Navigating the complexities of pricing for online courses can be a tedious task, particularly for first-time course creators. With so many options and tools to consider, new entrepreneurs may feel overwhelmed in their quest to find the right pricing model that meets their goals while still being attractive to learners. Despite this difficulty, correctly pricing is key to quickly growing and scaling up your business.

why some creators price their courses low:

• They may be totally new to the online course market
• More interested in sharing their knowledge rather than selling online courses
• Experimenting with a different course idea
• Targeting a specific market for the course launch
• May have many competitors

Why is it important to price your online courses rightly?

When pricing is done right, it helps to create a sense of trust in your brand and encourages customers to invest in what you’re offering. By setting attractive course prices, you can capture the attention of the potential target audience and motivate them to purchase.

why you should not make the common mistake of pricing your first online course too low

While it may be tempting to price your online courses too low in order to bring in more students, this can lead to long-term financial losses. A balanced approach is necessary – pricing should be attractive and competitive enough.

• Setting prices too low communicates a lack of quality
  It can give out the impression that a course has limited content or that it is inferior to other courses in the market.
• May reduce customer loyalty
  The learners feel short-changed when they don’t get quality content in the low-priced courses, this way you don’t just lose their trust in the brand but they will eventually stop investing in your course or look for other alternatives.
• Makes it harder to increase prices
  Worst, charging lower prices from the beginning can make it tough to raise them in the future if you want your business to thrive. However, this could backfire and leave customers feeling angry or betrayed when their investment into a course is followed by similar content at an even steeper price point.
• Might not be attractive to learners willing to pay premium pricing
  Setting prices too low can drive away learners who are willing to invest in a high-priced course. Thus, underpricing your online course could potentially stop these learners from partaking in yours!

• So, how is an average cost of an online course calculated?

When it comes to setting the price of an online course, there are a variety of factors that should be taken into consideration such as market trends, competition levels, and supply and demand dynamics. Most importantly, getting the pricing right will make your offering both financially sustainable and attractive enough to draw more customers in!

three factors that a creator should keep in mind while calculating course pricing

When establishing a price for your online course, it is essential to evaluate the value that you are providing in comparison to competing courses. Elements such as duration of completion, subject matter covered and presentation style should all be considered.

Plus, you should supplement it by researching pricing trends in your industry to correctly position your own offerings and even charge a premium to the target audience for your high-priced course if it offers added value.

Pricing Online Courses Formula Most Successful Creators Use

When pricing an online course, consider the worth of your offering compared to competitors’ courses and strike a balance between different price points. Here’re the four pricing models that the most successful course creators deploy to scale:

1. Free online course

The free course pricing model is a great way to assemble an audience, generate leads and boost brand awareness. It gives learners a glimpse of what you have to offer and can persuade them that your paid version would be worth their time and investment.

2. Baseline courses

Offering a wide range of content at an affordable price point, baseline courses are the perfect way to attract large numbers quickly without requiring extensive time from students or delving too deeply into complex topics. You can gain from the substantial signups.

3. Premium courses

Premium online courses have the highest price points and deliver quality, in-depth content provided they are taught by a seasoned coach. Alternatively, you could offer unique content in your domain.

4. Subscription Model

When determining the most suitable fee for your courses, one of the most reliable models is a subscription-based system. You can offer subscribers daily, weekly, monthly or annual access to all high-quality content in your course with no limits on what they can view.

Do’s & Don’ts For Pricing A Course

• Never price your course based on its length
• Pricing should be based on the value a course delivers
• Don’t do what everyone else is doing
• Pricing models may differ from person to person, B2B goals – Quantify the value learners are going to derive
• Pricing may take into consideration the tangible values too – involving knowledge, skills, and time saved for the user
• Always test different pricing models
• To understand your target audience’s willingness to pay and adjust the price tag accordingly
• Weigh your credibility/authority in course development
• Helps you introduce the most competitive pricing in the industry

$29 0r $100 – What price you should settle for?

When it comes to pricing your course, you must consider what your target market is willing to pay and the value associated with each price point. Aiming for $29 may draw more students, but could be seen as having less worth. Alternatively, setting a higher cost of $100 might dissuade some potential customers yet establish that it holds greater importance – thus potentially resulting in increased sales down the line.

Go for market research, and conduct surveys in your intended audience to check how much would they be happy to pay before settling on any number.

The best way to get it right is by researching online course pricing trends in the industry, striking a balance between best pricing strategies, and ensuring your course offers value in comparison with higher-priced courses.

