Sales training:

Sales training is often the most expensive training incurred by a company. Frequent releases, changes in services, and promotions occur frequently to meet ever-changing needs. In addition to training materials development, costs for travel and lodging can become almost prohibitive making training only an annual, or semiannual event. In addition, problems with weather, economic and political issues make travel for training less reliable and attractive.


Bi- Annual training for offsite personnel, business partners, and customers. One session remains on site, management would like to reduce costs by replacing one session with WBT/CBT training.

Key Assumptions
  • Assumes one week training for 50 employees. 5 instructor days per class.
  • Assumes instructor salary of $65K, average employee salary of $50K.
  • Assumes ILT development at 8 hours per hour of instruction @ $125/hr.
  • Assumes CBT/WBT development at 40 hours per hour of instruction @ $150/hr.

    Financial Summary

    Alternative A - Classroom Training

    Employee Wages, 250 days $ 34,700
    Instructor Costs, 5 days $ 900
    5 Days Training Materials (ILT) $ 40,000
    Airfare, Hotel, Per Diem, and Misc Expenses @ $1,500. $ 75,000
    Total Cost $156,600

    Alternative B - CBT/WBT Training

    Assumes 2.5 days of online training.

    Employee Wages, 125 days $ 17,350
    2.5 day Training Materials (WBT/CBT) $ 120,000
    Total Cost $137,350

    Summary of savings of WBT/CBT in comparison with traditional training:

    Alternative B: Cost savings $13,250

    Capital Requirement

    Example A has no capital requirement and assumes no classroom costs.
    Example B has a capital requirement to allow access to a web interface for deployment of web pages.
    If not already available internally, access can be obtained for as little as $100 per month.

    Recommendations: for WBT/CBT training

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