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How to Earn More Passive Income from Your Online Courses |

Jun 4, 2024

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If we could tell you that you can earn a higher passive income from your online courses by using self-hosted platforms for your course?

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The Misconceptions of third Party LMS Platforms

You might agree with this statistic that shows 57% of course makers evaluate their course's success through student satisfaction. 23% consider student enrollment as a factor, and 21% rely on income.

This is why a lot of course designers believe it's best to choose third-party LMS platforms such as Udemy, Teachable, and Kajabi for the following reasons:

  • They are hoping it will reduce their marketing expenses, thereby reducing the need for massive upfront investments in hardware and software.
  • They think it will aid to launch their business into the world in a quicker manner.
  • They assume it's user-friendly and requires minimal technical knowledge which makes it easy for course creators to develop the course, start it, and then manage their courses.

 However, these advantages have a high price, including:

  1. The cost of revenue sharing is growing.
  2. 75 75% of course designers earn less than $1000 per year, whereas only 1 percent of instructors make more than $50,000 per year.
  3. The course may be overlooked in the crowds, requiring additional marketing expenses to get your message out to the right audience.
  4. The platform has limited opportunities for building relationships with students outside the portal.
  5. You cannot personalize your page or your brand's image on these platforms.
  6. It's difficult to keep track of your students' journey in the funnel.
  7. The limited engagement possibilities are due to the absence of gamification or community-oriented integrations.

Introduction of Courses that are self-hosted

If you're an online-based course creator frustrated with the high prices and restrictions in SaaS LMS platforms, you're not all alone. A lot of educators are facing the same issues.

There's an alternative: self-hosted course platforms.

If you decide to host your own course, you'll be in control of your content as well as save on the cost of revenue sharing, and open up new opportunities to earn profits.

Consider the idea...

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

Making the switch to self-hosted platforms does not just mean you can cut expenses, it's about unlocking the full potential of your business and creating the most profitable and long-term enterprise.

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

The High Cost in Revenue Sharing

If you are using the most the most popular SaaS LMS platforms to sell and manage your online courses, it's essential to understand the revenue sharing models they use.

These platforms often charge a large percentage of the earnings and can accumulate quickly and eat into the profit you make.

This is a summary of common revenue-sharing plans of a few well-known SaaS LMS platforms:

 1. Teachable

Teachable offers multiple pricing plans. Their revenue sharing model is different based on the plan you choose. This is how their pricing for the year looks like:

  • Free Plan: charges $1 + 10% for each transaction.
  • Basis Plans ($39/month): 5 per cent transaction fee.
  • Professional Plan ($119/month) and Business Plan ($499/month): No fee for transactions, but a limited publication limits for courses.

 2. Thinkific

Thinkific has a range of pricing tiers with different revenue-sharing implications:

  • Free Plan: There are no transaction fees, but with limited features.
  • The Basic Plan ($49/month) The Basic Plan has no fee for transactions but only digital downloads.
  • Pro Plan ($99/month) as well as the Premier Plan ($499/month): No charges for transactions, however there are some access to online community services.

 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 retain 97% of profits from sales generated by their own promotions (using coupons for instructors), with Udemy charging a three% administration fee.
  • Paid User Acquisition: In the case of sales that are made via Udemy's pay-per-click initiatives, instructors only receive 25 percent of the profits.

 4. Kajabi

Kajabi offers subscriptions that combine other fees that are based on the plan:

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

The models that are based on revenue share expose the cost of the use of third-party LMS platforms. Although these platforms provide convenience and a variety of features, regular fees and reductions in revenue will significantly lower your profits.

Self-hosted solution will allow you to earn more of your income and provide greater flexibility in how you manage and present your classes.

This is a comprehensive review of both platforms.

Comparative Analysis 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 the seller would lose $5 on each sale.
  • Per sale, earnings of $195
  • Monthly subscriptions Monthly subscription: $39
  • If you sell 20 courses per month: $95 divided by 20 - $39 = $1.861.
  •   Udemy (Organic sales):  If you had a 50 percent profit share you'd be losing $50 per sale.
  • Profits per sale: $50
  • If you sell 20 courses a month the following formula is used: $50 20 x 20 = $1,000

 Self-Hosted Service Example:

  • Monthly subscription for (Most Popular Plan) The cost is $33
  • Earnings per sale: $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
  • Difference: $106 more with 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, these differences add up significantly. It's around $11,604 in an entire year!

