sharing and use tools like Courses, you could create a scalable and profitable online education business.

Consider evaluating the costs of your platform in comparison to benefits. If you're using WordPress you should consider a robust solution to maximize your profits and increase growth.

Let us know via the comments whether you are planning to switch to self-hosted course platforms like Courses. We're looking forward to responding all questions you might have.

Sarah O       Sarah is adamant about making simpler the technical details of plugins, websites, as well as digital marketing. As a content writer at Member Press, she has a sharp eye for writing captivating and insightful writing. Sarah is a key player in teaching and inspiring users with the full power of Member Press plugins. Combining technical knowledge and creative flair, she ensures that each article not only informs but also inspires. When not writing she loves to research the newest trends in technology and digital marketing. She is always looking for new ways to improve user experience.