3 questions you need to ask of yourself

1. How is your course any different than the ones already in the market?
2. How much should you aim to earn from your course?
3. How are you going to market it?

The investments of time and money in course creation and marketing your course will result in a sustainable business. Here’re a few tips from our experts:

• Do Industry Research
  To determine the rate for your course, start by surveying what competitors are charging. This will provide an overview of current prices and indicate how much value you should aim to offer with your product in comparison to other creators’ courses.
• Know Your High-Value Target Market
  It is essential to be aware of who your target market consists of and what they desire from a course such as yours. Investigate their income, demographic information, and preferences to set reasonable charges for them.
• Create Subscription Bundles
  Offering discounts and bundles can be a great way to incentivize learners and encourage them to take up your courses at a lower price. For example, a mini-course can help those of your learners who may not be sure about taking the full course at once but would be more interested in dipping their toe into it.

Here’s one example from one of our top creators at Knorish Academy. His name is Priyaram Bindiganavile, a stock trader from Bengaluru.

He started off with his YouTube channel, where he initially began posting a video a day. Later, when he wanted to scale up, he settled for creating packages with discounted pricing and bundled together multiple related courses. This way, he not only created a win-win situation by providing learners with a more attractive pricing option but in turn boosted his own sales too.

Adding bonus materials or extra courses as part of the bundle can also be a compelling factor for learners. In the longer run, it’s an effective way to get people interested and engaged in your course and can be key to scaling up your course.

tactics that offer a win-win situation

By setting up your courses as an equitable exchange for both parties, you and your learners can reap the rewards. You’ll have a chance to maximize profits while delivering unbeatable value at an affordable price – it’s a win-win! When everyone benefits from the course, everyone is happy.

Not only does appropriate pricing build trust between you and the students, but it also encourages them to recommend your courses to their friends. This can result in more sales for you! 

Fairly priced courses are a great way of getting maximum returns while keeping everyone satisfied with what they receive. But, at the same time keep your high-priced course cost flexible from the business strategy point of time.

Keep your course updated and relevant

Ensuring that your courses are current is essential to keeping both new and existing customers satisfied. After all, no one wants to invest in a course saturated with outdated data!

By constantly updating your courses, you can set yourself apart from the competition that may have similar offerings with outdated content.

Don’t be afraid to raise or lower your prices over time

Adjusting prices as needed allows you to make the most of every opportunity and stay ahead of the competition. By consistently monitoring current trends in demand and supply, you can ensure that your courses are correctly priced for optimum success!

Find the sweet spot

Setting the price too low can lead to a lack of perceived value of your course and thus, reduce the conversion rate. Similarly, setting it too high can also have an adverse effect on conversions and make buyers shy away from taking their courses. Finding the sweet spot in pricing is the key.

Bonus Insight: Here’s when it makes sense to even give away your course for free:

Offering a few of your course modules as free access can be an effective way to promote the value of your training and get potential students interested in signing up for the full version.

By pricing your courses correctly and understanding how pricing affects different aspects of your business, you can ensure that you get maximum returns while also keeping everyone satisfied with what they receive. It’s essential to stay flexible and continually monitor pricing trends, as well as update your course content regularly to keep it relevant for students.

Add more value to your online course to make it eligible for more pricing

To increase the worth of your online course and make it more scalable, it is a good idea to add extra features like bonus material or interactive elements. In addition, you can add enticing incentives like discounts and pricing options tailored to the type of course or amount of content included.

• Coach something very specific
• Create a Facebook Group
• Offer 1-on-1 Coaching Programs
• Add downloadable content
• Offer a completion certificate
• Create different pricing tiers

Ultimately, by pricing correctly, staying flexible, and offering extra incentives you can ensure that your online courses are priced correctly for maximum success. This will enable you to scale up quickly and efficiently while also providing learners with the best value for their money. With pricing strategies like these, your business will be able to reach more students and increase its profits in no time!

Having said that, let us assure you that now is the perfect time to launch your online courses! With more and more people turning to digital learning, there is an incredible opportunity waiting for you in the market. By pricing your courses right and utilizing discounts, varying pricing tiers, or adding extra value, you can ensure that you are maximizing your profits.

Just pick a price and see what happens

Worst-case scenario, you price it too high and no one buys. Or maybe you price it too low and lots of people buy! Either way, you learn something.

Ultimately, discovering the ideal cost for your online course won’t happen in a hurry. To start things off, settle on an amount and ask people to purchase it; then evaluate what happens next before adjusting as needed. Continue altering prices until you find that balance between what the market is willing to pay and your business’s revenue objectives.