How much should you charge for your online course? In this video, I'm going to share the formula that
sets you up for success and allows you to attract the clients that you want to work with. I know it
can be a little overwhelming, scary, and confusing to pick the right price point,
so let's make it super clear. First, I'm going to share the golden rules of pricing and then
we'll dig into the steps. So the steps are, you have to be clear on intention. The next
is financial stability formula. The third is the value of your skill set. The fourth
is the three factors to charging a premium, and the fifth is the value-based pricing equation.
This is the place to be to create a peaceful, purposeful, and profitable online course business,
coming from six years of experience in the online education industry, $30 million in revenue from
my online program sales, and nearly 3,000 people served to date in helping them take their unique
genius and package it into a highly scalable, highly profitable online course business.
I made something extra special for you. Be sure to grab your free copy of my new guide, 10 Steps to
Scale Your Skill Set and 10X Your Impact Without Trading Time for Money. It's my bulletproof
business plan. You can download it completely for free at the link below in the description.
I have personally tested every single price point you can imagine in my business starting super,
super low and going more into the high ticket space. We have clients that are charging
anywhere from $500 to up to $20,000 for their programs in every niche imaginable, from music,
to dance, to art, to finance, to real estate, like I said, to everything in between. So ultimately,
your price point is going to be your choice, but there are steps I'm going to share in this video
to make it very clear to create a price point that truly depicts and aligns with the value of
what you're creating and how you're impacting people to make it feel like a no-brainer.
This is a topic I really love and nerd out on because I think knowing the true value of your
program is such a vital part of having a business that feels really peaceful and purposeful so
that you have the space and the energy to really dedicate to the people who need you most because
you're not constantly worried about keeping the business afloat and you feel really proud
of what you're offering and how you're offering it. So I want to play you a quick note from one
of my amazing clients about what she had to say when she implemented this for her business.
I honestly did not understand why anyone would pay me more than even freaking, I don't know,
10 bucks, whatever it costs for a month of a subscription of Netflix or something
for anything that I had to offer. We are here having generated over 30K in less than 30 days
and I can't believe it, but I can believe it. I'm so happy for her. I know so many people feel
that way. I understand the pricing struggle. She was able to charge $1,000 for her program and she
oversold it because she truly understood the value of what she was offering. So let's do this so you
have that same level of clarity. Let's start with the golden rules of pricing that I have
learned from a lot of experience in this industry and some really clear examples of programs that
I've seen that are charging a price point that may surprise you, but are scaling incredibly well and
there's tons of demand for them. Okay, so the number one rule with pricing is you can always
go up. You can always increase your price, but you always want to try to avoid going down. So
you want to price in the beginning at a place where there is wiggle room for you to increase
the price over time and you feel comfortable charging that price and you're not selling it at
a premium that makes you uncomfortable. Because if you don't feel confident in the price point,
you're never going to sell it anyways. I am a firm believer in starting in a
place that feels comfortable. When you are creating a transformative program,
which is what we teach and I talk about in all my videos, the minimum price point you want to charge
is $500 because you're selling transformation, not just information. So starting somewhere around
the $500 mark and then you can always go up from there. We've had clients start there and go all
the way up to $5,000 because they recognize after time and client results, wow, this is really worth
an incredible amount and I'm way undervaluing, but you've got to start somewhere to know that.
The second golden rule is, this is going to sound strange, but the lower the price, the tougher the
sell. I want to show one clear example of this. One of our clients, Richa, shared, when Lucy,
her business partner, and her finished the 30-day cash flow plan in our program and they got six
paying clients, made $9,000. Their prior highest revenue month was $1,500. She said, "You're right.
It's far easier to convince one person to pay 1,000 than to convince 100 people to pay 10."
To dig a little deeper on that, you got to think about the lead generation factor. When
you need 100 people in order to achieve a $10,000 month, think about how many leads
you need and traffic you need in the door, which puts you in this constant cycle of
chasing more, more, more, more, more people, which is exhausting for half the reward and
half the return and half the profitability, which just leaves you exhausted and is the opposite of
peaceful and purposeful. The next rule, what other people charge has nothing to do with your pricing.
For example, we have a painter in our program and when she looked at the marketplace and what other
people were charging, they were charging $15 for presets and for little tutorials that they were
calling courses. And when we really dug into the transformation she was providing with her program,
she's now charging several thousand dollars for her program and generating
between $30,000 to $40,000 a month consistently. The next golden roll, the price becomes arbitrary
when the value is clear. What I mean by that is when you are really clear on who you're serving,
how you're serving them, it allows you to charge based on the value of that outcome.
When people know that that's what they're going to be receiving and it's not just a
bunch of information slapped together that they could find for free on the internet,
they will invest. If people are at the right place on their journey where they need this solution,
they will invest, period, end of story and the price becomes a non-issue because they know
it's what they need and they will pay for that solution and that transformation. When the value
and the messaging and the marketing is unclear, people will always go, "Well, I could get this
for cheaper. I don't really know why I would pay that much," and they will question your price.
