Create your first video course
Price Your Course for Maximum Profit
You've created a great course, polished your videos, and designed beautiful materials — now it's time to tackle one of the toughest questions: How do you price your course? Price it too low, and you leave money on the table while attracting bargain hunters who don't value your work. Price it too high, and you might scare away your ideal students who could benefit most from your expertise.
The sweet spot is where you balance value, accessibility, and your own goals for profit. But here's what most course creators don't realize: pricing is one of your most powerful marketing tools. Your price doesn't just determine revenue — it positions your brand, attracts the right students, and shapes how people perceive your expertise.
In this comprehensive guide, we'll break down how to price your course for maximum profit, covering everything from pricing psychology to advanced revenue optimization strategies, so you can confidently set a price that reflects your course's worth and drives sustainable business growth.
The Psychology Behind Course Pricing
How Price Affects Perception
Your price is a promise. When someone sees your course priced at $47, they expect basic information and generic advice. When they see it priced at $497, they expect transformation, personalized guidance, and insider knowledge that can't be found anywhere else.
Research in educational psychology shows that students who pay more for a course are more likely to:
- Complete the entire program (78% completion rate for $300+ courses vs. 23% for under $50)
- Apply what they learn immediately
- Recommend the course to others
- See better results from the content
This isn't because expensive courses are automatically better — it's because higher prices create psychological investment. When students pay more, they're more committed to getting results.
The Goldilocks Principle for Course Pricing
Too cheap feels suspicious. Too expensive feels exclusive. Just right feels valuable.
Signs your course is priced too low:
- High volume but low-quality students who don't engage
- Students asking for refunds because "it wasn't what they expected"
- You're working constantly but not making enough money
- Other creators with similar expertise charge significantly more
Signs your course is priced too high:
- Very few sales despite good traffic
- Lots of people consuming your free content but not buying
- Price objections dominate your customer feedback
- Your ideal students can't afford your course
Signs you've found the sweet spot:
- Steady sales from engaged, committed students
- Students complete the course and see results
- You can cover your costs and reinvest in growth
- Price objections are rare and easily handled
Why Pricing Matters More Than You Think
Your course price sends a message. It tells potential students how valuable and premium your content is. But it's not just about perception — it also directly affects your revenue, the quality of students you attract, and your long-term business sustainability.
The Business Impact of Pricing
Revenue multiplication through pricing:
- Increase price from $97 to $197: Double your revenue per student
- Add a $497 premium tier: Same effort, 5x revenue potential
- Bundle courses together: Increase average order value by 70%
Quality of students at different price points:
- $27-$97: Bargain hunters, low completion rates, high support demands
- $197-$497: Serious learners, higher completion rates, better results
- $497+: Committed students, excellent completion rates, become advocates
A well-priced course:
- Reflects the value and depth of your content
- Covers your time, effort, and business costs
- Maximizes profit without scaring away your ideal audience
- Positions you as an authority in your field
- Attracts students who are committed to getting results
- Creates sustainable income that allows you to improve and expand
Step 1: Know Your Audience and Market Deep Dive
Start by understanding who your audience is and what they're willing to pay. But go deeper than demographics — understand their psychology, goals, and spending patterns.
Audience Segmentation for Pricing
The Hobbyist Segment
Characteristics: Learning for personal enjoyment, limited budget, price-sensitive
Pricing sweet spot: $47-$197
What they value: Comprehensive content, lifetime access, community
Example: "Complete Watercolor Painting for Beginners" - $97
The Professional Development Segment
Characteristics: Investing in career advancement, employer may reimburse, ROI-focused
Pricing sweet spot: $297-$897
What they value: Certificates, advanced techniques, industry credibility
Example: "Advanced Excel for Financial Analysts" - $497
The Entrepreneur Segment
Characteristics: Building or growing a business, high income potential, value speed
Pricing sweet spot: $497-$2,997
What they value: Implementation guides, templates, direct access to instructor
Example: "Launch Your Consulting Business in 90 Days" - $997
Competitive Analysis Framework
Research similar courses in your niche, but analyze them strategically. Check platforms like Udemy, Teachable, and even competitor websites. Look at course length, content depth, and perceived value. Note the pricing range and where your course fits in.
Platform Research:
- Udemy: Mass market, $10-$200 range, frequent sales
- Teachable/Thinkific: $97-$997 range, independent creators
- MasterClass: $180/year subscription, celebrity instructors
- High-end platforms: $997-$5,000+ for comprehensive programs
For each competitor, document:
- Course price and what's included
- Instructor credentials and positioning
- Course length and depth
- Student reviews and feedback
- Sales page messaging and value proposition
Step 2: Calculate Your Course Value Comprehensively
Your course isn't just a collection of videos — it's a solution to a problem or a path to a goal. But calculating value requires looking at multiple dimensions.
