Determining the right price for digital products like online courses is difficult and requires a thoughtful and sometimes experimental strategy. It's essential to understand the value of your course, your target audience, and market dynamics. In a rapidly-evolving digital environment where we see AI and other tools making content and course creation more efficient than ever, we’re seeing significant opportunities for creators to monetize their content. And, a carefully-crafted pricing strategy can have a noticeable impact on your course sales and bottom line.
In this guide, we'll explore various strategies and tips for monetizing your online content. We'll cover essential topics like determining the amount of content needed to launch, factors and strategies that justify a higher price point, choosing the most suitable pricing model, and projecting your potential earnings. Each element is key to developing a successful digital product strategy that not only draws in your audience but also keeps them engaged and satisfied over the long run.
Let’s dive in… 💦
How much content do I need?
Crafting High-Quality Course Content
At Movement, we often encounter this question from creators who are either new to selling courses or transitioning from other types of course platforms. Our experience consistently reinforces the timeless wisdom of 'quality over quantity'. This principle remains as relevant and impactful as ever.
In fact, we’ve found that too much content or not laying it out in a user-friendly, digestible format may overwhelm potential customers or members and cause them to drop off or churn.
High-quality course content is critical in engaging your potential students. You should focus on delivering content that offers value, and is relevant to your specific topic and audience.
The key to a successful course launch is not the volume of content but its quality and relevance, particularly in addressing specific, under-served niches. Think:
Who is my ideal customer?
What unique challenges or problems do they face?
Can they easily access similar content elsewhere?
How does my course uniquely solve their problems?
What value does my expertise add to this niche?
Why is my perspective on this problem unique or better than what’s available now?
These questions will guide you in creating content that not only resonates with your audience but also stands out in the market. By focusing on high-quality and depth in your initial offering of a single course, you set the tone for your future offerings and the benchmark for your brand.
You may be considering additional courses and that's fantastic–we often see our creators teasing upcoming courses or programs when they launch, but we have seen the best results when Creators focus their efforts on maximizing the value one initial course or program. This approach not only lets you test or gauge what resonates most with your learners as it provides you with valuable insights for future content, but it also fosters anticipation (hype!) and maintains audience engagement.
In summary, while your pricing strategy is influenced by several elements, starting with a single, thoughtfully developed, high-value course can pave the way for success. A well-executed course that offers valuable insights and knowledge not only engages your members but also serve as a robust source of passive income and launching pad for your next courses.
Additionally, our observations show that a single, high-quality course, when it deeply resonates with a specific audience, can command a premium price. This naturally leads into our next question: "How much should I charge?"
How much should I charge?
Determining the right price
Determining the right price for your course involves balancing perceived value with market standards.
Don’t undervalue your course by charging a low price
The most common mistake we see course Creators making is undercharging. Not only does this undervalue your offering but it also makes it much harder for you to build a sustainable business.
We encourage you to explore both higher and lower price points using our pricing calculator below, as it can help illustrate the impact of minor pricing adjustments. For example, imagine 100 customers at $100 each. Increasing the price to $110 is a relatively small increment for a customer already willing to pay $100, but it can boost your revenue by 10%.
Additionally, research has shown that a higher price tag can enhance the perceived value of your product, even if the product is fundamentally the same.
Always be testing!
To optimize your pricing strategy, it's crucial to experiment with various pricing levels and billing frequencies. A common practice is to offer a 20% discount for members who opt for an annual subscription paid upfront. This approach can be attractive to members who prefer a one-time payment over monthly charges, and can significantly improve your cash flow. We typically see 10-15% of customers opt for the annual option (and sometimes much higher).
Implement a more frequent billing cycle (weekly rather than monthly for example)
Another successful pricing strategy used by many of our creators is to charge in weekly installments rather than monthly. This strategy plays into the psychology of spending, as smaller weekly deductions from a member’s account, such as $15 per week, are often perceived as more manageable than a larger monthly sum like $60. The lower amount of each individual transaction can make the expense seem less significant, thereby reducing the likelihood of cancellation and an easier justification of value. When members review their bank statements, smaller charges are less likely to trigger concerns or prompt investigation into the value they’re receiving. This approach can subtly enhance member retention.
Refer to our pricing calculator below to explore different price points and the number of paying customers required to achieve your revenue goals.
Research other similar courses or online course creators in a similar space
Another way to determine your pricing is to research courses or creators in a similar niche. Here's how:
Identify Your ‘Competitors’: List out courses or creators offering content similar to yours. Focus on those that target a similar audience and offer comparable content quality.
Analyze Pricing Structures: Look at how they structure their pricing. Are they charging a one-time fee, subscription, or using a tiered pricing model? Note these details.
Compare Content Offerings: Evaluate what they include in their courses - number of modules, duration, additional resources like PDFs or webinars. This will help you understand the market standard for content volume and variety.
