4 Online Course Pricing Models -

Pricing can be one of the most difficult aspects of starting an entirely new course. You must strike the right compromise between giving value to your audience as well as establishing a price that they're willing and able to afford, or even choosing whether you'll be charging for your classes even at all.

Before you choose a course pricing method, it's recommended to look at different options and think about the goals you want to achieve for your income. Below are four common pricing models to consider as you plan and price your courses.

1. Free courses

2. Baseline courses

Basic courses can reach a large population by providing information that is appealing to a wide range of people for a low cost. These should be courses which you are able to create swiftly. They also shouldn't require the most time-consuming commitment of students, or focus on subjects that are overly detailed or technical. They could lead to many signups, but with lower participation because of their low risk price.

3. Premium courses

The premium online course is the goal for most authors when contemplating pricing strategies. They offer the best cost points, and offer high quality and in-depth information. The course content must be original and taught by a respected or prominent instructor, or focus on the subject you can't find anywhere else--these attributes can justify the higher price.

4. Subscription for courses

No matter which pricing option you select, how will make sure that you're setting the right cost for your classes?

The formula for setting your price for your course

The process of determining the cost for the course isn't a precise science, but you can utilize the formula in the following to take some guesswork off of pricing.

In order to begin it's necessary to have the following key bits of information.

• Goals for revenue. Consider how much you want or need to make from your course. Do you have to pay the costs in order to be profitable? Do you have an income goals? What is the total sum of money you'd like to earn?
• Conversion. How many people in the potential customer base do you expect to actually buy the course? Utilizing the information you have from your email list, your social media followers websites, landing pages or other information about your campaign, you can determine an estimated conversion rate for your audience. It should be a percentage represented in a decimal: For example that if you are expecting 10percent of your audience to convert, use 0.10 in the formula below.

Then you're ready to try your hand at the following formula:

      Revenue = Audience Size x Conversion Rate x Price      

Plug in different numbers to observe how the prices of courses change based on your revenue goals and how the revenue grows or decreases with different pricing points for the course and rates.

The ideal course cost is the one that allows you to meet your goals for revenue based on the size of your audience and conversion rate.

Reach your goals while staying grounded

The third element in the pricing strategies is to ensure that the course's content is compatible with the pricing. If you employ the formula and you get the course cost is excessive it may be time review your objectives It's not reasonable to offer $10,000 for just 10 minutes of instruction such as.

In the end, contemplating the various pricing strategies using the formula of pricing used as a reference can help you select a pricing strategy that works for you and for your customers.