 How much to charge for your digital course? Okay, so you've done a digital course and you're like, I want to make money, but I don't know what to charge. Do I charge a flat amount? Do I charge $1,000? Do I charge $100? Do I charge $19 a month or $497 a month? I don't know. Are you in that position when you've come to the right video? Because in this video, I'm going to show you empirical data proof of what you should be charging for your course so that you get more sales and make more money. And we're starting right now. Hey, I'm JR Fisher. Thank you so much for watching this video. In this video, it's going to make you money if you use it properly because I came across some data and this particular data was done by Lin Markiden. And what he did is he actually looked at 133,000 courses and broke them all down, looked at all the data and figured out the best price to charge for courses. And you can apply this to your course, make more money and get more sales. So I've been selling online since 2009. I've sold millions of dollars of both digital and physical products. I've learned some stuff along the way and this channel is really based on that. It's based on you guys learning what to do and how to do it to make money online. That's it. So this is essentially your channel. This is not my channel because without you, there would be no channel. So I would really appreciate it if you put any comments below, any questions you may have, anything you need help with, I'll be happy to help you. Don't forget to like and subscribe. There's a big subscribe button there. When you hit the subscribe button, it's going to be a bell that's going to pop up like that. You got to ring the bell. You got to turn on all notifications that way you're part of the Fisher family. And I can notify you every time I do a video or every time I go live, which is pretty cool stuff. So make sure you do that. Now this pricing thing is so very important. And some people will say, well, I don't only want to charge $27 for my course because if I only charge $27, let's say it's a monthly fee, $27 monthly fee, I'm not making much money. And I put three months into making my course. But I want you to think about this. If you're charging $27 and 10,000 people buy your course, well, that's a lot of money. That's $270,000 that you're taking in every single month. But if you price your course at $997 and only three people buy it, then you aren't making any money. So it's not really the pricing. It is the actual science and the research behind it. That's what I want to go over in this video. Now the research on these courses starts at $5 per course and goes up to about $1,400. And I want to share with you all the data that he came up with. And you can use this to figure out what to sell your course for. This is actually based on 448 unique products out of 132,000 sales. So let's check it out. Okay, as you can see by this chart right here, the overwhelming majority of the courses fell within the $5 to $50 range. That's where the majority of the courses range are. The course prices began to whittle down as we moved higher up into the high price ranges. So here's the top five most prolific categories. $5 to $50, there was 175 or 39% of the courses. $50 and a penny to 100, there were 84 or almost 19% of the courses. And then we got $100 and a penny to 150, there were 34 or about 7.6 of the courses. And then $150, $200, $30 or 6.7, and then $200 and a penny to 250, there were 22 or 4.91% of the courses. Now, after that was looked at, the extreme outliers were also looked at in that data set. For the purpose of this research, what he did is he figured the extreme outliers are ones that are not really representative of the majority of them. So anything that was more than $99 from nearest data point was assumed to be an extreme outlier. And some of this was removed, one course was $1,500. That was not used because the closest data source to that was $1,395. So that was just kicked out altogether. All right, so let's look at some of the numbers here. We've got the average sales price for courses in the data set was $182.59. Now, that's consistent with the earlier case studies where the average was $199.99, okay? So that's pretty close to that. That hasn't changed much over the years. Now let's check this out. We're gonna check out mode, range, median and mean. The mode is the value that appears most often in a data set. The range is the difference between the lowest value and the highest value. And the median is the middle number in a list of numbers ordered from lowest to highest. And the mean is the total of all the values divided by the number of the value. So now that we've got that technical stuff out of the way, let's get into the numbers. Now, in this case here, our median is $76.50. So does that tell us anything and how far is it from the actual average? To understand, we actually gotta look at a whole lot more statistics within here. So the first thing we wanna look at is the central tendency or the standard deviation of our particular data. This information will give us an idea of how closely distributed our data points are. In other words, what the core sales prices are and how they correlate to another. It's phenomenally high, I will tell you that. It was 239.86 to be exact. Now, as you can see on the screen here now, you've got your bell curve, your standard deviation. And you can see what that is. And this model, 99.7% of the data falls within three standard deviations of the mean, which is the average. Well, 95% falls within two standard deviations. And I promise you, it's not gonna get any more complicated than this, but you have to understand those principles first. Okay, so here is the standard deviation chart here. So this is all very, very fancy. I know all that stuff, data is so fun and different. But although the average may not be a bad idea as a place