#265 - The $997 Course Is Dead (Here's What's Replacing It)

Hey. Hey, lovely. And welcome back to the Doing It Online podcast. I'm your host, Kate McKibben, and today we're talking about something that I know a lot of you are feeling, but maybe haven't been able to put your finger on yet. That is the hard fact that the traditional DIY course model, it's dying. Now, before you panic, especially if you're one of my amazing clients who's currently building out a funnel or running a course and it's converting. Well, I'm not saying these are courses are stopping overnight. I'm not saying there's zero future for them. And I'm definitely not saying that if you currently have a funnel that's working, it's just going to stop tomorrow. That's not what this is about. What I am saying is that things have shifted. They've gotten harder, progress has gotten slower. And if you're one of the people who are really feeling that, if it feels like you're running in mud, you're watching your conversion rate slip, you're feeling like you're working twice as hard for half the results, then this episode is for you. Because there is a solution, there's a pivot, and honestly, it's more profitable, more sustainable than what you're doing right now. And to be frank, more enjoyable too. So let me tell you what happened recently. Just a few weeks ago, I was at a retreat with some of my amazing peers, amazing high level coaches, and between us, we were currently coaching and helping out roughly a thousand coaches and course creators, like in our combined communities and programs. So we started comparing notes, we started troubleshooting together, trying to figure out what's going on, who's struggling, why, and what is the solution. And here's what became crystal clear. There is one specific segment of the market that's getting hit the hardest right now. Yes, a lot of people are seeing a slowdown, but some are seeing it much worse than others. And honestly, it looks like it's only going to get worse for them from here. Now, I'm not here to BS anyone or to scare you for no reason, but I am here to have a really frank conversation about what I'm saying and more importantly, what I'm saying. The solution is because I really believe that there is a solution and now is the time to act on it. So I'm going to be deep diving into this over the next few episodes because otherwise we'd be here all day. But let's begin. Let's start at the start.

Okay, so what's the group I'm talking about, these are the ones struggling the most and they are the businesses that are course creators. And their entire bread and butter relies on selling those mid priced DIY style online courses. Think anyone, anywhere from you know, the 300 mark up to $2,000 per course, you know, that real traditional like 4812 module program with maybe a Facebook group, lots of videos, lots of PDFs, but nothing beyond that. And the other caveat, it's not just them, but it's they have that kind of course, that's the main thing they sell, the main thing they make their money from. And they also don't have either a gigantic organic following which is feeding them like endless free leads, or they don't have that. Well, they haven't been able to manage to get that real unicorn of a Facebook ads setup that's bringing in cheap, high volume quality leads at scale. So now don't get me wrong, there are people out there who do have these advantages. They've got the big Instagram following or the YouTube channel pulling in, you know, 50,000 views per video, or they've cracked the code on ads and they're still working at scale. And if that is you for now, great, that is wonderful. But most people, most people don't have an endless supply of free or cheap leads. And, and even those that do have, they've got good volume, they're finding that things are down, that conversion rates are slipping, sales are slower. The whole model, it's just harder. Right? I think we can all admit that. So let me really be really, really clear. Courses aren't the problem. The problem is that the business model that's being used so far, that's been built around them, it's leaky and it's sinking. Because moving forward, if you want to grow and succeed in the coming years, which I'm sure you do, if want the kind of scale and longevity I know that you are capable of, there's going to have to be a shift. Courses are going to start to play a different role in your business and that's actually a good thing if you understand it and you know how to pivot. So why is this happening? Why is a DIY course model struggling? I've got one word for you. Well, actually two letters, AI. Now hear me out. This isn't some dramatic robots are taking over rant. I'll save that for another time. But let's be real about what has changed and will continue to change. So previously you were competing with Google searches. So if someone wanted to learn how to run Facebook ads or how to meal prep for a family, or how to set up their Kajabi site. What would they do? They'd Google it, right? Or they'd watch a YouTube video here, read a blog post there. They'd basically just cobble together some fragmented information. And sure, some people were totally fine doing that, but a huge portion of the population, they really just wanted someone to put it in order for them, someone that they could trust. And they just wanted it to make sense. They wanted it to be easy to follow. They wanted to know if they followed these steps, they were likely to get the outcome right. And that's where you came in. You were the one who organized the information, who filtered out the bullshit and gave them the good stuff. You created the step by step framework, you made it digestible. And people were happy to $1,000 or more for that convenience. But now, now they've got ChatGPT. And ChatGPT doesn't just give them fragmented Google results. It gives them a customized tailored plan in less than a second. It answers their questions in real time. And they don't have to wait, you know, every seven days for a new module to unlock. Plus, they're not paying a thousand bucks for the privilege of just having this information filtered and organized. They just ask and it delivers in two seconds or less. Now, yes, some of what it says isn't true. AI hallucinates, it makes mistakes. But here's the thing. For most people, the benefits outweigh the risks. The speed, the customization, the instant feedback that is massive. And that's why we're seeing such a huge impact on the real DIY style. Information only courses, the ones with a value, was primarily in organizing and delivering of knowledge. So what happens next? Now, before I go into the solution, I want to speak directly to those of you who are seeing good results right now. Maybe your funnel is converting beautifully. I know lots