How to Price an Online Course
It's all done. Promotions are prepared to go, and the final item to be checked off your list prior to launch is how you price your online course to ensure that students will sign up. Pricing is one of the most difficult aspects of launching a new course online since it's a matter between finding the sweet spot in providing the right amount of value to your audience at a price they're willing to pay.
A well-planned online course and pricing could assist a content creator to make the transition from being a side project to full-time. Well-developed online courses can drive revenue and even sponsorships for your brand or website.
Are you ready to start? Here are some price considerations you should consider before starting a new course online.
Price Online Courses Begin with the Types of Courses
Online course specialist Sarah Cordiner states that every piece of content is categorized into five categories of online course. Of course, the type that you're planning to provide may be related to the price and pricing strategy. It is crucial for creators of content to think about this when they design online classes.
- The Lead Magnet Mini-Course Generally, this is an online, free course designed to get students interested in greater content. It could also be the beginning of an extensive paid course which serves as a marketing lead.
- Kickstarter Course The courses serve as an entry point for creators of content in the development of courses. They can be similar to other content you are creating, such as a how-to blog post series however, in a different form. These courses are often low-priced (less than 100 dollars) They are also not long in duration (can run from a couple of minutes or an hour) They are also great for authors who are popular and have followers.
- Authority Flagship Course: When you think of online courses The Authority Flagship Model is probably the first thought that pops into your head. These are courses with an experienced instructor who has a lot of respect in their field. They are moderately priced ($100 to $3,000) they also include repeat sessions or logins (lasting around one hour throughout a number of weeks). These courses include information that isn't available from other sources, including an in-depth tutorial or a thorough explanation of a topic.
- Supportive Coach-Lead Course: The material could be comparable to an Authority Flagship Course, but the method of delivery differs. The courses are intended for self-study and independent and not mass learning with touchpoints with the instructor. The online courses cost more ($500 or more) They include multiple lessons as well as one-on-one sessions, with plenty of information to assist you in your individual success.
- Membership or Online Academy Course: This group class includes different classes that are built upon each other. Students might participate in different tracks to earn credentials or obtain certifications. The pricing model isn't so much in relation to the expense for a particular course however, it is for the course as a whole using a subscription-based system ($10 to $100 monthly).
Whatever option you select for your online course it is important to conduct your research to make sure you're creating an online course that students are likely to want to learn about. The process begins with research, understanding of the audience marketing, as well as the development of content.
4 Pricing Modules for Online Instruction
When you've developed your course, and you know the type of course you'll be offering then it's time to think about how to price. There are four true tiers of online course pricing: free, baseline, and premium.
Free classes
Baseline courses
The basic courses can reach a large public with content that is appealing to a lot of people at an economical cost. These courses should be quick to develop, and not require massive time commitments for participants, as well as include information or topics that are deep, but doesn't get overly technical. The courses could result in many sign-ups, but with little participation due to their low risk price.
"When you give coupons for free course, the rate of completion may be low single-digits. When you charge for similar courses, your completion rate can be 30% or 40%. The more you charge for the course, the more people actually complete it," said Ankur Nagpal, the CEO and co-founder of Teachable.
Premium courses
The premium online course is the goal for most authors when considering pricing strategies. They are the most expensive courses available at cost points, yet they have to provide high-quality information at the same time. Course material must be unique, have a well-known instructor, or be something that isn't available elsewhere that is worth the cost.
Consider a high-quality online course as being similar to an university experience or led by a "celebrity" in an instructor-led format. These courses won't garner as many signups as baseline classes, but they often boast the highest participation rates and engagement.
Model of subscription
Subscription-based model courses provide membership option for customers to pay. This can be in the form of monthly, daily monthly, weekly or even annual subscriptions. When a customer joins, the customers gain access to your restricted content.
Online Price Strategy for Courses
One of the most effective methods to price online courses comes from Online Course Igniter.
The process begins with some study of the audience to know how many people could potentially be interested in your online course. The audience you choose to target could vary for each new course, based on the content.
Then, you'll need to think about the amount of money you'd like or require through the course. Do you have costs that you need to cover to break even? Have you established a goal for income from each course?
In the next step, you'll go deep into your analytics for your target audience. In the present, you probably have an email list or a social media follower, website, or other method to collect and interact with those who are interested in your content. The thing you must determine is how interested they are in order to determine an average conversion rate of that group of people.
After that, you'll be able to plug all the details into the formula that will calculate revenue and pricing:
Revenue = Audience Size x Conversion Rate x Price
Remember to subtract costs from revenue to determine actual profit on the online courses you create.
The third element of the pricing strategy is ensuring that course content aligns with the pricing. It's unreasonable to ask someone to shell out $1,000 for 10 minutes of information. Consider pricing models as well as the perceived value can help you choose a pricing strategy that is appropriate for your customers base.
How Much Should You Charge for an online course?
It all goes back to the fundamental issue of how much you charge for online courses?
If you think about the type of course as well as pricing models and then a full pricing strategy the answer may be more clear than you thought. (You must at a minimum narrow the range to an acceptable level quickly.)
Now you can launch your online course. This will assist you in transforming your course content into a excellent user experience that students would like to engage in. The online course platform is designed by the experts of e-learning and includes all the resources that you require to design an online course that is highly sought-after.
You have control over all aspects of the process, such as pricing models and the ability to sell upsells. Sign Up for a Demo Today