It goes without saying that training resources are an integral part of delivering quality training. Many RTOs we’ve worked with agree that providing effective and efficient training becomes much more difficult without quality training materials. This is why RTOs are incredibly particular when it comes to their training materials.
We understand that RTOs only want the best. However, RTOs should also be realistic and balance this with cost and ease of use to ensure sustainable training.
So, that leads us to this question – what are the best RTO licence models when getting training resources?
First things first: What is a Student Licence?
Simply put, the licence dictates how you can use the resources, for how long and how much it will cost.
Two common RTO licence types are offered in Australia’s vocational training resources sector: the pay-per-student licence and the unlimited student licence. Now, let’s find out the difference between the two.
One-Off Unlimited Student Licence vs. Pay per Student Licence Model
Let’s get down to the details. The table below shows how different a per-student licence payment model is from an unlimited student licence.
If you choose training resources with the wrong student use licence, your RTO will spend more money and put you at a competitive disadvantage.
Now that we know the basic distinctions between these two licences, it’s time to get down to the nitty-gritty: the pros and cons of each licence type.
Pay Per Student Licence Pros & Cons
PROS:
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You May Find a Wider Range of Resources from Publishers Who Offer Pay Per Student Licences
This is because publishers can often make more revenue from per-student resources RTO licence, making the development of a broader range of units cost-effective. If you want to buy your training resources all in one place, this is something to consider.
This also allows you to offer a wider range of elective options for your courses and only pay for resources when a student selects a unit.
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Low Upfront Investment
If you are a new RTO still laying down the groundwork or expanding your scope and getting into new industries, a per-student RTO licence will benefit you. For a low upfront cost, you can instantly secure resources to get you started.
However, keep in mind that it will not be sustainable as your RTO grows and starts to ramp up student enrolments since this only works out for about 20 to 30 students. Also, be cautious of any hidden charges in the resources you acquire that will cost you more.
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Easy to Change to New Release Units & Qualifications
Sometimes, purchasing a training package that is about to supersede happens. When you opt for an unlimited student licence in this scenario, you can’t maximise the use of the resources.
Securing a per-student licence will make switching over to the new version easier. But to save even more, it is much better to have the most up-to-date version on hand from the get-go to avoid paying extra.
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Can Assist with Cash Flow Management
Securing training resources under this RTO licence type leaves you more funds to pay your bills and invest in other business improvements.
CONS:
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Not Cost-Effective for High Enrolment RTOs
This type of RTO licence usually costs between $200 to $1000 per student, depending on the qualification and the number of units (plus resource costs). If you are an RTO that offers training for popular qualifications, this will not be economical in the long run.
The number of students who will enrol with you will be unpredictable because this can change over time as the demand increases and more people enter the workforce.
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Stuck Using Print Resources or a Third-Party LMS Platform
Per-student resources need a way to limit the resources they’ll give out to clients. Usually, they do this by only offering print resources or resources that are only accessible through a third-party LMS.
If you’re buying print resources, you will shoulder the shipping costs and postage fees. The cost of distributing resources could easily add up as you ship them to each student.
On the other hand, some per-student resources are only accessible through the LMS platform the publisher provides. This means you’ll have to pay for additional subscription fees just to get access to resources you’ve already paid for.
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Limited Editability
This will pose a major compliance issue as contextualising is an essential requirement to pass regulatory audits.
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Hidden Upfront Costs
These low upfront fees typically have hidden costs around them. If it’s too good to be true, it probably is. Be aware and always double-check (or even triple-check!) that you are getting your money’s worth.
Unlimited Student Licence Pros & Cons
PROS:
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Pay a One-Off Upfront Fee
When you purchase resources under this RTO licence model, the only fee you need to pay is the flat-rate, upfront cost. It’s a “one and done” deal with no “nasty surprises”!
This allows your RTO to fix your resource costs upfront and free up ongoing cash flow for other expenses and investments that will contribute to the betterment of your organisation (e.g., purchasing an SMS/LMS to automate systems).
