Creating an online course involves many decisions. From choosing the topic to selecting recording equipment, crafting titles, and figuring out content delivery, there are many things to consider. However, one of the most crucial choices is determining the course’s price.
This section explores the challenges of setting a price for an online course and why it deserves careful thought.
- The Impact on Everything: The price directly influences numerous aspects of your online teaching business. It affects the marketing you choose to attract students (like Gen Z with TikTok tutorials) and the support level you can offer. It also impacts your potential revenue.
- The Risk of Extremes: If you charge too little, you erode the perceived value of your course, limiting your earning potential and marketing options. But if you charge too much, you might need to reduce the price (not ideal!) to generate sales.
- No One-Size-Fits-All Answer: There’s no magic formula for every course. However, this guide offers valuable insights and strategies based on the experiences of our team at Thinkific and numerous online instructors, to help you find the best price for your unique course.
This section sets the stage for the rest of the article. It highlights the importance of strategic pricing for course success and introduces Greg Smith’s story as an example of effective pricing strategies.
- Did you ever launch something and then spend lots of time tweaking the price? Greg Smith, Thinkific’s CEO, can relate. In 2005, before being a course guru, Greg was a law student wanting to ace the LSAT. He also had a side gig: an online course helping others do the same.
- Beginning Small, Testing Waters
- Like many new course creators, Greg wasn’t sure what to charge. No huge audience or fancy marketing. So he tested with a small, affordable course. Just 3-4 hours of content on a specific LSAT aspect, priced at $29.
- Those First Sales Taught Valuable Lessons: The initial sales weren’t life-changing, but they were milestones. Not enough to quit lawyering, but a spark. It validated that people would pay to learn from him. Fueled by that success, Greg experimented. He slowly raised the course price while adding value. Improving content, refining marketing, streamlining sales.
- Price Linked to Perceived Value: Interestingly, as the price rose, more bought the course! Not just about making more per sales (though nice). He attracted students valuing his quality and expertise.
- Finding Your Course’s Perfect Price: Greg spent years adjusting the cost. He eventually settled on $389, significantly higher than his initial $29 price. There’s no universal answer for pricing courses. It’s a journey of exploration. Greg’s story reminds us: you don’t necessarily need to start low.
The Key Lesson: Value Your Expertise
Greg’s biggest takeaway? Don’t undervalue your course’s worth. Pricing too low might send the wrong message. Remember, you offer valuable knowledge to help people achieve goals.
So, how do you find the ideal price point? This guide explores factors to consider, strategies for testing prices, and avoiding pitfalls of starting too low.
The Downsides of Low Pricing
- Reduced Marketing Investment: Low prices discourage heavy marketing spending. Why invest much if each sale brings minimal profit?
- Undermined Course Value: Low prices can make students perceive your course as less valuable. People often associate higher cost with higher quality.
- Unrealistic Expectations: Budget courses might attract uncommitted students, increasing the chance of dropouts before completion.
Undercutting competitors solely on pricing isn’t sustainable. It draws cost-conscious learners who may favor affordability over quality, increasing refund requests.
- Developing and selling an inexpensive course demands comparable effort to a pricier offering. You’ll still invest time and resources into sales funnels, emails, and potentially advertising.
- Partnerships with complementary businesses can promote your course effectively. However, a low price point translates to lower commissions, disincentivizing partners from actively promoting you.
- Budget-conscious students may lack dedication to complete the course and implement the learnings, having made a minimal financial investment.
How Low is Too Low?
- A reduced price can diminish your course’s perceived value, potentially hindering sales.
- Limited marketing budgets restrict your ability to advertise profitably and generate a positive return on investment (ROI).
- Lower-priced offerings tend to attract less committed students, decreasing course completion rates.
- Joint venture partnerships become less appealing due to lower potential commissions for partners.
When a Lower Price Might Work:
- Pre-Launch Testing: Offer a discounted rate during a pre-launch phase to gather feedback and refine content before the full launch.
Offer time-limited discounts, but don’t undervalue your course. Maintain its perceived worth. Consider adding bonus materials instead of major price cuts.
If a prospective buyer remains hesitant, offer a small final discount as a last resort to convert the sale.
- Providing Your Course for Free:
While earning revenue isn’t the sole aim, there are scenarios where offering a free course can be advantageous:
Attract potential clients interested in your paid offerings by providing a free course for lead generation.
Give a free introductory module to showcase content quality and teaching style, encouraging upgrades for the full course.
Improve user experience and reduce support queries by offering free training during onboarding for paid software or services.
Key Considerations When Pricing Your Course:
Base pricing on the value delivered, not content duration. Focus on helping students achieve efficient, quick results, even in shorter courses.
Research competitors to understand market demand, not copy prices. Use competitor courses as benchmarks to create better, more detailed offerings.
Quantify your course’s value proposition clearly. If it helps save time or money, demonstrate the return on investment (ROI).
There are times when offering your course at a lower cost can make sense.
But before slashing prices, carefully think about goals and target audience. Here are scenarios where a discount strategy can benefit:
- Launching Your Course: Get Feedback and Prime Your Audience
You’ve spent months crafting an amazing course. But you’re unsure if it resonates with your target students. A pre-launch discount can test the waters. Offer your course at a reduced price to a limited group. In exchange for discounted enrollment, you get valuable feedback to refine content before the official launch.
