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LMS Commission Fees Explained: What Platforms Really Take

Robert David, Head of Learning PartnershipsSeptember 14, 20265 min read
A comparison of LMS commission and transaction fees — 0% on some plans and a hidden percentage on others

LMS commission fees are a percentage a platform takes from every sale, on top of or instead of a subscription price, and they vary widely. Some platforms charge 0% on every plan, others only remove the commission on paid tiers — so the free plan's fine print matters more than most people realize.

How commission fees actually work

Two different pricing components get bundled together and often confused: a subscription fee, what you pay the platform monthly, and a commission or transaction fee, a percentage the platform takes from each sale. Some platforms charge both.

What competitors currently charge

Kajabi advertises 0% transaction fees, but that only applies to its own Kajabi Payments — bring your own Stripe and Kajabi adds a platform fee of 0.5% to 5% depending on your plan, while its subscription scales by contact count from $179 to $499 a month. Teachable's commission structure varies by tier too, with 0% on higher-tier plans and a percentage charged on its entry-level tier. The pattern across the industry: a headline 0% is common, but it's usually tied to using the platform's own payment processor, or reserved for higher tiers, rather than applied on every plan. Learn 360 is the exception — 0% commission applies on every plan, including Free, whether you use your own Stripe or not.

Why the free plan is where commission fees hide

Free plans are where platforms most often build in a commission: since they're not collecting a subscription fee, taking a cut of sales is how the free tier stays viable for the platform. Always check the specific commission rate for whichever plan you're actually evaluating, since the number for a $0 plan and a $100 plan on the same platform can be very different. On Learn 360, that check turns up the same answer either way: 0% commission on Free and on Pro.

What to actually check before signing up

Is 0% commission true for every plan, or only paid tiers? Is the commission on top of a subscription, or instead of one? And does the rate change if you use your own payment processor, upgrade, or hit a certain sales volume? The headline number and the number you actually pay are often not the same.

Frequently asked questions

Not always. Many platforms reserve 0% commission for paid tiers and charge a percentage on free plans instead, so it's worth checking the specific plan you're on, not just the headline claim.

A subscription fee is a flat amount you pay the platform regardless of sales. A commission fee is a percentage taken from each sale you make. Some platforms charge one, some charge both.

No. Learn 360 charges 0% commission on every plan, including Free, not just on paid tiers. You keep 100% of every sale regardless of which plan you're on.

Free plans generate no subscription revenue for the platform, so a commission on sales is often how the free tier remains sustainable to offer.

About the author

Robert David · Head of Learning Partnerships

Robert David has over 10 years of experience in learning and development, working with organizations to build and scale training programs across both custom eLearning and self-serve LMS platforms.

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