The eLearning Myths of Traditional Training Companies

In the first of its series, Damian Donlon will provide some thought provoking topics that identifies the key blockages for traditional training companies in growing an eLearning revenue stream in the highly competitive/low margin traditional training industry.

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Lack of resources dedicated to selling eLearning!

Don’t constrain your potential by making excuses. If your subconscious mind believes that you can’t reach on something then the reality is that it won’t happen and one of the most infamous mistakes that people make is thinking that they should have all the resources in place before they start working on an initiative.

eLearning is an additional revenue stream to your traditional business, however the difficulty arises when it is perceived as a separate division to your traditional business.

Not every business can afford to dedicate specific resources to eLearning and nor is it necessary for success. Rather than dedicating separate resources, sales of eLearning should be integrated into your existing sales process and your existing sales team should be set eLearning sales targets in the same way as you would set traditional training sales targets. If your sales people are incentivised by targets, the same incentives should also apply to eLearning otherwise the process won’t work.

eLearning should be very much seen as a “value add” to your existing offering and not an alternative or separate offering. Remember the most profitable customers are willing to pay for services that they typically do in-house themselves and therefore eLearning is not cannibalising your existing traditional business.

Exclusivity in any area is dependent on performance so today is the day to bring your eLearning sales to the next level.

eLearning is not as profitable!

Don’t confuse profit with turnover. A friend and business colleague of ours once gave us a fantastic example of how to differentiate between the two: “If you walk down the street selling €20 notes for €10, you will have loads of takers, fantastic turnover but that’s right you’ve guessed it: no profit whatsoever!”.

It is true that as a traditional training partner, you will receive about 50% of the turnover that you would normally get for own Tier Two clients in a traditional training environment. What you also have to remember though that for the vast majority of these courses there are no output costs.

Even though eLearning can significantly contribute to overheads, we aren’t talking about output costs of items such as rent, rates, electricity etc because your business has to pay these anyway so the fact that you could run an eLearning business from a smaller premises is a valid but irrelevant point to make. The main output costs are trainers costs, administration costs and perhaps items such as room hire etc so when you take these into account eLearning is every bit as profitable, if not more profitable, than traditional training.

Exclusivity in any area is dependent on performance so today is the day to start increasing your revenues without the corresponding output costs.

We often find that eLearning opens doors for traditional training companies that otherwise they wouldn’t have been able to open, particularly at the Tier One level.

Change is hard at first, messy in the middle and glorious in the end. The team at are available for any assistance and training that is required. Please contact Dominic today on

Keep your eyes peeled for the next installment in a weeks time!