Start A Training Software - Business Ideas

Start A Training Software - Business Ideas
Start A Training Software

Online learning software makes it easy for institutions to deliver course content to learners. The learners can be students, employees, or even business people who want to learn a new skill.

Starting an eLearning software can be a profitable investment. Industry experts project that the e-learning market will double in the next few years.

Your business can provide content, create supporting technology, and administer e-learning courses.

Starting a training software requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell training software, or selling training software online, you can use this page as a guide for everything you'll need to know.

Key Stats

revenue (monthly)
$450K
starting costs
$31.5K
gross margin
76%
avg product price
$1000
time to build
360 days
growth
Email marketing
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

App Creation Costs

$1,000

$20,000

Training & Education Expenses

$0

$1,850

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$0

$3,000

Total Startup Costs

$7,136

$62,911

Successful Businesses

Business URL Rank

Pluralsight

pluralsight.com

3,352

Edureka

edureka.co

4,260

Texas Instruments

ti.com

5,325

Skilljar

skilljar.com

27,012

Skillsoft

skillsoft.com

42,156

Training

training.com

49,429

Jigsaw Interactive

jigsawinteractive.com

83,465

Docebo

docebo.com

86,708

Eduflow

eduflow.com

90,702

Trainual

trainual.com

93,633

eWebinar

ewebinar.com

97,070

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a training software. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

High margins

The gross margins for your training software are typically around 76%, which is considerably high and allows you to grow your business and manage costs easily.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

High employee turnover

In the training software, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a training software, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Churn

In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

Pat Walls,  Founder of Starter Story
Want to find more ideas that make money?

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