How to price your online course: What you need to know before you launch

How to price your online course: What you need to know before you launch

by CreativeMindClass • 10 min read

When creating an online course, sooner or later, every creator needs to answer the question: how much should I charge for my online course.

Pricing course it's something that needs to happen, and deciding on your online course price brings some level of discomfort. But putting the price tag on your skills doesn't need to be intimidating.

We took a look at the three most common price tags for online courses to help you choose the one that suits you best. At the end of this article, you'll be able to decide on the price of your course that enables you to sell your courses and launch the online course platform confidently.

Let’s get right into it…

Two main factors in pricing an online course:

  • Prices of other online courses on the market
  • Value of your online course

Market prices: What prices do other creators charge.

When deciding on a course price to sell your online course, the first thing you would want to do is match your price to the average price of online courses. In other words, check how much other online courses cost.

Infographic. Online course prices comparison table.

Here is how creators price their online courses:

  • $10-$50 for a first online course or a mini course.
  • From $100 starts a baseline for a full-length online course.
  • $200-$350 is a premium price for a high-value online course.

Course creators' online course price range generally goes from a low price tag of $10 to a premium price tag of $350. For simplification, let's omit in the analysis the courses priced at $0 and the ones that are more expensive than $350.

But before we get into the price ranges, we should first mention one of the essential differences in online course platforms so you don't compare apples with oranges.

When comparing your competitor's prices on the market, the most common mistake is not to look at the online course placement. So, it begs for the basic question.

What online course platform does the creator use to sell an online course; on a stand-alone platform or a shared platform?

If you sell your online course on a stand-alone platform, your prices should be set much higher than the prices you see on the platforms that are grouping thousands of creators.

There is no chance that setting the price at the same level as shared platforms is a good practice for your business, as it's doubtful that you'll get the volume of sales compared to those platforms.

So this said, if you decide to set your price higher than other online course creators, you need to stay competitive. It means that you need to make sure that your business offers something unique which is valuable to your customers.

As mentioned above, the online course pricing varies from $10 to $350. But how does it help to know it? While this information might look unclear now, there is a perfectly logical explanation why creators go for such different prices, which we'll get into later.

The gist of the explanation, though, is that it's because creators use a value-based pricing strategy to set the price of their online courses. Or at least they should do that.

Why the value-based course pricing works

There is no easy way to calculate the price of knowledge and skills. However, Value pricing is customer-focused pricing, meaning creators can base the pricing on how much the customer believes a product is worth.

To give you an idea, if you know that you offer a unique, high-value online course, you can, and you should charge more than your competitors.

You are probably thinking: "but there are so many courses out there, so how is my online course unique?"

While this is not a strict rule, if you are a course creator and you share what you learned, your skills, things you experienced on your own during your life, that makes it already truly unique. As they say, "Be yourself. There is no competition in being you."

But there are also some proven ways of increasing online course sales by increasing an online course value, about which we'll talk later on.

Estimate the profitability of your online course

Online courses offer one of the best business models to digital business owners.

Launching an online course can bring you a stream of passive income and lots of fun. Knowledge is power, and establishing yourself as an expert in your niche is a smart move in the current knowledge society.

Selling online courses can start as a side-hustle and open the door to making a living, so the price choice needs to work well for you. It all makes sense as long as it's profitable for you and brings value to your target audience.

We are big on profitable online courses here at CreativeMindClass - it's why we make it so easy for creators to launch their online courses that would bring solid income.

What payment methods do creators offer?

Easy online payments allow customers to pay quickly for an online course can lower the entry barrier.

There are three main online payment methods a creator can get money with:

  • Credit cards and wallets. Visa, Mastercard, Apple Pay, Google Pay, etc.
  • Bank debits and transfers. A debit card or wire transfer.
  • Local payment methods. Supporting the popular payment methods around the world increases conversion.

We are big advocates of supporting multiple online payments methods - it's why we make it so easy for you to offer it to your potential customers.

If you decide to use multiple payment methods to charge for our online courses, we recommend adding 4% on top of your online course price.

Payment provider software usually charges around 3% and 5% for payment transactions, so make you consider when setting the course price to be sure it won't hurt your baseline.

As a digital business, the point is that you don't need to limit yourself to one payment method. There should be nothing that can stop you from growing global if you offer your customers multiple payment methods, so it is the right way to go.

Deciding on your price is easier than you think.

We'll analyze three pricing scenarios and explain how creators might have ended up choosing the price for their online course.

Are you selling an online course for the first time? Launch a mini course for a low price.

If you are new to online courses, you might feel most comfortable at a low price point and a mini course is a great way to kick start your online courses. It's safe to start low and build up your price with time.

Launching a mini course in a nutshell:

  • Mini courses prices: $10-$50
  • Time duration: 30 minutes
  • Preparation effort: Low
  • Perfect for: Beginners and side-hustle creators
  • Additional assets: No

Create a mini course

A mini course is often a short, 30min video course that you can sell for a low price. More specifically, a mini course can be described as shorter in duration than the full-length course, and often it doesn't offer additional assets like printables, so generally, it requires less time to prepare.

You can make your customers happy with a mini course at a low price range of $10-$50. It also is a fantastic marketing solution for busy side-hustle creators who don't want to spend long hours preparing an online course.

