“Wondering how to price your online course for most profit and sales?”
Having the right pricing tag of your course can lead to greater probability of success, more course sales, and ultimately, increase in your revenue.
However, as an online course creator knowing how to set your price can give you the know-how to charge a higher price point when selling online course for your online course business.
KEY TAKEAWAYS
- Course content, quality, duration and complexity all plays a role in influencing your pricing of your online course.
- Course creator’s expertise and credentials can greatly influence the perceived value of your course, and help justify higher pricing.
- Target audience and financial capabilities of the learners determine the range of pricing you can set for your course, focus on the unique value and benefits it offers rather than lowering the price to attract customers.
How Much You Can Profit From Selling Online Course?
An average online course creator can make around $70,478 per year, and around $5,873 per month. As of today, a course creator can earn an annual income of between $19,500 to $135,000, the difference between the top earners and the bottom is mainly due to your course topic.
Choosing the right online course platform to create and sell their courses is key to success, but knowing how to price their course is just as important as well.
While not all course creators can earn a 5-figure income per month, if you know how to effectively monetize your online course by pricing your online course at the optimal price point it can increase your earning by over 60% according to a study with 2,463 companies. 1Arleigh W. Walker, “How to Price Industrial Products,” HBR September–October 1967, p. 125 and Elliot B. Ross, “Making Money with Proactive Pricing,” HBR November–December 1984, p. 145.
When pricing an online course, there are many other factors that comes together to play a part in determining how much you can earn as a course creator.
How To Price Your Online Course The Right Way For Maximum Profit?
Putting a price for your course is depends on a few important factors. Each of these factors greatly influence how much your course should be priced.
1. Course Content and Quality
Before we start, you need to ask yourself these questions:
- “What is your course topic?”
- “How is the quality of your online course?”
These are the questions you should ask before your decided on how you should price your course.
- Assess the depth and breadth of the content you’re providing.
- Consider the level of expertise and research invested in creating the course materials.
- Evaluate the overall quality of the course, including production value, multimedia elements, and interactive components.
| Factors | Low Pricing | High Pricing |
|---|---|---|
| Content Depth | Basic modules, limited coverage | In-depth modules, comprehensive coverage |
| Expertise and Credibility | Novice instructors, less experience | Expert instructors, industry leaders |
| Multimedia Resources | Limited multimedia, text-based | Rich multimedia content, interactive |
| Instructor Engagement | Limited interaction, pre-recorded | Personalized feedback, live sessions |
| Learning Outcomes | General goals, theoretical approach | Specific, measurable goals, practical |
| Supplementary Resources | Few supplementary resources provided | Extensive additional materials, resources |
| Course Updates | No or infrequent updates | Regular updates, new content |
| Community | Limited community engagement | Active community, peer interaction |
| Networking | No networking opportunities | Networking opportunities, connections |
| Access Duration | Short access duration, limited access | Long access duration, lifetime access |
2. Course duration and complexity
Course duration is another important factor that gives a different perceived value of an online course.
- Short course: Shorter course are often perceived as introductory courses, or courses with lower value, these courses are often priced at a lower price point.
- Long course: Longer course should be perceived as higher value and you can often increase your course price as the length of time to complete the course increases.
Price your course based on the course duration is a common strategy in course pricing.
- Take into account the length of your course in terms of hours or modules.
- Consider the complexity of the subject matter and the level of difficulty.
- Factor in any additional resources, assignments, or assessments provided.
| Course Duration | Approx. Duration | Complexity Level | Course Pricing |
|---|---|---|---|
| Very Short | 1-2 weeks | Introduction to basic concepts | Budget-friendly pricing range |
| Short | 2-4 weeks | Foundational knowledge and skills | Affordable pricing range |
| Medium | 4-6 weeks | Intermediate level content | Reasonable pricing range |
| Extended | 6-12 weeks | Advanced and specialized topics | Higher-end pricing range |
| Comprehensive | 12+ weeks | In-depth exploration and mastery | Premium pricing range |
3. Expertise and credentials of the course creator
Are you an expert, a speaker, an influential person in your field? If you are, you can probably get the best price for your online course. People who have the required expertise and credential often commands a premium price for selling their course.
Why?
These people with the required expertise and credential are seen as more trustworthy, having high authority and expertise in their field.
Thus when, deciding how much should you price your online course consider:
- Evaluate your own credentials, experience, and expertise in the course topic.
- Highlight any relevant certifications, degrees, or industry recognition.
- Establish trust and credibility by showcasing your qualifications.
An online instructor with 20 years of experience is always seen as someone with more expertise than another with just 2 years of experience.
Albert Einstein teaching physic will always be seen as someone with more authority than your physic professor teaching physics.