to start, it fails to convey just how widespread the data is. So even though you say, well, an average core sells for this, that doesn't mean it really is representative of what you should charge for your course. So at an average price of 182.59, that doesn't really give you the statistical knowledge to price your course. You don't wanna say, well, that's the average price for course, that's when we charge for mine. We as course creators have to start thinking about how that price is gonna affect our bottom line. Obviously, when we go up in price, fewer people buy it, and when you go down in price, you tend to have more people buy it. But that's not always true. If you have a course that should be a $500 course and you're charging $7 for it, some people will think it has no value. So it's not always a direct correlation. So here's the product demand matrix right here. And what you wanna do is you wanna position your product idea in the appropriate box and avoid any idea that falls into labor of love. So as we see in the top right here, we've got high end, high price, few customers Rolls Royce, that's what that is. Next one we have is the Gold Goose, high price, many customer, that's like an Apple iPhone, something along those lines. Next one is mass market, low price, many customers, something like McDonald's. And then the labor of love is low price, few customers, unprofitable idea. We try not to be in that particular one, okay? If you start off pricing your course in the 50 to $100 range, your product will fall into the mass market category, okay, if that's where you wanna be. You may or may not wanna be that way with your product. If you wanna aim higher and try to hit that golden goose type thing, you're gonna be falling into the $100 to $150 range. When you put your course at a higher price, let's say $9.97, that's gonna reduce the number of people that's buying it, but it also puts you into another more dangerous area and that is the piracy area. When you start charging a lot for a course, you're gonna find people are gonna try to steal your content. I know I've had this done to me, they've posted it on the web, and you have to go chase all that stuff down. So you wanna keep away from that. Now, if you price it too low to where everybody can buy it and everybody wants to buy it, you may lose money on just customer support alone if you've offered them customer support. So let's take a look at this picture right here. It says sales in this scenario here, 28 customers sound good, but how much of the profits will you lose if you have to provide after purchase support for those customers, okay? So you got 28 customers at $29 per customer, it's $812. You've also got 28 potential support tickets, okay? So what's a solid place to start then? Begin with the following questions. How much did the course cost you to create? And if you say, well, it was just my time, so there's no cost to it, your time has value. Everybody's time has some value. It's from minimum wage on up to whatever, but bottom line, everybody's time has value. You also gotta look at what your budget and overhead is. What do you have to sell to cover those fixed expenses? And we all have them, whether it's just electricity in our laptop or whatever it is, we all have those expenses. So here's the basic formula, net income over total revenue equals profit of margin, okay? So we all have that profit of margin. So here is an example right here, plan and write a novel in 90 days or less. Let's say he sells 12 courses for a revenue of $804. That's 12 times 67 bucks. That's what his sell for. So right there on the screen. The cost to produce the course, including his time and materials was $120. Since he only had to make the course once, we subtract his one time expenditure from his total revenue to get his gross profit. So we've got the $804 minus the 120, which gives you $684 gross profit. Now, if you add in a marketing budget, let's assume he spent 75 bucks to market to those customers. You take that $75 out of his gross profit and that gives him $609 before taxes. Adding taxes into the mix rate at say 10%, which we know that's lower than most states, gives us a net income of $584.10. So his profit margin calculation would look something like this, which is on the screen now. You've got that 804 on the bottom there, 584.10 on the top. So you've got 0.73. So you convert this to a percentage by multiplying 10 and you get a very nice profit of 73%. That's not bad at all. So here's an example of online coaching right here. You've got your price, your high price, okay? You've got your high-end coaching. We know that's the highest price on the top left there. Then you got your unicorn right there. Then you got your mass market. Then you got your passion project, not good. We don't wanna be in that box. And this is the same as the numbers I showed you on the other ones. Here's another chart I want you to check out here. It's based on the analysis of 101 startup host mortems, okay, ones that died, okay? These are the top 20 reasons startups failed. Number one is there's no market need, okay? So whatever you're doing your course on, if there's no need for that course, if that course is how to set up a camera stand for your camera, there's not gonna be a lot of market for that, okay? Or how to turn on a light switch when you enter a room. That is not gonna be a big market situation. The next one here is ran out of cash, okay? This happens a lot. That's 29% of the businesses that went out were because they didn't have enough cash to sustain the business. The next one there is not the right team. Whoever you hire to work with you, work for you, can make or break your business. Super, super important. And that was 23%. And then the last one is competition beat them, 19%. They got outcompeted, okay? So you wanna look at all four of those as you start your business. I would