How much does it cost to develop an online course?

Online Course Development Price According to Researchers

Back in 2010, the Chapman Alliance conducted a comprehensive study that revealed that it could cost around $10,000 to produce one hour of educational content. You might wonder why the emphasis is on ‘around’? The logic is simple. The price tag escalates with the augmentation of features and the quest for increased dynamism and interactivity in the course. Despite these revelations, the time has flowed like a swift river, rendering these data points outdated. We are here to help illuminate the present situation through our meticulous study.

The analysis will be enhanced with some key information: The lion’s share of the cost in course creation lies in the human effort, the labor involved. This is trailed by the expense incurred on equipment and software necessary for the task. If you decide to take the reins and create the online course yourself, you’re essentially incurring minimal costs beyond the value of your time.

In our detailed analysis, we will provide you with the following:

• New information as of March 2023 will show the numbers of developing an online course from scratch.
• A detailed analysis of all development elements and a breakdown into the roles of participants in the course creation.

All subsequent information was collected from open sources and is also the result of a compilation of our experience in tailoring custom online learning solutions.

Cost to Develop an Online Course — It’s all About the Chosen Model

ADDIE model example

To begin with, it is worth clarifying that the values of the final development price tag largely depend on which educational design model you choose. To avoid confusion, in our estimate, we will consider only one model named ADDIE. This model is the most common way how to develop an online course and is an abbreviation where:

• “A” is for Analysis. At the analysis stage, you should carefully study the market that you will enter and your competitors. This will help you develop a unique solution that will stand out from the background and provide a personalized experience for each client.

• “D” is for Design. The design phase deals with working out the appearance of your teaching material.

• “D” is for Development. The primary and most crucial stage during which you develop educational material (write text, create assignments, presentations, and much more)

• “I” is for Implementation. All the finished material is added to the LMS at this stage, structured into an online course. In addition, during this stage, the first tests of the online course are passed to eliminate bugs and mistakes in learning material.

• “E” is for Evaluation. The final stage is when the analyst comes into play. You carefully monitor the success of the course and compare the indicators with the set objectives and goals.

Creating a course is almost impossible without a team of specialists who will take on specific tasks.

• SME or Subject Matter Expert – A specialist in the field in which your course will provide training material. They are engaged in research, text writing, lecture notes, and much more.

• The instructional design team– Graphic designers, cameramen, video editors, and others.

• Project Manager – Course owner who oversees all aspects of course development and overall progress.

• Technical staff specialists– A group of people responsible for the technical part of the course creation (QA engineers, DevOps specialists, content managers, and others).

Now for a final note. In this article, we will consider all the stages of the ADDIE model except the final Evaluation, since this stage depends on the type of course, the niche it occupies, the LMS system on which it is based, and much more. As a prime example, we created an hour-long abstract course that consists of the video material, text content, visual content (charts, graphs, and much more).

Let’s dive in.

Stage #1. Analysis and its Cost

How to develop an online course and make it right? Start with analysis. You hardly want your course to go unnoticed and hang like a dead weight. That is why it is essential to conduct an analysis stage that will help clarify the feasibility of creating a course from an economic and social perspective. The analysis stage includes the following aspects:

• Target audience research

• Analysis of competition in the selected niche

• Analysis of available and preferred ways of promotion

Further, along with the text, we will mainly present all the information in tables since they allow us to display important information and the pricing policy of developing an online course as clearly as possible. Prices for the services of certain specialists will be taken from open recruitment sites such as Upwork, SalaryExpert.com, Indeed.com, and others. Now, let’s move on to the price of the analysis stage.

Once the analysis stage is set and done, it’s time to proceed to the design sequence.

Stage #2. Design Cost

Note: How to develop an online course and save some resources? You must have a well-organized “face-to-face training content” rich in various media materials, visual content, and more. This content will help you quickly create a course storyboard for subsequent structuring, addition, alteration, and other integral operations of online course development.

Stage #3. Development Price

Stage #4. Implementation Price

So, all the training material is ready, and now is the time to add it to your chosen LMS. However, this is not just a process of “pouring” content into the system. It is necessary to fully transform it into a ready-made course using the LMS tools. In addition, it is vital to ensure the maximum quality of the finished course, so proofreading and error checking is critical.

Also, do not forget that the LMS setup is included in the final check.

Note: All of the above roles can be combined to one degree or another in one specialist, for example, a video operator and a video editor in one person. In addition, the development phases can also be combined. These two facts can reduce the cost of development stages by 30%.

Price on Open edX Platform

The Open edX platform is an open-source learning management system (LMS) that allows you to create online courses on a large scale. The platform itself is free to use, but there are other costs associated with setting up and running an online course on Open edX.

1. Setup and Configuration: Although the Open edX platform is free, setting it up requires technical knowledge. You may need to hire a developer or a team to do the initial setup and configuration. This includes installing the platform, setting up the servers, and configuring the software to meet your specific needs. The cost can vary depending on the complexity of the setup and the hourly rates of the developers.
2. Course Development: Just like with any other platform, you will need to create the course content. This includes writing the course materials, creating multimedia content, designing quizzes and assessments, and more. The cost can vary depending on the length and complexity of the course and the rates of the professionals involved in the creation process.
3. Maintenance and Upgrades: The Open edX platform is regularly updated with new features and improvements. To keep your platform running smoothly and take advantage of these updates, you will need to maintain and upgrade your installation regularly. This may require the services of a developer or a team, which will add to the costs.
4. Hosting: The Open edX platform needs to be hosted on a server. You can choose to host it on your own servers, or you can use a hosting service. The cost of hosting can vary depending on the size of your course, the number of students, and the hosting provider you choose. Remember, while the Open edX platform is a robust and flexible solution for online learning, it requires significant time and resources to set up and run effectively. It’s important to factor in all these costs when considering using Open edX for your online course.

Wrapping Up

Technology and trends in online course development force the eLearning industry to keep up with the times and stay up-to-date. Additionally, the most successful courses require constant revision and improvement to correspond to today’s realities.

To further illustrate the effectiveness and practicality of these strategies, let’s look at some case studies and success stories from previous courses that we’ve developed. These examples not only showcase our expertise in online course development but also provide real-world insights into the process and outcomes, which can be invaluable for those considering creating their own online course. That is why you will face additional costs for various course improvements even after the final release. Now, let’s look at the final estimate of each development participant and the total cost of creating an online course.

In the table below, you can see how numbers evolved during 2019-2022.

Changes in online course creation rates: 2022/2021

Note: Online course development is a multi-stage and complex process, and thoroughly knowing the price in advance is impossible. Too many variables in the final price tag equation affect pricing. To get a complete and accurate estimate, you should contact the experts in online course creation and book a demo to tell all the details about your upcoming project.

Summary

In summary, creating an online course is a multifaceted process that involves various stages, each requiring specific skills and resources. However, with the right approach and commitment, developing an engaging and effective online course that meets your learners’ needs and expectations is possible. Remember, the most successful courses require constant revision and improvement to correspond to today’s realities, and considering the trends in eLearning, it’s clear that online course development is a worthwhile investment. Whether you’re planning to create your first online course or looking to improve an existing one, we hope this article has provided you with valuable insights and guidance.