How to price your online course so it sells!Jan 14, 2021
Pricing can be a bit of a touchy subject. But whether you are scaling your course business or just starting out, it’s important to price your offers so they sell. I am going to teach you my simple 3 part system for pricing your offers so your ideal client says Hell Yes!
The pricing Conundrum:
Here’s the thing. No one can tell you what to price your offers at. I mean they will try, and I am sure if you search Pinterest, you’ll find no less than 10 pricing guides, attempting to tell you exactly what to price your offer. And maybe you’ve had a coach or business mentor in the past who has instilled their pricing beliefs on you.
But that’s the thing. 90% of “marketing industry norms” that get thrown around are just beliefs. I have had clients who were told that “No one will buy anything over $497 on evergreen.” That’s not true. I know a coach who sells her program on evergreen for $20K. So clearly that’s not a hard and fast rule. And whether you have beliefs about your ability to sell low ticket or high ticket, or anything in between, it’s come either from experience, or from someone telling you that it's the truth.
So how exactly do you price your offers?
While I can’t tell you what to price your offers, I can tell you how to figure it out. There are 3 simple rules to follow when pricing your offers if you really want them to sell. When you follow these rules, you’ll come up with the right price for your offer, for your audience, and for you.
Rule #1: The price has to be a hell yes for you.
No matter what it is, you have to be in alignment with the price you choose. When I launched my business, my first offer was just $59. I felt so in alignment with that price, and I knew that I could deliver on that promise. Even tho it was my first offer, and my launch was a hot mess, I sold over 25 spots into that program! I easily and effortlessly attracted people in at that price.
For my 2nd launch, I decided to increase my price to $149. The entire launch I had feelings of imposter syndrome. “What if I can’t deliver THAT much value?” “Who am I to charge that much for my offer??” So many fears about that price, and as a result I had a much lower conversion rate, with only 8 people purchasing the offer.
That was when I realized that above all your price has to be a hell yes for YOU.
If the price is too high, you’ll subconsciously repel people from purchasing it. Feelings of worth and imposter syndrome will come up. I experienced this a second time when I was selling 1:1 coaching packages. I priced my coaching at 10K for 6 months, and I felt really uncertain about it. I had never charged that much for anything, and just like the $149 offer I felt all the feelings about it. And after 26 sales calls, I ended up cutting my price down to 5K, to fill the 5 spots I had open. I wasn’t in alignment with that price.
It wasn’t until I invested in MYSELF at that level, hiring a 1:1 coach for $12,000, that I was able to confidently and effortlessly offer coaching at 10K. Not only did I sell out the 5 spots I had available, I have since raised my rate again, and have a waitlist for my 1:1 program.
If you have any doubts about your price, you will not attract people who are in alignment with it. This goes for underpricing yourself too! If you don’t feel like it’s enough, you will not want to fulfill the offer.
Rule #2: Your price has to be in alignment with the commitment level needed to get the result.
One of my mentors, James Wedmore, says “The transformation begins with the transaction.” and I can’t agree more. There is something about who you become when you draw the line in the sand and invest in yourself or your business. And this happens at every level.
When someone purchases a $29 program, they are looking for a $29 commitment. Likely a quick win, paying for someone to collapse time, show them how to do something quickly they can’t just google, or save them time with something that’s DFY (done for you). What that person is NOT looking for is 5 hours of course videos, and a 65 page workbook to solve their problem.
I can’t tell you how many $29 offers I have purchased that I never look at because of this. And I am almost confident that this is a strategy someone is teaching, but it’s really hurting you more than it’s helping! Sure, you got their $29, but you didn’t solve their problem. You didn’t build trust or authority, and they are not likely to purchase from you again. So your “tiny offer” didn’t really help you.
This is the case for high ticket offers too. If you are attracting people to your offer who are not completing the program, or totally ghosting you, you likely have underpriced your offer. There is a level of commitment implied with the investment, and your program is creating a mismatch in expectations.
Pricing is like Goldilocks and the 3 Bears. If your offer is too cheap, you won’t attract people who are committed to getting the result (or you’ll overdeliver in a way that repels people from finishing your program). If your offer is overpriced, people will feel like they didn’t get their money’s worth. Finding the price that will both attract the right level of commitment AND deliver on the promised transformation is the “just right” price.
Now I want to emphasize that you might have to play around to find this price. The only way to know is to offer it and see what happens. Treat your price like an experiment until you find the right one. It’s TOTALLY fine to change your price until you find the perfect one.
Rule #3: It has to be a Hell Yes for your ideal client too.
This sounds a little obvious, but I see so many people completely forget about this one. I see a lot of people making this mistake in the B2C world. (B2C is Business to Consumer, when you sell something to non entrepreneurs. B2B is when you sell to other business owners.) I see a lot of B2C business owners comparing their pricing to B2B. B2B business owners tend to charge higher prices, because their customers see a clear ROI. That isn’t always the case for B2C.
While you provide an incredible service with your business, there isn’t a clear return on that financial investment, so you might have a harder time charging high ticket prices. Now of COURSE this is not a hard and fast rule (and definitely could be a belief, like we talked about), but in general normal consumers are less likely to invest in high ticket programs unless there is a clear return on that investment like other entrepreneurs invest in business programs.
This is where it’s important to find a price that your ideal client is a hell yes to pay. When they see the value, and are in alignment with the price, that’s when you’ll have the easiest time selling your offer. Now I want to specify that it is completely possible to be wildly profitable with lower ticket offers. I know an entrepreneur with a $19/mo meal planning membership who consistently has 100K+ launches. Her offer is a hell yes for her ideal client, and she has found her goldilocks price that keeps people engaged and sticking around for more.
At the end of the day, pricing is one of the great mysteries in the online business world, but when you follow these 3 rules, you can start to find the aligned price for you. And when you keep an open mind, treat your business like a scientist and look at pricing as an experiment, you will find the perfect price for your offer. Because only your ideal clients can tell you what the perfect price is for them.
I hope that this demystified pricing your offer for you! Now you can go out and confidently price your offer so it sells!
Are you making one of these surprising mistakes?
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