How to Price Your Digital Products
A couple of emails back, some tribe members requested that we give you guys a guide on how to price digital courses and products. Well our team has created a quick and dirty guide on how to do so below.
If this was helpful could you do us a favor and reply below, “YES!”
If not, could you reply below this blog and tell us why not?
Thanks in advance Bold Babe!
Workbooks, Guides, and Presentation Replays
Any digital item that falls under this category should be priced no more than double digits. These are by design your introductory offers and should serve a clear purpose outside of just revenue.
For example, our startup guides are only $7 but at the end of each guide there is a survey that asks readers to give us a review online. This in turn helps out with our SEO efforts, gives our research and development department content to study, and everyone a general idea if the tool is useful. This is especially important to us because we audit and revise our digital tools on a quarterly basis.
How to know if you need to expand into double digits?
Generally if the materials meet the following criteria it’s okay to price in the double digits.
- Reading materials exceed one hour in length
- There is more than one promised result or reward ex. workbook promises to teach you social media and includes a bulk scheduling calendar
Rule of Thumb: $ - $$
Digital Tools, Templates, and OTP Software
These particular digital tools provide customers with the convenience of time or money saved and therefore should be marked at a higher price to reflect that. They don’t however provide any human interaction so they shouldn’t be priced in the triple digits either. In general when selling directly online it's difficult to sell any item that exceeds a $$$ price tag. Let’s dive deeper into that, unless you have an established funnel for your high ticket item, it will be really hard for a potential customer to just buy from seeing your online. You’ll need to convince them with a detailed sales funnel if your item falls in this price range.
Let’s talk about how to price items in this category because there’s a long way from $10 to $99. Generally the same rules apply to the items in the introductory category.
- Items that promise more than one reward should be priced higher
- Materials that take longer to get through, have more elevated thinking, and longer descriptors should also be on the higher end of the scale
Rule of Thumb: $$
Courses, Certifications, and Online Group Consulting
These digital products should be your highest ticket items for the following reasons
- They include a human touchpoint: The customer gets to interact with you and/or your team
- They include more than 2 promises or rewards
- They may include a guarantee
- The total cost must not exceed the average rate of completion x the average public community college credit hour
The last stipulation is so important because we want to make sure that we are placing our educational programs at the same market rate of traditional continuing education programs. Which is exactly what your course or certificate program will become.
Note: According to EducationData.org, the average cost per credit hour for in-district students at any public, 2-year institution or community college is $127.
Rule of Thumb: $$$ - *$$$$+
*With Sales Funnel in Place
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