Online Education is the future. For the last 20 years, the shift to online educational models has been steady, and the percentage of students enrolled online continues to grow. Just as Americans are shifting their shopping, entertainment, dating, and food delivery services online, they are increasingly doing the same when it comes to their chosen mode of educational delivery.

The annual Changing Landscape of Higher Education (CHLOE) report notes this trend, particularly among adult learners and graduate students. Even traditional-age students value the flexibility of learning online, with their increased desires to balance part-time jobs, internships, or housing instability. Moreover, the reputation of online learning has solidified, such that it is now seen as a valid and even preferred mode for many.

Both CHLOE 8 (2023) and CHLOE 10 (2025) noted increased interest in studying online across three key groups: traditional-age undergraduates, adult undergraduates, and graduate students. CHLOE 10, comparing Fall 2024 with Fall 2023, again noted significant growth in interest across all groups, surpassing even the elevated levels two years ago. CHLOE 10 Report

The data regarding the widespread adoption of online education is clear. As colleges and universities face the Enrollment Cliff, online becomes an even more attractive and cost-effective model for forward-thinking strategic planning. But how are institutions ramping up and managing their online programs? Some are creating and managing these programs internally, while others have turned to external vendors, such as OPMs, to act as a force multiplier.

 

What Is Online Program Management (OPM)?

The term Online Program Management, or OPM, emerged in the early 2010s to describe a strategic partnership model in which a higher-education institution collaborates with an external provider to develop, launch, market, and/or manage online degree or certificate programs. When such a partnership is done well, it can help a university or college scale its online offerings quickly, reach adult and non-traditional learners, and lift enrollment and retention trajectories. But the model demands careful alignment and transparency.

 

How Does Online Program Management Work in Higher Education?

When you decide to establish or expand your online program and realize it lacks the full in-house bandwidth or resources to do so, you may engage an OPM. According to the Gartner glossary, “Online program management (OPM) providers . . . work with colleges and universities globally to take new academic programs online. . . . Services include market research, student recruitment and enrollment, course design and technology platforms, student retention, and placement of students in employment or training opportunities.”

The OPM and Institution Collaboration Process

A typical process an OPM and institution follow in their work together might look like this:

• The VP of Enrollment Marketing selects the programs to be offered online.
• The OPM assesses the institution’s systems, conducts market research, and defines target learners, competitive positioning, pricing, and program packaging.
• The OPM and institution co-develop the online curriculum, design courses, build or adapt the LMS, and integrate required student services.
• The OPM manages marketing, lead generation, and enrollment optimization, and often provides ongoing student support beyond matriculation.
• Across a multi-year contract, the OPM and institution share risk, reward, and operational responsibilities, using either revenue-sharing or fee-for-service models.
• Throughout the partnership, the institution maintains academic oversight, while the OPM manages most operational and marketing functions.

In short, OPMs assist institutions in accelerating their online strategy while outsourcing many of the complex processes of building and sustaining an online program.

 

Services that OPM Partners Provide to Schools

OPM partners typically bring a range of services that span from strategic planning to marketing to student success operations. These include, but are not limited to:

• Market research & program packaging – defining demand, competitor landscape, tuition/pricing strategy
• Program & course design – instructional design, online pedagogy, LMS deployment, quality assurance
• Technology & platform support – LMS hosting or integration, analytics dashboards, student support systems
• Marketing & student recruitment – lead generation, digital advertising, branding for adult/non-traditional markets
• Enrollment management & student onboarding – application processing, admissions conversion funnels, onboarding workflows
• Student support & retention services – tutoring, advising, retention analytics, career services
• Operational oversight & continuous improvement – data dashboards, faculty support, compliance, accreditation consulting.

 

What Are the Types of OPM Models?

Institutions partnering with OPMs generally choose from two main models:

Fee-for-Service OPM Model

The institution pays the OPM a set fee for services like course design, marketing, enrollment, and student support, while retaining all revenue, pricing, and branding control.

Advantages:

• Greater institutional control and transparency
• Predictable cost structure
• Typically

Disadvantages:

• Up-front risk is borne by the institution (it pays, and then revenue must follow)
• Requires stronger internal capabilities to manage operations

Revenue-Share OPM Model

The OPM invests resources up front in marketing infrastructure, platform cost, and program launch efforts and recoups them through sharing a portion of tuition revenue generated by the online program, which according to Inside Higher Ed, is between 35%-80%. This model has driven much of the growth in the sector.

