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How to Earn More Passive Income from Your Online Courses |

Jun 4, 2024

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Would you believe that you can earn a higher than passive revenue from your online courses with self-hosted course platforms?

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A Misperception of the Third Party LMS Platforms

You might agree with this statistic that shows five-seven percent of the course creators evaluate their course's success by student satisfaction, while 23% consider student enrollment and 21% focus on the income of students.

This explains why many course creators think it is more beneficial to utilize third-party LMS platforms such as Udemy, Teachable, and Kajabi because:

  • They think it will minimize their marketing expenses, thereby reducing the need for large upfront investments in hardware and software.
  • They think it will aid the brand to be introduced onto the market in a quicker manner.
  • They assume it's user-friendly and doesn't require any technical expertise, making it easier for course creators to develop courses, create, and maintain their courses.

 But, these advantages have a high price which includes:

  1. An ever-increasing revenue-sharing cost.
  2. 75% of course creators earn less than $1000 each year. Only 1 percent of instructors make more than $50,000 per year.
  3. The course may be lost in the crowd which means you'll need to spend more marketing to get your message out to the right audience.
  4. Limited opportunities to nurture relationships with students outside the portal.
  5. It is not possible to personalize your profile or brand on these platforms
  6. It's hard to follow the students' progress through the funnel.
  7. Limited engagement opportunities due to the lack of gamification and community-oriented integrations.

Introduction of Self-hosted Course Platforms

If you're an online class creator who is frustrated by the expensive prices and restrictions of SaaS LMS platforms, you're not alone. A lot of educators are facing the same issues.

But there's a better way to go: self-hosted courses platforms.

If you decide to host your own course, you'll be in the control of your course content, save on revenue-sharing costs as well as discover new opportunities to earn more money.

Think about the idea...

Imagine being able to tailor your course exactly how you want and keeping more of the hard-earned money you earn.

Switching to a self-hosted platform isn't just about cutting expenses - it's about maximizing the full potential of your business and creating an efficient, long-lasting and viable enterprise.

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

The high cost of Revenue Sharing

In the case of using popular SaaS LMS platforms to sell and manage your online courses It is essential to know their revenue-sharing models.

The platforms typically take a significant percentage of your earnings that can mount up rapidly and deplete the profit you make.

Here's a breakdown of the common revenue-sharing plans of a few well-known SaaS LMS platforms:

 1. Teachable

Teachable offers multiple pricing plans, and their revenue-sharing model varies depending upon the plan you select. This is how the annual cost of their plans will look like:

  • Free plan: Charges $1 + 10% per transaction.
  • The Basic plan ($39/month): 5 per cent transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month): No fee for transactions, but a limited the publishing of courses.

 2. Thinkific

Thinkific has a range of pricing tiers that have different implications for revenue sharing:

  • Free Plan: There are no fee for transactions however, it has limited capabilities.
  • Basic Plan ($49/month): No transaction fees, but limited digital downloads.
  • Premier Plan ($99/month) and Premier Plan ($499/month) Pro Plan: No transaction fees, but limited options for online community functions.

 3. Udemy

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

  • Organic sales: Udemy takes 50 percent of their profits from the salesmade via their marketplace.
  • Promoting Instructors: Instructors only keep 97% of the profits from sales generated by their own promotional efforts (using an instructor coupon) and Udemy paying a 3 percent administration charge.
  • Paid User Acquisition: For sales generated through Udemy's paid advertisement efforts, instructors only receive 25% of the revenue.

 4. Kajabi

Kajabi offers subscriptions that combine extra charges according to the following plan:

  • Kickstarter ($69/month) and the Basic Plan ($149/month) There are no transaction fees, but limited options and features.
  • The Growth Plan ($199/month) and the Pro Plan ($399/month): No transaction fees, but a small number of student enrollments.

These revenue-sharing models expose the cost of making use of third party LMS platforms. These platforms are convenient and robust features, the recurring fees and revenue cuts could significantly decrease your income.

A self-hosted solution will allow you to earn some of your money and allow you to be more flexible in how you organize and deliver your classes.

Here's a thorough comparison of both platforms.

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

 Scenario: Let's say you sell an online course at $100.

