Written by: Edward J. Maloney and Joshua Kim
Published by: Inside Higher Ed
MBA News Digest Comment: None.
Extracted Content: Reducing the risk of new online programs for schools is certainly one of the main reasons that OPM companies will often claim in support of their arguments about the benefits of these partnerships. In a traditional OPM arrangement, the online program management company invests significant up-front dollars in the design and marketing of a new online program.
The traditional model (and there are many variations) is for the OPM provider to pay for most or all of the variable costs in starting and running a new online program. In exchange, the OPM provider receives from half to two-thirds of the tuition revenue, with the school receiving the remainder. (Faculty costs usually, but not always, come out of the university share.)