- Creating Urgency with Early Bird Specials
Have you noticed how “limited-time offers” make things seem more appealing? Use this psychological trick to advantage by offering an early bird discount. Set deadline for a discounted price. This creates urgency, encouraging people to enrol before missing out – great for boosting launch sales.
- Last-Resort Offer: Incentivize Enrollment
Not everyone who signs up for your email list will become a paying customer. But before writing someone off, consider last-ditch effort. If someone hasn’t purchased the course after significant email list time (say, six to eight weeks), offer them discount as a final nudge. This might incentivize them to take the plunge. Just remember – don’t go overboard with discounts, maintain course’s perceived value.
Sometimes giving courses for free is smart. Although making money is great, it’s not the only goal! There are times when offering free courses can be a fantastic approach for you and your students.
Here are a few examples:
- Offer a Free Mini-Course as a Preview: Want to tempt potential students with your teaching style and expertise? Create a mini-course that shares part of your paid course’s content. This “free trial” lets them experience your valuable lessons before committing. It’s like getting a sample at the grocery store – they get a feel for the product before buying! After they finish this free appetizer, you can clearly invite them to dive deeper with the full paid course. An easy way is making your first chapter free. If students are hooked and crave more, they’ll pay to unlock the rest.
A real example: Deanne Love, a hula hooping master, uses Thinkific to create and sell her online programs. One course, “15 Hoop Dance Moves Your Body Will Love,” is completely free. Why? It attracts students she can introduce to her other courses. It also allows people to experience her teaching style before deciding to invest in paid instruction.
- Use a Lead-Generating Free Course to Attract New Customers: Many course creators offer free courses to bring in new leads for their businesses. This free content educates potential buyers on a relevant topic and showcases your expertise. Think of it as a chance to flaunt your knowledge and establish yourself as a thought leader. This can motivate them to reach out for more about your products or services.
Take Wishpond, a marketing software firm. They provide businesses with a platform to manage leads. Using Thinkific, they created “Wishpond Academy” – offering new customers free training. The results? Impressive! Customers who took the online courses upgraded from trial to paid plan 380% more often. A significant boost to their bottom line, thanks to a free course!
- Welcome newcomers with a free onboarding program: Offering a free course can teach new customers how to use your product superbly. Especially in software, where users spend much time figuring out new online tools. Providing free training for onboarding can greatly improve user experience, minimize customer service queries, and reduce customer churn (that term means customers who stop using your product).
- Bonus! Free course as purchase incentive: If you have another product or service, including a free course can sweeten the deal, enticing people to buy from you. Say you’re a coach – you could offer potential clients your online course free if they sign up for your coaching program.
Factors when pricing your course
You’ve poured heart and soul into creating an incredible online course. Meticulously crafted content, engaging videos, informative worksheets. Now the big question: how much to charge for this amazingness?
Determining the price for your course demands careful thought. Undervalue your expertise and effort by charging too little. Scare potential students away by charging excessively high. Fear not, fellow course creator! We’ll guide you through factors to consider when setting a fair, attractive price for your students.
Forget about length. Focus on value.
Discard the notion that longer courses warrant higher prices. Students prioritize the value you deliver, not the duration of content. If you can effectively teach them what they need to know in 3 hours, that’s excellent! Don’t unnecessarily prolong content to meet arbitrary time requirements.
- Think like a superhero: What problems do you solve?
Your course’s true value lies in the transformation it offers. What results can students expect? Will they save time, increase earnings, or finally master an elusive skill? Quantify these benefits whenever possible. If your course helps someone secure their dream job, that’s a powerful incentive justifying a higher price tag.
- Competitive research: Learn, but don’t copy.
While researching similar courses’ pricing is helpful, don’t engage in price wars. Focus on the unique value you bring, including your experience, teaching style, and bonus materials. Use competitor research to validate market demand, not mimic their pricing strategies. You might discover a premium course in your niche is viable.
- The Price Factor: Perception Shapes Everything
Often, individuals link price with quality. A higher cost can subconsciously indicate a more comprehensive and valuable course. So, positioning yourself as the premium option in your market is acceptable. Of course, backing this up with quality content and delivered results is crucial.
- Beyond the Course: Ongoing Support’s Value
Remember, your course price isn’t just about video lectures or downloadable resources. Consider the ongoing support you’ll provide to students. Are you offering Q&A sessions, live workshops, or a private community forum? These elements add value and justify a higher price point.
Test Different Prices (If Time Permits)
Experimenting with different price points can be a great way to find the sweet spot, but it requires time and resources. If possible, test different prices and observe their impact on sales and conversions.
- The Ultimate Aim: Attracting High-Quality Students
While a low price may seem tempting to attract more students, it can often backfire. Bargain hunters are less likely to invest the time and effort required for results. Setting a price that reflects your offered value will attract serious, committed students.
Conclusion
Emphasize value-driven pricing for online courses. Focus on the transformation your course offers, not just the content.
Your course shows students how to achieve great things. It’s an investment that pays off big time. Showing your course’s value lets you charge a premium price. This reflects the positive impact on students’ lives.
Thinkific has free pricing calculators. They help you explore pricing scenarios and find the best price for your course.