The Science of Online Course Pricing: How to Maximize Profit Without Scaring Away Students
The Key to Sell Online Courses Is Strategy First
CASH IN WITH KILLER COURSE PRICING Before You Worry About Course Content
Look, here’s the deal with pricing your online course…
Most people just pull a number out of thin air and wonder why nobody’s buying. That’s amateur hour, and I see it all the time.
I’ve been in this game for over 20 years now. Built multiple 7-figure businesses. Helped thousands of clients do the same. And I’ll tell you straight up – course pricing isn’t some mystical art. It’s a science with predictable outcomes.
Get it right, and you’re printing money while you sleep. Get it wrong, and you’re just another broke “expert” with a digital product nobody wants.
THE BRUTAL TRUTH ABOUT COURSE PRICING
Let me shoot you straight here. Most course creators are leaving insane amounts of money on the table with their pricing strategy.
And I use the term “strategy” loosely because most don’t have one.
They just look at what competitors are charging, knock off 20 bucks to be “competitive,” and wonder why they’re eating ramen while watching their ad costs bleed them dry.
Here’s what nobody’s telling you: The actual dollar amount you charge matters WAY less than the strategy behind it.
I’ve sold $2,000 programs that were easier to sell than $27 products. I’ve also had $27 products outperform $2,000 programs. The difference wasn’t the content. It was the strategy.
TWO WAYS TO MAKE Online Courses Profitable (CHOOSE WISELY)
After testing just about every pricing model under the sun (and burning through a lot of cash in the process), I’ve found there are exactly two pricing models that actually work:
THE ASCENSION MODEL (MY PERSONAL FAVOURITE) & the Psychologically Smart Approach to Launch Your Online Course Idea
Start cheap, stack cash later. This is how I’ve built multiple 7-figure businesses, and it’s the model I recommend to 90% of people starting out.
Here’s how it works:
Let me break this down with a real example:
I had a client in the fitness space who was struggling to sell a $497 course. We restructured it into an Ascension Model:
First month results? $127,000 in revenue. Same content, different strategy.
The psychology here is powerful. When someone buys your low-ticket offer and gets massive value, they’re practically begging to give you more money. It’s like dating – you don’t propose on the first date, you build the relationship first.
Of course make sure your online course platform allows you to add bump offers, upsells and downsells. Don’t let technical issues limit how you promote your courses.
THE DESCENSION MODEL (FOR THE BALLERS) & An Instant Profitable Online Course
Start expensive, filter out tyre-kickers. This model is ideal for those with established authority, strong brand recognition, and a warm audience.
This works when:
– You’re already a known entity
– People are begging to work with you
– You’d rather make $100K from 50 people than $100K from 5,000
Example from my own business:
The beauty of this model is you work with fewer, better clients. The downside? You better deliver the goods, because at these prices, expectations are sky-high.
THE PSYCHOLOGY BEHIND PROFITABLE PRICING No Matter What Course Platform You Use
Here’s something most “gurus” won’t tell you: pricing is 80% psychology, 20% economics.
When I price a course at $27, I’m not saying it’s worth $27. I’m saying it’s worth $270 but I’m letting you have it for $27 because I’m confident you’ll want my other stuff once you see how good this is.
When I price a program at $5,000, I’m not just selling the content. I’m selling exclusivity, attention, and results. I’m also filtering for serious players who will actually implement.
The mistake most people make is thinking the price reflects the value. It doesn’t. It reflects the positioning and the customer journey.
WHICH ONE’S RIGHT FOR YOU As A Course Creator? (BRUTAL TRUTH TIME)
If you’re not a household name in your space, the Ascension Model is your ticket. Period.
I’ve seen too many nobodies try to launch $2K courses with zero audience and crash hard. Don’t be that person.
But if you’ve got the goods and people know it? Go high-ticket and never look back.
Here’s a quick self-assessment:
Want A Successful Online Course Business? THE MONEY IS IN THE STRATEGY (NOT THE PRICE)
Listen carefully: Your course isn’t a product – it’s the beginning of a relationship that prints money.
The real pros know:
– Every front-end offer should break even on ad spend (minimum)
– Upsells aren’t optional – they’re where the profit lives
– Your entire funnel should convert like a well-oiled machine
Let me give you a real-world example from my own business:
I once launched a $37 course on Facebook ads. The economics looked like this:
– Ad cost per sale: $35 (basically break-even)
– Upsell take rate: 32% at $197
– Second upsell take rate: 12% at $997
Do the math: For every 100 people who bought the $37 course, I made:
– $3,700 on the front end
– $6,304 on the first upsell (32 buyers × $197)
– $11,964 on the second upsell (12 buyers × $997)
Total: $21,968 from $3,500 in ad spend. That’s a 6.27X return.