Gauge Value Propositions: Understand the unique selling points they highlight. What benefits do they promise? How do they position themselves in terms of expertise or results?
Check Reviews and Feedback: Read their customer reviews and feedback. This can provide insight into what students value and what they might be willing to pay more for. Note down anything that comes up repeatedly.
Reflect on Your Unique Offering: With this research, consider how your course differs. Are you offering more depth, unique expertise, or additional resources?
Test and Adjust: Don't be afraid to adjust your prices based on feedback and enrollment numbers. Pricing can be dynamic, especially as you grow your brand and content.
This comprehensive approach will give you a clearer picture of where your course fits in the market and help you set a price that's both competitive and reflective of your course's value.
Now, let's explore how you can set a high price for your course and demonstrate its value effectively.
Factors that command a higher-priced course or content:
Your credentials.
Do you have credentials or background that make you a rarity or a respected specialist in a particular field?
Being a specialist, particularly in fields where receiving inaccurate information can carry high risks, inherently increases your course's value, allowing you to command a premium price reflective of your rare expertise and the high market demand.
This is particularly true for fields that require extensive education and training, underlining the inherent value and rarity of the expertise offered. These credentials, not easily attainable (often requiring years or training), enhance the perceived value of your educational content.
Your content or skills and knowledge are in high demand.
Possessing unique credentials or expertise in a field where demand surpasses supply can significantly elevate the value of your course. Take, for instance, the role of Pelvic Floor Physical Therapists in the U.S., where the need for such specialized care is high, yet the number of available experts is limited. This imbalance not only justifies but necessitates a higher pricing strategy.
Offering a sense of community
Incorporating a community aspect into your online course significantly enhances the learning experience. It promotes peer interaction, support, and networking opportunities through forums, group discussions, or community projects. Learners can discuss, share insights, and learn from one another. Providing access to a branded, distraction-free community like Movement offers can justify a higher course price, as it adds a layer of value beyond the course content itself. A community offers a sense of belonging and invaluable networking opportunities.
Moreover, a vibrant community doesn't just enrich the current learning experience; it also boosts your potential to sell future courses. A course becomes 'stickier'—meaning learners are more likely to stay engaged and enroll in subsequent offerings—due to the connections and community they find within your course. This not only adds value for the learners but also strengthens the overall appeal and longevity of your course offerings.
User-Friendly Technology
The choice of technology for delivering your online course greatly influences the learning experience. Providing a seamless and frictionless learning journey is critical. This includes an intuitive user interface, smooth cross-device accessibility, and engaging interactive elements like progressive programs, quizzes, and multimedia content. Using nicely designed, user-friendly technology not only makes your course more engaging and accessible but also shows a dedication to your learners' success. The ease of navigation and interaction enhances the overall perceived value of the course, making it more appealing and again justifying a premium pricing model.
For example, Dr. Mae Hughes, a Pelvic Floor Physical Therapist, found that her switch to Movement resulted in a noticeable reduction in refund requests. This change was attributed to Movement’s superior user experience, including its ease of use and versatile viewing options on both mobile and desktop:
“The biggest change I've noticed is fewer returns or requests for refunds. With Teachable, people would find it difficult to use or something similar, so they would ask for a refund. And, I always provide a three-day grace period, so people can check it out, see what they like, don't like, etc.
The amount of refunds has significantly dropped off [since switching to Movement] so it has really helped my business. People say it's easy to use, and they like having the mobile app on their phone, or the ability to put it on their desktop if they want to view things on a larger screen.”
Now that we have considered how you can charge more, the next step is to consider what pricing model you should choose for your course delivery.
Subscription vs. One-off pricing model
Choosing the right pricing model, whether a subscription or one-off payment plan, depends on your course topic and the learning experience you aim to provide. Subscription models can offer a steady income for course creators that are still building out their content and have a small library to start from, while one-off models might attract learners looking for a specific mini-course or first-time experience.
While it's a common belief that a subscription model automatically results in higher revenue and LTV, this isn't necessarily the case. Many of our most successful creators have achieved considerable success with a one-off or transactional pricing model. To determine the best fit for your brand and business, it's crucial to consider all relevant factors, including the nature of your content, your content creation schedule, audience preferences, and your long-term business goals. Explore the detailed comparisons and use cases we provide to make an informed decision about the pricing strategy that aligns best with your objectives.
Subscription Pricing Model
The subscription pricing model offers distinct benefits for both you as a creator and your members. For you, it ensures a reliable stream of revenue, which helps in financial planning and stability. This model fosters deeper, long-term customer relationships, enhancing customer loyalty and the potential for upselling. Regular interaction with subscribers also means you can receive ongoing feedback, crucial for refining and improving their offerings. For members, the subscription model typically means consistent access to fresh, updated content and the opportunity to be part of a community. This continuous engagement often leads to a more connected and immersive experience, as members feel more invested in your brand or journey.