Pricing online course table depending on vale. An infographic about a mini-course pricing.

But if you spend time on multiple video recording sessions, perfect the editing, spend hours preparing homework and printables, we encourage you to set the price of your course at around $100, even if it's your first course.

Value-based price requires considering the amount of work you put into the online course, so if you worked hard, we recommend reflecting it in your pricing.

Set your baseline price at $100 for a full-length online course. Never lower!

If your dream is to launch a full-length course, we recommend setting your baseline price at $100-$200. You can do that no matter if you are a first-time creator or you already have experience with online courses.

Launching a full-length course in a nutshell:

  • Full-length courses prices: $100-$200
  • Time duration: 120-180 minutes
  • Preparation effort: Medium
  • Perfect for: Beginners, experienced creators
  • Additional assets: Includes printables

The time you spend recording, editing, and preparing printables needs to pay back, so if you want to sell a full-length course below $100, ask yourself a question - why? It might be that you don't have a good answer.

Pricing online course table depending on value. An infographic about a full-length course pricing.

It's OK to charge high prices!

Charging high prices, so let's say $100 and more, might feel intimidating.

So, specifically for creators who want to charge a higher price, it's essential to understand the profitability of online course pricing and course value.

Increase the value of your course. Go ahead and charge $350 for a high-value course.

If you feel like spending more time on course creation and preparing additional assets, you should consider launching a high-value online course at high prices.

Launching a high-value course in a nutshell:

  • High-value courses prices: $200-$350
  • Time duration: 120-180 minutes
  • Preparation effort: High
  • Perfect for: Creators who bring unique value
  • Additional assets: Includes printables, attachments, exercises.
Pricing online course table depending on value. An infographic about a premium course pricing.

Here is how to increase your online course value even further:

  • Create upgrade content. Provide additional learning materials as an upgrade.
  • Give Feedback. In other words - care if your students actually learn. Become an active part of their learning process.
  • Create a community. Get involved in your student's learning process, and connecting with them will make you an industry leader.
  • Improve the production quality. There is always a place for improvement in your videos, better lighting and sound is crucial to improving the overall quality, and it pays off!
  • Become a mentor. Teach by sharing your personal experience with your students.

Here at CreativeMindClass, we offer a wide range of features that help you increase the value of your online course big time and make it possible to offer premium prices.

How to increase an online course value infographic. Bullet points.

How many courses do creators usually offer?

The value-based pricing model assumes that the lower the price of your course, the less time you spend on creating it. So you can offer multiple mini courses for $20 or one high-value course for $350. But how much do you need to work to earn 1k from your online course?

The general rule is that the cheaper the course is, you need to convince more people to buy it, so you work harder on promotion, and the higher the price of your course is you need to convince fewer people, so you work less on the promotion.

Low course prices are coming with their challenges, and, generally speaking, they're not a long-term business solution for a creator. The sooner you increase your course prices, the better the general sustainability of your online business.

Make the first sale as soon as possible.

If you ever tried to sell anything, you already know that hearing "no" is quite common, and well, it hurts in the beginning. But you might also know that a business owner becomes immune to hearing "no" fairly quickly. After a while, the "yeses" and the sales start coming, making everything sweet and worthy.

You should hear the first "yes" and make your first sale two to four weeks after the course launch with the intentional and regular promotion. To make your first sale as soon as possible, you can pre-sell your online course.

Pre-sell: How to sell your first online course fast.

  • Pre-sell your online course. In principle, pre-selling allows you to start promoting your online course before you create it.
  • Offer a huge discount. You're offering your audience an idea, a prototype of your online course, in exchange for an exclusive discount.
  • Get in touch with customers early on. When you pre-sell your online course, you not only get paid upfront but also get in touch with your customers creating valuable leads for the future.

Pre-selling an online course is something that course creators do to ensure the success of a full-length online course. The earned money could be reinvested in, for example, the gear needed to produce your course.

Later on, you'll sell the course at a full price, so it's a tempting offer for early students to jump on.

Validate the course value with your audience

When you decide on the price of your online course, the best way to validate the perceived value of your course is to talk to your audience or try to sell it.

Talking to your audience on social media about your online course can do wonders.

You can get valuable feedback about your online course ideas course curriculum to improve its quality. You get lots of information and have a chance to keep it exciting for your customers with your updates leading to your online course launch.

Is premium pricing for everyone?

The truth is:

Setting your online course price at a premium level is something everyone wants to do, but only a few dare. It would help if you felt comfortable with the price of your course because, after all, you are the one who is going to promote it.

Regular promotion can increase sales. But premium pricing might lower it.

When the perceived value of an online course and the price match, you've got the sweet spot. The good news is that they are both in your power zone.

Choose the price that works for you and reflects the value of your course.

If you only take away one thing...

If you want to take only one thing away about pricing an online course, here is our quick recommendation.

Create a full-length course and price it at $100. Later on, get creative in the ways you increase the value of your online course and go for premium pricing of $250. If you don't feel ready to launch a full-length course, don't worry, you can launch a mini course and price it at $20.

You can launch your mini course, a full-length course, or a high-value course at CreativeMindClass.

As you can see, increasing the value of your online course serves as a base for increasing the price big time, so it's worth spending time on.

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