You are an book author? An acclaimed Ted Talk speaker? Years of experience as a professional coach? Have an internationally recognized accreditation? An University Professor?
Put your professional credentials into your profile bio and let everyone know who is the instructor/trainer for the course.
This helps to build trust and increases your course’s pricing power.
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4. Target audience and their financial capabilities
Understand who are your audience and their financial capabilities. Knowing your audience is always the most crucial part when selling anything, including your online course.
- Understand the demographics and characteristics of your target audience.
- Consider their financial capacity to invest in your course.
- Conduct market research or surveys to gauge the price sensitivity of your audience.
If you audience are students with no financial capabilities, you will not be able to sell anything that is too expensive, even if they want to buy your course, they are financially unable to do so.
However, if your students or learners are professionals who are high income earners, you can price your course at a premium price.
| Target Audience | Financial Capabilities | Estimated Financial Capability |
|---|---|---|
| Students | Limited Budget | $0 – $99 |
| Working Professionals | Moderate Budget | $100 – $399 |
| Mid-level Managers | Higher Budget | $400 – $999 |
| Industry Experts | Strong Budget | $1000 – $2999 |
| Entrepreneurs | Significant Budget | $3000+ |
5. Competitive analysis of similar courses in the market
Know what is the average price how much similar course in your niche is being sold. Oftentimes, you will be able to charge a similar price when sell your online course in the same niche.
If your competitor is selling their course at $500 per course, you can probably sell your course at a similar pricing.
However, do not try to make your course more attractive by lowering your price, but instead sell your course according to what your course is worth.
- Research and analyze other courses within your niche.
- Compare their pricing, features, and overall value proposition.
- Determine how your course stands out and differentiate it from the competition.
3 Reasons Why Many Online Course Creators Find It Hard To Price Their Online Course
Knowing what to charge for your course can be challenging for course creators, especially if this is your first course or it is a course that you’ve put in a lot of time and effort into creating.
There are a few factors making it hard to determine the right price for your course. However, understanding these challenges is crucial to overcome them effectively.
1. Overcoming self-doubt and imposter syndrome
Self-doubt is especially true for new course creators, and many new course creators may undervalue their expertise and struggle with imposter syndrome, leading to underpricing their course.
An online course that is priced at $0.99 may sound cheap, but it doesn’t mean that it will sell, on contradictory, no one will buy your course as it is perceived as a “bad” course.
It is important to recognize and acknowledge your unique knowledge and the value you bring to your course.
Price your course accordingly to the value you bring and it often works.
2. Balancing perceived value and affordability
Finding the right balance between pricing your course competitively while maintaining its perceived value can be challenging.
You want to ensure that your course is accessible to your target audience, but also reflect its quality and the value it delivers.
3. Fear of pricing yourself out of the market
Course creators may worry that setting a higher price will deter potential learners and limit the course’s reach.
Striking a balance between pricing and market demand is essential to ensure sustainable course sales.
Important Reasons Why You Should Not Price Your Online Course At Low Price
While it may be tempting to price your online course low in an effort to attract more learners, there are several compelling reasons why setting a low price may not be the best strategy.
1. Low Price for Your Course Undermining the Perceived Value
Pricing your course too low can create the impression that it lacks quality or depth. Learners may associate a low price with lower value and be less motivated to invest time and effort into completing the course.
2. Low-Priced Course Can Lead To Diminishing Profitability and Sustainability
Setting a low price may reduce your profit margin, making it challenging to cover the costs associated with course development, marketing, and ongoing maintenance.
Insufficient profitability can hinder your ability to invest in course improvements, updates, and future course development.
3. Choose a Price Too Low Will Attracting the Wrong Audience
A low price can attract bargain hunters who are primarily focused on getting the cheapest deal rather than the value offered.
These learners may not be as engaged or committed to completing the course, resulting in lower completion rates and lower overall satisfaction.
While you may get some audience, buy getting the wrong audience can often lead to unwanted circumstances.
4. Having an Initial Low Course Price Makes It Difficult To Raising The Prices Later
If you initially price your course too low, it can be challenging to increase the price significantly in the future without disappointing or alienating existing customers.
The main idea is not to price it too low, such as 10% of what your competitors are selling their courses.
Pricing your course anywhere between 20% from the average price is often acceptable, however for any form of “discount” you’ve given to your learners, do include a reason why it is selling at a discount.
Without a reason, it can be perceived as a lower value course.
5. Low Perceived Expertise and Authority
Pricing your course at a higher level can convey a sense of expertise, credibility, and authority in your field, while pricing your course at a low price point can lead to a lower perceived value of your course.
Learners may be more inclined to trust and invest in a course that is priced at a level that reflects the value of the knowledge and experience being shared.