 SaaS LMS Platform Example:

  •   Teachable (Basic Plan):  With an average transaction fee of 5, you'd lose $5 per sale.
  • Profits per sale: $95.
  • Monthly subscriptions Monthly subscription: $39
  • If you are able to sell 20 courses per month, the following formula is applicable: $95 x 20 + $39 = $1,861.
  •   Udemy (Organic sales):  If you had a 50 percent income share, your company would have to pay the equivalent of $50 for each sale.
  • Profits per sale: $50
  • If you sell 20 courses per month: $50 20 x 20 = $1,000

 Self-Hosted Solution Example:

  • A monthly subscription to (Most Well-liked Plan) Cost: $33.
  • Per sale, earnings of $100.
  • If you are able to sell 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
  • The difference is $106 more for self-hosted
  1.   Udemy (Organic sales):
  • SaaS LMS Earnings: $1,000/month
  • Self-Hosted Earnings: $1,967/month
  • The difference is $967 higher with self-hosted

In the course of a year the difference can are significant. That's about $11,604 saved in an entire year!

Self-hosted courses such as Courses will save you hundreds to thousands of dollars, based on your sales volume.

Once you've figured out the amount you could save and earn through a self-hosted course solution, let's see some benefits of switching over to this platform.

Advantages of Self-Hosted Course Platforms

Self-hosted courses are an effective alternatives for SaaS LMS solutions by giving full control over your content and operations.

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

By leveraging the power by leveraging the power of WordPress it offers unbeatable versatility and options for customizing which allows you to build an experience for learning that matches your brand's identity and business goals.

If you select self-hosted courses platforms, such as those offered by e-learning.com, you enjoy many advantages. These include lower costs, enhanced control, as well as the capability to use various monetization strategies to maximize your earnings.

WATCH >>> Courses Overview of the Feature

Let's take a look at these advantages in greater detail.

Control and Ownership of Content

Having control is one of the greatest strengths of an artist and a cornerstone of effective advertising and branding.

With self-hosted course platforms like  You can customize every aspect of your classes to fit your brand's unique image.

From layout and style to the integration of multimedia components Being in complete control of your content allows you to build a professional and cohesive learning environment that reflects the values and style of your company.

Being the owner of your content allows you to apply a variety of strategies for marketing without limitations.

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

This flexibility enables you to connect with your audience more effectively and adapt your strategy based on live results and data.

Direct Customer Relationships

One of the major benefits of self-hosted courses is the ability to build direct, unmediated relationships with your students.

Without the constraints of an intermediary service, you can engage directly with your students via personalized email messages or feedback as well as support.

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

This is important for understanding what works and what isn't working in your courses.

By analyzing this data, you can tailor the content you teach and your teaching techniques to meet the specific needs of your students. This can lead to increased satisfaction for your customers and retention rate.

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

If you use a self-hosted service, you are able to implement a comprehensive support system that includes live chat, forums as well as direct messaging.

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

Monetization through Membership

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

Memberships foster ongoing engagement which results in higher retention, as customers continue to find value in their subscriptions.

If you can provide access to a vast library of content with a monthly cost that you can provide significant value in enticing more students sign up.

Community-based features such as forums as well as live Q&A session sessions help build a sense of belonging between members, increasing the loyalty of members to your platform.

 This approach enhances the educational value that you provide to your students and creates the possibility of steady recurring income.

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They provide online as well as individual sessions in their private strength-training facility in Sydney, Australia.

By utilizing , Base Body Babes manages their paid-for content as well as exclusive offers through their website. They provide members with access to home as well as gym classes for weight training as well as tutorials and recipes.

This model lets them generate regular revenue while offering significant benefits to their communities.

Fixed costs and unlimited growth

 Here's the breakdown of the costs involved:

  •   Web Hosting
  •   Domain Registration
  •   LMS Software/Plugins
  •     Four pricing levels are available.    :
  • Basic: $179.50/year, suitable for beginners.
  • Additional: $299.50/year, includes additional functions and connections.
  • Pro: $399.50/year, ideal for businesses needing advanced features.
  • The Elite plan: $499.50/year, great for companies and creators with ambitions.
  • Additional Costs:
  • 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 for each transaction).

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

  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 determine the return on investment, let's assume you opt to go with the Plus plan for $299.50/year. If you sell the course bundle or membership for $100 and then sell only 3 memberships a month, your monthly revenue will be $300.

In a year, that's $3,600. Subtracting the cost of ($299.50) and hosting ($240 per month for $20) You'll earn an annual net income of $3,061.

