Per-Active-User vs Per-User Pricing
The single most-misunderstood LMS pricing model is per-active-user. Different vendors mean different things by “active”. The result is quotes that cannot be compared without normalising.
Registered, MAU, YAU, RAU
| Model | What counts | Buyer favoured when | Seller favoured when |
|---|---|---|---|
| Per registered user | Every existing account | High activity, stable headcount | Predictable forecast |
| MAU (Monthly Active) | Accounts that meet activity criterion in a month | Low or peaky activity | Activity scales with success |
| YAU (Yearly Active) | Accounts active anywhere in contract year | Cyclical training (annual compliance) | Most users hit annual cycle |
| RAU (Registered Active) | Accounts marked active in the system | When admin disables dormant accounts | Pays for unused but enabled seats |
What “active” can mean
Different vendors define active differently. The order-form definition is the single most-important pricing clause in any active-user contract:
- Login: any login counts. The loosest definition; favours the seller.
- Content launch: opening a course or module counts. Tighter than login but still loose.
- Completion or partial completion: completing a unit of content. Tightest; favours the buyer.
- Mobile vs web: some vendors count mobile and web separately, doubling the active count for the same user.
- Manager and admin accounts: confirm whether they count, and at what rate.
2,000 registered learners, 30 percent active monthly
Illustrative example, not a real company. Numbers chosen to demonstrate methodology.
A team has 2,000 registered learners with 30 percent monthly active. Hypothetical, normalised rates:
- Per-registered at $5/user/month: 2,000 x $5 = $10,000/mo, $120,000/yr. Predictable.
- MAU at $15/active/month: 600 active x $15 = $9,000/mo on average, but a burst month could be 900 active x $15 = $13,500. Average is cheaper, peaks can be worse.
- YAU at $25/active/year: cap at the year level. If 1,200 of the 2,000 touch the system in a year, that is 1,200 x $25 = $30,000. Dramatically cheaper if you can predict the yearly touch count.
Rates above are hypothetical for the comparison. Your quote will be different. The point is the math, not the numbers: small changes in the active definition or activity rate flip which model wins.
A decision rule of thumb
- If your monthly active rate is above 70 percent of registered, ask for per-registered. Predictable, hard to surprise.
- If your monthly active rate is below 40 percent, ask for MAU. Cheaper at typical run-rate.
- If you have an annual compliance cycle where most users touch the system once a year, ask for YAU.
- If you cannot decline activity-based billing, pin the definition of active in the order form to the tightest reasonable bar (completion or partial completion).
Where this matters
The clearest published billing-model menu.
Monthly active-user model in the SMB band.
Compare registered vs active scenarios.
Where the quote stops looking like the rate card.