4 Online Course Pricing Models -

Pricing is one of the most difficult aspects of starting an entirely new course. It requires a compromise between giving value to your audience as well as establishing a price that they're willing to pay--or choosing whether you'll cost for your course even at all.

If you are deciding on a pricing model, it's an excellent idea to evaluate the various options, and also consider your goals for revenue. These are the most common pricing models to consider when you are planning and pricing your classes.

1. Free courses

2. Baseline courses

The basic courses are able to reach a broad population by providing information which appeals to the majority of users with a reasonable price. These should be courses that can be created swiftly. Also, they shouldn't demand an enormous amount of time from students, or focus on topics that are too in-depth or technical. These courses may result in lots of registrations but lower participation because of the low-risk price point.

3. Premium courses

Online courses that are premium in quality are the goal for most content creators when they are thinking about pricing strategy. The courses that are premium have the most price points and deliver quality deep content. The course content must be original, taught by a reputable or well-known instructor, or cover a subject that you won't find anywhere else--these attributes help justify the premium price point.

4. Subscription for courses

Regardless of which pricing model you select, how will you be sure you're setting the right price for your courses?

How to set your course price

The process of determining the cost for courses isn't exactly a science, but you can apply the formula to take some of the uncertainty off of price.

To get started, you'll need a few key pieces of information.

• Goals for revenue. Think about how much you want or need to make from your course. Do you need to cover expenses to make a profit? Are you working towards a revenue goal? What's the maximum sum of money you'd like to make?
• Conversion. How many people in your target audience do you expect to actually purchase the course? Using information from your mailing list, social media following websites, landing pages or other information about your campaign to determine an estimated the conversion rate of your target audience. It should be expressed as a percentage in a decimal: For example, if you expect to convert 10% of your viewers to convert, then use 0.10 using the formula below.

Now you're ready to try out the formula:

      Revenue = Audience Size x Conversion Rate x Price      

Plug in different numbers to determine how your cost of the course changes according to your goals for revenues and how the revenue grows or decreases at different prices for courses and conversion rates.

The best course price is the one that allows you to meet the revenue targets you set for your target audience's size as well as your estimated conversion rate.

Be successful while remaining grounded

The third element in the pricing strategies is to ensure that the course's content is compatible with the pricing. If you use the formula and it suggests the course cost is excessive, you might need consider rethinking your plans It's not reasonable to charge $10,000 for the time spent on information for 10 minutes such as.

In the end, contemplating the diverse pricing options using the formula of pricing used to guide you will help you choose the best pricing method that is suitable for you and for your customers.