Introduction

The budget is usually the first item looked at by a potential client. Everyone always asks the question "How much is this going to cost?" Clients sometimes get nervous about the price of e-learning. In fact, according to a U.S. News & World Report article, creating one customized e-learning course can cost anywhere from $25,000 to $50,000 ^[1]. However, the cost of an LMS can range from $250,000 to $700,000 per year, depending on the size of the enterprise, amount of integration with other enterprisewide systems, and the degree of customization ^[2]. If clients decide to have a vendor host the LMS, vendors can charge as much as $30,000 per year for between 2000 and 3000 seats, plus any customization and integration costs ^[3]. Many vendors sell their LMS on a per-seat basis of anywhere from $30 to $50 per user. The pricing of e-learning can seem expensive and confusing to a potential client. This confusion can make it difficult for you to sell your e-learning solution.

So, the secret to a good budget is presentation. Present the budget in an easy-to-understand, straightforward manner emphasizing the value of your solution. Present the budget in a manner that eliminates any possible client frustration. If you present an overly complex budget with hidden costs and other potentially misleading items, the client may throw away the entire proposal without ever looking at the remainder of the document. Or worse, the client may feel that you are trying to...