MBA2062 How to Price Your Online Course + Free Ride Friday

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Visit Dell.com deals. Hey O welcome to the $100 MBA Show. Helping you overcome business's biggest challenges every single day with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of Webinar Ninja and an independent software company. I started with my co founder back in 2014 and today is Free Ride Friday. On Free Ride Fridays we give away a lifetime membership to one of our programs. This week we're giving away easy course, our 30 day course on how to build your own online course. It retails for $500 over at EasyCourse Co or you can win it for free. Just leave us an Apple podcast rating and review and you enter our weekly random draw we call Free Ride Friday. Just listen in on Friday, just like today to see if you won. It's that easy. In today's lesson, you will learn how to price your online course. This is one of the biggest challenges many creators and coaches have. They have an idea for a great course they want to deliver. They know their audience is hungry for it, but they're not really sure how to price it. They worry if they price it too low, they are leaving money on the table. They price it too high, then not enough people will buy. Sound familiar? Well in today's episode I'm going to break down exactly how to price your online course. I hear so many people give advice like it depends on the market, depends on your audience, depends on what kind of course it is. I'm not going to give you an it depends answer. I'm going to give you an actual formula you can follow and apply for your own online course. I'll be sharing some unpopular opinions, but most of all, I'm going to show you what really matters when it comes to pricing and packaging your course and what really moves the needle. What actually generates sales. The answer might surprise you. So let's get into it. Let's get down to business. Gas, snacks, tolls. This trip is draining my wallet.

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I'm gonna start today's lesson on how to price your online course with a statement that many coaches and creators need to hear. Your course price has no relation to the length of the course, how many videos, how many bonuses you give, how many handouts or worksheets, how many hours. It doesn't matter if your course is four hours. It doesn't matter if your course is 40 hours. It doesn't matter if it has an online or a Facebook group or anything that would be considered a value add or feature. If your course is longer, it doesn't necessarily mean it should be more expensive than if it was shorter. The price of your course is all based on the result on what the actual student is going to be able to do by the end of the course. What are they going to get? What's in it for them? And the best way to illustrate this is to take a look at a university degree. Why do people pay over $100,000 or go into debt for over $100,000 to get a bachelor's degree? Why do they spend so much money? Is it the amount of content that they consume in four years? No, I can give you more content that is probably more valuable to the marketplace or to your sk@lynda.com or on Udemy and pay a fraction of that price. So it's not about the number of sessions or the number of lectures or the amount of content. The end of the day. Why do people pay 100 grand for a bachelor's degree? Because they see an ROI at the end. They say, if I have a degree, I can get a job that can allow me to make money. They see it as an investment. And this is how you should position your online course as an investment. People are investing in themselves to get a result so that they can reap the benefits of that investment. And this is applicable to any topic. It doesn't matter if your course is on cooking or how to ice skate or learning a new language or whatever it is. Everybody takes some sort of course to get a return on investment, even if it's for fun, meaning the topic or the area that they're learning. For example, if I decided to learn the piano, why would I take a course on learning how to play the piano? Because I want to create music. I want to experience what it's like to play my favorite songs. There is a return on investment for me to learn the piano. I get to have that fun, have that enjoyment. There's a guy I just discovered in Australia who teaches people how to create their own tiny homes. People take his course because this guy has done it so many times and want to learn for the best and want to make their life a little easier with they're building their own tiny home. They see it as, hey, I'm going to save money and time and effort and get a shortcut to the result I want building my own tiny home. So this is where we start when it comes to pricing, you need to fully understand what are you giving your customer, what are they going to get by the end of the course? What are they going to be able to do? You need to be able to articulate this clearly. You need to be able to write this down to actually answer this question in a sentence or two. For example, I created a course called the Automated Webinar Challenge. On its surface, I could say, you know, this course teaches people how to create their own automated webinar. But really what they're getting is getting a system to be able to generate leads and passive sales on Autopilot. They're setting up something that will serve their business and allow them to grow. That's why they buy the course. For that result, the automated webinar that they create through the course is just a means to in the end, and the course allows them to get to that end. So make sure you understand clearly what your course actually gives your customers. Once you've done that, it's going to be super simple for you to put a price or course because now you're going to implement what's called the 10x rule. The 10x rule is something that I invented and it's a great rule of thumb. You want to be able to provide 10x value. What do I mean by 10x value? Well, let's go back to that university degree example. I have found that people are willing to pay for any kind of training from a one day workshop to a full bachelor's degree if they get 10x value. At least 10x value, meaning if the result they're going to get from the training is 10 times as much as the price of the training, they will buy. As long as that's clear to them, it's a no brainer. When you get to the 10x point, the buyer has no other conclusion to draw than I have to buy this. This is a no brainer. So with a university degree, most people stay in a career in about 10 years before they decide to switch or try something else. But 10 years is kind of like the minimum on average if somebody's going to have a college degree. Of course it depends on what that degree is in. But on average they're going to make 100k a year. They paid 100k for the degree on the high end if they went to a very fancy and they're going to be in this career for 10 years and that degree enabled them to get a hundred K paying job. So there you go, there's the math. Let's take a look at your own online course. What is the result and is it worth 10x the price? Let me give you an example. There's a snowboarding course that I checked out called Snowboarding Addiction and they had a course back in the day for $100. And the way they conveyed the value, and this is the, the second part of today's lesson, it's not enough to know that you have 10x value, but you have to convey that value. We're going to get to that in a second. But it was $100 for the course. But the way they conveyed the value was the average ski trip or snowboarding trip is going to cost you $2,000. They kind of gave you a tally like you're going to go snowboarding for three or four days. This is the Lyft tickets price, this is how much it's going to cost you. For transport. This is how much it's going to cost you for the hotels, for the rental of the equ, all that kind of stuff. And they said all of that money would be a waste of money and time. You'd waste $2,000 on this trip if you didn't have fun, if you had a hard time picking up snowboarding, if you injured yourself, if you simply couldn't progress enough to have a good time. So it was positioned like, hey, pay 100 bucks and you'll get a lot more value out of your actual and not only that, but all the other snowboarding trips you'll take in the future. So snowboard addiction really conveyed the value here and used the 10x rule even more.

