Course-Start vs. Active-User LMS Pricing: Which Model Fits Your Training Needs?

Choosing the right LMS pricing model can significantly impact your training costs and effectiveness. Many LMS companies typically enact user-based models, such as allowing for a certain number of active users each month. While there are benefits to this approach, the are also some pitfalls which we’ll address below.

Another option is a “course-start” pricing model, which takes into account how many courses each uses takes, but provides more flexibility for long-term course usage.

Both have unique benefits and drawbacks, depending on how your learners engage with your content. Below, we’ll define each model in more depth, compare their pros and cons, and explore which scenarios benefit most from each approach.

What Is a Course-Start?

A course-start occurs when a user launches a course for the first time. One user who launches one course counts as one course start. If a user launches two courses, that counts as two course starts. However, the usage counts toward your monthly allotment only in the month the course is started. Users can revisit or continue the course(s) at no additional cost in future months.

 Example:

• In January, 100 users launch a course. You’ve used 100 course-starts.
• In February, the same users revisit their course, but they don’t count again.
• You’re free to enroll 100 new users in February, all while keeping costs predictable. You now have 200 active-users, but you’re only paying for the 100 that actually start the course in February.

Benefits of the Course-Start Model

The course-start model is ideal for organizations where learners take fewer courses but spend significant time completing them. Here’s why:

• Cost-Effective for Long-Term Learners
  You only pay for users when they start a course. Returning users can revisit their content over months or years without adding to your costs.
• Predictable Monthly Costs
  Your pricing is tied to new course launches, making it easier to budget and avoid unexpected fees.
• Ideal for Compliance and Certification Training
  Many compliance programs require learners to complete one or two courses annually. With course-start pricing, you only pay for those initial course launches.

What Is an Active User?

An active user is any user who has successfully logged in one or more times during a calendar month. It doesn’t matter if the course is new, in progress, or already completed—the user counts toward your monthly allotment as long as they’re active during that billing period.

 Example:

• In January, 100 users launch courses. You’ve used 100 active users.
• In February, the same 100 users revisit their courses, and they count again toward your total. So if you add 100 new users in February, you are now paying for 200 active users. However, this provides flexibility for users who take multiple courses because a single active user only counts once per month, regardless of how many courses they take.

Benefits of the Active-User Model

The active-user model is better suited for scenarios with high learner engagement across multiple courses. Key advantages include:

• Fits Microlearning and Subscriptions
  If your users frequently take short courses or access a large content library, active-user pricing aligns with their habits.
• Scales with Engagement
  You pay as learners interact with your LMS, making it ideal for programs with ongoing, diverse training needs.

Comparison of Course-Start vs. Active User LMS Pricing

Here’s a side-by-side look at how these models work:

Use Cases: When Each Model Works Best

Course-Start Model

The course-start model is ideal for organizations delivering training where users typically engage deeply with fewer courses over longer periods. For example:

• Compliance Training: Users often need to complete one or two courses to meet certification requirements. They may revisit the material over time, but you only pay for the initial course start.
• eCommerce Training: Perfect for businesses selling courses online. Customers purchase individual courses, so the cost per user is predictable.
• Certification Programs: Learners spend significant time completing a single program, making this model cost-effective.

Active-User Model

The active-user model is better suited for training programs with high engagement and frequent course launches. For example:

• Microlearning: Users take multiple short courses, often within the same month.
• Employee Development Programs: Employees regularly access training libraries, taking new courses each month.
• Subscription-Based Learning: Ideal for businesses offering unlimited access to course catalogs.

Pros and Cons of Each Model

Course-Start Model

Active-User Model

Financial Impact: Real-World Scenarios

Course-Start

A training provider with 100 learners offers compliance courses. Each learner spends three months completing their assigned course:

• Month 1: 100 learners start courses = 100 course-starts.
• Month 2 & 3: Learners continue working on their courses but do not count again.
• Total Cost: You pay only for 100 course-starts in Month 1, freeing up Months 2 and 3 for additional users

Active-User

A company offers microlearning to 100 employees, with each learner taking 3 courses per month:

• Month 1: 100 users launch 3 courses each = 100 active users.
• Month 2: The same 100 users take 3 new courses = 100 active users.
• Total Cost: You pay for 100 active users every month, regardless of how many courses they take.

Visualizing the Difference

Imagine two scenarios:

1. Compliance Training: A user launches one course and spends 10+ hours over several months completing it. Under the course-start model, they count only in the first month. With the active-user model, they count every month they revisit the course.
2. Microlearning: A user launches multiple short courses each month. Under the active-user model, they count every month they launch new courses. With the course-start model, they’d count once per course.

For more insights on scalable training delivery and how the course-start model supports growth, check out The Importance of Scalable Training Delivery.

Making the Right Choice

Both models have unique advantages depending on your training goals and learner behaviours. By understanding the differences, you can choose the pricing structure that maximizes value for your organization.

Still not sure? Contact us today for a free strategy session to explore which model fits your needs.