Business Idea

Start A Training Software

About

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.

Want to learn more? You can check out our full guide on how to start a training software ➜

Key stats

market size
$370B
revenue (monthly)
$450K
starting costs
$38.4K
gross margin
76%
avg product price
$1000
time to build
12 months
growth
SEO
time investment
Side project

About

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.

Want to learn more? You can check out our full guide on how to start a training software ➜

Key stats

market size
$370B
revenue (monthly)
$450K
starting costs
$38.4K
gross margin
76%

 

avg product price
$1000
time to build
12 months
growth
SEO
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $40 $2,350
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
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
Other Expenses $0 $800
Total Startup Costs $7,534 $68,494

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
Trainual trainual.com #93,633
Mindflash - A Trakstar Product mindflash.com #105,435
Create an online course easily easygenerator.com #106,048

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](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
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.

  • 2

    Direct sales

    You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

    Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 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.