When it comes to selecting one of the many e-learning pricing models out there, the grounding principle is that the model you pick should be compatible with your business model. But what does that mean?

Basically, the correct pricing model should align with your business’s unique selling proposition (USP). In this post, we discuss how to determine your business’s USP and compare e-learning pricing models.

Your Unique Selling Proposition

A company’s USP is what makes it different in the marketplace. USP can also be known as a company’s value proposition. To determine your USP, ask yourself, “How does my company uniquely solve my customer’s problems?” If your business is new and you don’t have many clients, think about who your ideal client is. One way to do that is to create a buyer persona. If you have multiple current clients, survey your best customers and ask them for feedback.

Now that we’ve explained how to determine your USP, let’s move on to selecting an e-learning pricing model.

E-learning Pricing Model Comparison

There are many pricing models for training providers to consider. The right one for your business should be the one that aligns with your USP.

Pricing models fall into four categories:

  • Value-based pricing
  • Competitor-based pricing
  • Cost-plus pricing
  • Dynamic pricing

Let’s explore each model to help you determine which one aligns with your USP and promotes the growth of your business.

Value-Based Pricing

A value-based pricing model is when companies price their products or services based on what the customer is willing to pay based on quality customer data. This is also our recommended pricing model.

Competitor-Based Pricing

This pricing model focuses on the existing prices within the market. It doesn’t consider the cost of production or consumer demand. This pricing model can be harmful to new businesses, as they might be unable to compete with larger, more established companies. Still, if you’re a newer business, trying to remain competitive can be a way to attract new customers. If you are attracting customers this way, make sure you are building quality relationships with those clients to later move them over to the value-based pricing model.

Cost-Plus Pricing

A cost-plus pricing model is based on the cost of producing your product or service, plus an additional “mark-up,” which will then create a profit for the company. Although this pricing model is quite simple, simplicity is sometimes not always the best option. Since this pricing model does not account for the value of your product, you might be alienating potential customers or even leaving money on the table with current customers. That said, this pricing model can be useful for course offerings that are already widely available in the market. Being able to produce the same thing for a lower price is always a great way to attract customers. Just make sure to foster a quality relationship with the client to shift them into a value-based product model.

Dynamic Pricing

The dynamic pricing model is also known as time-based pricing. Prices fluctuate based on market and customer demand. For a training provider, this pricing model might never be a consideration. But during the world events of 2020 and afterward, a sudden demand was created, which then created a need. So, make sure you are constantly aware of what is happening in the market and the industry. Having that awareness will allow your business to be on the cutting edge.


The best pricing model is the one that aligns with your company’s USP. If you are unsure of your unique identity in the marketplace, consider how your company solves your ideal client’s problems. Ultimately, your pricing strategy should grow your business.

Check out the following resources to continue learning about how to grow your business:

Here at Firmwater, we don’t just sell an LMS for training providers. We partner with our clients, giving them the tools and insights they need to implement the best practices in e-learning course development, growth, and delivery. We care too much about our customers’ businesses to have them wade through forums and chatbots for help.

Ready to use an LMS that’s designed for the way YOU work, with a team dedicated to YOUR needs? Book a no-obligation consultation directly with our team today!