Think how you pay for the design of learning resources
16/03/21
In this first article, we are going to look at the benefits of a pay per module basis for clients who are looking for digital learning solutions to be developed.
Traditionally, clients usually preferred to work with agencies to source some flexible resource to assist with their short term learning design requirements. The process first included finding a suitable partner, agreeing fees and terms of business, and all this before a candidate had been sourced.
However, this model now seems to be changing. Although the need for agencies will remain, a significant number of clients are now showing an interest in a pay per module basis.
What is a pay per module basis?
In short, it is an agreement between a client and a supplier, whereby the supplier will develop a learning solution for the client, for a fixed price.
What are the typical fees that will need to be paid using this approach?
There should only be one set of fees to pay, that being the agreed price for the solution. There are no agency fees to pay, as one has not been engaged, and no unexpected surprises to consider such as IR35. Furthermore, most fees are only payable once the design has been completed. Unlike some organisations, at Victoria Place, we don’t take any upfront fees, and if you are not 100% satisfied you can walk away at any time without charge.
Is it cheaper than traditional models, such as using a freelance contractor?
Yes, considerably cheaper. If you gave a contractor a job to develop a solution for 10 days and they completed it within the time frame, you would still be billed for the 10 days, regardless of how long it actually took. If more time is needed however to complete the design, further budget will need to be found to ensure its delivery.
Under the pay per module basis, whether the design takes more than 10 days is not the client’s concern, as an agreed price has been reached with the supplier at the outset.
This method also allows organisations that previously were restricted by costs, to enter the digital learning environment.
Are there any HR considerations to this method?
No. A client / supplier contract will need to be put in place, although either party can do this, it is usually done by the supplier.
Also, there is no need to manage the person doing the design, as you would probably do with someone who is on a fixed term or contract basis as this will be the responsibility of the supplier to manage. At Victoria Place, we have regular calls with clients to discuss the progress of the design, to ensure everything is on track.
How does the pay per module approach usually start?
Once a supplier has been found, an initial call is held to discus the scope of the project, deliverables and timelines. This will enable the supplier to put forward a proposal to the client which will include the price. Once agreed, an initial kick-off call will take place to discuss all aspects of the design.
If you would like to discuss any aspect of this article further please do not hesitate to contact us by emailing us at [email protected]