So you have your eLearning site up and running, and your courses are ready to publish. It obviously took a lot of effort to select the LMS platform and create & publishing the course. But setting the perfect price for your online course is crucial in establishing its success.
You've used your time and knowledge, combined your innovation, and simplified the process by investing money and resources to develop a course that will add value to a learner's life, right?
Firstly, the pricing of your online course will determine the revenue of your eLearning site. Secondly, you will be able to understand the effectiveness and acceptance of your courses. Moreover, developing a steadfast pricing plan is essential for being competitive in the eLearning industry. Academy LMS is here to assist you in pricing an online course so that you can get your desired revenue by selling your courses. So, let's take a ride!
The necessity of Pricing An Online Course
Pricing a course involves intellectual activities where you can't just speculate. You need to implement a thorough market & competitor analysis. But if you are pricing your course incorrectly, your reputation in the market and your profitability will be in jeopardy.
According to the latest research and market analysis, the eLearning sector is expected to grow further and reach an estimated $243 billion by the end of 2022.
With the eLearning industry expanding so drastically, maintaining competitiveness requires the appropriate price strategy. Increasing the price bar too low will reduce the deserved value of your course. On the other hand, increasing the price too high will take your customers away from you. Therefore, you must maintain a balance in pricing strategy to get your desired gain profit.
So, how to maintain that balance and set a price for your course that works? Uncertain about where to begin? Let's discuss the factors that influence the price of your e-learning courses.
Things to Consider for Pricing an Online Course
You already know that the eLearning course creation process involves several organized steps. Too many factors must be taken into account to determine the ultimate cost. It is quite impossible to compute the precise budget for the course creation process instantly. Therefore keeping track of each of the factors will enable you to make a more intelligent decision about the ultimate price.
Here are the factors that you must learn:
1. Course Development Expenses
The cost to craft your course depends on the content it includes. Certainly, the cost of creating your course will go up if it includes professionally captured images, high-definition videos, cool animations, and other data that requires you to engage specialists or utilize expensive equipment.
As a beginner, you should start with minimal elements for your courses. Gradually you should upload high-quality content after getting a good response from your previous ones.
2. Cost of Video Capturing
Video is an essential part of online education it is the benchmark for online course material. You will need a proper setup for capturing your video, which includes light, video, and audio.
The cost of your video-capturing device will influence the total cost of the course. Moreover, the cost also depends on whether you are recording it in a normal background or green screen.
3. Cost of LMS & Additional Plugins
Many renowned eLearning platforms, such as Udemy, Skillshare, etc., are out there. But these platforms won’t give you full control over course promotion, course pricing, and other options. But pricing an online course requires you to have full control over your eLearning platform. This is where Academy LMS comes in with all the necessary features and full pricing control.
Owning your own LMS platform is usually recommended, but you must first find out how much it would cost. The best part about Academy LMS is that you can create a full-fledged eLearning site with the free version. Most WordPress plugins offer their features on the pro version. In comparison, Academy LMS provides most of the features for free.
However, this procedure goes beyond just submitting course materials to the LMS. To offer your courses, you'll require LMS software as well as additional third-party plugins and extensions. It's important to consider the price of all the premium plugins and tools being used.
4. Marketing Expenses
Your marketing expenses will vary by subject, search phrases, and market rivalry, depending on your target market. You should keep note of and include in the price of your course any expenditures you incur in promoting and selling your course.
5. Expenses Behind the Team
A majority of the expense behind creating online courses goes behind your team and your own time. Therefore, avoid the urge to offer courses for a low price.
Because you have to manage the expense of carrying your team members and never fail to take it into account when determining price. Remember that your team and you are maintaining every aspect of running your eLearning site, the LMS plugin, and the course.
6. Developing a Successful Pricing Strategy
Your strategy for pricing an online course will be more effective if you take the following actions:
- Estimate and manage all the costs to gain profit
- Execute favorable comparison to your rivals
- Make a significant presence in the target market
So how can you develop a strong pricing plan to ensure your eLearning course's success? So let's go through the essential aspects you must examine before pricing an online course on your site.