of people who are. Maybe your evergreen system is bringing in consistent sales. Maybe one of my amazing clients in a hundred K club or empire. And you're like, hey, I just set this up and you're telling me it's going to stop working? No, that's not what I'm saying. The funnels you're building, they're still going to work. The system you're putting in place, they're still solid. Automation is still the way to sell. But what I am saying is if you want longevity, if you want to scale past where you are now and keep growing for the next five, 10 years, you need to start thinking about adding another layer to your business model. The funnel stay, the automation stays. The way we sell doesn't have to change, but what you're selling, that's where the opportunity is and that's what we're talking about here. So if you're feeling the squeeze right now, this is your roadmap. And if you're not feeling it yet, this is your future proofing. Okay? So let's dive in. All right, now here's the good news. Courses, while they may be on cpr, they're not dead. In fact, they're about to come back to life and evolve. So we are entering a new era. And if you play this right, there's actually more opportunity here than before. So let me break down the two big shifts I'm seeing and where the smart money is moving. Shift number one is courses are no longer your bread and butter. They are now your gateway. So first of all, first thing you need to do is you need to stop and rethink. Where your online course starts sits inside your office suite. So for people who have higher price programs, whether that's masterminds or even one on ones, your course should become the entry level option, the gateway, the taste tester. For people who aren't ready to make a big investment yet, but they want to experience your frameworks, your thought leadership, your methodology, they maybe need a little extra experience, a little bit of something there to help them to build that trust before they make that next step, that bigger investment. Think of it like this. It's the $97 to $497 product that says, here's how I think, here's my process. If you love this, imagine what we can do together in my higher touch programs. That's what your course becomes. But here's the catch. That's not where your profit comes from anymore. It's now a lead generator. It's a trust builder. It's not your main revenue driver. Not unless you're, as I said, you had those other two things, like a massive source of free or cheap leads. Which brings me to the second shift. High touch programs. High touch group programs are the new opportunity. They are the new gold mine. This is where the pivot is. A lot of people, they created their online courses, right, because they wanted leverage. They didn't want a calendar full of one on ones or sales calls. They wanted to work with more people without burning out. And I totally get that. And here's what I'm seeing work incredibly well right now. Taking your online courses or Even your coaching programs, if you don't have a course yet, taking your framework, your methodology and pivoting it into a more hands on group program. Not a massive group, not a thousand people in a Facebook group with zero support, but a high touch, results driven group experience that's designed strategically to be easy to sell and get people even better results. And inside you're guiding people through your process in real time, providing that extra layer of value of support and of the stuff that I cannot compete with, this is where you get to work with fewer people, slightly fewer. It's not like going from, you know, from high volume down to one on one. It's kind of like the happy medium, slightly fewer people, but with way more profit. You still have leverage because you're not doing one on ones. You deliver better results because you're there to course correct, to troubleshoot and support. And you're building a community and experience that AI can't touch. Because here's the thing, AI can give them the information, but it can't give them accountability. It can give them strategy, but it can't give them that gut feel, that real world experience that helps you customize and tailor things specific to them. It can't give them a community of peers going through the same thing. It can't give them that real human connection. And as we get more and more AI, I believe I'm already seeing it that people are going to start craving that more and more as well, because that is what people are willing to pay for now. So instead of a traditional DIY course that competes with ChatGPT, you've now got a 2,000, 3,000 to even $10,000 group program that delivers the kinds of transformation, the kinds of connection and community that AI can't touch. So let me paint the picture of what this new model looks like. You've got your low ticket course, let's say between, you know, $97 or 4, 9 7, it's automated, it's evergreen, it introduces people to your world and it warms them up. Then you've got your high touch group program, 3,000, 5,000, maybe even 10,000 depending on your niche. This is where people get live support, community, real time feedback and accountability. And this is where the real transformation happens. And for some of you, you might also have one on ones or a mastermind at the top tier for your VIPs. That is your new office suite. And honestly, it's more profitable, it's more sustainable and it's way more fulfilling to run. This is the office suite I have been running since 2019. And because you're not just throwing information at people and hoping they figure it out, you're actually with them as they implement. You're seeing the wins happen in real time. And here's the best part. You're still using funnels to sell it. You're still automating the sales process. You're still doing it the hello, funnels way. You're just adding that higher touch layer where the real money and the real transformation is. So here's the bottom line. The traditional DIY course model, it's struggling and it's going to keep getting harder, but that doesn't mean you're on the way out. It just means it's time to evolve. So over the next few episodes, I'm going to be breaking down exactly how to make this pivot, how to structure a high touch group program so that it runs like clockwork, how to fill it, how to deliver it without burning out and still get people amazing results. Because this isn't just theory. This is what I'm seeing work right now for the smartest coaches and course creators in the game. And it's what's been working behind the scenes for my business for the last six plus years. So if you're ready to stop fighting an uphill battle and start building a business model that actually works in 2025 and beyond, stick around. This is going to be good. I'll see you in the next episode.