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Different LMS Pricing Models to Consider

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Ever since the COVID-19 pandemic hit, various sectors of the economy have shifted towards the remote method of learning and operating. Companies have adopted and developed programs based on software that help them in operating smoothly. However, when it comes to compliance training and onboarding, the problem persists. Although there are numerous ways through which training could be delivered, the most effective of them all is the use of learning management systems.

A learning management system (LMS) enables companies and organizations to run the training sessions seamlessly. It also makes the training sessions interactive and engaging, which keeps the learners around without getting distracted. 

However, there are various criteria that need to be considered before you invest in an LMS. These criteria include pricing, specifications, customer support, gamification mechanics, and a lot more. Let’s take Absorb LMS, for example. Before you invest in it, it is best to check Absorb LMS Pricing and compare its specifications with other learning management systems. This will help you in figuring out if the LMS is the right choice for you. Talking about pricing, there are various pricing modules in the LMS industry. Let’s take a look at them:

1. Pay Per Learner: This model is the most basic pricing model for an LMS. ‘Pay per Leaner’ signifies that an organization will have to pay a fixed amount for a certain number of learners. Under this model, training is compulsory. The learners cannot quit the training schedule in between.

2. Pay per active user: This model charges the company/organization for the number of users who had access to the LMS during or before the billing cycle. This plan is beneficial for organizations that conduct one-time training or run different batches of training throughout the year.

3. Licensing/Subscription: Under licensing/subscription model, the company has to buy packages and pay a fixed amount for them. The packages come with a pre-determined set of features and any add-on in the features is supported after the company/organization pays an extra amount for the feature. This pricing model is highly beneficial for organizations housing a large number of learners. The buyer/subscriber must be aware of the list of features that he/she may need before going for the licensing model.

4. Open Source: Open-source pricing model does not require the buyer to pay any charges for access to the LMS service. However, this model requires tech knowledge to some extent for the set-up. The set-up, customization, and maintenance of open-source pricing models are a bit on the higher end of the budget. There are benefits when to using this model, such as:

  • liberty from vendors
  • high level and a variety of features
  • high user capacity

If a company has IT professionals who can handle HTML and programming, this pricing model can be quite useful to it.

5. Purchase outright or perpetual: If you want to stay free of charges, if you don’t want to pay monthly or annually for an LMS, getting a perpetual license may be a good idea. This model requires the company/organization to pay just for one time and grants it access to the learning management system. However, as good as it may sound, it does come with a downside. The drawback is that the perpetual license is of no use when the company/organization requires to update the LMS, or add features to it. In many scenarios, the company/organization may also need to download the software instead of accessing it directly via the cloud servers.


The above-mentioned list of pricing modules signifies the ways in which a company can invest in a learning management system. The companies and organizations are eligible to select the pricing module according to their preferences and needs. The only thing that needs to be kept in mind is that the company needs to pay extra for any kind of add-on, upgrade, update, or any unique features and services that they seek.


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