✔️ Pros:
Recurring Revenue: Ensures a steady income stream.
Predictable Income: Easier to forecast revenue.
Higher Conversion Rate: Lower initial cost can lead to a higher conversion rate as prospects don’t see as large of a financial commitment
✖️ Cons:
Member Retention: Requires continuous effort to keep subscribers engaged.
Content Demand: Need to consistently produce high-quality content.
Subscription Fatigue: Potential for customers to feel overwhelmed with subscriptions.
Common use cases for a subscription model:
Ongoing Fitness Programs: Ideal for apps or platforms offering continuous fitness training or wellness programs that users engage with regularly, either daily or weekly
Continuous Content Creation: Perfect for video creators or educators who consistently release new content, courses, podcasts or updates, ensuring a steady stream of fresh material for subscribers.
Exclusive Content Access: Suitable for creators looking to offer special, subscriber-only content that goes beyond what's available on their free or social media channels.
Active Online Communities: Great for platforms where ongoing interaction, networking, and community engagement are key features.
Long-Term Training Programs: Appropriate for courses that are designed to achieve long-term goals or milestones, requiring extended commitment and learning over time.
Personal or Professional Development Series: Such as leadership training or personal growth courses that are incremental and build upon previous lessons.
Tech and Software Training: Continuous learning platforms for staying updated with evolving technologies and software updates.
Transactional (One-Off) Pricing Model
One-off pricing can convey a sense of comprehensive value, where learners feel they are getting a complete package for a single price. This perception can justify a higher cost as it's seen as a one-time investment for long-term gain. One-off courses often delve deeper into specialized topics, offering extensive, exclusive content. A one-time payment is also straightforward and can be more attractive to learners who prefer a clear, upfront cost without ongoing financial commitments. Lastly, learners paying a one-off fee typically gain immediate access to all course materials, which can be seen as more valuable compared to a subscription model where content is accessed over time.
✔️ Pros:
Higher Initial Revenue: Can charge a higher upfront cost.
Simplicity for Users: Easier for customers to understand and commit.
Less Pressure for Content: No ongoing obligation to produce content post-sale.
Appeals to One-Time Learners: Attractive to users who prefer a single transaction.
✖️ Cons:
No Recurring Revenue: No recurring revenue from single purchases.
One-Time Engagement: Less opportunity for long-term customer relationships.
Constant Need for New Customers: Must continually attract new buyers
Common use cases for a transactional pricing model:
Time-Specific Content: When your content is related to a specific point in time, EG someone who is 6 weeks postpardum and looking for a recovery program specific to that timeline. If your course is specific to the month or two post pardum, naturally that would fit a one-off pricing model versus a subscription.
Specialized Workshops or Masterclasses: For instance, a one-day intensive workshop on advanced photography techniques or a weekend coding bootcamp. These events are time-bound and focused, making them ideal for one-off payments.
Preparation for Specific Events or Exams: Courses designed to prepare students for standardized tests, public speaking events, or job interviews. These courses are typically goal-oriented with a clear end point.
Limited Series on Niche Topics: Like a series of lectures on rare historical events or a short course on exotic cooking techniques. These cater to specific interests and don't require long-term engagement.
Seasonal or Occasional Hobbies: Courses like summer gardening, holiday baking, or ski preparation workouts. These are relevant only for certain times of the year and hence fit well with a one-off model.
How much can I make?
Your potential income as an online creator is influenced by many factors. Central to this calculation is the delicate balance between the average price of your course, the number of students enrolling, and the efficacy of your marketing strategy .
Insights for Your Success: A key consideration that comes with pricing your courses is evaluating the trade-off between a higher price point with a potentially smaller but more dedicated audience versus a lower-priced option that might attract a larger enrolment. Both pricing strategies play a pivotal role in shaping the trajectory of your income goals and directly impact the bottom line of your online course business.
We have put together a series of helpful calculators to help you dissect your pricing model and model your expected revenue based on your business model, the average price each customer pays, your audience size (this will be the audience on your primary social channel or your email list) and conversion rate.
How do I reach my revenue goal?
Achieving your revenue goal hinges on a clear understanding of your conversion rate - the proportion of your email list or social media followers who sign up for your course. This rate is influenced by several factors, including the quality of your course content, the effectiveness of your marketing strategy, and the structure of your pricing tiers.
On average, the conversion rate for e-commerce ranges between 2-6% (5-6% if your site and landing pages are highly optimized), as reported by Shopify. However, if you’re completely new to this and haven’t yet established an audience, it's important to anticipate a more conservative conversion rate, likely around 1-2%. Conversely, if you have an established, engaged audience and your course fills a specific, underserved niche, you might reasonably expect a higher conversion rate.
