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Hello @kklo,
Admin selects the monetization model from Tutor settings > monetization tab and not instructors. Based on this selection they can set price for their courses using frontend course builder.
In the free version of Tutor LMS admin has to create the product beforehand as frontend course builder is a pro plugin feature and not included in the free plugin.
Admin can disable instructor’s publication option from Tutor settings > general which will force instructors to submit courses for admin’s preview. Admin can then decide whether to publish the course or not.