You do not need to be a big name to charge a premium. You just need to know the value
of the outcome you're offering. You also do not need to teach people how to make money to charge
a premium, but it's such a misconception. I want to actually share real-world examples and price
points of people inside of our program. We have a yoga nidra instructor who charges over $1,000.
We have someone who teaches people how to build wooden boats who charges $900 for his program. We
have language teachers in all different languages and they're charging between $1,000 to $3,000 for
their programs. We have a holistic veterinarian who charges over $1,000. We have, like I said,
artists in our program charging anywhere between $1,000 to $4,000. When you know
the transformation and the value, the price becomes very easy and becomes high value.
Psychological price points are a waste of time. Trust me on this. Picking a number that ends in
a seven or an eight or a nine, like 999 or 997, it does not make a difference and ultimately,
you do not want clients who are investing into your program simply because you have
a psychological number on the end of it and they think they're getting somewhat of a deal because
you're not saying $1,000. You're saying 997. That is not the right kind of client. So just stick
with round, whole numbers. Keep it simple, keep it authentic, and keep it focused on the value,
not that price point. So number one, you have to be clear on your intention. When you price a
product or a service at a low number, it means you need a mass volume of people to hit your
income goals. For example, Richa, who I mentioned earlier who is in the health and fitness space,
she was charging $97 and now she's charging upwards of 1,000 and she used to need 100 people
to hit the $10,000 month and now she needs 10 or less people to hit a $10,000 month.
When you have less clients to serve, the depth of your impact becomes even greater. I know
that sounds strange because you're probably thinking the more people I can serve, the more
people I can impact. And you really can with an online program serve as many people as you want,
but it's about having the people who are at the right place. Because the truth is you
could technically serve everyone in the world, but not everybody is ready to receive the help
and the transformation that you're offering, which makes it useless if they invest into
your program because then they're going to go, "Oh, well, it didn't work for me" because they
weren't at a place where they're ready to do the work, but you still brought them in because
you needed the numbers to hit your targets. So a premium price point means less clients,
higher quality clients in the sense that they're ready to do the work and they're
invested financially, mentally, emotionally, spiritually to do that work and get results.
What leads to a truly successful business that can stand the test of time, proof and results that it
works. So getting the right clients in the door and having them do the work, that's the key to
success. So charging a higher price point is going to get those people in the door who are ready to
go and they are super invested, which ultimately leads to more results for you, which ultimately
leads to a stronger business. The way that I run my business is one offer, one client, one
message. That's it. I have one program with one ideal client and one message. It makes everything
very simple. I have tried multiple offers and what that does is ultimately, it makes you horizontally
scale. You're all of a sudden going like this and spreading yourself thin and you've got different
marketing for this program and different marketing for this program and different
ideal clients for this program and different sales structure. You're spread thin and you're running
yourself ragged for a fraction of the return. When you have one offer, one client, one message,
you can scale to the moon because it's all heading in the same direction and all towards the same
purpose with the same messaging. Ironically, going from multiple programs to one program is what
allowed me to surpass eight figures in revenue in my business. Simplicity is the key to scale
and success. Number two, the financial stability formula. So you always want our backwards to make
your revenue consistent and predictable. How many clients do you need in order to hit your
goals? 10K is generally a really easy number to start with. Let's say you want to hit those 10K
months and you decide to charge $2,000 for your program. That means you would need five people,
five clients to enroll into your program every single month. Now what this does for you,
it creates so much mental space and freedom and it gets you off of the hamster wheel constantly
creating content and trying to find leads. Why? Because if you look at the numbers, it breaks it
down in a very easy to digest way where you can see that you don't need very many leads or traffic
to achieve your goal. So if you need five clients a month, whatever number of clients you need to
hit your income goal, you then want to times that number by five. That gives you the amount
of leads that you need in order to convert five of them into paying clients based on an average
20% conversion rate. So you want 10K months. You're charging $2,000. You want five clients a
month. Times that five by five, which gives you 25 leads a month, which you then would convert 20% of
which equals five paying clients at a $2,000 price point, which equals a $10,000 month.
So for the entire year, to hit 10K months consistently all year long, all you would need
is to times 25 leads by 12 months. That's 1500 leads for the year. You don't need millions. You
don't need even multiple thousands, just 1,500 leads per year. Allows you to take a breath,
to sit back, and to not work so hard to achieve that goal, and to focus on the thing that matters
which is impacting and serving your clients at the highest level. Number three, the value of
your skill set. You have to know that what you do is worthy of a price point that is high value and
that is going to attract high-value clients. This really comes down to, again, focusing on creating
a transformative program and not just packing a bunch of information into an online course
because informational programs are really tough to sell because there's so much free information
on the internet and people don't want to have to sift through a bunch of information to get the
result that they're looking for. People pay for transformation, they don't pay for information.
