This revenue model is one of the most well-established in the industry. These are online courses that can either follow traditional methods of paying tuition for credit hours, or follow a competency-based education model that delivers learning for targeted skill development. Courses are typically delivered in the form of MOOC's (Massive Open Online Courses), one of the most popular methods of online course delivery. MOOC's are used at 400 higher-education institutes worldwide. The success of MOOC's is proven by the fact that there are hundreds of people who are employed full-time to create MOOC's, or to provide support for the admin of these courses.
Pro’s:
A business model that has proven success
This model offers the best chance to make an impact on an institution’s learning
Lower’s institutional costs and increases enrollment
Con’s:
A time consuming implementation
Requires high volume of human resources
Political implementation of this model can be challenging
In this model, research is conducted on the best-practices, pedagogy, technology, methodology, efficacy, and cost effectiveness of various online learning models.
Pro’s:
Allows institutions to hone in on an innovative focus
Provides an opportunity for the institution to differentiate themselves from other higher-ed institutes
Increases access to education by providing inexpensive, or free education to a global audience
This model accelerates innovation in higher education
Con’s:
Of all the models, this is the most costly
Institutions are required to compete with one another for funding
Universities and colleges use online learning in a pre-matriculation model for student recruitment and assessment, as well as for introductory and remedial learning. These courses are conducted in the form of MOOC’s, which can be used either to reach out to prospective students (recruitment), or to provide new students with some brush-up classes to ensure they’re ready for higher-ed level coursework (remedial learning). Revenue is generated through the increase of new students (i.e. customers), or from the fees paid for participating in the various programs.
Pro’s:
Allows students to learn, be creative and innovative outside of the sphere of influence of the school
Opens up a new avenue of revenue
Opens the door to a new audience, increasing the size, encouraging diversity, and enhancing the quality of students.
Con’s:
Few metrics that prove the success of this model
Requires great investment
Higher-ed institutes use this model for alumni enrichment (through newsletters, online programs, and sponsored events), as well as for both optional and required continued education programs. Revenue is generated through alumni donations, and/or from participation fees
Pro’s
Allows students to learn, be creative and innovative outside of the sphere of influence of their institute
Provides a new avenue of revenue
Opens the door to a new audience, increasing the size of student population, encouraging diversity, and enhancing the quality of students.
While this is a fairly new model, success has been proven, and the metrics are only growing
A highly profitable model
Con’s:
A high-level of competition against other cheaper, lower-quality post-grad programs
If you’re a higher-ed institute looking for a new LMS, join our webinar on March 3rd, for the Top 7 Must Have LMS Features for Higher Education. We will go over the features that increase student engagement, retention, participation, and success. In addition, we will show you how LMS reporting and analytics can take your eLearning to the next level.