Easy Steps on How to Price Your Online Course with a Price Calculator
Do you know how much money you can make by creating online courses? Don't let this linger in your head; take action now. Here's a complete guide to price your course with a pricing calculator to help you easily set the right price.
By 2025, global eLearning is projected to reach $325 billion. It's amazing, isn't it? This is because the pandemic has completely changed the way we learn and teach. Online courses are everywhere, and different course formats have been developed to make online learning successful.
Therefore, the new rich are no longer real estate investors, but rather knowledge workers and online course creators who know how to sell online courses and create a passive income stream from them.
If you're still skeptical about online course creation, it's time to have a change of perspective. In this article, I will show you how much money you can make from selling your online course and how you can charge a higher price for your online course.
We will answer the following questions:
- How to price your online courses? From other creators’ price point
- What factors can affect the value of your course?
- How much money can you make in online courses and how to calculate your course with a free online course pricing calculator?
If you scroll down to the bottom part, there is also a FAQ section for any other questions you may have.
How To Price Your Online Course: From Creators’ Average Price Point
Charging for online courses can be difficult, especially without guidance. However, this is where the potential for a profitable business lies - one that can earn you money while you sleep.
If you're curious about how other creators price their online courses, here is the average:
- $1-$50 for a first online course or mini-course
- $100+ for a full-length, mostly self-paced online course
- $200+ for a premium price, high-value online course
- Mastermind, a high-price membership course, starts at $1000 per month
- Cohort-based courses, where students learn with a cohort and community, start at $500
In reality, there is no one-size-fits-all pricing for online courses. Many factors affect the price, such as the course content, format, level, competition, instructor credibility, in-demand topic, etc., which we will discuss later.
The demand for upskilling has driven online course and training prices up to nearly $10,000. In fact, your course may and could potentially generate a six to seven-figure business, depending on the value it provides to your niche.
Factors that Affect the Value of Your Online Course Business
Have you created courses for beginners, intermediates, and advanced learners? In fact, the level of your course can affect your pricing strategy for your online course. Generally, beginner courses have a lower price than advanced courses.
Beginner courses often start with mini-courses, email courses, and crash courses to teach the fundamentals of your topic, so the price should not be too high, or sometimes they can be offered as courses for free.
This is usually done to build trust with your audience and lead them to your more expensive advanced courses. On the other hand, you can increase the price for advanced courses, as they offer a high value.
Online courses will vary with different niches and topics, which can have a significant impact on your pricing strategy. When the topic is in high demand and there is little competition, you would want to charge a higher price point of your course.
Conversely, when the topic is not in high demand and there is too much competition, you should charge a low price unless you can clearly demonstrate the unique value of your course or you are targeting a specific niche.
Benchmarking the prices of your competition can help you set a better price for your course. It's not about undercutting your competitors, but rather understanding the average price that your potential students are willing to pay. This can be especially helpful when you're just figuring out how to price an online course.
Nowadays, there are several formats of online learning that work well in different setups. Self-paced learning allows students to learn at their own pace, while cohort-based courses involve small groups of students learning together over a specific duration. Community-based courses involve students learning with small or large communities, provided they are a member.
The course format affects how to price a course as each format has a different value. Generally, cohort-based courses, which are for one-time learning, are expensive; self-paced courses with pre-recorded content are cheap to free courses; and community-based courses require a subscription or a continuous payment.
Have you built your personal brand in social media by showing yourself out there? Do you already have an audience who trusts your work? As you create a course, you know that these people will buy from you.
As you progress in building your digital business, the more people view you as an "expert" in the niche, the more trust they have in you. This increases your online course sales and can scale your business in the long run.
In many cases, experts who wish to share their knowledge online begin by sharing on their social media platforms. This allows them to be discovered by thousands or even millions of followers and subscribers. After doing so, they can scale their knowledge in the form of online courses. Due to their credibility, they can charge higher prices than the average courses online.
Creating your online course is about guiding your students to move from point A to B. An effective course should focus on the outcome.
What will students gain after completing your course? What kind of value or transformation are you offering?
In fact, the course outcome is even more important than any other factor when it comes to the price of your course. Students will pay for a course if you're able to promise them the life or career path they aspire to.
Level of Support
Online courses that offer a high level of support system tend to charge more for your course due to what is known as "personalized learning".
