7 Tips For Pricing Online Courses
7 Tips For Pricing Online Courses
A universal question roams every course creator's mind, especially those who have just started their journey in this field, “How much should I charge for my courses?"
Well, this question must have a clear answer.
There are scientific and psychologically based rules, principles, and practical solutions that work, and you will discover all about them in this guide.
Pricing your course effectively is a skill, and making an error can have a significant negative influence on your sales.
You can have a great course, a beautiful landing page, and the ideal audience... but unless you nail down the "correct" price, your sales will suffer!
It is critical to correctly price your course, but nothing to you worry about. This article will cover everything you need to learn.
Follow these scientifically proven guidelines to obtain the cheapest price for your online course:
- Prices with fewer syllables should be preferred.
- Lower the left digit(by one)
- Apply The 100 Rule
- Remove the commas
- Give an explanation for the discount.
- Use the Appropriate Level of "Roundedness"
- Make use of Value-Driven Pricing.
How to Determine the Cost of Your Online Course
There are numerous methods for pricing your courses:
- One-time Fee
- Plan of Payment
- Monthly Subscription
- Annual Subscription
And that doesn't even take into account things like discounts, packages, and lifetime plans!
You don’t have to choose and commit to just one and this is the good news.
Because various people are interested in different types of bargains, your courses can employ a combination of these pricing choices.
Regardless of the options you choose, certain price criteria must be followed.
The importance of having your own website
But first I’d like you to realize that to get the most out of these pricing strategies, it’s essential to have your own website as a course creator!
However, if you don't have your own website, you can't leverage many of these principles.
This provides you greater freedom to experiment with alternative pricing models, but more crucially, it allows you to build a platform where you only compete against yourself and can use value-based pricing, which we will go through in depth.
And there's no reason not to try building your own online course website for free with no technical or design expertise required (using EzyCourse).
The Psychology of Pricing an Online Course
You've probably noticed all the weird prices like $2.99, $19.99, and so on that are regularly utilized in supermarkets.
Why is such odd pricing used? Because they are effective.
Retailers deliberately select these unusual prices based on some well-known psychological pricing factors.
In this post, we will list some of the most significant psychological principles to be aware of that are pertinent to online courses.
1. Prices with fewer syllables should be preferred.
The first time you hear this one, it will blow your mind.
It may seem simple, but some words are far easier to utter (and absorb) than others, and this varies by language.
Let's have a look at an example, Which of these two pricing is better?
At first glance, you might think that the smaller number is preferable... right? But the answer is “no”.
Say these numbers aloud in English to see why.
- Twenty-seven dollars and eighty-nine cents (12 syllables)
- Twenty-eight dollars and thirteen cents (10 syllables)
It is actually easier to say the larger price.
Due to its fewer syllables, it is easier for your brain to process, which makes it slightly more appealing at this higher price.
And, for whatever reason, the price of $28.13 just seems more appealing, right? Even though it's higher!
However, the fact that the price is easier to utter makes it significantly easier for our subconscious mind to consume, making the price intuitively feel more appealing.
This is only one of several psychological tactics that can be employed to make the purchaser feel comfortable with a slightly higher price.
Hence, what other methods can we employ?
2. Lower the Left Digit (by one)
Setting a price that ends in.9,.99, or.95 is another typical technique. Marketers have been using this one for years... and the effects are evident!
Various researches show that lowering the price of the same digital product from $2 to $1.99 increased the conversion rate by around two times! That's nearly double the sales for a penny less!
But there's more going on here than you might think. An experiment like this suggests that the number *9* is important.
However, this is not exactly correct because dropping a price from $2.90 to $2.89 will not make a significant effect.
Dropping the price from $3.00 to $2.99, on the other hand, will!
So, what's the distinction? The digit on the left!
Dropping it from *3* to *2* has a significant impact (even though the price change is negligible). Having a left digit symbolizing a bigger number triggers your audience to make a quick conclusion about your value (and magnitude). If it’s lower, they’re getting a good deal. They aren't if it's higher.
It may simply be a one-cent difference, but it is significantly more in your audience's subconscious thinking.
3. Apply The 100 Rule
Continuing on from the previous point, your audience's perceived value of your course continues to be important.
Not only in your price, but also in any reductions or benefits you provide. Or, more precisely, how you convey these!
Consider the following examples-
Which of these two offers is better compared?
- $10 -- $1.00 OFF!
- $10 -- 10% OFF!
What about this one?
- $200 -- 10% OFF!
- $200 -- $25 OFF!
Or how about this one?
- $1000 -- $500 OFF!
- $1000 -- 50% OFF!
You probably gravitated toward particular rates (at least subconsciously), right?
The 100 Rule is at work here, and it runs as follows: If your price is less than $100, focus on the %; if your price is more than $100, focus on the actual money saved.