20X.

The 10x rule is a minimum. And that leads me to you need to convey the value. Most people, when they sell their online course, they talk about things like how many modules and how many videos and how many handouts and that's okay and all. But what does that actually mean for the actual course student? If you ask me, I would actually prefer a course that gets me a result in less time with less videos. Brevity is a luxury. So if you don't really emphasize those things, what do you emphasize?

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Well, you need to convey value so that your price does indeed look like a great deal. A no brainer. And the 10x rule is in effect. So if you don't really emphasize the features and the modules and the number of lessons, what do you emphasize? Well, it's very simple. You're going to use the acronym pas. That's P A S P stands for pain. You're going to make sure you emphasize the pain and describe it clearly that your audience is going through. The snowboarding example. The potential beginner student is worried about looking like a fool in front of their friends, falling off the lift, not enjoying themselves, injuring themselves, just having a horrible time. Now the second letter of the acronym is A, which stands for aggravate. You have to aggravate the pain. It's not enough for you to state the pain, but you got to really describe what this actually means. So, for example, I'm not just going to say you're worried about looking like a fool in front of your friends. I'm going to really dig into that and say, what does that really mean in actuality, in the actual moment, in the experience? Wouldn't you want to bypass feeling guilty that some of your friends are like, waiting up for you as they go down the hill and they're not enjoying themselves or all the Instagram photos that they take on the trip? You're on the floor. Or you start questioning why you went on this trip in the first place. You see what I'm doing here. I'm really aggravating. And really what I'm doing is I'm painting the picture of reality. This is what's going to happen. We got PA and what's S stand for? Well, it stands for solution. And solution is really the after picture. What is the picture of them? What's the future of them after they take the course? They're riding along smoothly with their friends, safely and at their own pace. You're having fun and enjoying a new skill. You just found a new way to make friends in a whole new world. You're looking amazing on Instagram as you're carving up the mountain. That's what they're buying. They're not buying the course, they're buying what the course will get them. There you have it, guys. Use the tips and lessons I shared with you today to price your online course. Get clear on what the result your customer is going to have, your students going to have break it down and make sure that you are giving 10x value. Once you know what the actual value you're giving them, then you can just divide by 10 and there is your price. This will ensure that you're charging a reasonable price but at the same time a price that makes people say, hell yeah. This is a no brainer. Thanks so much for listening to the $100 NBA Heat show. Today's episode's not over though. It's Free Ride Friday. Let's see who won this week's Free Ride and the winner is Doc Ahmed. Doc Ahmad is all the way from Nigeria giving in a review. All killer, no filler, five stars. Omar is super generous in everything he does and his podcast is no exception. Thanks so much Dagamed for that amazing review. Really appreciate it. It's because of listeners like you that we record and publish every single episode, every single day. You are our Free Ride Friday winner. Your mission is to email me over at Omar100- MBA net so you can redeem your free ride, a $500 value. Our course Easy Course over at EasyCourse co. If you want to win a free ride, just write in a rating and review on Apple Podcasts. It's that simple. You enter a weekly random draw and you are part of the draw until you win. It's that easy. Just listen out on Friday to see if you won. Thanks so much for listening to the show. Before I go, I want to leave you with this. We're heading into the weekend and I want to give you a quick tip. On Sunday evening or Sunday afternoon, do something that inspires you, that motivates you, that sets you up for the whole week to feel. I want to go after it. Like you want to really make it happen. It could be picking up your favorite book. It could be watching a movie that inspires you. It could be reading a few tweets from one of your favorite entrepreneurs. But you need to take ownership of your own inspiration. Don't let it just hit you randomly. Thanks so much for listening and I'll check you in Monday's episode. I'll see you then. Take care. Of.

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