I chatted to @RobinMWaite recently about:
// How to Position & Price Your Course //
Here is everything I learned π
// How to Position & Price Your Course //
Here is everything I learned π
1/ Start with setting a goal π―
how much money do you want in 12 months from your course?
if you have multiple revenue streams (courses, consulting, info products), consider each separately
different buyers have different price sensitivities
how much money do you want in 12 months from your course?
if you have multiple revenue streams (courses, consulting, info products), consider each separately
different buyers have different price sensitivities
2/ Figure out your capacity π₯
let's say your goal is $120,000
break down your total into monthly goals
then create scenarios for how to reach it:
$10,000 x 1 buyer
$1,000 x 10 buyers
$100 x 100 buyers
$10 x 1,000 buyers
let's say your goal is $120,000
break down your total into monthly goals
then create scenarios for how to reach it:
$10,000 x 1 buyer
$1,000 x 10 buyers
$100 x 100 buyers
$10 x 1,000 buyers
3/ The lower your price the more competition π
if your course is more expensive, and you can position it appropriately you don't need to play in an oversaturated market
if you want to sell low price, high volume, you're going to need paid acquisition (FB and GOOG ads)
if your course is more expensive, and you can position it appropriately you don't need to play in an oversaturated market
if you want to sell low price, high volume, you're going to need paid acquisition (FB and GOOG ads)
4/ Pricing bandwidth model π
4 steps to moving through the model:
1οΈβ£ from free to commodity - stack 'em high and sell 'em cheap
β’ typically self-paced
β’ no or little support from the creator or a community
β’ lots of competition (red line)
4 steps to moving through the model:
1οΈβ£ from free to commodity - stack 'em high and sell 'em cheap
β’ typically self-paced
β’ no or little support from the creator or a community
β’ lots of competition (red line)
2οΈβ£ from commodity to value
β’ value-by-the-hour creates poor incentives
β’ the time it takes becomes a feature
β’ scope alignment frequently diverges
β’ less competition
β’ value-by-the-hour creates poor incentives
β’ the time it takes becomes a feature
β’ scope alignment frequently diverges
β’ less competition
3οΈβ£ from value to outcomes
β’ promise (and deliver) on a transformation (outcome)
β’ if you sell results instead of features (and you can guarantee results) you can charge a lot more
β’ scope is very clear at the outset
β’ even less competition
β’ promise (and deliver) on a transformation (outcome)
β’ if you sell results instead of features (and you can guarantee results) you can charge a lot more
β’ scope is very clear at the outset
β’ even less competition
4οΈβ£ from outcomes to "gooroos"
β’ the least competition
β’ what you sell is inextricably woven with your personality
β’ your value proposition is a combination of your transformation plus how much people know, like and trust you
β’ the least competition
β’ what you sell is inextricably woven with your personality
β’ your value proposition is a combination of your transformation plus how much people know, like and trust you
https://twitter.com/Bazzaruto/status/1422695813273292800
5a/ How do you frame your outcome/result/transformation? πΌ
pick the biggest fires your student has
frame your value proposition around how you solve them
ask yourself what you have to do to guarantee a certain result
pick the biggest fires your student has
frame your value proposition around how you solve them
ask yourself what you have to do to guarantee a certain result
5b/ What else should I do to frame this well? πΌ
get as specific as possible with
β’ who it's for
β’ what benefit they will get
β’ when they can expect it
β’ how they can expect to get it
β’ how much this benefit could be worth
get as specific as possible with
β’ who it's for
β’ what benefit they will get
β’ when they can expect it
β’ how they can expect to get it
β’ how much this benefit could be worth
6a/ Discounting? πΈ
as your business scales, your costs will scale too
let's say your biz has a gross margin (income minus direct cost of sales) of 35%
if you discount 5%, most people assume you need to sell 5% more
as your business scales, your costs will scale too
let's say your biz has a gross margin (income minus direct cost of sales) of 35%
if you discount 5%, most people assume you need to sell 5% more
6b/ Discounting? πΈ
With a gross margin of 35%, you actually have to sell 14% more
at a 10% discount, you need to sell 22.5% more
you shouldn't offer discounts to attract people to your core product
bulk discounts for single purchases are ok since you make it up with volume
With a gross margin of 35%, you actually have to sell 14% more
at a 10% discount, you need to sell 22.5% more
you shouldn't offer discounts to attract people to your core product
bulk discounts for single purchases are ok since you make it up with volume
7/ When to increase your prices π€
if you're selling well, but not making a lot of money, this is a good indication to increase your prices
a good conversion rate on products for a warm audience is 20-33% (via Google research)
if yours is higher, time to increase your prices
if you're selling well, but not making a lot of money, this is a good indication to increase your prices
a good conversion rate on products for a warm audience is 20-33% (via Google research)
if yours is higher, time to increase your prices
8/ Why are people afraid to raise prices? π±
most people set prices based on their own value systems
"I wouldn't spend that much"
by doing this, you're making a value decision on behalf of your audience
instead, get data & feedback and adjust your prices accordingly
most people set prices based on their own value systems
"I wouldn't spend that much"
by doing this, you're making a value decision on behalf of your audience
instead, get data & feedback and adjust your prices accordingly
10/ How often should you increase your prices? π
in short, often
Robin increases his prices 6-7 times per year (varying the size of increments)
in short, often
Robin increases his prices 6-7 times per year (varying the size of increments)
10a/ The 70-10-2 Funnel π
From old-school cold-calling the golden ratio was:
β’ 70 conversations
β’ 10 express interest
β’ 2 sales
so as a course creator, start 70 conversations, aim for 10 email opt-ins, and be satisfied with 2 sales of your course
From old-school cold-calling the golden ratio was:
β’ 70 conversations
β’ 10 express interest
β’ 2 sales
so as a course creator, start 70 conversations, aim for 10 email opt-ins, and be satisfied with 2 sales of your course
10b/ The 70-10-2 Funnel π
work backwards from there to scale the conversations
ask yourself:
β’ where is your audience?
β’ how many of them are opting in?
β’ how many of them are purchasing?
work backwards from there to scale the conversations
ask yourself:
β’ where is your audience?
β’ how many of them are opting in?
β’ how many of them are purchasing?
https://twitter.com/Bazzaruto/status/1422972256989315079
11/ If you haven't launched yet, how do you price? β¨
Sell it even though it doesn't exist yet
People who buy early will be motivated
They get an opportunity to help you build it
Raise your prices by $100 for every 10 people until you hit a ceiling
Sell it even though it doesn't exist yet
People who buy early will be motivated
They get an opportunity to help you build it
Raise your prices by $100 for every 10 people until you hit a ceiling
https://twitter.com/Bazzaruto/status/1432765061018292232?s=20
And that's a wrap!
For more insights from @RobinMWaite, check out Robin's book Take Your Shot - robinwaite.com/books/take-youβ¦
For more insights from @RobinMWaite, check out Robin's book Take Your Shot - robinwaite.com/books/take-youβ¦
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