This is important for course makers to understand because most prefer a percentage discount.
This is acceptable if your course costs less than $100, but if it costs more, it may turn off your audience.
Or, at the very least, not keep their entire attention!
4. Remove the commas
According to another research, eliminating the thousands of commas from your pricing makes it appear lower. The reasoning is based on phonetics and syllable count.
For example, suppose you charge $1,299 for your course. By framing it at $1,299, it reads as follows: one thousand two hundred and ninety-nine dollars (10 syllables).
If you frame it as $1299, it reads twelve ninety-nine dollars (5 syllables).
As you can see, the price is the same, but the number of syllables is half, therefore $1299 feels cheaper.
5. Give an explanation for the discount
You'll probably run a lot of sales and discounts over time.
Whenever it comes to gaining traction and reaching new customers, decreasing your pricing for a limited period might have a significant influence.
However, how you choose to discount is critical. Again, not on the conscious mind, but beneath the surface, where your audience's perceptions form instantaneously.
Let’s show this in action:
- $100 -- $25 OFF!
- $100 -- BIRTHDAY SALE $25 OFF!
There is one significant distinction in this deal... That is how the second version gives a Reason!
Because this is a yearly event, the discount appears to be more limited than usual: it only occurs once a year.
The truth is that we come across sales all the time. Every day, you see one sale, discount, and special deal after another at supermarkets, shops, and online.
They signify little to us over time. Your target audience perceives you as just another brand offering another useless deal.
By giving it a reason, you bring it to life and reinforce the impression that there is a countdown.
This sale is in honor of your birthday. The price grows as the deadline approaches.
If you can tie your sales to a purpose, especially if it's a yearly event, you'll see an increase in conversion rates.
6. Use the Appropriate Level of "Roundedness"
Marketers are generally instructed not to utilize round numbers.
In other words, instead of charging $200 for your training, charge $199.99.
But it is not always as straightforward as this, and it all basically comes down to whether you offer an emotional or rational purchase.
Research suggests that well-rounded pricing ($100) is processed more fluently, which is advantageous for an emotional purchase.
It simply feels "correct" and reinforces their sentiments because it is easy to pronounce and process in their minds.
For a sensible purchase, a less fluent amount ($99.99) works better since it creates the impression that this is a genuine price with a purpose, rather than one plucked from thin air.
It's less fluent, so people wonder: why is it this price? Why not limit it to $100? There has to be a reason...
This is important to understand as a course creator because some courses are more reasonable than others.
If you assist professionals with pay negotiations, for example, you make a really reasonable offer.
The offer is considerably more emotional if you provide a course that teaches a new parent how to practice yoga with their newborn.
Compared to some of the other principles discussed here, this one is a little more contentious, but it is still worth examining based on the sort of course you sell and WHO you sell to.
7. Make use of Value-Driven Pricing
Our final principle is your audience's perception of the value of your course.
You may know that by taking your course each student will save or make thousands of dollars, regardless of how much you think it is worth.
It doesn't matter if they don't know or believe this.
It's important to have your own website and not rely solely on marketplaces for sales.
By comparison, marketplace platforms put you in competition with thousands of other course creators.
If the majority of courses on a platform cost $10-20 and you charge $50, your audience will consider yours as too expensive (even if you know your course is worth far more than $50!).
In other words, you always have to ask yourself: what is the "right" price for my student?
If you charge more than this amount, you will struggle to convert. Similarly, if you price below this level, you will struggle to earn sufficient money.
That is why having your own website is important because you only compete against yourself on your website.
They evaluate you, your courses, and the content in front of them, not the myriad of other courses and course designers.
You can then price your course based on the value that the course benefits will provide to the student on your own site, far from distractions and comparisons with other courses.
This is what experience says knowing this information is half the battle, what matters is knowing how to apply it effectively.
Using These Principles: How Should You Price Your Online Course?
Having your own website is one of the best commitments and investments you can make for your online courses. All of the psychological characteristics we've examined can be implemented on your own website.
Some of these strategies, though, remain out of reach if you exclusively rely on marketplaces.
However, it is not only the tactics you employ that make having your own website valuable.
You can experiment with different price options and techniques with your own site.
If you want, you can offer monthly subscriptions in addition to one-time transactions.
You can also combine different courses to provide more value to your students and then sell the packed bundle for a significantly higher one-time fee. Platforms like EzyCourse give you the benefit of making bundled courses and selling them to your students.
You can also change the price of certain courses to support new launches. This is where value-based pricing comes into play.
How to price an online course bundle,
For example, suppose you already have a $99 course and are introducing a new course at the same price.
You can set a special discount of $49 for this new one, as well as a bundle pricing of $89 that offers students access to both courses.
A price of $49 for the new course launch and $89 for the bundle will look like a great deal to many.
