How to Price Your Online Course to Make More Sales
You’ve successfully crossed the hurdle of choosing a course topic and creating your online course. Congratulations.
Here’s another difficult point you’ll face – pricing your online course.
For most creators, choosing the right price for their online course can be very difficult. Because they are often stuck between setting a price that is right for them and not losing their customers.
So, those who lack the right information about online course pricing cave into their fears and set a price they think is good for their audience in a bid to not lose them.
Setting your price this way can have a negative effect on your goal. In fact, it can negatively affect you as the creator.
We’ve seen this struggle and has written this article as a guide. Pricing your online course isn’t a decision to leave to chance or fear.
So, let’s get started.
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Why Charging Low Price for Your Course is Bad
When creating online courses for the first time, it’s normal to feel like giving it a low price. If care is not taken, you may even be tempted to give it for free because you’re so kind and just want people to enjoy your course and be happy.
As we said, it’s normal. These are part of the reasons course creators give out their first course at a large discount price.
Plus there are lots of similar content online. So it’s normal if you feel like there’s nothing special in a course you created. But as much as you think this helps you, all it does is tell your customers that they can get cheap courses from an expert – YOU.
Also, as much as people like to get free and cheap stuff, there are other people who prefer to buy premium products. In fact, some people routinely pay for expensive courses in exchange for high-value information from experts. Not only will they take your course, but they will also implement what you’ve taught and share their results with you.
When you decide to create a membership site, these same individuals will gladly pay to be a part of it, and have access to you.
So maybe, you are not having an “I-want-my-students-to-feel-okay-paying-for-my-course feeling. You may just be focusing on the wrong students.
Learn the art of pricing. Read this guide on How to Price Your Digital Products Without Underpricing Yourself
Consequences of Charging a Low Price for your Online Course
“For every action, there is an equal and opposite reaction” according to Newton’s third law of motion. Bringing it down to our topic, it means that if you charge a low price for your course, you’re definitely going to see the consequences.
So, here’s why charging a low price for your online course is bad for business
#1. You’re limited
Every time you charge a few dollars for your course, that’s all you get – a few dollars. With that, you’re unable to raise cash to improve your course and expand your business. You also wouldn’t be able to afford advertisements for your course. In fact, with a low course price, you are more likely to hit a loss than you are to earn a profit.
Let’s look at an example.
Let’s assume you have an XYZ course on Digital marketing that you sell for $60/ ₦2,000. To advertise your course, you spend $10 or ₦1,000 on ads to generate leads. Now let’s assume your conversion rate is 10%. So for every 20 leads you get, you make 2 sales. Since each lead costs $10, you need to spend $200 on ads to make one single sale. In this scenario, you’re spending more than you earn, resulting in a loss.
#2. It requires equal strength to sell a high-priced course
If you think, “Oh, since my course is cheap, I can as well put in less effort to sell it,” you’re absolutely wrong.
Of course, it’s easy to get someone to buy something when the price is low. But pricing is just a small part of the whole equation. You have to run ad campaigns that help you generate leads, then you nurture these leads to influence them to buy, and when they think they want to buy, you have to really convince them that your course is totally worth it.
Whether you like it or not, it’s a long process. And the other thing you probably may not like is that it’s the same process to sell a high-priced course.
So, why go through this hurdle to lose money in the end? Especially when you can earn lots more?
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#3. Your customers will perceive your brand as cheap
Many customers attribute the value of a product to the price that was paid for it. This means that selling your course at a low price automatically tells your audience that your course has medium or low value in it.
The perceived value of your online course influences the number of sales you’ll make. Moreso, there’s a psychological effect to having a low price, which tells your customers that you sell cheap products.
#4. You can’t compete
Setting your price to be the lowest doesn’t give you an edge over others. Someone else will always be ahead of you. More so gaining customers by being the cheapest in the market doesn’t always work. Focus on creating optimal value in your course, and selling it for a premium price.
#5. Lower prices attract lower customers
Courses that sell at low prices often have customers who never finish them, or even implement what they’ve “learned.”
