Negotiate Your Learning Management System (LMS) Contract

December 7, 2018
Katrina Marie Baker works for Adobe as a Senior Learning Evangelist. Her independently operated consulting firm, Resources of Fun Learning, has advised organizations in multiple industries, including aerospace, construction, legal, retail, technology, and transportation. Katrina speaks frequently and maintains YouTube channel Learn Tech Collective. She has authored books LMS Success (2018), The LMS Selection Checklist (2018), and Corporate Training Tips & Tricks (2017). Katrina is a former Director of Technology with the Association for Talent Development. She has worked in global training capacities for Fortune 500 retailer Whole Foods Market, and Global 100 law firms Cooley LLP and Latham & Watkins LLP. Previously, Katrina worked in music and video production for clients such as Disney Channel and Adult Swim.
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Senior Learning Evangelist
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Negotiate Your Learning Management System (LMS) Contract

Katrina Marie Baker works for Adobe as a Senior Learning Evangelist. Her independently operated consulting firm, Resources of Fun Learning, has advised organizations in multiple industries, including aerospace, construction, legal, retail, technology, and transportation. Katrina speaks frequently and maintains YouTube channel Learn Tech Collective. She has authored books LMS Success (2018), The LMS Selection Checklist (2018), and Corporate Training Tips & Tricks (2017). Katrina is a former Director of Technology with the Association for Talent Development. She has worked in global training capacities for Fortune 500 retailer Whole Foods Market, and Global 100 law firms Cooley LLP and Latham & Watkins LLP. Previously, Katrina worked in music and video production for clients such as Disney Channel and Adult Swim.
Guide 40 posts
Followers: 31 people
December 7, 2018

Congratulations, you’ve gone through the process of selecting the perfect learning management system vendor for your learning and development organization! All that stands between you and that beautiful piece of learning technology is the vendor contract, and the associated price tag.

During one of my conference sessions this year, I was asked whether it’s possible to negotiate the price of an LMS. And the answer is – absolutely you can! Buying technology is somewhat similar to buying a car. It’s a big investment, and you can negotiate many elements of the contract with your vendor, particularly the cost.

As the video states, it’s important to know exactly what you are paying for. If the vendor gives you a “lump sum” for your three-year contract, have them break it out so you see the line items that contribute to the overall cost. You may be able to strike features and services you don’t need, or negotiate a lower cost for some of the line items. Also discuss payment schedules. Can you get a lower overall price if you pay more up front, for example?

Most importantly, don’t be afraid to ask questions and propose changes to the contract! It’s a critical part of your LMS selection process, and your learning technology vendor should be willing to collaborate with you. Contract negotiation is the exciting last step of your LMS selection process, and it signals the beginning of your LMS implementation!

Information in this video and post is taken from my book LMS Success.  Please subscribe to Learn Tech Collective for more LMS and e-learning videos.  Follow me on Twitter or connect on LinkedIn.

Comments (4)
2018-12-26 21:17:29
2018-12-26 21:17:29

I’ve had the best results by being ridiculously bold.

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Todd Spargo
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2019-01-02 19:38:00
2019-01-02 19:38:00
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Todd Spargo
's comment

Amen to that, Todd!

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2018-12-17 17:41:51
2018-12-17 17:41:51

Glad you’re putting this out there; these conversations can feel overwhelming if you have no experience or context!  Great information; thanks!

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Lita Bledsoe
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2019-01-02 19:40:13
2019-01-02 19:40:13
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Lita Bledsoe
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Thanks for watching, Lita!

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