The Value Stack Method
Core Content Value:
- Hours of video content x your hourly consulting rate
- Proprietary frameworks and methodologies
- Years of experience distilled into lessons
- Unique insights not available elsewhere
Supporting Materials Value:
- Templates and worksheets (time savings)
- Resource lists and tool recommendations
- Bonus content and interviews
- Community access and networking opportunities
Transformation Value:
- What's the economic benefit of the skill you're teaching?
- How much time will students save by learning from you vs. figuring it out themselves?
- What opportunities become available after completing your course?
Consider:
- The depth and quality of your content
- Your expertise and credentials
- Additional resources like worksheets, templates, or coaching
- Support options like community access or live Q&A
Courses that offer more value — like access to you as an instructor, bonus content, or exclusive materials — can command higher prices.
Strategic Bonus Design
High-Value, Low-Cost Bonuses:
- Email Templates: High perceived value ($200+), minimal creation cost
- Resource Lists: Perceived as insider knowledge
- Recorded Content: Leverages existing knowledge
Present total value before revealing price:
- Core course: $997 value
- Bonus templates: $297 value
- Private community: $197 value
- Monthly Q&A calls: $297 value
- Total value: $1,788
- Your investment: $497
Step 3: Advanced Pricing Models and Strategies
There are several ways to price your course. Consider which model fits your goals and audience best, but also think about scalability and long-term business strategy.
Single Payment Models
One-Time Payment:
A flat fee for lifetime access. Simple and easy for students to understand.
Best for: Evergreen courses with stable content
Pros: Simple to understand, higher upfront revenue, lifetime customer value
Cons: No recurring revenue, harder to justify high prices
Tiered Pricing:
Offer basic and premium versions with different levels of access or bonus content.
Best for: Courses with natural upgrade paths
Pros: Increases average order value, appeals to different budgets
Cons: Can confuse decision-making, requires more marketing
Effective tier structure:
- Basic ($197): Core course content
- Standard ($397): Course + bonus materials + community
- Premium ($697): Everything + 1-on-1 coaching call + implementation templates
Recurring Revenue Models
Subscription or Membership:
Recurring payments for ongoing access to courses or a library of materials. Great for building long-term revenue.
Best for: Large course libraries or ongoing content creation
Pros: Predictable recurring revenue, higher lifetime value
Cons: Continuous content creation required, higher churn management
With Teeeach's 10% revenue share model, subscriptions work particularly well because:
- No monthly platform fees eating into your recurring revenue
- You only pay when you earn, maintaining healthy margins
- Daily payouts help with cash flow management
Choose a model that aligns with the depth of your course and your desired customer relationship.
Step 4: Advanced Price Testing Strategies
Pricing isn't set in stone. Consider starting with a beta launch or early bird pricing to gauge demand and gather feedback. If students jump at the chance, you might have room to increase the price. If interest is low, it could be a signal to adjust your messaging or value proposition.
Pre-Launch Price Validation
The Coffee Chat Method:
Schedule 20-30 minute calls with 10 people from your target audience:
- Show them your course outline and pricing
- Ask: "What would you expect to pay for this?"
- Ask: "What would make this worth $X to you?"
- Ask: "What concerns do you have about the price?"
A/B Testing Your Pricing
What to test:
- Price points: $297 vs. $497 vs. $697
- Payment options: Single payment vs. 3-month plan
- Value presentation: Features vs. benefits vs. transformation
- Guarantee terms: 30-day vs. 60-day vs. unconditional
Testing methodology:
- Test one variable at a time
- Run tests for at least 2 weeks or 100 visitors per variant
- Track conversion rates, not just revenue
- Consider lifetime value, not just immediate sales
Don't be afraid to experiment. Many successful creators start with one price, then adjust as they refine their course and marketing.
Step 5: Avoid the Race to the Bottom
It's tempting to price low to attract more students, but this can hurt your brand and profitability. Low prices can signal low value, and you might find yourself overworked for little return.
The Psychology of Low Pricing
Why low prices backfire:
- Bargain hunter mentality: Students expect everything for nothing
- Perceived low value: People assume cheap means inferior quality
- High support demands: Low-paying customers often require more hand-holding
- Unsustainable business model: You can't reinvest in course improvements
Instead, focus on delivering exceptional value at a fair price. Students who invest more are typically more committed and see better results.