And that’s before any email follow-up, which typically adds another 20-30% in revenue.
THE SELF-LIQUIDATING OFFER GAME-CHANGER: More Important Than What you Charge Per Course
One of the most powerful concepts in course pricing is the Self-Liquidating Offer (SLO). This is a front-end product priced specifically to cover your ad costs. (Even if you’ll never run ads, still adopt this mindset to sell your course)
Here’s why this is so powerful:
I’ve used SLOs to build email lists of 100,000+ people without spending a dime of my own money. It’s like having a money machine that also builds your audience.
Create and Sell to Maximise LIFETIME VALUE
The biggest mistake I see course creators make is focusing on the initial sale instead of lifetime value.
Think about it: Would you rather:
A) Make $997 once from a customer, or
B) Make $37 now and $5,000 over the next year?
Only a fool would choose A, but that’s exactly what most course creators do by not having a proper value ladder.
Your pricing strategy should maximize lifetime value, not just immediate revenue. This means having:
One of my clients went from making $15K/month to $83K/month simply by adding a $27/month membership as a downsell to people who didn’t buy his $997 course. Same traffic, same conversion rate on the main offer, massively different results.
BOTTOM LINE: A profitable online course is less about how you create and sell, and more about how you strategically increase Average Order Value through your funnel & follow-up
Stop guessing with your pricing. It’s costing you a fortune.
Pick your model based on where you are NOW, not where you want to be. Build a value ladder that makes sense. And for God’s sake, test everything.
I’ve made millions with both models, but I started with Ascension until I had the audience to support premium pricing.
The beauty of online courses is you can adjust and optimize. Try a price point, measure results, and refine. There’s no “perfect” price – only the perfect strategy for where you are right now.
What about you? Which model are you using? Are you leaving money on the table with a half-baked pricing strategy? Maybe it’s time to rethink your approach.
Because at the end of the day, the right pricing strategy isn’t just about making more money (though that’s nice). It’s about serving more people, delivering more value, and building a business that works for you instead of the other way around.
And that, my friend, is worth figuring out.
Q: How do I price my online course for maximum profitability?
A: Ah, the million-dollar question (hopefully literally)! To price your online course effectively, you’ll need to find that sweet spot between “bargain bin” and “selling my kidneys to afford this.”
Consider your target audience’s budget, the value you’re providing, production costs, and competitive pricing. Many successful course creators recommend starting with a slightly higher price rather than undervaluing yourself—remember, you can always offer discounts, but it’s harder to raise prices later.
The average cost of online courses ranges from $50 for basic courses to $2,000+ for comprehensive programs. And don’t forget—your first course pricing decision isn’t tattooed on your forehead; you can always adjust based on market feedback!
Q: What factors should I consider when pricing my online course?
A: Well, unless you enjoy throwing darts at a price chart blindfolded, you’ll want to consider:
the depth of your content (is it “Online Basket Weaving 101” or “Advanced Quantum Physics for Cats”?), production quality (smartphone video vs. Hollywood production), your expertise level (newbie vs. world-renowned expert), competitor pricing (spy on them, it’s legal I promise), your target audience’s purchasing power, and the transformation you’re providing.
Also consider your course materials, marketing costs, and whether you’re offering additional perks like 1-on-1 coaching or a private community where students can ask you questions until 3 AM. The value of your course is ultimately determined by how effectively it solves a problem or fulfills a desire!
Q: How much money can you make selling online courses?
A: How long is a piece of string dipped in gold? The answer varies wildly! Some course creators make zero dollars (ouch) while others are building course empires worth millions.
The average successful course creator might earn anywhere from $1,000 to $50,000 per course launch, with established creators potentially making six or seven figures annually.
Your earnings depend on your pricing strategy, marketing efforts, audience size, and whether your course topic involves teaching something people actually want to learn (underwater basket weaving might have limited appeal).
The beauty of online education is the scalability—once you create your course, you can sell it to 10 people or 10,000 people with roughly the same effort, making it potentially highly profitable if you nail the other aspects!
Q: Should I create an online course for free or charge for it?
A: Ah, the classic “to free or not to free” dilemma! While giving away your brilliant insights for free might make you feel all warm and fuzzy inside, it won’t pay for that yacht you’ve been eyeing.
Free courses can be strategic as lead magnets or to build your audience, but they often lead to lower completion rates (people value what they pay for). If you’re serious about course creation as a business, charging is the way to go.
That said, offering a free mini-course or module as a teaser can be a smart way to market your online course and let students sample your teaching style before they commit to your paid offerings.
