6 Essential Online Course Pricing Points to Maximize Profits
You have successfully developed your online course, or you are presently in the process, but still haven’t the slightest clue how to price your knowledge, time and effort. If there were only an easy coaching course calculator that you could employ to obtain an average price. Since this application is yet to be developed, you may be presently trapped in pricing purgatory.
The great news is that pricing can be calculated with a few pricing points in mind. Examining your bottom line, industry wages for your skill, target audience, and how your online course stacks up against the competition are all vital aspects necessary to explore.
1. How Low Can You Go?
You may simply wish to connect your unique knowledge with an eager audience, or your aim is to exceed five digit profit margins. No matter your motivation, it is best to begin with the lowest price you are willing to except, and build on it as you employ other pricing points.
How much value do you place on your time and skill? Would working for $10 per hour suit you, or would it take $30 per hour? Deciding how much per hour you would be willing to earn for an hour of course production time, or live coaching session, is a wonderful starting point.
On average, your online course can be offered for $5 to $500 with most coaching platforms. If you are offering live coaching sessions instead of downloadable courses, you can simply offer it free of charge if philanthropy is your thing. However, receiving a slight profit for your knowledge is always commendable as well.
2. Think Industry Standards
Thinking about industry standards for the skill you are offering is another exceptional way to set a fair price for both you and your students. How much are industry employees getting paid to teach, or do, your online course subject? If your online course covers an area of web development, you could do a bit of research and get the average salary for that specific career.
For example, the average web developer salary ranges between $35,000 and $85,000 per year, according to PayScale Inc. This can place your course’s hourly rate at roughly $25 to $60. If you have years of web development experience you would adjust your hourly rate accordingly, finding a happy medium. Quickly searching your subject’s industry standard can further narrow down your pricing decision.
3. Compare Your Online Course With Competitors
If Pepsi sold their beverages at a price four times higher than Coca-Cola, you may steer clear of Pepsi products. The same logic may also hold true when pricing your online course. The old product comparison method still works, and could be very helpful when considering an online course price.
The following are a few excellent comparison price points to explore further:
- Does your online course separate you from your competitors in any way? Maybe you have inside knowledge of a programming system, possibly a few famous clients worthy of mentioning, or you may be offering live coaching sessions.
- Are you in a niche market? There are still a few niche markets to corner, especially in the online coaching realm.
- Does your course length exceed your competitors’? This is a valuable price point, since everyone enjoys getting more for their dollar. However, ensure your course information is concise and detailed, not simply long for the sake of out pricing your competitors.
- Is your production quality better? Quality of your online course is a big factor, as it portrays professionalism that your competitors’ videos may be lacking. You can often sample course introduction videos on most coaching platforms to gauge quality.
4. Live Coaching Sessions
Offering live coaching sessions is an exceptional way to maximize profits while adding value to your online course price as well. This could play a big role in your pricing decision. A live coaching session could be offered at a higher rate, since it isn’t a one-time production and simple upload. You will need to develop lesson plans and engage with your audience live and direct. This can also build rapport, as students get the opportunity to meet their coach. Making them more likely to purchase your downloadable courses, as well as future live coaching sessions.
5. Placing a Price on Your Knowledge
One vital aspect to consider when pricing your online course is how much your knowledge is actually worth. You certainly wouldn’t see an online course covering computer programming by Steve Wozniak or Mark Zuckerberg priced for $30. If your knowledge has been accumulated over decades with a trail of success following it, your course price would reflect that.
When it comes to developing online courses and pricing them, don’t sell your knowledge, personal success, or course content short. If you were a web developer for Amazon.com with a six-figure salary, you have a skillset that most certainly sets your pricing apart from the average Joe.
6. Where is Your Target Audience Located?
This could also play a major role in how you price your online course. What are the wages in your target audience’s location? Are your students more likely to be university students or career professionals? Analyzing pricing from the same vista, as your potential audience will allow you to clearly see the dollar amount attractive enough to engage them.
For example, if you are an English as a Second Language (ESL) teacher offering live coaching sessions, you may need to do a bit of pricing research. Pricing your session could differ depending on your audience’s location. A Japanese business professional may be able to pay more for an English coaching session when compared with a university student in Argentina. Your course price should reflect your audience, and putting yourself in their shoes is a great way to maximize potential profits.
Eliminate the Challenge of Pricing Once and For All
Pricing is indeed challenging, but with a few pricing points in mind, you can easily maximize clicks, as well as profits. Connecting with students is essential, and you certainly don’t want to scare them off with a number. However, you want to ensure that your skills are well represented in your price, whether it is a downloadable course or live coaching session. An excellent way to approach pricing is to have a pricing checklist in place to efficiently and effectively add value to your online courses.
Apply these pricing points to your checklist to maximize value and profits:
1. What is the lowest price I am willing to list my course for?
2. Am I offering a live coaching session, downloadable course, or both?
3. What is my target audience and where are they located?
4. How are similar course’s priced?
5. What is the industry standard for my skill, or skills?
6. How many years of experience do I have?
7. How much is my knowledge worth?
How will you price your online course?