Oftentimes, if we go into a new moneymaking venture, we get too excited to receive our first earnings, not really knowing how to properly price our product in the first place. Indeed, setting up a price should not be done randomly. A properly priced product can help you receive your return of investments at the right time while earning a substantial income.
For instance, attaching a price to your online courses could be quite difficult especially since you have to consider different factors such as the duration of each online course, upfront fees you have to shell out and the amount of time and effort you have to put in in creating the course.
Here are five ways to help you price your online course accurately:
1. Look at competitor prices.
Visit various e-learning platforms and massive open online courses. Look at categories and courses related to yours. Note how they price their products. Take down notes and compare them. From there, you will have an idea how much the price of your course would be.
2. Your baseline price should cover your upfront costs.
List down every cent that you spent in creating the course. Maintain a spreadsheet so you can easily take into account all that you spent in putting together the course. Even though there is no signup costs, remember that you also spent time and time is money.
3. Consider your course content in determining the baseline price.
Definitely, if your courses are purely text-based, you would not be able to raise the price that much. However, if your course contain text and multimedia elements such as videos, diagrams, charts and other visuals, then it is only right that you adjust the baseline price a little higher. On top of that, if your online course packets also contain simulation exercises, interactive assessments and online quizzes, then you can definitely add a few more dollars to them.
4. Know the current supply and demand.
This part should actually happen in the research stage before creating your course, that is, if you have several qualifications in various fields. However, if you are set in creating a course in a particular field, researching about its demand would greatly help in determining the price for your course. If not too many people have interest in the particular topic, then it would be impractical to raise your price since not too many people will be willing to purchase the course in the first place. On the other hand, lowering the price too much is not also practical. It may attract more students, however, it would greatly affect your total net sales.
5. Determine the best price for your course.
From your baseline price, choose around five price points that you think should be your course price. Your highest price should be around the highest prevailing market price you can find.
Now, market your course using the baseline price. This should be your pre-selling price. It should be made clear in your marketing campaigns and promotional media. If more people buys your course that means your price point is too low. It would be better if you only choose a limited number of persons to pre-sell your course. That way you will know when to increase your price point. Every time your sale reaches 10% of the total number of proposed customers, it would be an indication to bring the price up to the next price point.
Continue with your marketing and promotion until you reach your highest price point. However, if sales stall for a designated period before reaching the highest point, then it should be the right price for your course. While pre-selling your course, offer some discount coupons. This would be a great way to attract students for your succeeding courses.
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