How to Price Your Online Classes
One of the biggest struggles we hear over and over from our new Namastream teachers is “How do I price my first product or service online?” As an entrepreneur and small business owner, it is vital that you get comfortable charging what you’re worth -- anything less than that is a disservice to your teaching (and a serious blow to your new business).
Pricing shouldn’t be an uncomfortable discussion you have with your community. If you provide value, your clients will be thankful to pay you fairly for your work.
In this blog post, we share the four steps you’ll need to take to establish the perfect price for your online classes and programs. If you’re feeling hesitant about launching your online business, these steps will help you gain clarification on what you can create, and subsequently, what you should charge for your initial offering. Thinking carefully about pricing may feel uneasy at first, but it will allow you to grow your business in new and exciting ways!
Step 1: Embrace Your Value
The number one problem we see when new teachers price their online classes is that they undervalue themselves. We cannot stress this point enough. Your are a teacher that has a gift and, in all likelihood, years of training and education under your belt. Your students know this. They feel a strong connection to you. They look to you for guidance. Do not aim to be the cheapest game in town. Instead, aim to be the best at what you do in your niche market.
If you have not already read The Secret of Teaching Yoga Online and The Cold, Hard Truth: Why You Aren’t Making Money Teaching Online (And How to Fix It) in their entirety, please do so now.
It is up to you to make this mindset shift.
Welcome back, woah, doesn’t that feel better, give yourself a big hug! #selflove
If you are still shaky on your value, reach out to your community. Be open and honest. Ask your students or clients what they love about your classes or coaching sessions. What kind of teaching has your impact had in their life. It might be something tangible like mobility, increased strength, less stress, or something intangible, like emotional connection, or sense of belonging. After having a few of these conversations with your students or clients, you will begin to know your value.
Step 2: Be the Solution to a Need
Now that you’ve established your value as a teacher, trainer, or coach, it is important to determine the value of your online classes or programs. We created both the Namastream software platform and the Soulful MBA training community as solutions to the expressed needs of our community. Listen to your community, ask them questions, dig deep. Try to learn what their goals and motivations are. What is that driving force that is making them want to pay for your online classes or program?
If you are a personal trainer, do your clients have set goals that they want to reach? A stronger core or upper body? Or are they interested in learning how to prepare for a fitness competition? Maybe as a yoga teacher, your students are motivated to improve their flexibility? Or is it that they just want to carve out 30 minutes a day for themselves (amongst the chaos of life). Do your health coaching clients want to learn how to develop a healthier eating plan?
Can you put a dollar figure on this goal? How much is a strong core or qualifying for that fitness competition worth? What is the value your quintessential client places on improved flexibility or that 30 minutes of “me-time” each morning? Wellness is a big motivator -- it might be hard to attach a monetary value to the benefit for your online class -- but could your students recognize the wellness benefit they would gain from your course?
If you are having a tough time drawing out some of the benefits of your online teaching, read this post both from your perspective and from the perspective of one of your students: The Truth about Teaching Yoga Online Instead of in a Studio.
Knowing the exact concerns, motivations, and goals of your community means you can create the perfect solutions. You need to know that what you are about to create is something that people want and will pay for. And knowing this, you can price your online classes to align with their goals and motivation.
Step 3: Investment or Expense?
As you learn more about what is motivating your students and clients, you can then start to present your online classes and programs as the solution to their goals. A simple mindset shift needs to happen here. Your online classes and offerings are an investment for your students. Build your pricing around what they will gain from your online classes. Your teachings are an investment in reaching their goals and motivations. Framing your pricing this way will transform not just your pricing structure, but also how you communicate and support your community.
Still not sure how to position your online classes as an investment rather than just another expense? Check out Breaking the Time Barrier: How to Unlock Your True Earning Potential. This free ebook is a game-changer. Pay close attention to the story of “Tara, the dog walker.” Tara positioned her service as an investment for the happiness of her client’s whole family. There are synergies here that you can apply as a wellness entrepreneur.
Step 4: One Price Doesn’t Fit All
You know your value.You know the motivations and goals of your community. You know how your online classes and training programs can help your students and community. You should now have a better idea of what you can charge for your offering. All through this process, you have communicated with your community and that continues here. (Honestly, it should continue as long as you have a business.) Offer your students a choice. Create multiple price points. Test. Refine. Repeat.
One strategy that has worked well for some of our teachers is to provide multiple pricing options and package configurations for each product. If you choose membership pricing, you could have different tiers at different price points. For your monthly membership, for example, you could offer an option that consists of only your online classes, as well as a second premium option, which includes a weekly live-stream private class with you in addition to your video-based membership. If you offer an annual membership plan, maybe you include a bonus if the student pays in full.
You don’t need to spend a lot of time creating more and more content just to have additional products for sale in your online shop. Two to three options is the sweet-spot when it comes to making sales online. Give your students a choice, but don’t overwhelm them with too many options.
By following these four steps, you will start to learn how to price your online classes and gain confidence that what you are putting out into the universe has the perceived value it deserves.