Building custom LMS vs subscription one: Which is the right choice for your EdTech business?

A Learning Management System (LMS) isn't just a high-tech storage of information — it's a platform that supports learning activities by monitoring advancement and encouraging participation. 

What's the point? Getting to know each student's individual needs — how they learn, their preferences, and their goals. And then build a platform that meets them head-on. 

You have two options: build your LMS from scratch or subscribe to an existing one. Both choices come with their perks and challenges. 

But the fact is that the market is projected to expand at least 3.5 times by 2032 (according to Fortune Business Insights), increasing from USD 23.35 billion today to USD 82.00 billion. Looks like a promising sphere, agree?

So let's take a look at the advantages of custom LMS and subscription one

Benefits of building a custom LMS

Creating your own LMS is a powerful solution. With the right investment of effort, time, and resources, it can truly set your business apart.

1. Profound customization 

Own LMS gives you full control over the user experience. You can customize every feature and design element to match your business needs, ideas, market goals, or branding. We're speaking about both: aligning with your company's values and ensuring your training goals hit the mark. 

For example, if you're planning to expand into a new market, having your own LMS makes it easier to adapt to local peculiarities. You can easily customize the language or content for a specific region. 

2. Full control over data privacy in LMS 

Control is key, especially with sensitive data. Building your own LMS means you have complete control over your information, and this means you hold all the cards to take care of high-level privacy and security. 

Working in spheres with high regulations, you could follow requirements, like GDPR or HIPAA. 

3. LMS scalability 

Change is what keeps your product moving forward. And if you're a startup, trust us — you won't escape constant changes. Building your own LMS gives you that flexibility. 

Imagine your LMS takes off, so, you wanna expand, and create new features to meet the evolving needs of your growing user base. Your own LMS gives you the possibility to integrate appropriate features rapidly. For example, if you decide to implement a mentoring program for new employees, you can build it seamlessly, without the limitations that often come with subscription-based LMS platforms. 

4. Competitive advantage 

Just being good or even the best isn't enough, you need to stand out. A unique LMS is the way. Making training experience more personalized or adding there smth others don't have will boost employee satisfaction and retention. 

We've seen this firsthand with the KREYA (ex-CREO) project. Vitaliy Valkov, the founder is a huge fan of it. We made the platform personalized, so the user can choose an avatar, have different awards, and challenge others. This approach can help engage users and reduce outflow. 

5. More opportunities for monetization 

We get it — every creative business needs to drive revenue. It's still a business at the end of the day. Having own LMS opens up broader monetization opportunities. It's way beyond just selling courses, like with a subscription model.

With your own LMS, you get: 

A. Paid features on your terms 

Whether it's an AI integration for some of the educational processes or custom branding, you can give your clients various services for an extra cost.

B. A fully-fledged SaaS

A product, that you can sell to clients, starving for a reliable EdTech solution. That's exactly what we achieved with KREYA (ex-CREO).

The convenience of subscription-based LMS

When you're full of ideas but pressed for time — or still building up the resources to create your own product — subscription-based LMS can get you up and running fast. But how does it work?

1. Quick deployment 

Yeah, if you have minimal time for setup, the subscription model allows you to make it faster. So it's quick, easy, and stress-free. But don't forget, that speed can come at the cost of customization and long-term flexibility. 

2. Cost-effectiveness 

A subscription-based LMS can be a budget-friendly choice, especially when we speak about startups or small businesses. While the initial investment is lower, those recurring fees can add up over time, someday you may eventually hit limitations with a platform, cause it simply doesn't fully support your needs when you expand. 

3. Ongoing support and updates 

Subscription services often come with a dedicated tech team providing ongoing support and updates. So you can focus on your business goals without worrying about technical issues. Sounds perfect, but keep in mind — you'll always need to align with their schedule. 

4. Access to advanced features 

Many subscription models include advanced features that would be costly and time-consuming to build on your own. But be careful, cause these features may not perfectly align with your specific needs, making them feel like shortcuts rather than long-term solutions. 

5. Fast and flexible customization options 

Take KREYA (ex-CREO), for example. That's a gamified LMS platform, which we developed. You see, we can customize your platform to fit your brand, aligning it with your corporate identity. So, a subscription-based LMS doesn't always have to be rigid. You just must find the right one.

So how to make the right decision?

Here are the basic questions every LMS startup should consider, before making the decision.

1. How quickly do you need it up and running? 

If you do not have much time for launch, a subscription service might be the quick fix you need. But if you're in it for the long haul and especially want high quality, creating your own LMS could be the way to go. 

2. What are your customization needs? 

Are the off-the-shelf solutions sufficient, or do you require a tailor-made fit? For the first case, a subscription will be ok, and for the second building your LMS is better. 

3. What's your budget? 

Building an LMS from scratch often means a bigger upfront investment, but the payoff can be significant if you're aiming for something fully custom and built to last. 

4. Do you prioritize data confidentiality? 

Understanding your industry's data security mandates can divi steer your decision. For example willing to have a greater control over sensitive data leads you to build your own LMS.

Conclusion: choosing your path wisely 

The final decision is all on you, cause both options have perks and losses. 

Building your own LMS may require more effort upfront, but it gives you the long-term flexibility, control, and scalability that subscription services simply can't match. 

Of course, as a team of designers and developers, we're all about creating custom LMS solutions tailored to each business. But we're also always here to help you choose the right subscription-based LMS if that's the path you take. With years of experience in EdTech, we've got your back to create a solution that fits your vision perfectly. 

So choose wisely, the right LMS isn't just a tool, it sets the stage for your business's growth.