Examine the Demand for The Course
Analyzing the demand for the course in the marketplace is your first step toward setting the price. There are many factors to consider while assessing the demand, including:
- The student's willingness to pay for your courses
- Your prospect student’s capability to pay
- Alternatives that are competing in the marketplace
To make a firm ground in the market for a more extended period, one must find the optimal stage where both the customers and course creators are satisfied. Always set a high price for a course topic that has a high market demand but less substitute.
Only reduce the price if there is less demand for the course subject in the market. This is how you can improve sales results and meet the anticipated revenue goal of your eLearning site.
7. Learn About Your Audience
One of the most crucial factors when pricing an online course is learning about the audience. Learn the following things about your audience:
- Analyze if your target audience wants to pay for the course topic you are producing.
- Learn how much they are willing to spend and especially on what topic
- Explore what opportunities your course can bring to your customer’s table
- List out the qualities of your course topic that will enable learners to advance their income further
- Find out whether your students are at the beginning level or already at an advanced level.
Knowing all the mentioned things will assist you in determining the right price for your online course.
8. Conduct Research On Your Competitors
If you want continuous growth of your company, you must explore new chances by researching your competition. Pricing an online course based on your competitors' pricing is common sense. However, it shouldn’t be your plan of action.
Researching the competitors will not only assist you in pricing an online course, but It will also help you understand the demand for the course in the eLearning industry. Moreover, you can find out the areas where you can improve.
From your students or users’ feedback, find out what you are lacking and add to your courses. Make strategic modifications to your course based on the study's findings so that it provides greater value to students and brings in more income. A victory for all parties!
9. Create Several Price Levels
Multilevel pricing is effective when offering a course at several price points. For this scenario, you can restrict or extend different features and functionalities of your course for each level.
Suppose you sell 10 copies of your course for $34 each, bringing you $340. However, if you add additional enhanced resources to the same course and charge $50 for it, let's suppose that 5 individuals purchased the course. If you had the same amount of sales, you would earn $590.
You will be making more than twice as much daily if you add another pricing tier. So, that is the advantage of setting up many pricing levels.
Typically, setting two or a maximum of three pricing levels is ok. But you can always set up the number of levels that work best for your course content.
10 Try Different Price Points with Discounts
Try out a variety of pricing points by making use of coupons and discounts. If you find that giving discounts results in a significant increase in sales, your course's price elasticity is strong.
Instead of beginning with large discounts, try continuing with smaller deals and progressively testing various percentiles of savings. Then, after comparing the findings, you should choose a price your clients are willing to spend.
While trying out different price points, remember that you will earn less money from each transaction. Therefore, you should calculate the percentage of your profit upon providing the discounts to get the most out of your income.
Be The Expert in Your Category
If you want to create a strong reputation in the marketplace, establish yourself as an expert. If you can prove that you've achieved mastery in the course topic that you are publishing, you will be able to set higher prices for your online courses.
Before pricing an online course, enhance your credibility by creating a YouTube channel dedicated to your online courses. Share free resources and information regarding your courses and trigger buying intention.
11. Establish a Goal for Your Sales
Establishing a realistic revenue goal is the first step in developing an appropriate pricing strategy. Set a projected rate of return for the money you have invested. Develop the key performance indicators (KPI) for your company and determine the leading indicators to reach your sales and profit goals.
When it comes to putting a price on your eLearning course, having a precise profit goal in mind may be a tremendous driving factor.
Pricing an online course is indeed a challenging task for most course creators and eLearning site owners. The fact is that you can never create a price point that is acceptable for everyone.
Some learners won't be able to purchase your course due to affordability.
On the other hand, others would gladly pay for your courses because of the value and quality of your courses. It does not suggest that your pricing strategy is flawed; you just need to improve over time.
Before releasing an online course, don't miss this comprehensive guide on pricing an online course in the right way. We’ll gladly assist you in effectively pricing online courses for your eLearning site. If you have any pricing strategy in mind, feel free to mention it in the comment section below. Join us on our Facebook community and also you can also follow us on Twitter.