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

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

Benefits of Self-Hosted Course Platforms

Self-hosted course platforms offer an effective alternatives in comparison to SaaS LMS solutions by giving the complete control of your content and operations.

Of these, it stands out as a solid choice especially when

Utilizing the power of WordPress It offers unrivaled versatility and options for customizing, enabling you to design a learning experience that perfectly matches your brand's identity 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 costs, enhanced control, and the ability to implement various monetization strategies to maximize your earnings.

Learn >>> Watch Overview of the Feature

Let's examine these benefits in detail.

Control and Ownership of Content

Having control is one of the most powerful attributes of a creator and a cornerstone of effective branding and marketing.

Self-hosted courses like  the one you use, you are able to customize each element of your course to fit your brand's unique style and.

From layout and style to the inclusion of multimedia components, having full control over the content you create allows you to develop a consistent and professional learning experience that is reflective of the values and style of your company.

Being the owner of your content means you can use a range of marketing techniques without any restrictions.

You can create and offer promotional content, bundle courses, provide discounts, and make use of various marketing tools and plugins to WordPress.

This allows you to reach your target audience better and to adjust your strategy based on live data and feedback.

Direct Customer Relationships

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

Without the constraints of an intermediary system, you are able to communicate directly with your students by sending them personalized messages as well as feedback and help.

As the administrator of your platform you gain access to a wealth of information about the behavior of your students, preferences, and progress.

This information is crucial to understand what works and what isn't working during your studies.

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

Platforms for intermediaries often hinder your capacity to offer prompt and effective customer service.

If you use a self-hosted service, you are able to implement a comprehensive support system that includes live chat, forums and 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 most effective ways to monetize your courses using a self-hosted system is to package them into a membership model.

Members encourage continuous engagement which results in higher retention because students constantly benefit from their memberships.

By providing access to a comprehensive catalog of contents with a monthly cost that you can provide significant value, encouraging more students to subscribe.

Community features like forums as well as live Q&A session sessions help build a sense of belonging to your members and increase their commitment to your platform.

 This approach enhances the value you offer to your students as well as creates the possibility of steady recurring revenues.

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They provide online as well as person-to-person training sessions at their boutique fitness center located in Sydney, Australia.

By utilizing , Base Body Babes manages their paywalled content as well as their exclusive services on their website, providing members with access to home and gym-based weight training classes Tutorials, as well as a recipe library.

This permits them to earn recurring income while providing significant benefits to their communities.

Fixed costs and unlimited growth

 Here's the breakdown of these expenses:

  •   Web Hosting:
  •   Domain Registration:
  •   LMS Software/Plugins
  •     The company offers four pricing tiers    :
  • Basic: $179.50/year, suitable for beginners.
  • More: $299.50/year, includes additional functions and connections.
  • Pro: $399.50/year, ideal for firms that need advanced features.
  • Premium: $499.50/year, great for enterprises and ambitious creators.
  • Additional costs:
  • SSL certificates for safe transactions ($0 up to $100/year), often included in hosting package).
  • Fees for payment gateways (typically approximately 2.9 percentage plus $0.30 (per transaction).

The reason why you should choose us ? Here is our pricing as well as 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 evaluate the ROI Let's say you decide to go for the Plus option at $299.50/year. If you offer a course bundle or membership for $100 and sell just 3 memberships per month, the monthly income is $300.

For a full year, that's 3600 dollars. By subtracting hosting costs ($299.50) as well as hosting ($240 per month for $20), you get an annual net income of $3,061.

This calculation shows that even with a small amount of sales, the ROI is impressive, and it is an economical choice!

 Evaluation of the Potential for Scalability with no additional cost per User or Content

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

Unlike SaaS platforms which charge per user or take a cut of your revenue, can allow you to grow your business without additional costs.

