Do you need some knowledge on the pricing strategies?
Then… this article is meant for you.
So, you want to earn from your online training course and the good news is…
Yes, it’s absolutely possible.
From being a freelancer to becoming an entrepreneur, I have learnt few valuable strategies about product pricing which has helped me to run my show successfully. I am really thrilled to share the values of pricing that has given me absolute clarity.
Let us break it down one by one in this article.
First of all, the most important question to ask yourself is – Are you planning to design a product or provide a onetime service?
If you are wondering what this means, then you must know there are two kinds of training courses available in the market.
1. Live training sessions
2. Recorded online programs
The first one i.e. live training program is an example of time trading model, where you are running a live workshop with your audience to help them develop a particular skill. For example, right now I am running a 6 week training program called “Connecting the Dots” and I invest my time and energy live with my audience, take their questions and clarify them accordingly. This is pure service providing method.
Whereas, the second one i.e. recorded training program is an example of asset building model, in which you develop a recorded course and each customer buys it and learns it anytime, anywhere. It is not time bound at all and this is pure product development.
The pricing also varies for each of this model.
If you want to know more about time trading and asset building models then watch this video:
Pricing for Live Training Programs
First let us look at live sessions pricing strategy. In Live, there is interaction, there is community and there is Q&A and because of all these reasons, live programs could be priced a little higher than a recorded program.
That being said, the price should always depend on the value that is provided. I never underestimate or overestimate my training programs neither should you as well!
The first few questions to ask while pricing a training course is –
- What transformation can happen to my audience when they attend this training course?
- What problem of my audience is being solved in this workshop?
- How much benefits they would get if I solve this problem through my coaching!
Write the answers to the above questions before planning the price.
One of the classic mistakes that people make in pricing a product is that they just look at the duration of the course. Duration is one of the factors but not the most important factor. The most important element is -, what is the level of transformation that is going to happen to your participants in the given duration. This is the key factor.
Remember, your training course should solve a problem, bridge a gap and move your customer to their desired reality. If your training sessions produce good results and transformation in your audience as promised then you can price the program based on its value.
NEVER UNDERESTIMATE YOUR TRAINING COURSE. IF IT PROVIDES REAL VALUE, IT IS YOUR ASSET AND YOU GOTTA PROTECT IT.
Now let’s get to the most interesting question, how do I value my course?
Let me give few examples both corporate and public workshops to determine the value of a training program from my own experience.
Corporate Live Workshop:
Recently, I ran a one day instructional designing workshop to a much esteemed automobile company and I had almost 25 participants in my class.
Honestly speaking, how much transformation can I truly bring in just one day, that too when my participants are learning instructional design for the first time?
Designing a training program takes time and effort, and I can’t promise a world to them in a day.
So I had simple and achievable objectives for that one day workshop. Everybody designed a one hour training program using simple strategies and I charged Rs. 18000 for a full day workshop.
You might think this is less. In fact, it is neither less nor more.
Every trainer prices their program with some values. I have a value that I never compromise in my life and the value is if someone pays me x amount for a training course, end of the day I want them to feel that they got the best deal. The program should be way more worth than what they paid for. They must feel that they got 200% returns from the training program. Because I hold on to this value so firmly, I always get recurring orders and happy clientele. This one workshop has given me opportunities to create multiple workshops.
Points to Ponder: What is your value when creating and delivering your product?
You can also go through this interesting piece of article on pricing strategies.
Online Live Public Workshop.
I am currently running a public speaking skills workshop called “Connecting the Dots” for 6 weeks and 2 hours each week. So the total duration of the program is 12 hours.
Now how to price a live public workshop online?
Again, the transformation that my audience will go thru in this workshop is my primal focus.
At the end of the workshop, the goal is to make my participants absolutely spontaneous, grow their presence of mind and persona and create them as excellent speakers.
The interesting thing is that, the transformation that my participants undergo in this workshop remains with them life long, it can boost their confidence forever and so the program is of high value; also since its live coaching program I can price it pretty well.
The question is how much do I want to get paid to deliver this service?
Imagine similar situation for your product. Think of the best price in your mind for which you will happily render this service. For example, let us assume that it is 1 lakh rupees. (Remember, This number is not your desire to just make money, this number means you are giving value of worth 1 lakh in your course. People should receive more value out of your product.)
So, the best price in your head is say 1 lakh rupees.
Ask yourself how many participants you will need to form this live batch. Let’s say the number is 10 people. Then the pricing can be
1 lakh divided by 10 people and i.e. Rs.10000 per participant.
Of course, right now in this example I have not added your marketing costs; you must add that as well.
Online Recorded Workshop: Trip Wire Pricing
I have been waiting to get to this spot, and this is my favorite. My real passion is to develop products because with products you become invincible.
Personally to me, I love recorded online courses so much for it helps me to learn anytime, anywhere and no room for distractions.
If you are about to develop your first online recorded course, my sincere recommendation is keep it short and simple. Achieve simple yet powerful outcomes in your training product. Create a product that is less than an hour and keep this product as a trip wire product i.e. your introductory course to help your customers experience your service. Price this product less.
For example, if you visit www.goldmage.com I have my trip wire course for Rs. 899. (If you are wondering what is trip wire, it is a simple introductory product with simple objectives)
The program name is “A complete guide to create and publish your first online course” and this was my first course and I had designed and delivered it with so much of passion and enthusiasm. I don’t want my online customers to pay a huge sum to me in the beginning without experiencing my caliber in online courses. This project was like testing the waters.
Now again, the point of emphasis is, what transformation that course can create in my participants!
Every single person who took that course gave a 5 star rating saying that the course gives a clear direction to know how to proceed with creation of digital assets.
And that was my aim too…
Because I had this simple and clear objective, I created a one hour course and I succeeded in selling the same.
Without much of a hustle, the product is a hit and it is a win-win to both me and my audience. In this model, my time is not at all involved, every day I see my emails to check how many sales has happened for the day and I am happily earning a passive income from this course.
Points to Ponder: In recorded courses, have a trip wire and price it less so that you get a good customer base to start with.
Pricing an intermediate course
Now based on the first recorded product, I got a lot of insights about the pain points of my audience.
The analysis from my first course and research is –
Everybody loves passive income and everybody dreams about creating their product. People are clear with why but not clear with How. They don’t know the “HOW” part to create their online coaching business model. A lot of trainers, who have good content and great delivery skills, are not so good in marketing in social media and working with technology.
If all the technical barriers can be removed to help a client to create a beautiful course and keep running their online business that is a win-win to my customers and me as well.
That is why; I have designed my second product keeping in mind the transformation that my participants need. And this is an advanced product which answers everything about online coaching and again while determining the price, I keep only these two values in my mind and that is,
- Can this product really let my audience create an Online coaching business model right from the scratch and Can this product ensure a very positive and measurable transformation in their business?
- If a client pays me x amount for this product, am I delivering them a product which is worth 10x. Can i give 10 times more value.
Always remember Pricing reflects your purpose and value. Always money comes when you do the right thing.
My final few words to all the mentors and coaches would be –
Your audience is your reason for existence. Your participants are the reason that you are a trainer today. Love them so much and give them true value. Never treat your participants like an ATM machine and don’t keep up selling some useless content. Give them real transformation. If you truly hold on to your purpose, profits will follow.
Also, never forget the purpose why you became a trainer in the first place. Don’t undersell your products without any proven strategies. Form meaningful pricing strategies and think long term about your business model. Don’t take shortcuts and fall prey to cheap marketing tactics. Grow as a meaningful mentor and keep inspiring.
All the best.