Smart Way to Price Your Online Course for Max Profits

  1. Look at similar courses: Check the prices of courses like yours. This helps you understand common prices.
  2. Count your costs: Think of all the money you spent to make the course. This includes paying for any help, equipment, and software you needed. Your course’s price should be enough to cover these expenses.
  3. Offer different prices: Create a simple version of your course that costs less and a more detailed, premium version that costs more. This way, you can attract different kinds of students.
  4. Bundle courses: If you have more than one course, you can sell them together at a lower price compared to buying each course alone. This can attract more students.
  5. Try different prices: Set a few different prices for your course to see which one brings in more students. This can help you find the best price.
  6. Think about the value: Consider how much your course will help people get better at a skill or advance in their job. The more helpful your course is, the more you can charge.
  7. Use promotions: Sometimes, offer your course at a lower price. This can help bring in new students. Later, you can increase the price.

#1 Research Market Pricing

The very first step in pricing your online course is to look at what others are charging for similar courses. This gives you an idea of the typical pricing in your niche or topic area.

Start by making a list of 5-10 courses that are closely related to the one you plan to create.

For example, if your course teaches beginners how to use Photoshop, look for other beginner-level Photoshop courses.

Once you have your list of comparable courses, check out how much they cost. You’ll likely see a range of pricing from very low budget $10-20 courses all the way up to premium $200-500 courses. Note down the prices so you can calculate the average later.

The lower-cost courses may just have some basic video lessons. The higher-end pricier courses probably include things like ebooks, cheat sheets, student forums, and individual feedback.

Your goal is to identify the typical price range that the majority of similar quality courses fall within. Calculate the average price of the courses you collected.

This average price is likely the realistic amount that students expect to pay for this type of course content.

Pricing slightly below the average can make your course more attractive and competitive. Just don’t go so low that students think you undervalue your expertise.

#2 Factor In Your Costs

Creating a high-quality online course takes a lot of time, effort and money. Before setting your price, you need to calculate all the costs involved so you can ensure you’ll make a profit.

Start by listing out every expense you incurred while making the course. This includes things like hiring experts to help create content, purchasing equipment like a microphone or camera, subscription fees for video editing software, and the platform you use to host the finished course.

For example, say you paid a course contributor $1,000, bought a $200 mic, paid $100 for an editing program subscription, and are using a hosting platform that’s $500 per year. Those expenses alone are already $1,800.

Once you have a clear picture of all your expenses, you can calculate the minimum revenue you need to earn back that investment and turn a profit.

Using the example above with $1,800 in hard costs, if you want to double that, you’d need to make at least $3,600 in revenue from the course.

If you plan to price it as a one-time purchase, divide $3,600 by the number of students you realistically expect. That minimum price per student ensures you recoup your investment plus make a reasonable profit margin.

#3 Offer Multiple Pricing Tiers

Instead of a one-size-fits-all pricing model, consider offering your online course at multiple different price points or tiers. This allows you to appeal to a wider range of students with different budgets and needs.

At the most basic entry-level, have a lower-priced core offering. This could simply include access to the main video course lessons for a set time like 6 months or a year. The relatively lower price makes it easier for cost-conscious students to get started.

Then, create additional higher-priced premium tiers that include various extras, bonuses, and extras. These premium versions provide much more value for the increased investment.

For example, your mid-tier could include the core course videos, plus downloadable resource sheets, checklists, templates and lifetime access. An even higher top-tier could add in things like:

  • Live Q&A session(s) with the instructor
  • Members-only community/discussion forum
  • Personalized feedback on assignments/projects
  • Certification of completion
  • Access to future course updates

#4 Bundle Pricing Strategy

If you have multiple courses, consider bundling them together at a special discounted rate. This incentivizes students to purchase more comprehensive, in-depth training from you.

For example, you could offer a beginner, intermediate, and advanced course individually. But bundle all three together at a 20-25% discounted rate compared to buying separately. This creates a better perceived value for those wanting the full, extensive training.

Other bundle examples:

  • Package an ebook, workbook, and video course together
  • Combine an online course with personal coaching calls
  • Offer a bonus members-only community access with any course purchase

Bundling gives people more reasons to spend more with you upfront while still saving money over component pricing. It’s a great way to increase your average transaction value.

#5 Test and Optimize Pricing

Even after doing your research, the ideal pricing is not always obvious right away. Be willing to experiment with different price points and models to optimize over time.

In addition to offering the one-time purchase pricing, you could try a subscription model with recurring payments. Or give the option for a payment plan rather than needing the full sum upfront.

Closely monitor which pricing structure gets you the most student signups and overall revenue. Don’t just look at total sales volume, but factor in acquisition costs and profit margins.

If you find a lower price point sells better but hurts your margins, you may need to adjust upwards. Or if a higher tier isn’t selling well, bring it down closer to the pricing sweet spot.

Be flexible and use data, not just gut instinct, to iteratively optimize your pricing over time for maximum sustainable revenue and profit.

#6 Use Promotions Strategically

While testing different pricing, also incorporate strategic promotional periods and discounts. Used properly, these promotions can drive new student acquisition at a lower front-end price.

Some examples of promotional pricing:

  • Time-limited launch discounts for a new course
  • Limited-time percentage or dollar amount off sales
  • Buy-one-get-one deals for course bundles
  • Seasonal, holiday, or annual sales events
  • Special discounts for email list, returning students, etc.

The key is to make these promotions scarce and drive excitement/urgency. Discount too frequently and the lower prices lose their motivational power.

Use promotions strategically at the right times and you can get new students started at accessible rates before raising to standard pricing later.

Conclusion

The recommended pricing for the online courses is as follows:

Core Course: $199 one-time ($149 promotional launch price for first 2 weeks)

Premium Course Bundle:

  • Core Course
  • Workbook & Templates
  • Bonus Video Trainings
    $349 one-time ($279 launch price)

Total Mastery Bundle:

  • Premium Course Bundle
  • 3 Group Coaching Calls
  • Certification of Completion $599 one-time ($499 launch price)

Payment plans are available for premium bundles at 0% interest over 3 months.