Here's how:

  • unlimited users: Once your site is up and running, you can have the number of users you want to have without incurring additional costs. Your expenses will are predictable regardless of the extent to which your membership expands.
  • Flexibility of Content: You can create and host unlimited courses, lessons as well as membership levels. It allows you to broaden the scope of your services and diversify your revenue streams without having to worry about increasing costs.

In summary, the fixed cost structure for a self-hosted platform like offers predictable expenses and substantial expansion possibilities.

With scalable infrastructure and no extra costs per user it is possible to expand your member base as well as the content you offer, increasing profitability as well as ensuring sustained growth.

There's more.

Integration with Other Business Tools

Self-hosted platforms like also offer the flexibility to integrate various business tools, enhancing overall operations and insights 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 business account to a number of tools.

check out >> Supercharge your memberpess site by integrating add-ons and integrations

Moving to Self-Hosted Hosting Switch to self-hosted

If you're now convinced of the numerous benefits of changing from SaaS LMS Platforms to Self-hosted platforms, here's the steps you must take next:

 Switch to HTML0!

The transition from a SaaS LMS platform to self-hosted course platforms like can seem difficult, but you can do it by having a plan.

 The following step-by-step instructions are provided that will guide you navigate the procedure:

First step: Begin with a strategy

  • Examine Current Platform Examine your current SaaS LMS platform's features, information, and limits.
  • Define Goals: Determine the goals you want to accomplish through the transition (e.g. reduced costs or greater control).
  • Create a Migration Plan: Outline deadlines, tasks, and your responsibilities. Make sure you've got an all-data backup.

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

  • Install Install and purchase 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 the entire course's content including user information, course content, and other relevant information.
  • Export Content: Make use of the tools to export offered by your SaaS-based LMS to download all necessary data such as information about the user, as well as media documents.

4. Import the Data to

  • import users: Use software or manual methods to import data from users to ensure the seamless accessibility of students.

Step 5 Step 5: Setup

  • Membership Levels: Set up membership levels that are compatible with your business model.
  • Payment Gateways Set up payment gateways such as Stripe or PayPal to make secure transactions.
  • Customization Design and appearance of your website to match your branding.

6. Test Everything

  • Functionality testing Check that all functions, such as accessibility to courses, membership levels, and payment processes, work properly.
  • User Experience Test the user journey from signup to course completion to ensure a smooth experience.

It's now time!

Step 7: Launch and Promote

  • Information Users Let your current users of the change by providing clear directions and support for accessing the new platform.

 5 Tips to smooth transition

  • Plan thoroughly with detailed timelines and data backups.
  • Make changes clearly to users and offer support.
  • Check all functionalities extensively so that disruptions are not caused.
  • Utilize available resources and migration guides, starting by introducing a tiny section of information to tackle the issues before they become.
  • Provide ongoing support through Help desks and FAQs and monitor efficiency, making changes according to the feedback.

Following these steps by following these steps, you will be able to transition seamlessly from a SaaS LMS to a self-hosted solution such as, having complete control over your content and maximising your profits.

A Quick Review

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

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

We also discussed the major benefits that self-hosted courses like offers, including total ownership of your content, lower expenses, and greater control of your branding and marketing efforts.

Also, we conducted some comparisons and were able convince you that investing in self-hosted learning platforms such as Courses is a major game-changer for your creative business.

In the end, it's important to note 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 benefits. If you're currently using WordPress, consider as a robust solution to maximize your profits and increase growth.

Please let us know in the comments section if you are planning to switch to a self-hosted platform for courses like Courses. We're eager to answer any queries you may have.

Sarah O       Sarah is adamant about making simpler the technical details of web-based sites, plugins as well as digital marketing. As a content writer at Member Press, she has a sharp eye for writing captivating and insightful content. Sarah has a significant role in teaching and inspiring users on the full potential of Member Press plugins. With a mix of creativity and technical expertise her goal is to ensure that each article not only informs but also inspires. When not writing, she enjoys exploring the latest developments in technology and marketing. She is always looking for new ways to improve user experience.