One of the most common questions we hear from L&D leaders is, “How much should custom eLearning cost?” The honest answer is: it depends. But there’s a practical framework to help you arrive at a realistic number.
Understand the Complexity Spectrum
Not all eLearning is created equal. A simple click-through module costs a fraction of an immersive simulation. Before you set a budget, understand where your needs fall on the complexity spectrum — from basic awareness content to performance-critical skill building.
Factor in More Than Development
Development costs are only part of the picture. Include discovery, design, stakeholder reviews, quality assurance, LMS integration, and post-launch measurement. These “hidden” costs often represent 30-40% of the total investment.
Think in Terms of Value, Not Hours
Hourly rate comparisons between vendors are misleading. An experienced team that delivers a behavior-changing program in fewer hours produces far more value than a cheaper team that takes twice as long to produce mediocre content.
Start with the Outcome
The most effective budgeting approach works backward from the desired outcome. What behavior change are you trying to create? What’s the cost of the current problem? These questions put your investment in proper perspective.