4 Online Course Pricing Models -

Pricing can be one of the most difficult aspects of starting an entirely new course. There's a need to strike a compromise between giving an audience with value and determining a cost they're willing to pay--or deciding if you're going to charge for your courses at all.

If you are deciding on a pricing structure, it's always recommended to look at the options and consider your revenue goals. These are the most commonly used pricing models in planning the pricing of your courses.

1. Free courses

2. Baseline courses

Basic courses can reach a large population by providing information that is appealing to a wide range of people with a reasonable price. The courses should be ones that you can create relatively rapidly. Additionally, they should not require an enormous amount of time from students, or focus on areas that are too deep or technical. They could lead to lots of registrations but less participation due to the cost-effectiveness and low risk.

3. Premium courses

Online courses that are premium in quality are the main goal of most authors when thinking about pricing strategy. The courses that are premium have the most cost points, and offer high quality, in-depth content. Course material must be unique or taught by an experienced or well-known instructor, or cover the subject you can't find anywhere else--these attributes can justify the higher cost.

4. Subscription-based for courses

Whatever pricing method you choose, how can ensure that you're setting the appropriate price for your courses?

Formula for setting your course price

Setting the price for courses isn't exactly a scientific procedure, however you can apply the formula to take some of the guesswork from pricing.

For starting out it is necessary to know some key pieces of information.

• Goals for revenue. Think about how much you want or need to get from the course. Do you need to cover expenses to make a profit? Do you have an income target? What's the amount you'd like to earn?
• Conversion. Which percentage of the potential customer base do you expect to actually purchase the course? Utilizing the information you have from your email list, your social media followers websites, landing pages or other information about your campaign to come up with an estimated percentage of conversion for your customers. It should be expressed as a percentage in decimal form. For instance If you anticipate that 10percent of your viewers to convert, you can use 0.10 in the formula in the formula below.

Now you're ready to try this formula

      Revenue = Size of the Audience Price x Conversion Rate      

Input different numbers to observe how the cost of the course changes according to your revenue goals and how the revenue grows or decreases depending on pricing points for the course and rates.

The optimal course price is one that allows you to meet your goals for revenue based on your target audience's size as well as your estimated percentage of conversion.

Reach your goals while staying focused and grounded

The last element of the pricing is making sure the content of your course is in line with the price. If you employ the formula and you get an exorbitant course price, you might need review your objectives It's not reasonable to offer $10,000 for just 10 minutes of information like that, for instance.

In the end, contemplating the diverse pricing options using the pricing formula as a reference will help you choose an appropriate pricing plan that will work with your customers.