Guest blog by Heights Platform, an online course creation software
The way you decide to price your online course can significantly impact its perceived value and the number of sales you will receive. That’s why pricing your online course is one of the most challenging decisions you can make as a course creator.
As for any digital product, it can get extremely tricky to assign a price to an online course. Fortunately, there are a few ways to determine the right price for you.
In today’s article, we will share our top suggestions for finding the ideal pricing range for your online course and coming up with a solution that is beneficial both for you and your customers.
Before we dive into our tips, it is important to specify that pricing your online course should be one of the last decisions to make before launching your new course. Before that, it is good practice to carry out market research and validate your idea.
Did you have a look at the competition? Can you see any online community interested in the topic you are teaching? Is your online course in demand?
Once you have validated your idea and gotten confirmation that there is a demand for your online course topic, it is time to set a price for your course and start selling!
Here are our top 5 suggestions when it comes to setting a price for an online course:
#1: Price According to the Value
Value is the number one metric you should use to determine the price of your online course.
The problem is… value is extremely hard to quantify.
There are many aspects that contribute to creating the value of your online course: what your students will learn from it, the real-life applications of your course, the demand of your topic, and whether you are providing any life-changing experiences.
Remember: you are not really selling an online course, you are not selling lessons or modules.
You are selling a result, a transformation that will change your customers’ lives for the better.
If you think about it this way, and you focus on quantifying the result of your online course, it can be easier to measure the value and put a price on it. Whatever your value proposition is, make sure to always communicate it to your audience.
An easy case scenario is if you are selling an online course that helps your clients achieve a financial return.
For example, let’s say that you are creating an online course that teaches affiliate marketing and you are confident that at the end of your course, students will be able to get their first $1000 with affiliate marketing.
In this case, the value you are offering is a monetary return of $1000, plus the knowledge that students will acquire to gain multiples of that return in the future. If you decide to charge $800 for your online course, it will be easy for you to justify this price, as the perceived value of your teaching can be easily quantified.
#2: Size Doesn’t Matter
Many creators make the mistake of believing that the longer the course, the higher its price should be.
Most of the time, this is wrong.
Your customers don’t care that your online course has 150 lessons and 30 modules. They want to achieve a result and they want to do it in the fastest way possible.
Even worse – if your online course is too long – potential customers can feel discouraged by its length and ultimately decide not to purchase it, or opt for an easier solution from your competition.
If you are confident that you can help students achieve their goals in a relatively short time, you shouldn’t worry about pricing.
Of course – you need to be realistic. It will not look good if you sell a one-lesson course for $500. Try to find the balance between helping students reach a result quickly and justifying a premium price.
#3: A Higher Price Communicates Higher Value
In today’s economy, consumers always tend to think that “you get what you pay for.”
Did this ever happen to you? Have you ever assumed that the quality of a product was bad just because of its low price?
This is true especially when it comes to online courses and digital products in general. Since a customer cannot see the content of the course before purchasing, the only “proof” of value is in its price (and of course, other customers’ reviews).
If you price your online course too low, potential students might automatically assume that your course is not worth buying.
On the other hand, a premium price will increase the perceived value in the eyes of your customers.
#4: Calculate The Price from Your Ideal Revenue
If you still have no idea how to price your online course, this tactic can help you.
Try to calculate the price backward from your ideal revenue. How much do you want to make from selling your online course? Do you have a revenue goal in mind?
Start by figuring out the amount of money you’d be comfortable with for a certain time span, for instance, one year.
Once you have a number in mind, calculate all your costs (marketing, online course platform, taxes etc…). Then subtract these expenses from your ideal revenue.
All that is left to do now is divide this amount by the estimated number of students you think you will get once the course is launched. The number that comes out should be your ideal price.
So to recap:
(Ideal revenue – Costs) : Sales = Online Course Price
#5: Consider the Purpose of Your Online Course
The price of an online course can vary depending on its purpose. Ask yourself: what are you hoping to achieve by selling this online course? What is the purpose of the course?
You may want to use the course as a lead magnet to collect the email addresses of potential customers and introduce them to your program. Or you may want to sell the course as your ultimate product offering to a vetted audience.
The price of your course should reflect its purpose.
For instance, if you only wish to promote a mini-course as a lead magnet, the price should be low – or even free – to attract new customers who are not familiar with you and not ready to buy.
Setting the right price for your online course is not easy. Try to focus on the value and the result you are providing to students, and remember that the length of your online course should not impact its price.
Our suggestion of aiming for a higher price for your online course has many benefits, including increasing the perceived value of your program.
If you are still struggling with finding the ideal price for your online course, try using this online course pricing calculator.
*Guest blog by Heights Platform, online course creation software
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