Getting both courses for just $89 seems like a great deal!
When you add other psychological factors, such as:
- The reason for your unique discount.
- Observing The 100 Rule.
- Selecting a price with fewer syllables.
You make an intriguing offer to your students!
This is how I’ve approached the question of how to price an online course over the years: it’s an ongoing experiment.
With the techniques you’ve learned in this guide, you have all you need to figure out what does work for you.
How to utilize pricing to direct your audience to a specific offer
Your website's rates are one of the most crucial variables that will influence your audience's decision to select one of your offers.
- Is it preferable for them to pay one time for a particular course?
- Is it better if they subscribe to all your courses on a monthly basis?
- Is life-long access to current and future courses something you would like them to purchase?
- Do you want them to buy a specific bundle?
With your own website, you can provide your audience with a variety of options.
Even if they have a choice, you can still guide them in the right direction.
They *may* purchase a single course if they desire.
If you'd rather they join up for a monthly membership, you can do so with value-driven pricing.
In this regard, the prices you set are not isolated. Your website's prices are all tied to one another.
Each one serves a function, leading your audience to select a specific outcome.
Let's see how it goes.
Single Course Sales: How to Price an Online Course
If you've only released a few courses and/or are still trying to create an audience, you might opt to sell as many one-time courses as possible.
This can result in more reviews and *potentially* yield more revenue upfront.
Most experts recommend charging a high price for your training in this case.
However, based on my personal experience, I do not advocate this.
Most customers are put off by online courses that cost more than $100.
Instead, I recommend that you begin inexpensively and gradually raise your prices over time.
For a monthly recurring membership, I've found the following price points to be effective: $9.99, and $19.
While the following pricing is ideal for one-time sales: $39, and $49.
And the higher pricing ($89 and $99) are ideal for packages and yearly recurring subscriptions.
We prefer our personal favorite price of $89 since it is the highest price below $100 with the shortest syllables, allowing us to combine many of the ideas we have learned.
Again, don't be scared to start small.
When you launch a new course, offer a special pricing of $19 or $49.
You can raise it to $49, $89, or even higher according to the perceived value of the course, but for the initial weeks, keep it low.
When focusing on single-course sales, it is found that offering permanent discounts is beneficial.
Subscription Pricing for Online Courses
Finally, another pricing option to consider is a subscription plan, which is often either monthly or yearly.
As you may know, recurring revenue streams are the golden grail for most internet businesses, including online course businesses.
This normally requires at least a few classes, but you can include other elements such as:
- Future updates and courses are available.
- Private online group, community, or forum.
- Invitations to exclusive master classes, events, and live training.
Again, if you want students to become subscribers, you must make this more appealing than purchasing a single course.
Consider another example:
- Course 1 costs $49
- Course 2 costs $49
- Course 3 costs $29
- Course 4 costs $19
Monthly subscription: $9.99
Doesn't that seem self-evident?
People can subscribe for years at that price since it feels like such a good deal in comparison to the other rates on the internet.
Within only five months, your audience has paid for Course One and has access to the other three courses (among other features you offer).
People can pay for each course individually, but you've priced your courses in such a manner that it makes far more sense for them to simply subscribe, which is the whole point.
Note that the rates on your website do not exist in isolation; they are continually compared to one another by your students.
You can lead your audience to a specific decision that you favor by carefully establishing your prices:
- Instead of taking individual classes, consider purchasing a subscription.
- Take a bundle rather than individual courses.
- Consider a yearly plan, which appears to be less expensive than a lifetime one.
Generally, we recommend guiding your audience to either recurring subscriptions if you have a large course catalog and are constantly creating new content, or course bundles if you aren't constantly recording new courses.
In short, the pricing of your online course is important.
Do not think that you will do it later. Marketplaces will not do all the work for you, so do not rely on them. Because they frequently drive prices to the bottom and make value-based pricing very impossible.
Do not believe that pricing is only about the price. There's a lot more to it than that.
Summary of How Much to Charge for an Online Course
Applying all of the pricing rules to your course will often result in rates such as $49, $89, $99, or $199 and $399 for higher-ticket courses.
If you're not sure how to price your course, these are good starting points, and you may adjust the pricing based on the feedback you receive.
Remember that you can only truly implement value-based pricing and test out all of these pricing options if you post your courses on your own website; this is critical.
If you exclusively publish in marketplaces, pricing your courses based on the perceived worth of their advantages to the student is simply not practical, because who would buy a $99 course if it was featured among ten other $9.99 courses?
Setting up an online course website may appear to be both costly and technically difficult, but this is not the case. You can use our platform to publish several courses for free and sell them to your students without any specific technical or creative abilities. Our course builder interface is extremely straightforward and simple to use, and our support team can assist you with any questions you may have along your course-building journey.