Advantages:

• Lower up-front cost for the institution
• OPM is heavily incentivized to drive enrollment since it shares in revenue
• Faster time-to-market

Disadvantages:

• Less transparency, sometimes less institutional control
• Risk of misaligned incentives if marketing or recruiting practices become aggressive
• Long contract terms may lock institutions into legacy models
• Failure to deliver on essential student enrollment targets

In recent years, institutions have been shifting toward fee-for-service or hybrid models as the market matures and regulatory scrutiny increases.

 

Why Is Online Program Management Important?

Benefits of OPMs for Schools

• Expanded reach and access: OPMs help institutions engage adult learners, working professionals, and new geographic markets.
• Faster time-to-market: OPMs shorten the multi-year timeline typically required to build an online program.
• Scalable operations: Institutions leverage the OPM’s marketing, enrollment, technology, and support infrastructure instead of building internal teams.
• Shared risk (revenue-share models): OPMs invest upfront and share launch risk with the institution.
• Comprehensive support: OPMs provide end-to-end services, from course development to student retention.

Benefits of OPMs for Students

• High-quality online delivery: OPMs often provide proven course design, engagement, and support models.
• Responsive student support: Many OPMS offer dedicated onboarding, advising, and retention services to enhance the success of online learners.
• Flexible learning: Online programs are designed for working adults, emphasizing convenience and accessibility.
• Career alignment: Programs often incorporate industry-informed design and employment supports to improve student ROI.

 

How to Choose the Right OPM Partner

Selecting the right OPM partner is critical. Here are key considerations institutions should evaluate:

• Alignment with institutional mission and culture: Does the partner support—not override—the academic brand and values of your institution?
• Transparent contract terms: Be clear about revenue-sharing or fee structure, length of contract, exit clauses, performance metrics and ownership of data/intellectual property.
• Academic control: You should retain control of curriculum, faculty, assessment, and quality assurance.
• Proven track record in online higher-ed: Look for evidence of success in similar types of programs, markets and student populations.
• Student-centric support model: Ensure that the partner invests in student success, retention analytics and learner experience—not just enrollment volume.
• Data and tech infrastructure: Strong dashboards, CRM/SIS integration, analytics, and continuous improvement are essential.
• Flexibility for future evolution: The online-education landscape is shifting (e.g., regulatory changes, business model changes). Your partner must be ready to evolve.

At Magellan, we prioritize institutional partnership, transparency, and quality first. We believe schools should retain academic ownership while leveraging specialist operational expertise, and we deliver precisely that.

 

Magellan Learning Solutions: Your Online Growth Partner

At Magellan, we position ourselves as a Full-Service Online Education Solutions Partner—a collaborative extension of your team. Since 2017, we’ve helped institutions design, launch, and scale high-quality online programs, drawing on deep higher-ed experience and the success of one of the nation’s leading online models. Our team came out of the higher education field, so we understand the dynamics colleges and universities face.

When you want to accelerate online growth, Magellan brings decades of collective expertise and access to a nationwide network of 800+ specialists, offering boutique, agile support built around each institution’s unique goals.

What sets Magellan apart

• End-to-end services: Marketing, enrollment, curriculum design, and academic operations under one coordinated partner.
• Lead Lifeline: Rapid, easy, low-cost lead follow-up that boosts online enrollments.
• Mission-aligned partnership: We work alongside your internal teams, not as an outside vendor.
• Control + transparency: You retain academic oversight; we provide operational execution.
• Student success focus: Proven onboarding, retention dashboards, and faculty support.
• Flexible models: Fee-for-service, hybrid, or custom structures that adapt to match your risk appetite.
• Deep higher-ed roots: A leadership team with more than a century of combined experience within higher-ed.
• Shorter-term contracts: Designed to provide value without long-term lock-in.

Online Program Management is not simply outsourcing; it is a strategic collaboration that allows institutions to deliver high-quality online learning at scale when online education is rapidly evolving. If your institution is ready to launch or scale online programs and deliver strong student outcomes, we’d love to help.