Know the value you share with your audience and price your course according to the value you are able to provide to your audience.
Pricing is a strategic decision that impacts the long-term success and sustainability of your course. Consider when pricing your course at the average price point and adjust your price along the way.
How To Sell Your Course Through Understanding the Value of Your Course
Having a clear understanding of the value that your course and recognizing the unique selling points and benefits of your course will not only help you determine the right price for your online course but also communicate the value of your online course to potential learners.
Here are a three main things to consider to understand what the value of your course actually brings:
1. Find out the unique selling points (USP) of your course
When looking at the course that you’ve created, ask yourself these few questions:
- What sets your course apart from similar offerings in the market?
- Does it offer a specialized niche topic or provide a unique approach to a common subject?
- Are there any additional resources, bonuses, or exclusive access included?
These will help you identify your unique selling point for your course, areas where it set your course apart from all other course you can find online.
PS. This is a course taught by you is not an USP, unless you are a famous person. A USP need to benefit your students in a way or another.
2. Know the demand and market value of your course topic
Conduct market research to determine the level of interest in your course topic.
- Analyze the competition and evaluate the pricing of similar courses.
- Consider the current trends and market demand for the subject matter.
These are just some things to consider when doing your market research.
3. Evaluating the benefits and outcomes that your course provides
Does your course help your student save 100’s of hours of their time? If so, just let them know.
Does your course help your student save $1,000’s of dollars if they choose to attend your course instead of a similar seminar or course offered by your competitors? If so, just tell them so.
When evaluating the benefits and the outcome of your course you need to make sure you let your potential student be aware of the following:
- Clearly define the learning objectives and outcomes that students can expect to achieve from attending your course.
- Highlight the practical skills, knowledge, or transformative experiences that your course offers.
- Emphasize the long-term value and potential impact of completing your course.
Basically, you need to let your potential students know what they can benefit from attending your course.
The benefit they can get must be of a higher value than the price that the course is priced.
If the course is priced at $99, the benefit you can provide is 10x of it which is $999, making it a no-brainer for your students to attend the course.
3 Main Types of Pricing Models You Can Use to Sell Your Online Course
When pricing your online course, you have the flexibility to choose from various pricing models. Each model offers its own advantages and considerations, allowing you to tailor your pricing approach to your specific course and target audience. Here are some common pricing models to consider:
Fixed Pricing Model
- Set a specific price for your course that applies to all learners.
- This model provides simplicity and clarity for potential customers.
- Consider factors such as production costs, desired profit margin, and market demand when determining the fixed price.
Tiered Pricing Model
- Offer multiple price points with varying levels of access or additional benefits.
- Create different tiers based on the depth of content, additional resources, or personalized support.
- This model caters to learners with different needs and budgets, allowing them to choose the level of investment that suits them best.
Subscription-based Pricing Model
- Implement a recurring payment structure, typically on a monthly or annual basis.
- Provide ongoing access to your course content, updates, and community.
- This model ensures a steady stream of income and fosters long-term engagement with your learners.
Pros and Cons of Each Pricing Models for Your Online course Business
While each pricing models are great in their own ways, there are times where using one form of pricing model can be a better choice than the other.
Here is a comparison table on the different pros and cons of each pricing models.
| Pricing Model | Description | Pros | Cons |
|---|---|---|---|
| Fixed Pricing Model | A single price is set for the course and remains consistent for all customers. | – Easy to understand and implement – Provides a straightforward buying process – Simplicity in communicating the course’s value | – Limited flexibility in accommodating different needs – No room for customization or upselling – Potential limited appeal to price-sensitive customers |
| Tiered Pricing Model | Multiple price tiers are offered, each with different features, resources, or levels of access. | – Appeals to a wider range of customers – Allows customers to choose a tier that suits their needs – Upselling opportunities to higher-priced tiers | – Complexity in managing and communicating tiers – Potential confusion or decision paralysis for buyers – Potential perception of value disparity between tiers |
| Subscription-based Pricing Model | Customers pay a recurring fee for ongoing access to the course or a membership program. | – Generates recurring revenue streams – Builds a loyal customer base – Provides ongoing engagement and access to new content – Upselling opportunities for premium memberships | – Requires continuous content updates and support – Potential higher customer churn – Potential resistance from customers to subscriptions – May limit access to one-time payment customers |
Consider your target audience, the value you provide, and your business goals to choose the best pricing model that suits your course.
- Fixed Pricing Model: Set a single price for your course. It’s simple for students to understand and purchase, but lacks flexibility for customization or upselling.
- Tiered Pricing Model: Offer multiple price tiers with different features. Appeal to a wider range of students, provide upselling opportunities, but managing and communicating tiers can be complex.
