You have created a kick-ass course curriculum and now you are thinking about how to price your course. If you are someone just starting out, online course pricing can be a tough puzzle to solve. Pricing in the world of online courses can vary from experts to experts, program to program, and mode of learning to mode of learning.
In that regard, what’s the best way to approach pricing and ensure stable sales for your online course? Let’s figure it out now.
Here are 6 strategies that will help you with online course pricing massively 💰
Teachers and experts, grab your notepads!
1. Know your worth
Before deciding on a price right off the bat, set your priorities straight. One of the questions you should ask yourself is, how much do you want from this course? You can answer this in a couple of ways. Like quantifying, listing tangible and intangible things invested, counting in your experience and what makes you the best person to teach a particular course.
Bear in mind that online courses are indeed a lot of work, but you also have to make sure that the pricing you have set and the results of your online course are able to strike a balance.
2. Time is money
Time is an important factor. And nobody wants to spend their time doing something that doesn’t guarantee any return. So, factor in the time you will be investing in your online course.
Here’s a tip: start by counting in the weekly time spent on creating & designing the course. While doing that, one way to decide the price is to see what you could have done or earned during the time that you are giving to your course. Could you have set up a new income stream or worked on a hobby? Thinking this way is likely to make determining course pricing easier for you.
👀 Check it out: How To Improve Your Confidence To Record Course Videos
3. Get your marketing money back
If you have a loyal audience already and setting an advertising budget isn’t one of your concerns, good for you! But if you’re someone who’s new to the scene, doesn’t have a large audience – don’t worry – marketing your course can also bring sales.
If your course has 30 seats to fill, in case of live online courses, imagine how much you can add to each seat’s fee without scaring them off with an unjustifiably high price. If you’re creating a course for, let’s say, $20 then you can set aside a small chunk of that amount for your budget.
From that you can create a budget for yourself and set off email marketing and ad campaigns on socials. Remember to factor this in.
4. Factor in (any) paid tools
There are two types of courses when one talks about online courses. First are recorded lectures and the other are cohort-based live courses. Both are quite different when it comes to using tools.
For example, in recorded courses you can borrow a ring-light from one of your friends and return it. In cohort-based live courses, however, borrowing doesn’t work because of the live demonstrations. You can’t borrow a ring-light for a course spanning about 10-weeks. This can apply to a range of online/physical tools you may require.
But some of these tools don’t come cheap. So whatever you are using, get it as an investment to raise the quality of your recorded/live courses and factor it in your online course pricing.
5. Calculate the estimated number of learners
This is one of the most important parts of online courses because it is not just about online course pricing. It is also about the experience. A cohort has to have a good experience and a great deal of learning from your course.
Therefore, once you have factored in costs, decide on an estimated number of students that you need in your online courses. This is quite helpful when you are only starting out and are short on resources for the audience. Moreover, an estimated number of students is important also because it helps you in dividing your overall expected profit margin.
6. Do the mathematics
Online courses generally start at $5 and can go all the way up to $10,000, depending on where you live, which languages you speak, who you are and what you have to sell. The aforementioned framework is a good way to decide on a specific price.
Now, take up all the points into consideration and see where you stand. You are allowed to make some cuts and changes but overall, with simple mathematics, you can determine the perfect price for your online course.
If you launch a course and feel the market isn’t warming up to the price, get some feedback from peers and users and bring it down, or even vice versa!
👉 Course Pricing Framework
I am summarizing everything I shared above in a course pricing framework. Let’s check it out. The simple formula for course pricing is
- Total Cost = (Hours Invested x Hourly Rate) + Ads & Marketing + Misc. Costs
- Revenue = 2 (Replace 2 with any other number) x Total Cost
- Total Revenue = (Number of Students x Course Price)
The complete course pricing framework by Airschool is available if you scroll up a bit ☝ and you can get it for free. It will certainly help you envision your pricing better.
Remember that pricing is an important piece of the puzzle. Experiment with the pricing, take feedback, improve on it. But know that a great course with bad pricing will definitely not work but an average course with the right pricing can go a long way.
If this was helpful, or if you have any questions, leave us a comment down below. And don’t forget to sign up here 👇