How to price an online course? Maybe, you are ready to create an online course. Or, maybe you are planning to launch an online course you already created.
You sit down to write your sales page and it’s time to decide: How do I price an online course so that I know my people will buy?
This year alone, I have had over 30,000 students attend workshops with me on how to create and launch an online course. A big question that comes up is often, “How do I price an online course?” I hear over and over from experts like you that “someone suggested I price on the low end” or “an online course I took taught that I should price at $697 because that’s the best number for conversion.”
PRICING IS A STRATEGIC DECISION THAT AFFECTS EVERY ASPECT OF YOUR BUSINESS.
When you price an online course, you have to remember:
It will determine what kind of content and support you include in your online course.
It will determine how much of an ad budget you have to attract clients into your online course.
It will determine how many clients you need to find to reach your revenue goals.
It will determine the type of client you attract.
It will determine how your community perceives the value of your offer.
It will determine what kind of resources you can add to your online course in the future to add value and improve your content.
It will determine how many people you need on your team to support those clients.
Determining how to price your online course determines what your life as an entrepreneur is going to feel like.
If you price an online course on the low end, you are in the quantity game.
You will need to find lots of people to enroll in your course to hit your revenue goals.
If you price an online course on the higher end, you are in the quality game… you need to deliver quality content that delivers results and develops a quality of relationship with your clients that keeps them coming back for more.
You will need to deliver high value to fewer people to hit your revenue goals.
TAKE A LOOK AT HOW YOUR DECISION ON HOW TO PRICE AN ONLINE COURSE PLAYS OUT:
If your revenue goal is 6-Figures:
If you decide to price an online course at $997: You need 100 people to enroll in your $997 program (or 8 people a month over one year)
If you decide to price an online course at $997 with an up-sell offer: You need 50 people enrolling in your $997 program and 10 of them a year buying your next level $5k program.
Let’s look at how this is different when you price lower:
If you decide to price an online course at $97: You will need 1000 people buying a $97 online course with you this year to hit $100,000.
If you decide to price an online course at $197, you will need 500 buying a $197 online course.
Or, for comparison, you have to find 1000 people spending $8 a month in your monthly membership site community.
What many experts don’t share about pricing an online course at the lower end is that you have to go deeper with clients to generate a profit. It is difficult to generate enough profit to survive with only a low-priced course offer.
Couple this with another challenge in being in the quantity game: you don’t have the time to market AND serve all those people by yourself.
This means you need additional team support which means even less profit.
When you price an online course at the lower end, you play the QUANTITY game and…
You are constantly moving from one focus to another.
You are constantly overwhelmed.
You need support to handle the volume
You can’t afford to advertise so you have to beat the bushes online to find leads and get on the phone to close sales.
When you create high-value offers that command higher investments, you are in the quality game.
When you price an online course at the higher end, you play the QUALITY game and…
You choose who is a right fit.
You can go deeper with clients.
You have more profit margin available to market to find those perfect people.
You have a bigger profit margin which means more budget to invest in paid traffic.
You attract clients that are invested at a higher level.
You have clients go deeper with you into next level offers because you generate results at every level of interaction.