Are you an online course creator wondering how to price your online course? Pricing your online course properly is crucial for running a profitable online course business. Read this guide to learn tips and strategies for calculating the right price for your online course.
Pricing an online course can be confusing. Price it too low, and you leave money on the table.
Price it too high, and you risk turning away potential students. So what’s the sweet spot? Use this online course pricing calculator and strategy guide to choose the optimal price point.
How Much Does an Online Course Cost?
Online course prices vary widely, from free up to thousands of dollars. The average price for an online course is around $200. However, course creators have a lot of flexibility when setting their price. As an online course creator, you get to choose a price based on factors like:
- Your experience and credentials
- The length and depth of your course
- Production value and materials included
- Exclusivity and personal access offered
- The income level of your target audience
While there’s no single “right” price, using an online course pricing calculator can help you pick a sensible price point.
Online Course Pricing Calculator
Determining the optimal price for your online course can feel overwhelming. An online course pricing calculator is a helpful tool to simplify the process.
Here is a step-by-step walkthrough to use a pricing calculator to choose the best price point:
1. Calculate Your Costs
First, add up everything you’ve invested into creating your online course. Be thorough and include:
- The hours you spent researching, outlining, writing, and recording your course content. Tally your hours and multiply by what you consider your hourly rate.
- Any software, resources, or tools purchased specifically for course creation. Tally receipts and accounts.
- Ongoing costs like your online course platform subscription, hosting fees, payment processor fees, domain registration, etc. Estimate monthly.
- Marketing costs like ads, influencer promotions, PR, production of promo materials, etc.
Add all of these up to determine your baseline costs. The total cost is the minimum you’ll need to earn back through course sales just to break even. This gives you a floor for the lowest possible pricing.
2. Account for taxes.
Remember that you will need to pay taxes on your online course earnings. It’s smart to incorporate taxes into your pricing calculator from the start.
Estimate what percentage you will pay in income tax and factor that in. For example, set aside 30% of revenue to allocate for taxes.
3. Determine desired salary or profit.
Next, decide what income you want to make from the online course. Determine a target salary for yourself or profit margin you’re aiming for.
For example, you may decide you want to earn $60,000 per year from your online course biz. Or aim for a 30% profit margin. Factor this into your pricing equation.
4. Estimate the number of students.
Make an educated guess at how many students you expect to sell your online course to in a year. Is it 50? 500? 5,000?
Use this estimated student number to determine how much each student would need to pay for you to reach your salary goal and cover costs.
For example:
- You need $60,000 salary
- Plus $10,000 for costs
- At a 30% tax rate
- And estimate 250 students
That’s $70,000 divided by 250 students = $280 per student.
5. Consider pricing models.
Maybe you want to offer payment plans, scholarships, or tiered pricing. Account for this in your calculator.
For instance, you may decide:
- 50 students will buy at full price of $300
- 100 students will pay 2 installments of $150
- 100 students will get a scholarship rate of $200
Plug these into formulas to be sure it still adds up to your revenue needs.
Use these steps to create a custom Excel or Google Sheets pricing calculator. Having all the data mapped out makes choosing a profitable price much easier!
How to Price Your First Online Course
Pricing your first online course is particularly challenging. Here are tips for pricing an online course you’ve created as a first-time course creator:
- Start low. Consider pricing your first course between $50-150. This makes it easy for the first students to take a chance on you.
- Offer a “launch price.” You can offer a discounted launch price for your first month to attract initial students and reviews. Then increase to your ongoing price.
- Only raise prices gradually. Once you start getting sales and positive feedback, you can increase your prices over subsequent course launches. But take it slow.
- Bundle value. Offering a comprehensive package with bonus downloads and materials included helps justify a higher price for your first course.
- Convey confidence. Don’t underprice yourself too severely just because you’re unknown. Your marketing copy and messaging should convey the immense value students will get.
Online Course Pricing Strategies
Beyond just setting a price, you need an overall pricing strategy for your online course business. Here are some popular pricing models and strategies to consider:
Tiered Pricing
Offer multiple “packages” at different price points:
- Base package with core course content
- Standard package with extras like worksheets or Q&As
- Premium package with bonus modules, individual coaching, etc.
This allows you to appeal to students at different budget levels.
Bundle Pricing
Package your course together with other offerings:
- Bundle the course with a live workshop or consulting call
- Offer the course as part of a membership site or mastermind program
- Bundle with physical products like workbooks or tools
Bundling increases perceived value.
Price Anchoring
Start with a high price, then offer discounts:
- List your course at a premium “full” price
- Offer coupon codes and sales bringing it down to your target price
Price anchoring makes your target price seem more appealing.
Free Trial
Offer the first module or a preview for free. This lets students evaluate your course before paying. Just be sure to clearly convey the full course price upfront.
Payment Plans
Allow students to pay in installments over time rather than a lump sum. This can help with affordability.
Mistakes to Avoid When Pricing Your Course
Some common mistakes to steer clear of when pricing an online course:
✘ Pricing too low because you feel your course isn’t worth more
✘ Overpricing beyond the perceived value
✘ Not researching competitor pricing
✘ Changing prices frequently without reason
✘ Hidden costs instead of an upfront, transparent price
✘ Undervaluing exclusive access, bonuses, and add-ons you provide
✘ Setting a single rigid price instead of testing different price points
Frequently Asked Questions About Pricing Online Courses
Here are answers to some common questions online course creators have about pricing:
How much should you charge for your first online course?
Aim for $100-200 for your first course. Price on the lower end to attract initial students and reviews to establish credibility. Offer discounts and bonuses too.
Should I offer payment plans for my online course?
Installment payments can help students who can’t afford a lump sum. Just be sure the full course price is still clear upfront.
Can I charge more for an online course if I offer a private Facebook community?
Yes, a private FB group or exclusive access warrants charging a premium. Make sure to quantify this extra value.
How often can I change my online course price?
Avoid constantly fluctuating your prices. Make modest raises every few months or with each new course launch.
Should I pay for someone to take my online course and write a review?
No, paying for reviews is unethical. The best way to get reviews is by offering your first module free or discounted to real students.
Key Takeaways on Pricing Your Online Course
- Use an online course pricing calculator to tally costs and pick an optimal price.
- Consider your expertise, course production value, bonuses, and target audience’s income.
- Research competitor pricing, but don’t undervalue yourself
- For maximum profit, experiment with pricing models like tiered pricing and bundled packages
- Offer discounts and “launch pricing” strategically but maintain premium perceived value
- Avoid drastic price changes and hidden costs; convey pricing clearly
Setting the right price for your online course is crucial. Following these tips will help you maximize profit and attract your ideal students!