It is evident that even with low revenue, the return on investment is impressive, and it is an economical choice!

 Analysis of Scalability Potential without additional costs per user or Content

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

Unlike SaaS platforms which are priced per user or take a cut of the profits, this platform allows you to scale your company without incurring additional expenses.

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 any number of members without incurring extra costs. Your expenses will are predictable regardless of how much your member base increases.
  • Flexibility of Content: You can create and host unlimited courses, lessons, and membership levels. It allows you to broaden your options and diversify your revenue streams without worrying about increased fees.

The fixed cost structure for self-hosted platforms like this one provides predictable costs and a significant expansion potential.

With scalable infrastructure and no fees per-user You can increase the number of members you have and your contents offerings, while maximizing profits and guaranteeing sustainable expansion.

There's more.

Integration with other Business Tools

Self-hosted platforms like also offer the ability to connect various enterprise tools to improve general operations as well as providing insight into student behavior and 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 on how to integrate your account into business tools.

watch how to boost your memberpess website with integrations and add-ons

Moving to Self-Hosted Hosting Switch to self-hosted

Now that you're convinced by all the advantages of changing from SaaS LMS Platforms to self-hosted platforms, here's what you should do the next step:

 Make the switch!

Switching from an SaaS LMS platform to self-hosted courses like these can be daunting, but it's manageable by having a plan.

 This is a step-by-step tutorial to help you with the process

Step 1: Start with a strategy

  • Review Your Current Platform: Review your current SaaS LMS platform's features, data and restrictions.
  • Set the goals Define what you aim to achieve with the migration (e.g. cost reduction, less expense or better control).
  • Create a Migration Plan Outline your tasks, timelines, and the responsibilities. You should ensure that you've an archive of all your data.

Step 2. Set-Up your Self-hosted Platform

  • Install Buy and install the plug-in on your WordPress site.
Watch >>> How to Install The Plugin

Step 3: Export Data From SaaS Platform

  • Backup Data Make sure you've got backups of all course content as well as user data as well as other pertinent information.
  • Export Content: Utilize the tools for export provided by your SaaS LMS to download all the data you need, including courses, user details, and media documents.

Step 4: Import Data to

  • User Import Utilize plugins or manual methods to import data from users to provide the seamless accessibility of students.

Step 5: Setup

  • Member Levels You can set up levels of membership that fit your company structure.
  • Payment Gateways: Configure payment gateways, such as Stripe or PayPal to make secure transactions.
  • Customization You can customize the look and appearance of your website to reflect your brand.

6. Try Everything

  • Functionality Testing Check that all functions including the access to courses, levels of membership as well as payment methods, work in a way that is correct.
  • user experience: Test the experience of a user from signing up through course completion in order to guarantee an enjoyable journey.

And now, it is time!

Step 7 Start and promote

  • inform users: Notify your existing users of the change by providing clear directions and help to access the new technology.

 5Tips for a Smooth Transition

  • Plan thoroughly with specific timelines and backups for data.
  • Make modifications clearly to users and offer support.
  • Try the functionality thoroughly to avoid disruptions.
  • Utilize the available resources and guidebooks, beginning by introducing a tiny portion of content to address problems early.
  • Provide ongoing support through Help desks and FAQs and also monitor the performance of your system, and make adjustments based on feedback.

By following these steps it is possible to smoothly transition from an SaaS LMS to a self-hosted service that gives you full control over the content you publish and maximising your profits.

A Quick Recap

We're amazed at how far we've made it.

We began by examining 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 offers, including full ownership of content, lower expenses, and greater control over your branding and marketing strategies.

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 leverage tools like Courses, you are able to build a profitable and scalable online education company.

Make sure you evaluate the costs of your platform in comparison to advantages. If you're on WordPress you should consider an efficient solution that will maximize your profitability and growth potential.

Tell us in the comments section if you are planning to switch to self-hosted course platforms like Courses. We look forward to answering any questions you may have.

Sarah O       Sarah is passionate about reducing the technical nitty-grittys of websites, plugins, and digital marketing. As a writer for content for Member Press, she has a keen eye for crafting engaging and informative content. Sarah has a significant role in helping users become educated and empowered to fully utilize the potential that are available through Member Press plugins. With a mix of creativity and technical expertise She ensures that every article not only informs but also inspires. When not writing, she enjoys exploring the newest developments in technology and marketing, always seeking new ways to improve user experience.