Remember: even Picasso didn’t give away his paintings for free, and your knowledge is just as valuable (especially if you’re teaching people how to make money)!
Q: What’s the best online course platform to create and sell online courses?
A: Asking for the “best” online course platform is like asking for the best ice cream flavor—it depends on what makes your taste buds happy! Popular platforms include Thrivecart (user-friendly, good for maximum control), Thinkific (flexible, great customization), Kajabi (all-in-one but pricier), Podia (clean interface, good customer support), and Udemy (huge marketplace but less control over pricing).
The right choice depends on your tech skills, budget, and specific needs. Do you want to create an online course with fancy bells and whistles, or keep it simple?
Do you have an existing audience or need help finding students? Are you allergic to monthly fees? Consider these questions before committing to a platform. Many successful course creators test a few before finding their perfect match—it’s like online dating, but with fewer awkward coffee meetings.
Q: How do I know if my online course topic will sell?
A: Unless you’ve mastered the art of fortune-telling (in which case, please create a course on that!), you’ll need to do some market research.
Look for evidence that people are actively searching for solutions to the problem your course solves. Check search volumes, browse course marketplaces to see what’s already selling, scan Amazon for best-selling books on your topic, and lurk in online forums where your target audience hangs out.
The best online course topics are at the intersection of your expertise, your passion, and market demand. You can also test your course idea with a pre-sale or beta launch before investing months creating content nobody wants.
Remember: just because you’re fascinated by the mating habits of sea cucumbers doesn’t mean others will pay to learn about it (though I’d personally consider it).
Q: How do I increase your course sales after launch?
A: Want to boost those sales numbers from “sad trombone” to “cash register symphony”? First, collect and showcase testimonials from students who’ve completed your course (bribing them with extra content is totally acceptable).
Create urgency with limited-time discounts or bonuses. Implement an affiliate program to get others selling for you while you sip mojitos. Regularly update your course materials to keep them fresh and relevant. Email your list consistently with value, not just “BUY MY STUFF” messages.
Create content that drives organic traffic to your course landing page. And don’t forget the power of student success stories—nothing sells a course like transformation.
Also, if all else fails, you can always try interpretive dance on TikTok explaining the benefits of your course. The internet loves that kind of thing, and it might just help market your online course to a whole new audience!
Q: What’s better for profitability: a higher-priced premium course or multiple lower-priced courses?
A: It’s the classic “one expensive diamond or a bag of cheaper gems” question! Both strategies can work, but they attract different buyers and require different approaches.
Premium courses (higher price point) generally need more comprehensive content, higher production value, and often include personal access to you.
They convert at lower rates but bring higher revenue per sale and often attract more serious students. Lower-priced courses reach more people, convert better, and can create an excellent “stairway” of products.
Many successful course creators offer both—a free mini-course to attract people, a moderate “starter” course, and a premium “all-access” option.
The smartest approach is often creating an ascending value ladder where each course leads naturally to the next. This way, you can capture different segments of your market and maximize your revenue while students progress through your curriculum like they’re playing a very educational video game!
Q: How do I determine the value of my online course to price it correctly?
A: Figuring out your course’s value is like trying to put a price tag on happiness—tricky but doable! First, calculate the tangible outcomes: Will your course help people make money? Save time? Get a better job?
Then consider the transformation you’re offering—are you teaching a nice-to-have skill or a life-changing methodology? Next, factor in alternatives: What would it cost someone to learn this through college, personal coaching, or figuring it out themselves through painful trial and error?
Also consider your unique approach, personality, and community aspects. Remember that the price of your course should reflect its value, not just the hours of video content. If your course helps someone earn an extra $50,000 a year, charging $997 suddenly seems like a bargain! Just be honest with yourself—if your course teaches people how to make basic paper airplanes, maybe don’t price it the same as a course on how to build and fly actual airplanes.
Q: When is the right time to create and sell an online course?
A: The perfect time to create your course is somewhere between “as soon as you know something worth teaching” and “before the heat death of the universe.” You don’t need to be the world’s foremost expert—you just need to be a few steps ahead of your students. Many aspiring course creators get stuck in “preparation purgatory,” constantly researching and never launching. Here’s the truth: your first course won’t be perfect, and that’s okay! Start with what you know, get feedback, and improve. The online learning landscape is constantly evolving, so waiting for the “perfect moment” is like waiting for all traffic lights to be green simultaneously across the city. The best time was probably yesterday, the second best time is today, and the worst time is “someday.” Besides, nothing motivates you to become an expert quite like knowing paying students are counting on you to deliver the goods!