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The Cost of E-Learning

E-learning is a business activity. It has a value to the business, a start-up cost, and running costs. The costs must be managed if the program is to stay within budget and yield an adequate return on investment. The question of start-up versus ongoing costs can best be answered if the program scope can be defined for the first two or three years. First-year costs are high, while ongoing costs are typically lower. Return on the time and money invested are typically realized toward the end of the first year. Second-year returns are higher as more courses are offered and the subscriber base expands. The answers to questions of cost are usually broad and rough at the outset and then become more refined as the project comes into focus.