Pricing your co-produced digital course is one of the most crucial decisions you’ll make as a course creator. The price not only determines how much revenue you can generate but also influences how your course is perceived by potential students. Get the price right, and you’ll attract a steady stream of learners who see the value in your offering. Set it too high or too low, and you could risk alienating your audience or leaving money on the table.
In this article, we’ll guide you through the key factors to consider when pricing your co-produced digital course, the different pricing models you can use, and strategies for finding a price point that works for both you and your co-producer.
1. Understand the Value of Your Course
Before you start considering specific price points, it’s important to assess the value of your course. The perceived value will be a major factor in determining how much students are willing to pay for your course. You and your co-producer need to evaluate the following elements to better understand the value your course offers:
Key Questions to Assess Course Value:
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What Problem Does the Course Solve?: The more specific and pressing the problem your course solves, the more valuable it is perceived. Courses that offer tangible results (e.g., gaining a new skill, earning a certification, improving business performance) are often valued higher.
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Who Is Your Target Audience?: Understanding your audience’s ability and willingness to pay is key. Are they beginners, professionals, or experts in the field? Are they individuals looking for self-paced learning, or are they seeking more personalized, high-touch courses?
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How Unique Is Your Course?: The more unique and specialized your course content is, the higher you can price it. If your course offers rare insights, expert knowledge, or cutting-edge techniques, it could justify a higher price.
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What Is the Outcome or Benefit?: Focus on the transformation your course provides. Will it help students land a new job, earn a promotion, or start a profitable business? The clearer the outcome, the higher the perceived value.
Work with Your Co-Producer to Determine Value:
As co-producers, it’s important to discuss what makes your course valuable and how you both perceive that value. For example, if one of you has more experience or credibility in the field, that can enhance the perceived value of the course and justify a higher price point. Consider how you’ll communicate these unique aspects to your audience in your marketing materials as well.
2. Research Market Pricing and Competitors
Once you understand the value of your course, it’s important to research the market to see what similar courses are priced at. Competitor pricing can provide a good baseline and help you position your course in a way that stands out in the marketplace.
Steps for Market Research:
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Look at Similar Courses: Check out other online courses in your niche to see how they are priced. Pay attention to the course format (e.g., self-paced, live, hybrid), length, depth, and any additional resources provided (e.g., one-on-one coaching, lifetime access, bonus materials).
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Consider the Course Platform: If your course is hosted on a well-known platform like Udemy, Teachable, or Skillshare, take note of the platform’s typical pricing structure. Some platforms tend to have lower price points, while others cater to premium courses.
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Analyze Your Competitors’ Offerings: Review what your competitors are offering in terms of content, bonuses, and credentials. If your course offers more comprehensive materials, exclusive access, or a proven track record, you might be able to justify a higher price point.
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Survey Your Target Audience: If you already have an existing audience (through email lists or social media), consider sending out a survey to gauge what price they would be willing to pay. This can give you a better sense of how your audience perceives the value of your course and what they are willing to invest in it.
Researching competitors and the broader market helps you avoid pricing too high or too low, which could either alienate potential customers or leave revenue on the table.
3. Consider Your Costs and Profit Margins
Pricing your course should also take into account the costs associated with its creation and ongoing maintenance. As co-producers, both of you should have a clear understanding of the costs involved, so you can determine a price that covers expenses and delivers profit.
Common Costs to Factor Into Course Pricing:
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Course Development Costs: This includes the cost of creating video content, writing course materials, designing graphics, paying for licenses or third-party software, and hiring contractors or freelancers (e.g., editors, designers).
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Platform Fees: If you’re using an online course platform, be aware of the platform’s fees. Most platforms charge a percentage of each sale or a monthly fee. These costs need to be deducted from the price of each course sale.
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Marketing and Advertising Costs: To promote your course, you may incur costs for paid advertising, affiliate marketing, influencer partnerships, or email campaigns. Factor in these marketing expenses when determining your course price.
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Payment Processing Fees: Payment processors like PayPal or Stripe typically charge a percentage of each transaction. You should consider these fees when setting the price of your course to ensure you still make a profit.
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Ongoing Costs: Keep in mind any ongoing costs for customer support, course updates, hosting, or marketing that will need to be accounted for over time.
Once you’ve determined your expenses, you can establish a price that ensures you cover these costs while generating a reasonable profit. This will also help you avoid underpricing your course, which could lead to financial loss or burnout.
4. Choose a Pricing Model
There are various pricing models for digital courses, and the right one for your course will depend on the audience, the value of your content, and your long-term business goals. You and your co-producer will need to decide which model fits best for your course.
Common Pricing Models for Digital Courses:
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One-Time Payment: This is the most straightforward pricing model, where students pay a one-time fee to access the entire course. This model is often used for courses that offer a complete, self-paced learning experience.
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Subscription-Based: With this model, students pay a recurring fee (e.g., monthly or annually) for access to the course and any new content that is added over time. This model is useful for courses with ongoing updates or new modules added regularly.
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Tiered Pricing: In this model, you offer multiple pricing tiers based on different levels of access or course features. For example, you might have a basic tier with video lessons, a mid-tier with additional resources and quizzes, and a premium tier with one-on-one coaching or access to live sessions. This allows you to capture a wider range of customers with different budgets.
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Payment Plans: Offering payment plans allows students to pay for the course in installments over a set period of time (e.g., monthly payments for three or six months). This can make the course more accessible to a wider audience who may not have the full upfront payment but are still willing to commit to a structured payment schedule.
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Free Trial or Freemium Model: Offering a free trial or freemium version of your course allows potential students to sample the content before committing to a full purchase. This model can help increase conversions and attract a larger audience. You can offer limited access to a module or a short version of the course for free, with the option to purchase the full version.
Choosing the right pricing model will depend on your course content, your target market, and your co-production agreement. It’s important to discuss this model in detail with your co-producer to ensure alignment with your goals.
5. Negotiate Pricing with Your Co-Producer
As co-producers, it’s important to negotiate a pricing strategy that works for both of you. The pricing decision will impact revenue, profits, and the marketing strategy for the course. Here are some things to consider when discussing pricing:
Tips for Pricing Negotiations:
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Agree on the Value Proposition: Make sure both you and your co-producer agree on the value your course provides to students. This will help determine the appropriate price and avoid any disagreements over pricing.
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Align on Financial Goals: Discuss your financial goals and determine what kind of revenue both of you are aiming for. This will help you decide on a price that ensures both parties are adequately compensated for their contributions.
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Consider Profit Sharing: If you’re planning to share profits from the course, be clear about how much each of you will receive. This could be based on a percentage of the revenue or on specific performance metrics (e.g., the co-producer who drives more sales might receive a higher share).
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Test Different Price Points: If you’re unsure about the right price, consider testing different price points through A/B testing or by offering early-bird pricing. This will help you gauge your audience’s willingness to pay and adjust the price as needed.
By discussing and negotiating the pricing structure openly with your co-producer, you can ensure that both parties are happy with the financial terms and that your course is priced in a way that maximizes both accessibility and profitability.
Conclusion
Pricing your co-produced digital course requires a deep understanding of its value, market research, your costs, and the best pricing model for your target audience. By working closely with your co-producer to define the right price, you can ensure that your course is positioned to attract students while generating the revenue needed to sustain and grow your business. Always keep the bigger picture in mind, and don’t hesitate to adjust your pricing strategy as your course evolves and your audience grows.