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Most Affordable Option Long Term
Most unlimited student license model resources break even with the per-student model after just the first 20-40 enrolments – but you can continue using the resources for hundreds or thousands more students! This is a massive long-term saving for RTOs and allows for easy scalability as the organisation and enrolments grow.
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Usually Includes Editable, Brandable File Format
You can easily promote your brand by adding your logo and customising the resources to reflect your RTO’s identity. Since it is in an editable digital format, you can create as many training materials as needed!
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Contextualisable
Contextualising is one of the most crucial steps an RTO must take to ensure they remain compliant with industry standards. With an unlimited student RTO licence model, you have the freedom to contextualise the resources the way they meet your RTO’s requirements.
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Adaptable & Reformattable
Since these come in editable digital format, it gives you more flexibility to use the resources in various student delivery platforms and methods. Depending on your learner cohorts’ needs, you can get the learning content to them in multiple ways and formats. Sky’s the limit in making these resources your own!
CONS:
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Not Cost-Effective for Low Enrolment RTOs
If you are an RTO that is new to the industry or an organisation that has a projected number of student enrolments yearly, this RTO licence model will not be suitable for you. Having a forecasted number of students to accept means that you already have an allocated budget for that population. Choosing an unlimited licence, in this case, may make you spend on students that haven’t even enrolled with you yet.
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Not Economical to Create Niche Training Products
Some RTOs deliver training for niche products like AHC, RII, and PUA, which only have little demand. So, buying these training resources under an unlimited student licence will not be a worthwhile investment.
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Cost-Effectiveness Reduces the Longer a Qualification or Unit Has Been Out
Training packages that have been out for a while are most likely to supersede soon. When this happens, RTOs must transition students to the latest versions as soon as they come out and teach-out the superseded ones.
Purchasing an unlimited student licence for training resources soon to supersede will not be ideal. You won’t maximise their use because you would have to transition to the new release.
Break-Even Analysis
Here is a sample scenario comparing the costs of acquiring a pay-per-student licence and an unlimited student licence to paint the picture.
Conclusion: Which RTO Licence Model is More Practical?
The answer: it depends on your RTO’s requirements. However, an unlimited student licence gives RTOs more benefits in the long run.
A per-student licence may be better if your RTO:
- has a small number of student enrolments;
- wants to access a broader range of units and elective options in a cost-effective manner;
- wants to make cash flow management easier by only paying resources when you get an enrolment;
This RTO licence type is also a good option to allow you to add new courses to scope and start delivering training even if there is the threat of a training package update soon.
However, an unlimited student licence model will be optimal if you offer in-demand qualifications and want to fix your resource costs upfront to maximise your ROI.
These also typically allow much more flexibility to edit, contextualise, rebrand, and modify the resources to different file formats or print as needed. This option is particularly good when a new qualification or unit has just been released, and you will likely get 5+ years from the training resource before the next major training package change.
In the past few years, we’ve seen many clients switch from the per-student model to the unlimited student license model. The potential cost-savings alone are significant. The ability to modify, contextualise and deliver resources in different formats and mediums, including your preferred LMS, is critical to your training quality and compliance.
In summary, there are heaps of benefits that make an unlimited student licence more cost-effective such as:
- Paying a one-off upfront fee (goodbye, renewal fees!)
- Maximising profit by reducing ongoing costs
- Have a broader target market
- Editable, brandable and contextualisable (maintain compliance at audit)
- Adaptable to various delivery methods
- Increase enrolment rates
- Easily scale up your organisation
- Most affordable in the long haul
RELATED POST: Seven Tips for Buying Training Resources for RTOs
Check out training resources with unlimited student licences here!
We have an extensive selection of training and assessment materials from top-notch publishers across Australia that provide unlimited student licence. Click here to see our catalogue.
To find out more about the variety of available training resources, please call us on 1300822599 or email us at contact@totalvet.com.au. You can also get sample resources and a personal walkthrough upon filling in the enquiry form. Our team will be glad to help you out with what you need.
