4 Online Course Pricing Models -

Pricing is among the toughest aspects to launch a new course. You must strike the right compromise between giving an audience with value as well as establishing a price that they're willing and able to afford, or even making the decision to cost for your course even at all.

If you are deciding on a pricing method, it's an excellent idea to evaluate different options and think about your goals for revenue. Below are four popular pricing methods to take into consideration when you are planning and pricing your classes.

1. Free courses

2. Baseline courses

Basic courses can reach a large audience by providing content that is appealing to a wide range of people for a low cost. They should be classes which you are able to create quickly. Additionally, they should not require an enormous amount of time from students or deal with subjects that are overly detailed or technical. The courses could result in lots of registrations but less participation due to the cost-effectiveness and low risk.

3. Premium courses

The premium online course is the main goal of most authors when considering pricing strategies. These courses have the highest price points and deliver quality and in-depth information. Course material must be unique and taught by a respected or known instructor, or address a subject that you won't get elsewhere. All of these factors make up the price.

4. Subscription-based for courses

Whatever pricing method you decide to use, how can ensure that you're setting the correct price for your courses?

The formula for setting your price for your course

The process of determining the cost for courses isn't exactly a scientific procedure, however you can use the formula below to take some guesswork out of the pricing.

To get started it's necessary to have the following key bits of information.

• Goals for revenue. Consider how much you want or need to earn from the course. Do you need to cover expenses to make a profit? Are you working towards a revenue target? What is the total amount of revenue you expect to earn?
• Conversion. Which percentage of your potential audience do you expect to actually take the course? Using data from your email database, social media follower and landing pages as well as other information about your campaign, you can calculate an approximate the conversion rate of your target audience. The rate must be a percentage represented in a decimal: For example If you anticipate that 10percent of your audience to convert, you can use 0.10 using the formula below.

Then you're ready to try this formula

      Revenue = Audience Size 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 best course price will allow you to meet your revenue goals given your audience size and estimated the conversion rate.

Be successful while remaining focused and grounded

The last element of the pricing strategies is to ensure that the course's content is compatible with the cost. If you employ the formula and it suggests the course cost is excessive then you may need consider rethinking your plans It's not reasonable to cost $10,000 for just 10 minutes of instruction like that, for instance.

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