Where to Spend and Where to Save: Smart Budgeting for eLearning Entrepreneurs
- LMSPortals
- Apr 3
- 5 min read
Building an eLearning business isn’t cheap—but it doesn’t have to break the bank either. The trick is knowing when to invest and when to cut costs. Not all parts of your eLearning business need top-shelf spending, but some areas absolutely require it if you want to compete and grow.
This guide breaks down where to spend and where to save, so you’re not pouring money into things that won’t move the needle, and you’re not skimping on what truly matters.
Where to Spend
1. Instructional Design and Content Creation
Why it’s worth it: Content is your product. If your lessons are confusing, outdated, or boring, no one will finish your course—let alone recommend it.
Investing in strong instructional design ensures your material is effective, engaging, and structured to help learners achieve actual outcomes. Whether you're hiring a professional or working with a contractor, quality content creation pays off with better retention, positive reviews, and repeat customers.
Spend on:
Subject matter experts (if you’re not one yourself)
Instructional designers (for course flow and engagement)
High-quality scripts, quizzes, and learning objectives
2. Video and Audio Production
Why it’s worth it: Your course doesn’t need to look like a Hollywood production, but it does need to be clear, clean, and professional. Bad audio and pixelated video scream amateur hour and kill credibility.
Learners expect a certain level of polish. This doesn't mean you need a $10K setup—but do invest in good lighting, sound, and editing. Poor-quality production is one of the fastest ways to lose students.
Spend on:
A decent microphone and lighting setup
A professional editor (especially for long or complex courses)
Branded visuals and animations when they add value
3. Your Learning Management System (LMS)
Why it’s worth it: Your LMS is the backbone of your business. It's where your content lives, how users engage, and where you track performance. A clunky or unreliable platform can lead to technical headaches, lost customers, and a damaged reputation.
Choose a scalable, feature-rich LMS that fits your needs and has strong customer support. Don’t cheap out on this—your whole business depends on it running smoothly.
Spend on:
A reliable LMS with solid UX, analytics, and integrations
Customization or white-labeling options
Support or onboarding assistance if you're not tech-savvy
4. Marketing and Branding
Why it’s worth it: A great course that no one sees is a waste of time. Marketing is how you get eyes on your product, build trust, and stand out in a crowded market. Branding builds long-term credibility.
Organic growth takes time, and paid marketing can be a fast track if done well. Either way, budget for visibility—especially when launching.
Spend on:
A well-designed, conversion-focused website
Paid ads (Google, Facebook, LinkedIn—where your audience hangs out)
Email marketing tools
Copywriters or marketing consultants (if that’s not your strength)
5. Legal and Financial Setup
Why it’s worth it: It’s tempting to skip this part when you’re bootstrapping, but it can cost you more later. If you’re serious about running a business, set it up right from the beginning.
Spend on:
Legal advice for terms, privacy, and IP
Accounting software or an accountant
Business registration and insurance
Where to Save
1. Course Platforms vs. Custom Development
Why you can save: Building your own course platform from scratch is expensive and unnecessary for most creators. Unless you're offering something radically different that off-the-shelf platforms can't support, stick with existing tools.
Use platforms like Teachable, Thinkific, or Kajabi. They're affordable, easy to use, and come with built-in features that would cost tens of thousands to build on your own.
Save by:
Using established LMS platforms instead of custom development
Starting on a mid-tier plan and upgrading as needed
Choosing platforms that don’t charge a high percentage of your sales
2. Stock Assets and Templates
Why you can save: Don’t reinvent the wheel for visuals, presentations, or even UI. There are plenty of high-quality stock libraries, design templates, and UI kits that can elevate your course without custom work.
Yes, original branding matters—but not every image, icon, or slide transition needs to be handcrafted.
Save by:
Using Canva or Envato Elements for graphics and templates
Buying presentation packs or course slide decks
Leveraging free tools like Google Slides or Notion for handouts
3. Administrative Tools
Why you can save: Most administrative tasks—scheduling, invoicing, onboarding—can be automated or handled with free/cheap tools. Don’t overpay for premium software before you need it.
Start lean. Use free plans or open-source tools until you outgrow them.
Save by:
Using tools like Trello, Google Workspace, or Airtable for project management
Automating workflows with Zapier (free tier works for many cases)
Using Stripe or PayPal instead of a full payment gateway setup
4. Team and Labor
Why you can save (at first): Early on, you don’t need a full team. You need to prove your course has demand. Do as much as you can solo or with freelancers, and only hire employees once you have steady revenue.
Virtual assistants, editors, and developers can be hired on a per-project basis without the cost of full-time staff.
Save by:
Using contractors and freelancers on sites like Upwork or Fiverr
Outsourcing tasks only when your time is better spent elsewhere
Delaying full-time hires until absolutely necessary
5. Office Space and Overhead
Why you can save: eLearning is built for remote work. You don’t need an office, especially not in the early days. Save that money for things that grow the business.
Save by:
Working from home or co-working spaces
Avoiding big monthly expenses like leased offices, furniture, or utilities
Keeping software subscriptions trimmed to only what you actually use
Smart Budgeting Habits for eLearning Founders
Knowing where to spend and save is one thing—but sticking to a smart budget over time is another. Here are a few habits that help eLearning entrepreneurs keep their business lean and efficient:
Track ROI Like a Hawk
If you're spending money, track the return. Is that $300 ad campaign bringing in sales? Is your $99/month design tool making your course better? Don’t be sentimental—cut anything that’s not pulling its weight.
Start Small, Scale Fast
Test everything before you go all in. Launch a beta version of your course to a small group. Try marketing channels with small budgets. Scale what works, ditch what doesn’t.
Budget for Learning
Set aside money for your own growth—whether it's courses, coaching, or tools. The eLearning space evolves fast. Stay sharp, and you’ll stay ahead.
Separate Business and Personal Finances
Even if you’re solo, treat your business like a real business. Use a separate account, track expenses, and pay yourself. This makes taxes, planning, and scaling much easier.
Reinvest Profits Wisely
Once you start making money, don’t blow it. Reinvest into what drives more growth—whether that’s better content, smarter marketing, or stronger tech.
Final Thoughts
You don’t need a massive budget to succeed in eLearning. You need to spend with intention. Invest where it counts—your content, platform, and marketing—and save where it doesn’t—custom builds, full-time staff, and over-the-top tools.
The goal isn’t to spend the least amount of money. It’s to spend the right money, in the right places, at the right time.
Make smart moves early, and you’ll build a business that grows without bleeding cash.
About LMS Portals
At LMS Portals, we provide our clients and partners with a mobile-responsive, SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.
The system includes built-in, SCORM-compliant rapid course development software that provides a drag and drop engine to enable most anyone to build engaging courses quickly and easily.
We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.
If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.
Together, these features make LMS Portals the ideal SaaS-based eLearning platform for our clients and our Reseller partners.
Contact us today to get started or visit our Partner Program pages
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