Online Non-Credit Program Launch Process

Financial Model

Steps:

1. The assigned program coordinator from Purdue Online will create a budget including:
   1. Enrollment estimates
   2. Expenses
   3. Revenue
   4. The department usually has an estimated price to charge students.
2. The program coordinator will also complete a letter of agreement.
3. Upon completion of the budget, it is submitted to Purdue Online for review and approval from Purdue Online leadership and the Purdue Online business office.

Questions to Consider:

Pre-determined Fees

• PREMIS: To set up a shell in PREMIS for course registration, a fee of $250 or 10% of gross revenue, whichever is greater, is paid to Purdue Online.
• CERTIFICATES: Purdue Online will charge students $15 for each printed certificate.
• CEUs: Purdue Online charges students $3/CEU credit for processing CEUs and a $6 transcript fee.
• CREDIT CARD FEES: to enable learners to register and pay for the course using credit cards, about 2.5% of revenue should be budgeted to cover fees for managing and accepting credit card payments.

Student Price

• What is the price for the student?
• Inform student of non-credit refund policy.

Program Costs, Margin, Profitability

• What costs will be incurred to develop and deliver the program?
• What is the cost to deliver instruction?
• What are the non-instructional costs?
• What are the expected costs of new support staff?
• What is your expected revenue?
• What type of support does the department need from the college or university?
• What is the estimated margin?
• Who will provide ongoing financial management for your program?
• How will you market this course/program to get enrollments?
• What enrollment goals do you have?

Faculty Incentives

• What incentives will be available for faculty to develop an online non-credit program?
• What incentives will be available for faculty who teach an online non-credit program?

Revenue Share

• What is the expected revenue distribution model for the program? (Include university, 3rd parties, college, department)
• If your program is an interdisciplinary program, how will the net revenue be divided among the departments?
• Are you working with faculty from other departments? If so, have you considered sharing a percentage of the net profit with that department?

Program Feasibility

• Assess proposed program’s operational feasibility, student’s return on educational investment (ROEI) and cost to deliver instruction and service.
• Do you have enough faculty members interested in teaching online? Will you need additional faculty or staff?
• Will your program be financially sustainable?
• Who will provide the feasibility study?
• What is your program growth plan?
  • What is your planned enrollment at launch?
  • What is your planned enrollment in 5 years?
  • Do you have capacity constraints?

Consider:

Download the image

Who is Involved:

Purdue Online (Initiator)
Department (Collaborator)
Business Office (Collaborator)

Process Map:

Download the process map

Forms & Resources:

• Financial Model Template
• Faculty Incentive/Financial Model Examples

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Curriculum Development

Steps:

1. Determine the number of courses. If only one course, go directly to course development. If two or more courses, proceed.
2. Lead faculty will design the curriculum for the program including overarching program objectives and the individual course components. (See Questions to Consider)
3. The department will then approve the proposed curriculum.

Questions to Consider:

Program/Curriculum Design

• How many start dates to the program are available yearly?
• What is the designated time to complete the program?
• Will you work with instructional designers to help form your curriculum plan?
• What courses and experiences will make up the proposed non-credit program?
• Will you be able to use existing materials (for-credit or non-credit)?
• Who are your faculty? Who will deliver the content?
• Indicate all that apply:
  • Lock-step program (components must be taken sequentially with no breaks).
  • Program is calendared (specific start and end dates to courses/components).
  • Program is self-paced (students can complete requirements as slowly or quickly as desired).
  • Synchronous online time (students must meet online at a particular time).

Content Delivery Plan

• How will the content be delivered and where? (online, personal website, YouTube, LMS)
• What Learning Management System (LMS) will you use? (If non-standard LMS is chosen, ensure that all business systems and chosen technologies integrate with the LMS.)
• Does the program require any of the following face-to-face components? (lab, clinical, internship/externship, exams, instruction/courses, international experience/study abroad)
  • Indicate the frequency of the face-to-face components.
  • Indicate the location of the face-to-face components.
  • Describe the barriers to offering the face-to-face components online.

Who is Involved:

Faculty (Initiator)
TLT (collaborator)

Process Map:

Download the process map

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