How much does e-learning cost? That’s a difficult question to answer since it really depends on the circumstances surrounding the project. There are, however, clearly identifiable categories of costs and considerations. By working through these various categories of cost for the particular circumstances you face, you should be able to derive responsible estimates of the total cost of e-learning or develop a list of questions to pose to vendors to ensure you have your bases covered.

1. C O S T C O N S I D E R AT I O N S F O R Y O U R E - L E A R N I N G P R O J E C T S

2. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
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3. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
T HE C O ST O F E - LE AR N IN G
How much does e-learning cost? That’s a difficult question to answer since it
really depends on the circumstances surrounding the project. There are,
however, clearly identifiable categories of costs and considerations.
By working through these various categories of cost for the particular
circumstances you face, you should be able to derive responsible estimates of
the total cost of e-learning or develop a list of questions to pose to vendors to
ensure you have your bases covered.
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4. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
Factors that Affect Direct and/or Vendor Costs
Development Considerations
 Seat time/run time
 Complexity of content
 Availability of content
 Stability of content
 Desired level of learner interactivity
 Desired level of professionalism of product
 Use of established development process,
templates and standards
 How project will be managed? (communication,
reviews, reporting, accountability)
 Development tools (Which? Who provides?)
 Developers’ expertise with tools
 Developers’ pace
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5. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
Factors to Consider for Internal Projects
Direct Costs “Hidden” Costs
 Infrastructure/LMS (purchase, support, management,  Ripple effect of development effort on other work
maintenance)
 Audience (Who? How many?)
 How project will be rolled out? (facilitate adoption of new
 Distribution costs
learning initiatives – change management)
 Equipment/facility costs
 Market and promote training
 Time away from job/disruption to productivity
 Performance measurement
 SME access and time – typically the same as Instructor
Led Training (ILT)
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6. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
Factors to Consider for Internal Projects
“Hidden” Value
 Will the company see the value in factors that don’t show directly?
 Freeing up of premises
 Less wear on ILT delivery, equipment
 May free up subject matter experts to perform job related tasks rather than training tasks
 Less travel costs for learners
 Less travel costs for instructors, or subject matter experts
 Consistency of training delivery; promotes company standards
 Potential for increased learner effectiveness
 Potential for attitude change of employees
(impacting retention, job satisfaction)
 Access to training 24/7 in or away from office
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7. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
General Considerations
Company Culture Learner Impact
 Can learners learn on the job? Will managers allow it?  Control of own learning – just in time, self-paced, easily
referenced
 Are learners/the company rooted in ILT?
 Ability to train large numbers faster/simultaneously with
 Will the budget process support e-learning?
consistent content
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8. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
Planning and investment in planning will reduce development costs whether your
Here are a few tips to help you drive down the costs of e-learning: project is developed in house or outsourced. Remember, though, that good
development requires specialist skills as they relate to tools, design, instructional
 Get organized, set goals and determine clear objectives!
Don’t forget to include input from all key stakeholders to competence and graphics. How well you plan for it, position it and implement it
avoid rework later on. determine the cost and outcomes to your e-learning project.
 Build shorter courses that average about 15 – 30 minutes.
Quicker development times will lower costs.
 Be creative with a more blended approach to your training.
 Reuse content and create templates to save time on future
courseware development and updates.
 Create pre-tests so learners may skip courses containing
material they already know. This leaves them free to take
only the training they need.
 Consider supporting informal learning efforts in tandem
with more formal ones. Social media allows for the use of
“free” user-generated content in your training efforts.
 Avoid using proprietary tools, technologies and media or
those that are simply “in fashion.” Ensure these items will
meet your development and learner’s needs over time.
What’s hot today may not be so hot tomorrow.
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9. COST CONS IDERATIONS FOR
E-LE ARNING PROJECTS
If you find that you need assistance with planning, positioning and implementation of your next e-learning project, contact us to learn how we can
help. Michaels & Associates — making the most of your learners.
info@michaelsandassoc.com www.michaelsandassoc.com toll-free: 877-614-8440
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