What conversion rate do I need?
Optimizing conversion rates involves quality content, effective marketing, and a user-friendly platform.
Incorporated Insights: Consider what else your members might spend on if your service didn't exist. The higher your price, the higher the perceived value. Ensure you're charging what your time and resources are worth, creating a program that provides substantial value and engagement.
💡 Tips to help you increase your revenue
Test a Higher Price Point: High-value courses with a higher price often experience better engagement and outcomes. This can be attributed to the concept that individuals tend to value and commit more to what they have invested in financially. A higher price point can, therefore, translate into increased retention and involvement from your students, potentially leading to more successful course outcomes and stronger word-of-mouth referrals.
Enhance the Visual Appeal of Your App: Echoing legendary designer and director Paul Rand’s insights, ‘design is the silent ambassador of your brand’. If you consider your favourite brands or online businesses, they likely have a striking, memorable brand and a very clear and engaging user experience. Elevating the aesthetics of your app is akin to creating a captivating physical storefront. Presenting your course and digital products through well-curated and consistent imagery is essential. This approach enables potential subscribers to effortlessly experience the value of your offerings. By incorporating high-quality visuals, you not only showcase the premium nature of your content but also establish a compelling perception of your course's value and brand among your target audience.
We recommend you incorporate imagery that is minimalistic and cohesive, featuring similar tones, colors, and perspectives. Movement offers considered templates to help you with your design, and an integrated Unsplash and Pexels integration in case you don’t have imagery prepared yet. If you’re using royalty-free imagery initially, try to find imagery that is all shot in the same shoot, or uses a similar background color. See the examples below to gather inspiration:
Optimize Conversion Elements for Increased Sales: Effectively communicating the desired actions for your audience within your app is paramount. Craft compelling calls-to-action that guide members seamlessly toward making a purchase. Utilize strategically placed buttons, complemented by captivating images offering a sneak peek into your premium content. These images can act as gateways that link directly to the checkout flow, providing an immersive and frictionless journey for potential subscribers. Experiment with different language, button placements, and imagery to maximize the conversion rate and cater to varying pricing strategies.
Integrate Time-Sensitive Offers: Seize the potential of urgency within your app to elevate your conversion rate. Include phrases like "Limited-time offer — Enroll now before spots run out!" or "Exclusive discount with coupon code XYZ — Enroll now!" to instill a sense of urgency and exclusivity. These offers prompt potential subscribers to take immediate action. Integrating time-sensitive incentives can encourage rapid enrolment, aligning with your revenue goals.
Offer Free Content: Offering an initial free course or a sample lesson within your course, gives members a glimpse into the value they can expect from your app. This approach not only demonstrates the quality of your offerings but also builds trust and interest among potential subscribers. Consider adding free resources, such as downloadable guides or interactive webinars, to further enrich the user experience and showcase the depth and breadth of what you have to offer.
Conclusion
In wrapping up our exploration of pricing strategies for digital products and online courses, it's clear that the journey to finding the optimal price is multifaceted. Platforms like Movement offer an invaluable opportunity for creators to leverage advanced tools and insights to test and refine their pricing model. The essence of successful pricing lies in a careful evaluation of your content's quality, market demand, and the unique value you bring to your audience. The right price can make a significant difference in attracting new customers and achieving your financial goals.
A strategic approach that combines competitive analysis, user-friendly technology, and a strong sense of community can significantly enhance the perceived value of your course, justifying a higher price point. Remember, it's not just about the content itself but the entire learning experience you provide, including the course visuals, ease of use and the engagement strategies you employ.
Moreover, the ability to test different pricing models, from subscription-based to one-off payments, allows for flexibility and adaptation to what resonates best with your target market. Encouraging early engagement through free content or sample lessons can build trust and showcase the quality of your offerings, paving the way for a successful premium pricing strategy.
Ultimately, the goal is to align your pricing with the value you deliver, ensuring that your online course not only meets but exceeds learner expectations. By following these guidelines and leveraging platforms like Movement, you're well on your way to creating a compelling, valuable digital product that attracts, engages, and retains a dedicated audience, driving your online course business towards sustainable success and growth.
What is Movement?
Movement is a versatile, no-code app builder that empowers you to deliver your content, engage your community and sell your digital products–all in one place. It's perfect for anyone aiming to monetize content, deliver courses, build an online community, or manage memberships with ease. Movement handles the tech so you can focus on what you do best: growing your community and sharing your knowledge. Imagine a simple, effective way to bring your ideas to life, connect with your audience, and open up new revenue streams–all under your own brand.
In providing you with a Progressive Web App, your course is immediately accessible across all screens and all devices, whether your students would like to access your content via desktop, mobile or beyond.
