Are you having a hard time deciding a price for your new online course?
For most people, pricing can be a just as simple as picking up a random number.
But is it really that simple?
Price will have a big role in how many people actually your online course. No matter how many times we say this: If the course is great, price doesn’t matter. But you and I, both know, that it matters.
It is a known fact that most people don’t convert because of the pricing.
So, what to do?
Research your competition
( How much people are charging for the same content?)
The very first step you should take open up all websites who are selling similar online courses. If you know some of them, well it’s great. If you don’t, search Google [“topic” + online course] and you will find some.
Need more ways?
Go to UDEMY or other similar website and see how much people are charging there.
- Prepare a list of all people selling similar courses.
- Look for only those courses which provide value and cut-off other people from the list.
- Now, among the remaining people look for minimum and maximum prices they are charging.
- Look for best-sellers and how much they are being charged.
Ask your visitors?
Do you have a blog or are you popular on social media?
If yes, ask them what price they think would be appropriate for your online course. Be sure to give them little insights about the extra benefits they would get from your online course. If you want, offer them a free sample.
Most of the time you will get a pretty good idea about your pricing structure from these surveys.
Check out my most recommended blogging resources for your business.
How much is the perceived value of your course?
Okay, you have done your survey. I can bet that some people went straight for the lowest price.
Never ever price your online course too low. I am really serious about that.
Don’t do it even if:
- You are not an expert on that topic
- You are teaching a topic that is not in demand
- Your audience could learn the topic on their own.
See the very first reason people buy online courses is because they get everything they need to know about a topic in an organized step by step fashion. The problem with the internet is that it is flooded by a large amount of unorganized information. The worst part: They don’t even know if the information is trustworthy.
You must make sure that your course provide them everything they need in a step by step orderly fashion/
How visitors perceive a cheap course?
Your course will be viewed as providing very little or no value. Even if your customers buy your course, they won’t take it seriously. Hence, no results.
Over time, your customers base will become standstill.
“Keep your price of your online course at least $100, if you want customers to take this course seriously”
The 60% Rule ( The Special Strategy)
Here is the graph showing you how pricing affects conversion rates.
You can see that most customers tend to convert at a price which is a little bit higher than the lowest price. You can say that lies between the average price and the lowest price.
So, should you price your online course near that point?
No, don’t do it.
I know how I sound!
We have been told Maximum Conversion Rate = Maximum Profit
Trust me it is the biggest lie!
Let us understand it with an example.
Suppose you designed on an online course which cost you $5000 in total.
You have 500 visitors in total. Let us the minimum price you can set is $100 and $1000 is maximum price.
You will get maximum conversion rate(50%) at around $250 dollars.
Total converted customers = 250
Total sales = 250 x $250 = $62,500
Net profit = $62,500 – $5000 = $57,500
Alright, if we set a price around $500, our conversion rate will be less ( approx 30%)
Let us see total sales at this point.
Total converted customers = 150
Total Sales = 150 x $500 = $75,000
Net profit = $70,000
See, you have fewer customers at that point yet you made more money.
Let us understand the profit level in a graph:
For most cases, the 60% of the maximum price is the point where you get the best out of customers and make the most profit.
Want a way for making this number convert even more?
Propose a flexible pricing structure. Allow users to pay in installments instead of just one and allow them an easy exit point.
Ofcourse, the pricing is not the only thing which will determine your success rate. You have to create value for your customers. Supplement your course with blueprints and worksheets.
The courses in which tutors often interact and evaluate the work of their students are more successful than courses containing only videos and workbooks.
Go ahead, ask them about their problems via email. Help them at every step. This is how you build trust.
“One happy customers will bring you at least 1 more customer”
For further reading:
Alright, it is time to conclude. I hope you now have a clear idea on how to price your online course. I would love to hear from you in the comments section. Do tell me how it worked for you.
If you think I made a difference, do share this article.
“All the best for your next online course”