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It is time to update your systems, you’re looking for a new LMS platform. When it comes to pricing, there seems to be an abundance of options but which one is right for your organisation and what would be the best value?
There are quite a few different LMS pricing models out there and no one solution will be right for all businesses so it is important to look at your business needs to help you choose the right model for your organisation. Let’s look at two of the most common options.
Active vs Stored plans and the pro’s and con’s of each to help you better understand the difference.
Active Users
Cloud based platforms tend to use active user pricing, effectively meaning you only pay for users that log in, in any one month. You will not need to waste time maintaining the system as the vendor manages the updates and upgrades. They are usually a subscription service allowing you to receive real-time help and support included in the pricing.
| Active Pros | Active Cons |
| Only pay for active users each month. | If your employee count frequently changes it can be hard to predict your costs. |
| Useful if you have a steady number of employees and it will help buget in advance for months you know you will have higher users. | If the majority (>90%) of users log in every single month, a stored user plan may be more cost effective. |
| Discounts for annual plans. | Can be a challenge when trying to get budget approval for a certain amount, as it can vary. |
| Enables mandatory training to be met – e.g., onboarding or compliance training. | |
| Most often works out to be the cheapest option. | |
| Not required to delete any users to make way for new users, you can keep everyone’s training history stored. |
Stored Users
Stored user plans will be a fixed price fee, they have less flexibility in comparison to the active user option but can be a good choice for larger organisations or those who consistently do a lot of training.
| Stored User Pros | Stored User Cons |
| Useful if you have a large number of staff. | Unlikely every user would log in each month. |
| Good choice if you have lots of training regularly and have consistent log-ins each month. | Can work out more expensive as you pay for every user not just active. |
| Know your costs upfront. | No flexibility |
| It can be a waste of money if you are not utilising it to the full capacity. |
Above is just a short summary of the pros and cons of both pricing points, ultimately it depends on your organisation and how many users will actively use the platform each month over a 12-month period.
Once you figure out a rough estimate of how many would regularly log in, that can help you choose the best pricing option.