When it comes to creating an online course, figuring out how to price your online course is one of the most challenging aspects. If you’ve ever wondered how to set the right price effectively, you’re in the right place.

In today’s post, I’m going to show you step by step how to determine the best pricing strategy so that it not only makes sense but also ensures you’re maximizing your revenue. After going through this guide, you will know exactly how to set a price that reflects the value of your course and attracts your ideal students.

Step 1: Define Your Goals

Many people fail in pricing their online courses for the simple reason that they don’t have a clear plan or set financial goals.

You should always define your goals so that you can measure your progress. How you set goals is important too because it will help you know what to spend your time focusing on.

Ultimately, if you set goals that are too far off in the future, you’ll feel defeated. Instead, set achievable goals that align with your overall business objectives.

Tips for setting measurable goals:

1. Set specific revenue targets – Determine how much income you want to generate from your course.
2. Identify your ideal number of students – How many students do you aim to enroll? (sidebar: this may depend on if your course is evergreen vs an open/close enrollment period)
3. Determine your desired profit margin – Calculate your costs and decide on the profit you want to make.

Step 2: Know Your Audience

Another critical step to pricing your online course effectively is understanding your audience. This step is important because it helps you create a pricing strategy that they are willing to pay for.

Before I realized how important this step was, I made a few mistakes that stopped me from achieving my desired revenue. 

My mistake: I priced my course too high without considering my audience’s willingness or ability to pay, leading to low enrollment.

Once I really started paying attention to my audience, I was able to set a payment plan that helped them make the investment.

Tips for understanding your audience:

1. Conduct surveys – Ask your audience what they are willing to pay.
2. Analyze competitors – Look at similar courses and their pricing strategies.
3. Engage with your audience – Interact with them on social media to understand their needs and budget.
4. Payment plans – incorporate payment plans to make your course more accessible

Step 3: Take Stock of Your Assets

The next step is to take stock of what you already have and build on it. I mean pull out everything relevant!

Review your course content, resources, and any additional materials you can offer to increase the perceived value of your course.

Example: If you have exclusive worksheets, templates, or bonus materials, include these as part of your course package.

Benefits: By leveraging existing assets, you don’t have to start from scratch and can focus on enhancing your course’s value.

Step 4: Choose One or Two Pricing Strategies

A great thing about pricing is that there are many different strategies you can use. So you can try a few and see what works best for you.

Recommended strategies:

1. Cost-plus pricing – Calculate your costs and add a profit margin.
2. Value-based pricing – Price based on the value your course provides.
3. Competitor-based pricing – Price similar to your competitors.

Example: For me, value-based pricing worked best. I focused on the transformation my course offered and priced it accordingly, resulting in higher enrollment and completion rates.

Step 5: Create a Pricing Plan

Once you’ve chosen your pricing strategies, it’s time to create your pricing plan.

Since you’ve already defined your goals and understood your audience, it’ll be much easier to implement this step.

This step is crucial for success because it ensures consistency and transparency in your pricing.

Tips for creating a pricing plan:

1. Outline your pricing tiers – Include different levels of access or additional benefits.
2. Set your payment options – Offer multiple payment methods, including installments.
3. Communicate value – Clearly explain what each pricing tier includes and why it’s worth the price.

Consider pricing plans that offer more value like additional coaching.

Step 6: Define Your Promotional Strategy

Now that you’ve created your pricing plan, it’s time to define your promotional strategy.

Many people overlook this step and then aren’t getting the results they expected with their course pricing.

Key questions to ask:

1. What channels will I focus on? – Determine the platforms you’ll use to promote your course.
2. What marketing techniques will I use? – Consider email marketing, social media, and even webinars.

How will I highlight my course’s value? – Use testimonials, case studies, and success stories.

Step 7: Measure and Optimize

The final step is to measure the success of your pricing strategy and optimize as needed.

Track your sales, enrollment numbers, and feedback to understand how well your pricing strategy is working.

Tips for optimizing your pricing:

1. Regularly review your pricing strategy – Adjust your prices based on market changes and feedback.
2. Offer limited-time discounts – Attract more students by offering discounts during launch periods.

Monitor competitors – Stay informed about your competitors’ pricing strategies and adjust accordingly.

Wrapping it up

This is all really important and if you define your goals and understand your audience, you’ll be well on your way to pricing your online course. Keep in mind that the steps I just shared work together to create a comprehensive pricing strategy. You’ll get the best results if you incorporate them all.