How to Price Your Online Course (It’s Not What You Think!)
Originally published on apgnation.com
One of the most common questions you will have as you create your eLearning course is how to price it. In this article, eLearning Partners - a company based in Denver, Colorado - reveals how to price your online course so that you and your clients end up winning.
There are two main considerations when considering how to price your online course: whether it is for individuals or businesses and what you are offering for free in addition to your paid content.
Individuals vs. Businesses
The very first thing to think about regarding your course price is who you are selling it to. There are two main options. One is selling it to individuals who will take the course and pay for it themselves. The other is selling it to a business buying it for their employees.
You want to take very different approaches based on whether the decision-maker is buying the course for their business or their own personal use.
If your course is designed for businesses to buy for employees, keep in mind that they likely have a larger budget and will buy in bulk. Businesses may be buying the course for dozens, hundreds, or even thousands of employees. This means that it makes sense to create a bulk pricing model.
Additionally, businesses have a higher budget than individuals, so they can afford to spend more per course. But higher pricing won’t just be because the business is willing to pay more. It is also because you will have to put in more work integrating and onboarding a larger number of learners. You can charge businesses extra for the additional work involved.
Finally, look at courses for businesses as a long-term opportunity. We strongly suggest putting a time limit on your course, such as between a year and three years. This prevents them from reusing the course over and over again. More importantly, it gives you the opportunity to update the course and sell it to them again in a few years.
Courses for individual learners contrast with those for businesses in all three points—bulk-selling, budget, and time limits.
To start, individuals are likely to only buy a single copy of the course. Even if they love the course and want to share it with someone else, they’ll just share their single login. Create your pricing structure with the assumption that people won’t buy it in bulk.
Consider that individuals will have a lower budget. So maybe you’ll price a course for businesses at $1,000 but the same course for individuals at $750.
Finally, businesses are likely to keep using your course in the future but individuals aren’t. They will probably just use the course once and be done in a few months. So, you can offer them extra value by offering lifetime access.
Summary of Business vs. Individual Clients
There are three main takeaways:
- Use bulk pricing for business clients and single-course pricing for individuals
- Go with higher prices for businesses than individuals
- Give individuals lifetime access and businesses access for a few years
The Value of Your Freebies
The other big consideration is what type of value you provide with your lead magnet. Your lead magnet is the freebie that you offer people to get them into your sales funnel. It may be a PDF, a masterclass, or something in between.
The higher the value of your lead magnet, the more expensive your course should be. So, if your lead magnet is just a PDF, try to keep pricing at $100 or less. If you offer a free masterclass, you can price the course at $250 or more.
When it comes to how to price your online course and online course pricing, the key factors are whether you are selling the course to a business or individual and the value of the lead magnet you offer.
Want to create a successful eLearning Program?
Watch our free masterclass and we'll show you how to build an eLearning Program in less than 90 days and save $10,000 in the process.
+ receive exclusive content direct to your inbox every week.