The Pricing Question That Keeps You Up at Night
I get this question more than any other.
"How much should I charge for my course?"
And I understand why it's so hard. Price too low, and you undervalue your work. Price too high, and nobody buys.
But here's what most creators get wrong: they think about pricing from their own perspective.
"What do I think this is worth?" "What would I pay for this?" "What feels comfortable?"
Those are the wrong questions.
Today, I'm going to teach you value-based pricing—a framework that focuses on what your course is worth to your STUDENTS.
The Three Pricing Approaches
There are three ways to think about pricing.
1. Cost-Based Pricing
"It took me 50 hours to create this, so I should charge X."
The problem: Your students don't care how long it took you. They care about the result.
2. Competition-Based Pricing
"Other courses on this topic cost $97, so I'll charge $97."
The problem: You're anchoring to competitors who may also be underpricing. And you're ignoring what makes YOUR course unique.
3. Value-Based Pricing
"This course helps students achieve [outcome]. What's that outcome worth to them?"
This is the right approach. Let me show you how to use it.
The Value-Based Pricing Framework
Here's the core principle:
Your price should be a fraction of the value your students receive.
If your course helps someone earn $10,000 more per year, charging $500 is a no-brainer for them.
If your course saves someone 200 hours of frustration, charging $200 means they're paying $1 per hour saved.
The key is understanding and articulating the value.
Step 1: Define the Transformation
What specific outcome does your course deliver?
Be concrete. Not "learn photography" but "take photos good enough to sell on stock sites."
Not "understand marketing" but "generate 10 qualified leads per month."
The more specific and measurable, the easier it is to price.
Step 2: Quantify the Value
What is that transformation worth in dollars?
For business/career courses:
- How much more money could they earn?
- How much time could they save?
- What's the cost of NOT solving this problem?
For hobby/personal courses:
- What would it cost to hire someone to do this for them?
- What have they already spent trying to solve this?
- What's the emotional value of the outcome?
Examples:
| Course | Transformation | Value | |--------|---------------|-------| | Freelance writing | Land first $2,000/month client | $24,000/year | | Email marketing | Generate 20 extra sales/month | $10,000/year | | Photography | Shoot own product photos (vs. hiring) | $3,000 saved | | Guitar lessons | Ability to play 10 songs (hobby value) | $500–1,000 in joy |
Step 3: Price at 10–20% of Value
A good rule of thumb: price at 10–20% of the quantifiable value.
$24,000 value → $2,400–4,800 price $3,000 value → $300–600 price $500 hobby value → $50–100 price
This creates a clear ROI for students. They think: "If I can pay $500 to gain $3,000 in skills, that's a no-brainer."
Price Anchors: The Psychology of "Expensive" and "Cheap"
Price exists in context. The same $297 course feels expensive OR cheap depending on what you compare it to.
Anchor Against Alternatives
What would they pay for alternative solutions?
- Hiring a professional: $5,000
- University course: $3,000
- 1:1 coaching: $200/hour x 10 hours = $2,000
- Your course: $497
Suddenly $497 seems like a bargain.
Include these comparisons on your sales page.
Anchor Against the Cost of Inaction
What does it cost to NOT solve this problem?
- Another year of frustration
- Continued missed opportunities
- Ongoing money left on the table
"You could keep struggling, or invest $297 once and solve this forever."
Common Price Points (And What They Signal)
$0–$49: Entry Level
- Introductory courses
- Lead magnets that happen to be paid
- Quick-win mini-courses
- Low perceived value (sometimes too low)
Signal to buyer: Low risk, low commitment, potentially low quality.
$97–$197: Mid-Range
- Solid mini-courses
- Focused, specific outcomes
- Self-paced, no live support
- Most popular price range for first-time creators
Signal to buyer: Serious enough to be valuable, accessible enough to try.
$297–$497: Premium
- Comprehensive courses
- Significant transformation
- May include community or limited support
- Requires clear value proposition
Signal to buyer: This is an investment. I'm committed if I buy.
$997–$2,997: High-Ticket
- Flagship programs
- Complete transformation
- Often includes coaching, community, or certification
- Requires strong trust and credibility
Signal to buyer: This is a serious commitment. Results better be serious too.
$5,000+: Ultra-Premium
- Cohort-based courses
- Extensive coaching and feedback
- Done-for-you elements
- Usually B2B or high-income audiences
Signal to buyer: This is a life-changing investment.
The Confidence Factor
Here's something nobody talks about.
You have to believe in your price.
If you price at $497 but secretly think it should be $97, that doubt shows. In your copy. In your sales calls. In everything.
Pick a price you can defend with conviction.
If you're not confident at $497, start at $297. Build success stories. Then raise the price.
When to Price Low
Lower prices make sense when:
- You're brand new (building testimonials and experience)
- Your audience has limited budgets
- Your course is very narrow in scope
- You're creating a "gateway" product to higher-ticket offers
- You want volume over profit per sale
When to Price High
Higher prices make sense when:
- You deliver significant, measurable ROI
- Your audience is professional or business-focused
- You include community, coaching, or support
- You have strong credibility and social proof
- You want fewer, more committed students
The Payment Plan Strategy
High prices don't have to mean high barriers.
Payment plans make premium courses accessible:
$497 one-time or 3 payments of $179
The payment plan total is often slightly higher (covering risk and administrative cost).
This expands your market while maintaining premium positioning.
Testing and Adjusting Your Price
You won't get pricing perfect on day one. That's okay.
How to Test
Option 1: Start lower, raise over time
Launch at $197. Build testimonials. Raise to $297. Build more testimonials. Raise to $497.
Each cohort of students provides proof for the next price increase.
Option 2: Discount from higher anchor
"Regular price: $497. Launch price: $297."
You test the lower price while anchoring to the higher value.
Option 3: Ask your audience
Survey potential buyers: "Would you invest $X to achieve [outcome]?"
Not perfect data, but directionally useful.
Signs You're Underpriced
- You sell out immediately (too easy)
- Almost no price objections
- Students don't take the course seriously
- High volume but low profit
Signs You're Overpriced
- Almost zero sales
- Lots of "I can't afford it" responses
- High-quality audience but no conversions
- Price is the only objection you hear
The Premium Pricing Mindset
I want to leave you with a mindset shift.
Low prices don't make you more accessible. They make you more forgettable.
When someone pays $49 for a course, they often don't complete it. The investment was too small to prioritize.
When someone pays $497, they show up. They do the work. They get results.
Higher prices, counterintuitively, lead to better student outcomes.
You're not doing students a favor by undercharging. You're making it easier for them to ignore what they bought.
The Pricing Formula
Here's a simple formula to start:
- Define transformation: What specific outcome does your course deliver?
- Quantify value: What's that outcome worth in money or time saved?
- Calculate 10-20%: Your price = 10-20% of that value
- Check comparisons: How does this compare to alternatives?
- Gut check: Can you defend this price with confidence?
Your One Small Win Today
Calculate the value of your course transformation.
Answer these questions:
- What outcome does my course deliver?
- What's that worth in dollars to my ideal student?
- What's 10% of that number?
That's your starting point for pricing.
Don't overthink it. Pick a number. You can always adjust later.
Next Step: Ready to attract students before they're ready to buy? Read The Lead Magnet Library—10 freebie ideas that naturally lead into paid enrollment.