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12/12/2006
Revenue-sharing models at the central institutional level recognize the need to provide incentives to the faculty and deans of the colleges. The funding model at the University of Florida’s Distance, Continuing, and Executive Education (DCE) division illustrates this revenue-sharing model: 76 percent of revenue is used for marketing, operations, faculty, program support, and updating and program development; 14 percent supports the infrastructure services, and 10 percent is distributed to the college and department. This basic model is subject to change, depending somewhat on the amount of risk and development costs assumed by the college.
Any successful and sustainable funding model must include provision for the revision and updating of existing programs and investment in new programs. Yet this is the portion of the budget that is increasingly squeezed and faculty and colleges are often asked/expected to produce products and services without reasonable compensation or with appropriate training and support.
What Next?
Online learning as a significant growth area within non-profit higher education sector is a given. The funding models and organizations committed to online learning must embrace the move from subsidized programs to self-sustaining programs based on good business practices as well as quality academic practices. How well quality programs are delivered at what cost and what return providing for reinvestment are some of our future challenges and opportunities. Thanks to all those who took the time to share their ideas and experiences.
Check These Resources
“eLearning: Are We Making Money?” Judith V. B'ettcher, Campus Technology, Aug. 2005, http://campustechnology.com/article.asp?id=11507
“What Do We Need To Learn About the Business of Education?” Stephen Schiffman, Elements of Quality Online Education: Engaging Communities, John Bourne and Janet C. Moore, eds. Sloan-C Consortium, 2004, http://www.sloanconsortium.org/sloancseries-order/vol6_web.pdf
“Business Models for Online Learning: an Exploratory Survey,” Karen Vignare, Christine Geith, and Stephen Schiffman, Journal of Asynchronous Learning, Sloan-C Consortium, May 2006, http://www.sloan-c.org/publications/jaln/v10n2/v10n2_5vignare.asp
Judith V. B'ettcher is an independent consultant specializing in online and distance learning and the applications of new media.
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