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How Should I Price My Online Course? Unpopular Opinion: Do Not Charge Your Worth (Charge x10 Less)

May 17, 2021

Listen On: Apple Podcasts | Spotify

“How should I price my online course?”

“CHARGE YOUR WORTH”, they say.

Ever heard this?

I have, over and over and over.

It’s problematic in most business situations (to say the least), but ESPECIALLY in the context of online courses.

Let’s break down why ‘charging your worth’ is the WORST possible advice to follow when it comes to setting a price for your online course, and three things you should be considering instead.

How Should I Price My Online Course? Unpopular Opinion: Do Not Charge Your Worth (Charge x10 Less) – The Podcast.

You Are Not Your Course

You, my friend, have infinite value, infinite potential and you are worthy of everything.

But YOU are not your course.

“Charging your worth” infers that you should be free to set the price of your course in a way that reflects your value and worth as a person.

And that? Is flat out wrong.

Your course and you as a person are two very separate and distinct things.

Even though YOU might value your worth at, say $100,000k a year, doesn’t mean that you can simply reverse engineer your math to come to a price for your course that enables you to make that.

The Market Decides

Here is one universal sales truth that holds true whether you are an online course creator, service professional, vendor selling your house or someone trying to hock your second hand surfboard on Facebook marketplace:

The Market Decides the Price.

Ultimately, you will only ever be able to charge what the market will pay.

Let’s use real estate as an example.

Just because YOU want to sell your house for $500,000 doesn’t mean that there will be a buy er willing to pay that.

Simply setting that price doesn’t give you the right to have it SELL at that price.

That’s why, when deciding on a sale price for a home, a real estate agent will review comparable listing in the area. They will look at the features of the home, the number of bedrooms and what other homes with similar features in the same location are fetching.

Do they stop there, though?

Hell, no. At least, the good ones don’t.

Once they have that information, they will develop a marketing campaign that amplifies the value of the home in comparison to other homes sold, and other properties currently on the market and decide on a price that is both competitive and that reflects the value of the property.

It’s the same with your online course.

Whilst the first fact finding mission you should embark on when considering how to price your online course is what other similar offers charge, it is your FIRST portal of call – not the last.

Focus on The Transformation

The MOST important thing to consider when choosing a price for your online course is the transformation that it facilitates for your student.

Ultimately, every online course must be specifically designed to solve a problem.

Your potential students have a problem that is keeping them stuck.

They want to solve that problem in order to reach a desired state, but there is something keeping them stuck.

Your course? Is the journey that they take get unstuck.

Setting your course price with a focus on the transformation that it delivers ensures that it is set with the value of the COURSE in mind – not the value you perceive it is worth based on your worth, what competitors are offering.. or anyone of the other factors that are commonly (and erroneously) relied upon when setting an arbitrary price.

Some factors to consider include:

How DEEP is the problem that your potential student has? For example, does your course address serious marital problems that your potential student fears may lead to divorce, or are you teaching them how to tie their shoelaces? Two very different problems, with two very different pricing strategies.
What LEVEL of transformation does your course offer? For example, teaching someone how to pack the perfect school lunch is a small, specific transformation. Teaching them the entire nutritional approach to feeding their kids is much more in depth and A – Z, and would rightly command a more premium price point.
How SPECIFIC is the transformation your course provides? The more defined and specific the transformation, the more valuable it is perceived to be by the right person. For example, teaching ‘starting a business’ versus ‘helping salon owners scale to $10k months’ – which would be more valuable for a brand new salon owner?
How profitable is the MARKET that values your transformation?

Of course, there are many more but a focus on the transformation ensures that your course price reflects the outcome that it delivers – and isn’t simply set on account of the what others are charging, or what you feel you’re worth.

Don’t Charge Your Worth (Charge x10 Less)

Here’s the final, golden rule when it comes to setting the price for your online course:

Don’t Charge Your Worth: Charge x10 Less.

Online courses are inherently intangible.

You can’t touch them or feel them.

For that reason, it’s more important than ever that you are able to communicate that the value of the course is a no-brainer.

Your goal? For the VALUE (in the eyes of a potential student) to be x10 the value (or more) than you are charging.

Here’s a few things to consider:
What is the value of the TRANSFORMATION your course facilitates? Does the value of that transformation easily offer x10 the price of your course (whether that’s monetary or non monetary)?
What is the cost of them NOT doing your course? How costly will it be to continue making the mistakes they are making?
What is the time saving or efficiency saving provided by the ‘short cut’ your course offers?
How can you anchor your course pricing against other things you offer – for example, your 1-1 time?

Ultimately, you need to be able to communicate a VALUE that easily justifies your course price. Aiming for x10 value – or more – is your goal. Ensure that you can

In Launchpad, we focus on designing a flagship course offer that is a “no brainer yes” for your perfect student, and pricing it in a way that positions you for profit and scale.

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