4 Online Course Pricing Models -

Pricing can be one of the most difficult aspects of starting a new course. There's a need to strike a compromise between giving the best value for your customers as well as establishing a price that they're willing to pay--or choosing whether you'll cost for your course at all.

Before you choose a course pricing method, it's an excellent idea to evaluate the options and consider the goals you want to achieve for your income. Below are four popular pricing methods to take into consideration in planning the pricing of your courses.

1. Courses for free

2. Baseline courses

Basic courses can reach a large population by providing information that appeals to many people for a low cost. These should be courses that you can create relatively quickly. They also shouldn't require the most time-consuming commitment of students or deal with subjects that are overly detailed or technical. These courses may result in a lot of signups with smaller participation rates due to their low risk price.

3. Premium courses

Premium online courses are the primary goal for many authors when contemplating pricing strategies. These courses have the highest cost points, and offer high quality deep content. Course material must be unique, taught by a reputable or known instructor, or address a subject that you won't discover elsewhere. These qualities help justify the premium price.

4. Subscription for courses

Regardless of which pricing model you choose, how can make sure that you're setting the appropriate pricing for your courses?

Formula for setting the price of your courses

The process of determining the cost for courses isn't exactly a scientific procedure, however you can apply the formula to take some of the doubt out of price.

In order to begin it's necessary to have a few key pieces of information.

• The goal of revenue. Think about how much you would like or must earn from the course. Do you have to pay expenses to make a profit? Are you working towards a revenue goals? What's the maximum amount you'd like to make?
• Conversion. Which percentage of your target audience are you expecting to purchase the course? Using data from your email list, your social media followers websites, landing pages or other information about your campaign You can calculate an approximate percentage of conversion for your customers. It should be expressed as a percentage in a decimal: For example If you anticipate that to convert 10% of your audience to convert, then use 0.10 in the calculation in the formula below.

Then you're ready to try your hand at the following formula:

      Revenue = Size of the Audience x Conversion Rate x Price      

Plug in different numbers to see how the cost of the course changes according to your revenue goals and how the revenue grows or decreases with different prices for courses and conversion rates.

The optimal course price is one that allows you to achieve the revenue targets you set for your target audience's size as well as your estimated the conversion rate.

Reach your goals while staying in the present

The final element of pricing is making sure that course content aligns with the price. If you employ the formula and you get that the price is too high it may be time to reconsider your goals; it's unreasonable to charge $10,000 for the time spent on information for 10 minutes like that, for instance.

Ultimately, thinking about the various pricing strategies using the formula of pricing used to guide you will help you choose an appropriate pricing plan that will work for you and for your customer base.