How to price your online course and feel like you are earning what you deserve
How to price your online course? This is perhaps the most important question that every video on demand creator asks himself when launching a new infoproduct.
And no wonder.
Finding out how to calculate and price your online training correctly will make the difference between your new launch being a success or not reaching the expected numbers.
Below you will discover the best tips for pricing your courses, but first let's look at why getting it right is so important:
Why pricing your online course is so important?
The most common mistake when pricing your online course is to think the following:
If I want thousands of sales, I just have to set a very cheap price, so everyone will want to buy my course.
Although this seems like a logical statement, the reality is quite different:
Human beings tend to believe that when a product is too cheap, it is because its value is also too low. If your video streaming course is priced too cheaply, your audience will perceive it as a low-quality product.
Note: If you want to know more, we recommend you read: Why users pay for on-demand content.
Charging too low a price for your online course will also not allow you to make a large advertising investment, which will make it difficult to scale sales and will not result in a high motivation for marketing. Customers who choose you solely on price are also not likely to be loyal, so they are not a group to which you should devote too much effort.
On the other hand, if the price of your course is too high, it may be perceived as high value, but you may not reach enough people who can afford it. When a product is only accessible to high-income earners, you reduce your potential customer base, and therefore your sales.
The bottom line:
To get the most out of your video-on-demand course, the key is to find the ideal price, one that entices your potential customer to want to buy it, and that is also affordable for them to do so.
Let's look at how to price an online course:
How to price your online course and feel like you are earning what you deserve:
Calculate the price of your online course based on its value, not its duration
Many content creators think that a 20-hour video-on-demand course should be more expensive than a 7-hour course.
The problem with this idea is that we end up creating longer courses without actually adding more value, adding empty hours that detract from the flow of the training.
Although the value of a course can be very subjective, a good idea to calculate the price of your online course is to do it based on how easy it is to acquire the knowledge you teach.
For example, a basic make-up course will be cheaper than an advanced professional make-up training course.
Why is this?
The techniques taught in the first course can be learned quickly in other easily accessible books and videos, and would even be learned from experience with a relatively short practice time.
On the other hand, the second ones would be too complicated to learn by trial and error, and finding other products on the subject would be expensive and time consuming.
A good idea is to start your video streaming channel with simple courses at an affordable price, and complete it step by step with more elaborate courses at a higher price.
This way, you also keep the interest of your potential customers who will always want to know more, ensuring that with each new release, your customer base will be bigger.
Take a look at your competitors to establish the price of your course
You may think that we are going to recommend looking at your competitors' prices and setting a middle ground, but this may not be the best advice we could give you.
If you are looking to imitate someone else you should know that your potential customers are already very comfortable and confident with that someone else, it will be very difficult for them to leave with you if you offer them exactly the same thing, even if the price is a little lower.
Instead, look at what your competition is doing and....
Of course, this improvement must be very juicy so that it acts as a hook and lovers of your sector will want to subscribe to your video streaming channel. With this improvement, there will also come an increase in price.
If you follow this technique for each of your launches, you will soon become a benchmark in your industry.
Sounds great, but... How do you do it?
- Offer a more complete course than your competitors: It can be just little tricks, or ask someone what questions they have when they see your competitor's course, then you create the lessons so that those questions are answered.
- Personalised coaching: Adding a one hour video call with your clients to answer questions can be a powerful added value, as your fame grows you can delegate this task to your team. Another option is to answer those questions via email.
Consider your authority to get the price of your online course right
Imagine you want to buy a course to earn money online, you have two options:
- The book of a supposed millionaire claiming that thanks to his advice you will retire at 35.
- A course created by Jeff Bezos (Founder of Amazon), that's all.
Which one would you buy? Most of us wouldn't even think about it.
That's because Jeff Bezos is probably the foremost authority in the field of online business, his fame precedes him. He could charge whatever price he wanted for that hypothetical course and it would still sell millions of copies.
The same is true if you are a reference in your field. If, for example, you have written a book on yoga, have been featured in the media talking about yoga, or have built a solid audience on social media, you can afford to charge a higher price, as it will be perceived as a high quality product.
If you are just starting out, you can charge a slightly cheaper price.
It is essential to work as early as possible to carve out a niche as a reference in your sector. Read The ultimate social media guide to drive traffic to your video streaming channel to help you create a powerful community on social media.
Consider your client's alternatives
If the client does not learn the teachings of your online course with you, how else can he do it?
Would they have to attend face-to-face training, would they have to travel to another country to find a quality seminar, or would they only have the option of buying other expensive online courses?
If so, the price of your online course should be very high, and if it is a little cheaper than the other options, you can use this as an advertising advantage. Remember, it can be a little cheaper, but it should still be priced high so as not to detract from the value of your course, or your sector.
If on the other hand:
You can acquire the same knowledge in an affordable course, by going to a public VET or reading cheap books found in the library. The price will be lower. However, if you have followed the advice to add value, your course should be priced higher than the other options.
Set your targets to find out how much to charge for an online course
It is not the same to launch an online course with the aim of making yourself known in your sector, as it is to launch it with the aim of obtaining €100,000 in a year with sales alone.
In the second case, you will need to charge a higher price, but you will also need to offer a very high value. How do we achieve this?
- Create a very specific course: Generally, the more specific a course is, the higher the price you can charge for it. It is understood that the information will be very detailed and that you will be a qualified specialist to teach the online classes.
- Open a private group exclusively for students: For example on Telegram, this way your students not only benefit from having greater access to you, but also meet other people interested in their passion.
- Hold a monthly live streaming conference exclusively for clients.
- Include downloadable resources: For example, a workbook.
- Offer a certificate of completion. Ideal for sectors where training is essential in the job search, e.g. IT, cooking or beauty.
- Create different price levels, including more extras in the higher cost ones. Most of your customers will prefer to pay a little more if they can enjoy all the additional benefits you offer.
When pricing an online course, the most important thing is:
- Price the course based on value rather than duration.
- Look at the competition and offer something better at a higher price.
- Consider your authority in the sector.
- Consider the client's alternatives to obtain the same information.
- Know your objectives and price based on them (adding extras if you want a high value online course)
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