Personalized learning can add value to your course as learning is tailored to the level, needs, and learning styles of a student.
As a course creator, you can think about how to price your course with the personalization and added support you provide for your students.
Have you packaged your course in a way that will provide your students with freebies or additional course materials? Packaging your course is an important factor when your charge for your online course.
For example, your first package could include weekly live sessions for an hour, as well as access to other self-paced courses for six months.
The second package could include all the features of the first package, plus weekly 1:1 coaching and access to premium courses. Therefore, the second package should be priced higher than the first.
If you are selling your course on different platforms, consider the average pricing of the course platforms and marketplaces to get the right price for your online course. There are many online courses that compete with you so you may need to come up with the perfect price to sell.
Students may not buy your course if the price is too high compared to the average course pricing, and they may buy from you if you price your course too low.
Having your own landing page can improve the credibility of your course and likely increase your sales. Potential buyers often want to learn more about the course, read reviews from other students, check to price, and learn about the instructor.
Landing pages are great for SEO, so even people who don't follow you on social media can find your course through Google Search. Having your own landing page can help you convert more leads, build trust, and increase your course value.
How to Calculate Your Course Pricing using an Online Course Pricing Calculator
After considering various factors that can influence the price of a course, let's use our free online course pricing calculator to calculate it. This calculator won't guarantee a specific amount, but it can help you estimate the potential profit and come up with pricing strategies.
There are several pricing models for courses, but the two most popular and likely to affect your potential profit are the one-time payment and subscription models. Choose which one fits your course.
For example, if you are offering a self-paced and cohort-based course with a one-time payment, then choose the one-time payment model. If you are running a community or mastermind with course packages, then you should choose the subscription model, which will provide a monthly recurring income.
Have you built an audience on social media platforms? Do you have an email list? Count the people who have followed, connected, or subscribe to you on social media, plus the list of emails you have.
You can enter an estimated number into our free calculator to get an idea to know how to price courses and how much you could potentially earn with your audience size.
Estimate Conversion Rate
Have you considered how many of your audience members could become paying customers? Your audience is potential leads for your course.
Once you create a marketing campaign, you could convert a certain percentage of them into buyers. Generally, a 5-10% conversion rate is average. Estimate your conversion rate and proceed.
Now, we are down to the course price. How much have you set as the price for your course? Let's look into the first section of this article, where we mentioned how much creators typically charge for online courses.
You can use that as a guide and then review the factors that affect the price of your online course. Once you have settled on your course price, feel free to enter it in our calculator.
Cost Per Lead
Have you considered using paid ads on Google or Facebook to generate more leads? This is known as cost per lead (CPL), where you estimate the cost of acquiring leads that you intend to convert into buyers.
To calculate your potential profit, we need to subtract the payables from the gross income. For example, if your CPL is $1, we need to subtract this cost from the total revenue to determine your potential profit.
To Sum Up:
If you want to calculate your online course revenue, you can use the free online course revenue calculator.
You can also learn how to use the calculator, the benefits of selling and creating online courses, and tips to increase the value of your course and increase your revenue.
Additional Questions on Selling Online Courses
How much does it cost to market an online course?
The cost of marketing an online course depends on the type of marketing you choose to do and the platform you use. Generally, it can range from free (organic marketing) to thousands of dollars per month (paid ads).
Organic marketing includes creating content on your own blog or website, building an email list, or leveraging the reach of social media. Paid ads can be done through Google Ads or Facebook Ads, or through other platforms like YouTube, Instagram, Twitter, and more.
What platform is best for creating online courses?
There is no one-size-fits-all platform for creating online courses. It depends on the type, of course, you are creating, the budget you have, and the features you need.
Teachfloor is one of the best platforms you can find in the market today where it supports course creators to scale their educational business in the easiest and fastest way possible.
Teachfloor also focuses on cohort-based learning, the type of learning proven by experts as one of the most effective way to transform your students and create a high-quality learning experience.
Which industry is the most suitable for creating an online course?
Popular topics for online courses include digital marketing, web development, online business, and software engineering, but there are also many other topics that can be taught online.
Ultimately, it's best to choose a topic that you are knowledgeable and passionate about, and that has an audience that is willing to pay for the course. In most cases, the more you are specific about your niche, the more you can increase the value of your course.