4 Online Course Pricing Models -

Pricing is one of the trickiest parts of launching an entirely new course. You must strike the right compromise between giving the best value for your customers and determining a cost they're willing to pay--or making the decision to charge for your courses at all.

Before you choose a course pricing structure, it's always an excellent idea to evaluate different options and think about your revenue goals. These are the most commonly used pricing models as you plan and price your courses.

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 for a low cost. These should be courses which you are able to create swiftly. Also, they shouldn't demand the most time-consuming commitment of students or deal with topics that are too in-depth or technical. The courses could result in many signups, but with less participation due to their low risk price.

3. Premium courses

The premium online course is the main goal of most authors when contemplating pricing strategies. These courses have the highest prices and provide high-quality deep content. Course material must be unique, taught by a reputable or well-known instructor, or cover the subject you can't find anywhere else--these attributes help justify the premium price point.

4. Subscription courses

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

The formula for setting the price of your courses

Setting the price for a course isn't an exact method, but you could apply the formula to eliminate some uncertainty off of price.

In order to begin it is necessary to know the following key bits of information.

• Goals for revenue. Consider how much you would like or must earn from the course. Do you have to pay expenses to make a profit? Are you working towards a revenue target? What is the total amount you'd like to make?
• Conversion. Which percentage of your target audience do you expect to actually purchase the course? Based on the information you have from your email database, social media follower websites, landing pages or other information about your campaign You can come up with an estimated the conversion rate of your target audience. The rate must be expressed as a percentage in a decimal: For example that if you are expecting to convert 10% of your audience to convert, use 0.10 in the formula below.

Now you're ready to try out the formula:

      Revenue = Audience Size Conversion Rate x Price      

Input different numbers to observe how the course price changes based on your goals for revenues, or how revenue increases or decreases at different prices for courses and conversion rates.

The ideal course cost will allow you to achieve your goals for revenue based on your target audience's size as well as your estimated conversion rate.

Be successful while remaining grounded

The last element of the pricing strategies is to ensure that the course's content is compatible with the cost. If you apply the formula and you get that the price is too high then you may need to reconsider your goals; it's unreasonable to cost $10,000 for just the time spent on information for 10 minutes, for example.

In the end, contemplating various pricing strategies using the formula of pricing used to guide you will assist you in choosing an appropriate pricing plan that will work both for you and your customer base.