4 Online Course Pricing Models -

Pricing can be one of the most difficult aspects of starting a new course. It requires a balance between providing the best value for your customers 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 structure, it's always an excellent idea to evaluate the options and consider your goals for revenue. Below are four common pricing models to consider as you plan and price your courses.

1. Courses for free

2. Baseline courses

The basic courses are able to reach a broad audience by providing content that appeals to many people for a low cost. They should be classes that can be created swiftly. Additionally, they should not require a huge time commitment from students or deal with areas that are too deep or technical. They could lead to a lot of signups with less participation due to the cost-effectiveness and low risk.

3. Premium courses

Premium online courses are the goal for most content creators when they are thinking about pricing strategy. These courses have the highest price points and deliver quality and in-depth information. The course content must be original, taught by a reputable or known instructor, or address a subject that you won't find anywhere else--these attributes make up the price.

4. Subscription courses

Regardless of which pricing model you decide to use, how can ensure that you're setting the right cost for your classes?

How to set your price for your course

Setting the price for courses isn't exactly a method, but you could utilize the formula in the following to eliminate some uncertainty out of price.

For starting out it is necessary to know the following key bits of information.

• The goal of revenue. Consider how much you would like or must earn from the course. Do you need to cover the costs in order to be profitable? Do you have an income goals? What is the total amount you'd like to make?
• Conversion. How many people in the potential customer base do you expect to actually take the course? Using the information you have from your email list, social media following websites, landing pages or any other data related to your campaign You can determine an estimated conversion rate for your audience. It should be expressed as a percentage in a decimal: For example that if you are expecting 10% of your audience to convert, then use 0.10 using the formula that follows.

You're now ready to test this formula

      Revenue = Audience Size x Conversion Rate x Price      

Plug in different numbers to observe how the cost of the course changes according to the goals you have for revenue, or how revenue increases or decreases with different pricing points for the course and rates.

The optimal course price will allow you to reach your goals for revenue based on your audience size and estimated percentage of conversion.

Be successful while remaining in the present

The final element of pricing is making sure the content of your course is in line with the cost. If you use the formula, and it results in an exorbitant course price it may be time to reconsider your goals It's not reasonable to charge $10,000 for the time spent on information for 10 minutes like that, for instance.

Ultimately, thinking about the various pricing strategies using the pricing formula to guide you will help you choose an appropriate pricing plan that will work with your customer base.