The Internet and advancements in the field of information technology have opened up unprecedented opportunities for every citizen to succeed in the 21st Century. Higher education has been utilizing the new technology by offering web-based education. Many universities today offer online classes and even online degrees using eLearning. But how can we measure the cost effectiveness and efficiency of eLearning? The purpose of this article is to review a model to measure the cost effectiveness and efficiency of eLearning by investigating the three major sectors of the eLearning industry and discuss the impacts of economy on the growth of this newly developed industry.