- Subscription-based Pricing Model: Charge a recurring fee for ongoing access. Generate recurring revenue, build a loyal customer base, but require continuous content updates and may face resistance from some students.
Effective Pricing Strategies To Increase Your Course Sales
Bundling and upselling strategies are game-changers for your online course business. These are powerful tactics that can help you maximize revenue and delight your customers.
1. Bundling Strategies
Imagine offering your customers a value-packed bundle they simply can’t resist. Here’s why bundling is a win-win for you and your customers:
- Unbeatable Value: By bundling your courses together, you provide customers with a complete learning experience that screams value. They get access to a range of topics and resources, all at a price that’s hard to beat.
- Cross-Selling Magic: Bundling opens doors to cross-selling opportunities. When customers grab a bundled package, they discover other courses within it, leading to more sales and exposure to your entire course catalog. It’s a win-win!
- Upselling Brilliance: With different tiers of bundled packages, you can upsell customers to premium options. Each tier offers additional goodies like exclusive content, personalized support, or extra resources. It’s a great way to cater to different budgets and preferences while boosting your revenue.
- Cha-Ching Revenue Boost: Bundling means customers spend more on a package deal than if they purchased individual courses separately. So, not only are you delivering exceptional value, but your revenue gets a healthy boost too. It’s a sweet victory!
2. Upselling Strategies
Picture adding that cherry on top of the course experience. Here’s how upselling can take your business to the next level:
- Level Up Their Skills: Offer customers advanced-level courses or add-on modules that take their knowledge to new heights. It’s a no-brainer for those who want to dive deeper and become true masters in their field.
- Personalized Support: Upsell coaching or mentoring programs to provide tailored guidance, feedback, and support. Your customers will appreciate the extra attention, like having a personal cheerleader on their learning journey.
- Exclusive Goodies: Treat your customers to exclusive resources like e-books, templates, or access to a vibrant community. These extras enhance their learning experience and make them feel like VIPs. Who doesn’t love a little extra love?
- Certification offerings: Upsell certification or accreditation options that boost their credentials. It’s a stamp of credibility that opens doors and makes your courses even more enticing.
- VIP Treatment: Offer VIP access to live sessions, webinars, or mastermind groups to create a sense of exclusivity and community. Roll out the red carpet for customers who want that extra-special experience.
Both bundling and upselling strategies great ways to supercharge your revenue and create great learning experiences for your learners. By focusing on the value you can deliver, you’ll make a bigger impact while boosting your bottom line.
Setting A Reasonable Price For Your Online Course
Setting a reasonable online course fee is highly dependent on factors such as; course content and quality, course duration and complexity, your expertise and credentials, target audience and their financial capabilities as well as competitive analysis of similar courses in the market.
With the different type of course you sell, pricing strategy for your online course differs. However here is a quick guide on the recommended price for your online course.
| Fixed Pricing | Course Content | Fee Range |
|---|---|---|
| Basic | Basic course with limited content | $29 – $199 |
| Intermediate | Intermediate course with complete full content | $200 – $499 |
| Advanced | Advanced course with in-depth materials and resources | $500 – $1999 |
| Premium | Premium course + coaching or mentoring | $2000+ |
Fixed Pricing Model: Recommend to price your course not lower than $50 per course, any price that is lower than this will required a high number of sales to reach the monthly income of at least $5,000 per month.
| Tiered Pricing | Course Content | Fee Range |
|---|---|---|
| Tier 1 | Basic course access | $49 – $199 |
| Tier 2 | Course + additional resources or exclusive features | $200 – $499 |
| Tier 3 | Course + premium materials | $500 – $1999 |
| Tier VIP | Course + premium materials and personalized support | $2,000+ |
Tiered Pricing Model: Recommend to price your course not lower than $100 per course, since it is granting the learners access to the different resources and features of the course, learners are more willing to pay a higher price point, and starting at $100 is just nice.
| Subscription-based Pricing | Course Content | Fee Range |
|---|---|---|
| Basic | Monthly access to course content + ongoing updates | $19 – $99 per month |
| Advance | Access to course + additional resources or exclusive benefits | $100 – $999 per month |
| Premium | Premium membership with personalized coaching or mentoring | $1000+ per month |
Subscription-based Pricing Model: Recommend to promote at a basic price point of $29.99, it is low enough to attract potential learners and high enough to grow your your income in selling your online course. Since it is subscription based, it is a recurring revenue where you can earn an income on a periodic basis.
These fee ranges provide examples of reasonable online course fees based on different payment types.
However, it is essential to conduct market research, analyze competitor pricing, consider the value and benefits of your course, and assess your target audience’s preferences and financial capabilities to determine the most suitable pricing and payment structure for your specific course.
If you are still wondering how much should you price your online course, you can price it at $100 for a start.
