Once you’re done creating your online course, you need to figure out how much you’re going to charge for it. You want to aim for the highest price while keeping your prices competitive in your market. Figuring out a balance between the two takes a bit of work.
The problem with charging a low price for your online course is that you won’t be able to market your course to your target audience. Ideally, you want to have enough funds to promote your online course so that you’re able to generate a positive return on investment.
So, how do you know what’s a high or a low price for your online course?
You can evaluate how much you should charge by considering a few factors. In this article, we’ll go over some things you should consider when deciding how much you should charge for your online store. By the time you’re done reading, you’ll hopefully have a better idea of how to price your online course.
Let’s go over some of the most important factors to keep in mind when you’re deciding on a price for your online course.
#1. Your business
Since the online course and the content in the online course are closely tied with your brand name, you need to consider your business’s market authority before finalizing the price of your online course. This basically means that you need to charge a price that your audience expects and is familiar with. In simple words, a new startup business cannot charge the same price for a product that a market leader business does.
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It’s important that you carefully charge a price for your online course that your audience is willing to pay and can afford. If your online course is out of their budget, there’s a high chance that they will choose the next best alternative or go to your competitors if they’re offering lower prices. Similarly, it’s also not recommended to charge a lower price than what your audience expects. This way, you might miss out on sales if people perceive your online course to be of lesser value due to the lower price tag.
You can always look at your competition and base your online course’s price based on theirs. It not only helps you identify market trends and prices but also makes it easier for you to settle on a reasonable price for your online course.
#2. Your target audience
You also want to consider your target audience or the people you want to sell the online course to before deciding on what you should charge for it. This is because you don’t want to put in all the time and effort only to find out your audience cannot afford the online course.
A great way to receive feedback from your audience is by hosting a Q&A session. This way, you can ask your audience a few questions about the pricing of your online course and better understand what your audience prefers.
For instance, you can ask users how much they’re willing to spend on learning something new or ask them how willing are they to overspend for a solution that helps them solve a problem.
You can also propose an estimated price or price range and use feedback from your audience to decide on a final one. For example, you can see if your customers are ready to purchase your content for $50, or offer them two prices and see which one interests them more. This will give you an estimate of what your audience is willing to pay for your content.
You might also consider pre-selling your online course to see if people are willing to pay for it. This means that you start selling the course, even if it isn’t fully complete yet. People who purchase it will get access to it as soon as it’s released.
#3. Various payment plans
If you’re considering offering tiered pricing, deciding on what to charge for your online course can get tricky. This is because you now need to decide the level of quality content you will need for each online course offering.
It’s important to offer different prices for each online course plan as it can help encourage all types of people to purchase your online course, even the ones who are tight on budget.
You can create multiple price tiers and let users select the price level that suits them the best. You can offer $20, $40, and $75 and offer different versions of your online course based on the user’s price level selection. This quality of content will depend on the price level or price tier the customer chooses.
For example, you can set up the tiers as follows:
- $20 for the online course.
- $40 for the online course and access to a community forum.
- $75 for the online course, access to a community forum, and a 30-minute one-on-one coaching session.
This is a great way to cater to all types of customers while making sure you’re charging a decent price for your online course. In addition to this, it’s also a great way to increase sales for your business and improve brand loyalty.
#4. Your content
The quality of content also matters a lot when deciding the price of your online course. Lower quality content will attract lower quality customers that are willing to pay less but don’t expect much in return. Similarly, higher-quality content will attract higher-quality customers or the people who are willing to pay more for unique, premium content.
Depending on the quality of content and the type of content, you can evaluate the best price for your online course. For instance, if you’re offering eight detailed video lessons in an online course, it might be a good idea to charge a premium price for this. On the other hand, if you’re creating an online course that has one video lesson along with some spreadsheets, you cannot expect to charge a high price for it and make decent sales.
It’s also important to keep in mind that you shouldn’t price your course based solely on its length. The value of the content is more important than the length of the content. So, if you can cover a topic and help learners solve their problem in 5 hours, don’t create a 10-hour online course!
You might also consider setting up a community forum or offering one-on-one coaching sessions to encourage people to pay a premium price for your online course. It’s also a good idea to offer bonus content such as downloadables, guides, and checklists with your online course to increase its perceived value.
#5. Attracting higher quality customers
Your goal should be to attract higher-quality customers when deciding on your online course price. A higher-priced product or an online course will help attract more committed customers. Since the customers are willing to pay a premium price for the content, they will be much more serious about learning and understanding the topic.
In addition to this, there are a higher chance higher quality customers will also be willing to buy your next online course after they’re finished with the first one.
It takes the same level of effort to promote a lower-priced online course as it takes to promote a higher-quality one. It is true that it can be easier to convince people to buy your online course if it’s cheaper, however, it takes the same level of effort and you have to go through the same process of generating leads, sending messages, and selling to customers. This is why it’s better to put in the effort in attracting higher quality customers who will pay more in the long run.
It’s also important to remember that customer loyalty goes a long way for your business. Ideally, you want to create meaningful connections with your higher-quality customers and stay away from bottom chasers. These are the people who are loyal to your content and your brand as long as you have the lowest price in the market. As soon as a competitor offers a better price, bottom chasers will quickly switch sides and become loyal customers of your competitors. You want to interact with your audience and offer them value in all aspects when they decide to pay for your online course.
Deciding on how much you should charge for your online course can be a challenge, especially if this is your first time creating and launching one.
However, you should consider important factors such as your business, your content, your audience, various payment plans and make sure to price your online course for higher quality customers. Thinking about these things can help you make a better decision regarding the price of your next online course.
For a detailed guide on how to price your online course, you can go over our post on how to price your first online course.
Do you know of any other ways to evaluate how much you should charge for your online course? Let us know in the comments box below.