A great example of this is language. There are so many free resources online to learn
any language. I'm currently learning Italian. I absolutely could have just gone on YouTube,
found somebody to teach me or downloaded a PDF, e-book, whatever it may be. I chose to invest to
fast track my progress and to fast track my results and to get a go-to guide to show me
exactly how I could learn in the most efficient way, because I didn't want to waste my time. But
what was the difference between paying and doing it for free? Well, when it comes to language,
it's not just about learning the language. Our clients who are teaching all different languages
from German to European Portuguese to French to whatever it may be, the key to their programs and
being able to charge a higher price point is that they're not just teaching the language, they're
teaching the language to a specific clientele. For example, I teach this language to people
who are moving, so expats who are moving to this country and have to learn the language in order
to achieve career growth. That's one way to look at it. There is urgency because they're actually
relocating. It's not a hobbyist who's just trying to learn the language for fun. There's no urgency
there and that person is just going to go look on the internet for free information, which brings
me to my next point, which is the three factors to charging a high ticket price or a premium,
and that is knowing your ideal client inside and out and the three factors of your ideal client
so that you can create a program specifically for them. When I say that, what I mean is one specific
ideal client at one specific place on their journey seeking one specific transformation.
The example I just shared, the client isn't just randomly looking to learn a language for
fun. The client has to learn a language because they're moving to a new country where they don't
speak the language at all and they're looking for career opportunities and growth in that country
and that their livelihood depends on it. So that is the difference between informational-driven
and transformational. It's knowing who you're serving, how you're serving them,
and what makes it urgent for them to invest and pay a high ticket price point to get the solution
you provide because they know and see the value so clearly for them. The fifth piece of this is
understanding the value-based pricing equation. This is the formula and equation that we use
with our clients to determine the best price point for them. And remember, they can always
increase, but they have to start somewhere. So how do you determine the best price? Well,
it comes down to these three factors. Number one, the cost to your client mentally, financially,
emotionally, plus your income goals in your business to make it an actual viable business. So
how much do you need to be generating per month, which will dictate how many clients you need to
be bringing in the door at which price point and then minus barrier to entry. Let me break down
each factor. Cost for your client of not having the outcome you provide on a mental, financial,
emotional, spiritual, relationship-based level. What is it costing them to not have
the transformation of your program? This can be a plethora of things depending on the category
that you are in. For example, one of our clients teaches adults how to dance in social settings.
She discovered when she built out this program, which she had prior tried to do a general dance
course and I think she had sold $700 worth of that program, she's now built a business that's doing
$50,000 upwards every single month consistently because it's a transformation-based program.
She now teaches adults how to dance in social settings. She realized that she
did her research on the clients she was going to serve. This was costing them their confidence,
their relationships, career opportunities because they would not go to social events. It was costing
them a lot more than she realized. So that helped her validate that price point for that specific
client. The next piece of this is your income goals. What do you need to be generating in your
business per month in order to have a full-time, thriving, profitable business where you don't
have to be doing anything else or any other side hustles? Let's determine that income goal so it's
clear for you and you can create the path of how to get there based on the price you choose. Then
you know how many clients you need to serve on a monthly basis, how many leads you need per year.
Then the final piece is the barrier to entry, so minus barrier to entry. What I mean by
that is you don't want to be the status quo. You want to be the premium option.
There is a reason that there are certain brands in the world that never discount their offers,
their products, or their services. They are the premium option that people aspire to and thrive
to work with. That is what you want to position yourself as, as the expert, as the authority. So
look at, okay, what's the common denominator in price points across the market in terms of
what other people are offering? And try and be a step above to position yourself as the premium,
go-to, must-have option. If you're thinking to yourself, well, will this limit the amount of
people that I could work with? Here's the deal. Part of the whole realm of building an online
course business is that you're actually able to serve so many people, limitless
amounts of people through your content online. I.e., I make YouTube videos and make them for a
long time. I have served millions and millions and millions and millions and millions of people
through my free content and a fraction of those people then take that free content and go, "Okay,
you know what? I want to take it to the next level," and they invest in my programs and
they're ready by the time they get into the program. And that's who I want to work with
in that capacity because I need you to be ready in order to get the results that you're seeking.
Free content can serve as many people as you want. Your paid program needs to serve the
right people at the right place to actually create results. Let me know with a comment,
they are my love language, how this helped you, what your light bulb moment was. And I'm
so curious, what do you want to create your course on or what is your current course on,
and what price point are you inspired to create for that program? I really want
to hear your big takeaways. I love to see it. Impact is everything.
If you haven't yet, get your free copy of my brand new guide, 10 Steps to Scale Your
Skill Set and 10X Your Impact And Stop Trading Time for Money. It's my bulletproof business
plan. You can get your free copy right now in the description below. It's going to be super
helpful and dig into a lot of this in even further detail for you so you can bring it
all together. I'm so grateful you're here. I have a whole playlist below on all of the factors of
creating a thriving online course business so make sure you check that out next. Be sure to subscribe
for new videos every single week. Hit the like button and I will see you in the next one.