When someone pays for a premium product, they tend to place more value on it and ensure they implement what they’ve learned to get results. Everyone wants to get value for their money. So these ones will ensure they implement everything they’ve learned. And if they don’t see results, best believe they are coming for your head, lol.
The point is the customers who pay for cheap products aren’t the type of customers you want if you want to grow your brand. However, with premium products, you’re sure to attract committed students.
Sales funnel increases conversion. Learn How to Create a Sales Funnel to Sell Your Online Course.
When to Sell Your Course For a Low Price
Here are the only scenarios where you’re permitted to sell your course for a low price.
#1. When trying to acquire a new customer
In a bid to get new customers, you may resort to giving discounts on your course. Now, we don’t recommend this strategy to anyone but if you really need to convert that customer, then try giving out your course at a discount. It works well.
#2. When pre-launching your course
One of the most effective ways to increase awareness about your course is by pre-launching it. The good thing about pre-launching is that your course doesn’t have to be ready. Your students just need to believe that they will be getting first-hand access to your course when it’s out.
Additionally, you can get more ideas for your course from your audience by asking for their opinion on each lesson.
With this method, your students are open-minded to your course and are willing to pay for it.
#3. When increasing your price
When there’s a deadline before you increase your course, your students are forced to buy now. Deadlines create a sense of urgency. So if you’re going to increase the price of your course, it’s best to give your students a discount. This is often called Early bird price.
Launch your course the right way. Learn How to Successfully Launch an Online Course
Factors that Affect the Pricing of your Online course
Pricing is oftentimes affected by series of factors. Generally, the price of physical products can be attributed to the economy of a nation, its foreign currency conversion rate, market demand, etc.
Likewise digital products. Lots of factors can influence the price of your course. Some of which include;
- Time and experience
- Marketing cost
#1. Time and experience
These factors are very important when it comes to pricing your online course. Unlike physical products, the price of digital products isn’t affected by war or the economy, or other national problems. Your time and level of expertise determine the cost of your products.
How much time did you spend creating the course? How much time did you put into creating resources for your course? How much did you spend to learn this? How long did it take you to develop the skill to this point?
Now, having thought about all these, ask yourself, What would you charge for your time, experience, and effort.
#2. Marketing cost
Creating your online course is one step. The next step is to advertise it and get it to the face of your prospects. To do this, you need to market your product. Run ad campaigns across several media platforms to get more people to see your course and buy it.
Now, this method of advertising your product to potential buyers is the same for all kinds of products. Whether a high-priced product or a low-priced product. It takes the same process of running ad campaigns.
So why make so much effort marketing a low-priced course when you can market a high-priced course?
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Another major factor that determines the price of your course is the value your course offers. How will your audience benefit from your course? How much time will it save them? Would implementing your course strategy gives them the results they seek? Knowing these helps you to invest more time in creating a valuable course that you can sell at a high price.
The content of your course is another major factor in deciding the price of your course. Including multiple types of content in your course makes it more valuable, allowing you to price it higher.
Videos, workbooks, physical products, and templates are often included to make sure students with different learning styles can learn effectively. More so, having different formats makes people believe they are getting value for what they paid for.
Why are you creating this course? Do you want o use it as a lead magnet? What goals do you want to achieve with it? Will it be an entry-level course, intermediate, or expert-level course? Knowing your purpose for creating the course helps you price it properly.
Sell your courses the right way. Learn How to Sell Online Courses: Everything You Need to Know
How to Price Your Online Course
If you’re ready to go premium, here are some guidelines for pricing your online course better.
Take a deep dive into your audience stat. Get to know them, their income level, their pain points, and what they are willing to offer. Do enough research to be sure you are first creating a course that your audience really wants. Researching gives you enough information to set a better price for your course.
#2. Quantify the value of your course
As we’ve mentioned earlier, the price of your online course is directly proportional to the value contained in it. If your course is going to help your students become better digital marketers, say it. If it’d save them time on a regular routine, say it. It’d help them 5X their income, say it.
