What is the most important thing about your online course after your profile and the course title? The course price!
In this blog post we present three pricing ‘strategies’ that we know, for a fact, help sell courses more. But, before we go there, make sure you are not being a victim of Loss Aversion (explained below) when setting your course price.
Let’s say I give your friend $10, asking her to split it between both of you, in any proportion. And I offer a deal: If ‘you’ like the distribution, you both get to keep your share. If ‘you’ don’t like the distribution, I take the money back. So, your friend gives you $1, keeping $9 for herself. Will you accept the distribution? Like most people, you won’t. In fact, you won’t accept it until it is at least $5 each. Unfortunately, this doesn’t make sense! Because, even if the distribution is $1 – $9, you are still getting $1. We are more focused on “presumptive loss” of $4 than the “actual gain” of $1.
Avoid being a victim of Loss Aversion and other cognitive biases with these 3 pricing strategies:
1) Less is better for the students (no wonder, it sells more too) : All our $1 courses have sold. All.
$2 courses have sold too, but not as much. In terms of enrollments (widening your reach) and total revenue, $1 courses do better than $2.
Why should that be so? Learners are already apprehensive in choosing an online course from a ‘new teacher’. Put a high price to it and you add another complexity factor to the decision making process. Lower the entry barrier by pricing your course fee low ($1 is the lowest we allow on WizIQ).
Sidenote : This doesn’t mean that you should *only* price your courses at $1. A lot of courses would be priced much higher. Having a $1 course is a great “entry-level” start to build up interested learners for your other courses. So think this -> What can I offer that is of significant value at only $1?
Why not do it free? Because, FREE courses attract the crowd – including the not-so-serious one; draining your energy and deflating your motivation.
2) Set long term revenue goals : Did you know ‘it takes 10,000 hours to be perfect in anything’ (Malcolm Gladwell et al)? This applies to online teaching as well. Chances of overnight success are usually low. Starting with a short time frame makes you give up sooner, diminishing chances of success even more. Hence, set your revenue and enrollment goals iteratively. Target a larger student base during first few months by talking about your course, creating awareness about and pricing it low. Once that is done, launching premium options yields a lot better result.
Does this strategy work?
Let’s look at Sunita Kadian who started her course of “Speak English with Ease” pricing it as low as $5 (well, she actually started FREE)! She gained a student base of 67 learners and launched another course “English for Bank PO & Clerk (CWE) Exams Video Tutorials” which was again priced at $5. She got 183 learners for this course. Some students asked her for personalized coaching sessions. And, for that she launched her Personalized English Speaking Lessons, which already has 30 students, each of them enrolled between a price range of $150-$200. And, the demand is only increasing!
Takeaway: Audience first, revenue second. Price your course low, focus on promotions, set a long term horizon. All work in tandem. How long is long? 3 – 6 months!
3) Inspect and Adapt your Pricing : This is a recurring theme in our teacher promotion coaching. Whether you are successful or not, rather than brood, ‘inspect and adapt’ is a better strategy. Ask questions about your course and the course price, from the WizIQ team, from the enrolled students, your friends, your colleagues and learn from what they say!
If you notice that the demand of your course is stagnant, one of the first things to look at would be your course title (read here on How to choose a good course title) and second would be your course price. Lower your course price and let students know how much they are saving. Now your course will reflect as an opportunity and trigger the demand.
“Stick to your vision but adapt your plan”.
3 more tips before we wind up this post:
$9 is better than $10, but only marginally. But, given that our brains have been trained to think $9 is a better bargain than $10 (and it is), you may want to price $9, $19, $29. However, rounded courses with prices like $10, $25, $225, $220 etc have also worked on WizIQ.
One way to lower your course fee is by offering learners a way to pay in installments. If you offer 40 classes, allow them to pay in 4 or 5 installments. Offer a discount if they pay upfront. WizIQ does not have a recurring payment collection facility right now but its on our to-do list.
Another neat strategy is to think of a promotional price for (say) first 100 enrollments and then a price for the next 100 and so on. If you are not getting 100 enrollments soon, its time to inspect and adapt. Assuming that the course is in demand, are you optimizing for a hypothetical loss?
Enough from us! What questions do you have? Comment below or write to us at firstname.lastname@example.org
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