suggest, now I would suggest you checking out your competition. I do this with pretty much any product I'm selling, whether it's a course or it's coaching or whatever. I look at who's out there. I look at what they're doing. I look at what they're charging. And then I see, can I do that better? Can I do that cheaper? Can I give more value? Can I do that? Now, if you're wondering how to find your competition, I would suggest using something like similar web. You can go to similar web, type in a website, you can type in a type of product or whatever, and you can find similar things out there. And it gives you the market intelligence solutions to win your market, they say. Once you've signed up for similar web, this picture here is an example of Old Navy. We stuck an Old Navy here. And you can tell everything they're doing. You can see their monthly visits. You can see their unique visitors, the average visit duration, all those types of things. So this gives you a good insight into this business if that was your competitor. Now this is the demo mode. So this one here is sites similar to Old Navy. And you can look at all the different ones there, but it's only gonna give you five results per website metric. Now the guy who started Video Fruit, this is a little return on investment for dollars spent. And when he built a list of interested people, he actually made $25,000 in profits. When he first started to market it, and if you look at the screen here now, he lost $1380 without a list and made $25,000 with a list. So building that list, that's pretty important. So to wrap all this up, we went over basically marketing your course for a price, but I want you to also look at continuity. I want you to look at charging monthly. So maybe you've got a course that you wanna sell for $997. Could you sell that course for $97 a month or $197 a month? And would you make more money? $197, obviously more people are gonna have the $997. And if you get more sales at $197 and they pay you two or three months, would you make more money? I have courses that are $397 a month, which is more of a membership. I have ones that are $197 a month. I have ones that are $27 a month. And that continuity is great. And I gotta tell you, my $27 a month ones, I get payments every single day on those. Those are really, really nice. And I have that constant income of $27. Now some people will make one or two payments and then they quit and that's okay. But some people will pay for a year, two years, three years, okay? And once you've built that up and it takes more time, but once you've built up those smaller payments, those $27 payments, it's a nice income. And there's a portion of those people that never quit. I don't know why, they just never quit. You can keep it fresh if you add videos. I don't add as much to mine as I should. I need to do that more, get on that a little bit more. But the point is that information's always there. And if it's that lower in price like that and they get some value out of it, they're gonna say, well, I didn't look at it last month, but maybe I will next month, it's only 27 bucks. So if you get enough people doing that, you're gonna make some money. And this can go for coaching, this can go for courses, this can go for tutorials, whatever you want. That monthly income is really, really nice. I highly suggest continuity. I really do. So I hope that gives you a better insight on how to price your course. You looked at some of the statistics, you saw some of the numbers, you know what averages are, you know what people are charging. But to that, don't forget, you've gotta add, who are your competitors? What are they charging? What are they giving? And I highly suggest finding two or three competitors that are really good and buying their course, buying what they do so you can see what they provide. If they're successful, that research is invaluable. I know I've done that with a lot of providers. I've bought a lot of courses and training so I could see what somebody was doing so I could do something similar. And I gotta tell you, every single one of them has made me money, every single one of them. So don't be afraid to invest a little bit of money to get that information. Cause you're gonna do one of two things. You're either gonna invest hours of your time trying to research all this stuff and trying to figure it out or just spend a little bit of money and buy their course and you get all that information. You get all their emails, you get all their sales pages, you get all their methods, all their guarantees, everything. It's like opening up their business to you and showing you what they do. So I highly suggest you do that. Don't copy anything, but it will give you a guide. It will give you a way to go about it and you can see what they're doing. I hope you enjoyed this video. I hope you got some value out of it. If you do and you like it, give me a thumbs up or thumbs down, tell me what you want. If you've got other questions, put those in the comments section below. If you've had some successes in this area, share that below. That will help a lot of people. Don't forget, I've got a $97 course that is below in the description. All you're gonna do is click and learn, cost you nothing. No credit card required. Check that out. Don't forget to subscribe if you haven't done so already. And when you do that, there's a bell. You gotta ring the bell, turn the bell on, turn on all notifications so that you get notified every single time I do a new video or I go live and you're in the front of the line and you'll be the first people there. Thank you so much for listening and I'll see you in the next one. Hey, thanks for watching my video. Don't forget to subscribe to my channel and click that little bell right here so you can be notified every time I do a new video. Also, click on one of those videos there. Keep watching on my channel.