By quantifying the value contained in your course, you position your course as premium and create a fear-of-missing-out feeling in your audience.
#3. Consider your alternatives
Of course, your course isn’t the first of its kind. The only reason it differs from the rest is because of you, the angle of your content, and your experience.
Compare the price of other alternatives to your course. These options are probably lacking in places your course covers up. If this is so, then it’s good. Because when your students want to make a purchasing decision, they get to weigh their options.
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#4. Course objective
Why are you creating an online course? Is it strengthen your public image as an expert in your field? To create another revenue strategy? To build your email lists? Or to offer a bonus to help you sell your other products?
If your objective is to add an extra revenue point, then quantify your revenue goal. For example, if your goal is to make $100,000/₦500,000 from the sale of your online course, what do you need to get there? How many sales do you need to make to reach your goal? Let’s look at several ways to make it happen.
#5. Consider your authority in the market
Another huge factor in pricing your online course is to think about your authority in the market. Is your name or brand name easily recognizable to your target audience? Are you well known for the skills you teach? Have you spent several years building your platform and growing your audience?
If you’re not yet perceived as an expert in your field, you may want to consider, first giving out free content to build authority in the market.
PS: Usually, you are told to check the price of your competition and fix your price somewhere in the middle. Well, this is wrong. Do not fix your course price based on the price of your competition. As much as you both may be competing in the same market, you have different goals and different customer behavior.
Tips for Increasing the Price of Your Online Course
One of the challenges faced by creators, asides from pricing online courses is to raise their prices.
Yes, you know it’s the right time to raise the price of your online course. But how do you do it without losing customers?
Follow these tips to raise your online course price and still retain your customers.
#1. Offer more packages
If you just had one online course for sale, consider adding more resources to it. You may create a private group for your students to make them feel special and give them access to you. This group would serve as a place where they can interact with you, and build relationships with other students.
Alternatively, you can offer one-on-one coaching for your students. This way you hold them accountable to finish the course and implement it.
So when you raise the price of your online course, you tell them that the new price comes with access to your exclusive group, one-on-one coaching program, and even monthly calls or webinar.
The idea is to offer more, so your students believe that the increase in price is totally worth it.
#2. Offer a course certificate
Giving a course completion certificate is a good way to add extra value to your course. More than that, it gives your students something to brag about. It can also be a reward system for your students to look forward to completing your course faster.
#3. Be very specific
When you’re specific with your teachings, it becomes easier to talk about the value contained in your course. For example, digital marketing is a broad term. So instead of teaching a full course on digital marketing, you may want to consider teaching Facebook ads, Email marketing, or Content marketing. These topics are more specific.
Now if you choose Content Marketing, it means that anybody who wants to learn how to use content marketing to drive sales and increase brand awareness would enroll in your course. The outcome of this course will be specific and for these students, it’d mean a lot to them.
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#4. Include downloadable resources
Oftentimes, students prefer to download course resources and go over them later. With this, they have more control over their learning experience.
Providing course resources like audio, video, worksheet, template, checklists, etc. is a great way to increase the value of your course, which ultimately helps you to increase the price of your course. Price is equal to value.
#5. Create different price tiers
Buyers love having different price options. It’s a psychological trick to get them to pay for something higher.
When creating price tiers, list the benefits of each pricing structure. Let your students know what they stand to gain when they pay a certain amount to you. The longer the list looks, the more likely they are to go for it.
Generally, creating price tiers gives your students the opportunity to compare different options.
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To Wrap it Up
There’s no right way to price your online course, nor a wrong way to do so. However, you can make better price decisions because you now know what pricing is all about. Worst-case scenario, you set a high price and no one buys. Or you set a low price and everyone buys. Either way, it’s up to you.
Pricing your online course comes down to three things.
- Value of your course
- Your goal
So pick a price, test it and see how your audience reacts to it. Depending on their behavior, you can change it by increasing the price moving forward or reducing it.
The aim is to keep iterating till you find what works for you and your audience. And when you do, host your courses on Selar, and enjoy ease.