Is the Learning Management Systems Market Saturated?

Given the popularity of eLearning, many people wonder if they should try to enter the learning management systems market. But before deciding whether to do so, you will likely ask yourself if the corporate learning management system market is saturated.

Is Learning Management System (LMS) Market Saturated? 

The short answer is yes, to some extent. There are thousands of options for LMSs in the learning management systems market, possibly even tens of thousands. But most of them aren’t very good. So, while there are a lot of options, only a few of them are regularly in use and popular.

Instead of focusing just on whether the learning management system (LMS) market is saturated, look at the underlying question you really want to know the answer to.

Should You Build a Custom LMS for Your Course?

If you want to create an online course and need an LMS to do so, you may wonder whether you should buy an LMS or build it. You will almost always want just to use an existing one. There is likely an LMS that will let you achieve your goals without having to put in the additional effort, time, and resources to create one yourself from scratch. 

Should You Build an LMS to Sell?

As with building an LMS to use for your course, you likely don’t want to build one to sell. If you want to enter the corporate learning management system market, it’s a much better option just to resell existing options. 

We resell LMSs, specifically our favorite systems. For example, we resell Kajabi or Talent Cards. Talent Cards are a popular option in the learning management system (LMS) market because it is very similar to TikTok, Instagram, and YouTube Shorts in terms of format and usability. 

Are LMSs Even Relevant?

The other question to keep in mind about the corporate learning management system market is whether LMSs are even relevant today. A lot of people still use them, but they are not even close to as relevant as LXPs, which are learner experience platforms.

The fact that they aren’t as relevant as they used to also means that you should resell instead of building a brand new LMS from zero. 

Who May Want to Build an LMS?

While most people won’t want to build an LMS, there are some exceptions. That’s because while some industries are highly saturated with LMSs, others have only a few options or none at all. If you notice a lack, think about the features that your particular industry would need that aren’t available on existing LMSs and build one to fill the gap. Make sure to do your research first to make sure there is a need for an LMS you are planning on creating. 

If You Do Build, Follow the 80% Rule

With that being said, you may still want to build your own LMS, and that’s okay. If that’s the case, then remember to follow the 80% rule. This says that creating 80% of your system will require the same time and effort as the last 20%. So, it doesn’t make sense to take your LMS to 100%. That last 20% or so isn’t worth the time and effort. You can refine your LMS after you deploy it to the market and get feedback. 

Conclusion

While there is an overwhelming amount of LMSs on the market, not all of them are good. Even so, few people or companies will want to build a new LMS. You can use an existing one to create your course or resell one instead of starting from scratch.