The Business Math: Making Course Pricing Profitable
Calculate Your True Costs
Before setting your price, know your costs:
- Time spent creating and updating the course
- Marketing and advertising expenses
- Platform fees (with Teeeach, it's 10% of your revenue)
- Email marketing tools
- Website hosting and maintenance
Revenue Modeling Scenarios
A simple equation:
Price x Expected Enrollments = Projected Revenue
Conservative Model:
- 50 students per month at $297 = $14,850 gross revenue
- Teeeach fee (10%): $1,485
- Marketing costs (20%): $2,970
- Net revenue: $10,395 per month
Premium Model:
- 25 students per month at $997 = $24,925 gross revenue
- Teeeach fee (10%): $2,493
- Marketing costs (10%): $2,493
- Net revenue: $19,939 per month
Run scenarios with different price points and student numbers to find a sustainable, profitable target.
Real-Life Pricing Success Stories
Case Study 1: The Positioning Pivot
Maria's Photography Course Journey:
Original Strategy:
- Price: $47 ("affordable for everyone")
- Positioning: Basic photography for beginners
- Results: 200 students, low engagement, constant price objections
New Strategy:
- Price: $297
- Positioning: Portrait photography for aspiring professionals
- Added: Business templates, client contract templates, pricing guides
- Results: 50 students per month, 85% completion rate, multiple success stories
Key Insight: Higher prices attracted serious learners who became successful photographers and referred others.
Case Study 2: The Teeeach Advantage
Jennifer's Art Course Success:
Previous Platform Experience:
- $297 course on major platform
- $49/month platform fee + 3% transaction fees
- Had to drive traffic to platform's marketplace
- Competed with $20 courses
Teeeach Strategy:
- Same course priced at $497
- 10% revenue share only (no monthly fees)
- Complete control over student experience
- Positioned as premium alternative to mass-market courses
Results:
- 60% revenue increase per student
- Better cash flow (daily payouts vs. monthly)
- Higher student satisfaction (focused platform)
- Reinvested savings into better marketing
Chris, a freelance photographer, priced his beginner photography course at $49 because he thought it needed to be affordable. But after gathering feedback, he realized his audience valued his expertise and hands-on approach. He increased the price to $149, added bonus editing presets, and saw his revenue triple — with happier, more committed students.
Teeeach-Specific Pricing Advantages
Why Teeeach's Model Supports Premium Pricing
Aligned Incentives:
Traditional platforms: Make money from monthly fees regardless of your success
Teeeach: Only makes money when you make sales - we're invested in your success
At Teeeach, we believe in fair pricing that reflects the true value of your content. Don't undervalue your expertise. Your course is a product of your knowledge, effort, and creativity — price it confidently, and your students will value it too.
Cost Structure Benefits:
- No monthly platform fees means your first sales aren't eaten up by fixed costs
- 10% revenue share scales with your success
- Daily payouts improve cash flow for reinvestment
Premium Positioning Support:
- Clean, professional platform without distracting competitor courses
- Focus solely on video courses (no digital downloads or other products)
- Your course gets individual attention, not lost in a marketplace
Recommended approach:
- Start with market research but don't be afraid to price above competitors
- Test higher prices first - it's easier to lower prices than raise them
- Focus on value creation rather than cost reduction
- Use Teeeach's cost structure to your advantage - reinvest saved platform fees into marketing
Advanced Pricing Psychology Techniques
The Decoy Effect
How it works: Present three options where the middle option looks like exceptional value compared to the other two.
Example structure:
- Basic Course: $197 (just videos)
- Complete Package: $297 (videos + bonuses + community) ← Most popular
- VIP Package: $497 (everything + 1-on-1 call)
The middle option sells best because it looks like a great deal compared to basic, and reasonable compared to VIP.
Social Proof in Pricing
Testimonials that justify price:
"I made back the $497 course fee within two weeks of implementing David's strategies. Now I'm booking clients at $150/hour instead of $50/hour." - Sarah M.
ROI-focused testimonials:
"Best $697 I've ever spent. The templates alone saved me 20 hours of work, and the client acquisition system landed me three new contracts worth $15,000."
Pricing Mistakes to Avoid
Common Pricing Errors
Undervaluing Your Expertise:
- Pricing based on your own financial situation instead of target market
- Comparing yourself to beginners instead of established experts
- Focusing on course creation time instead of years of experience
Following Competitors Blindly:
- Racing to match the lowest price
- Copying pricing without understanding their business model
- Not considering your unique value proposition
Red Flags in Your Pricing Strategy
Price is too low if:
- You're constantly overwhelmed with customers
- Students aren't completing your course
- You're attracting complaints and refund requests
- Other experts charge 2-3x more for similar content
Price is too high if:
- Very few people are buying despite good traffic
- You're getting feedback that it's "out of budget"
- Similar courses with less value are significantly cheaper
- Your ideal audience truly can't afford your price
Your Pricing Action Plan
Step 1: Market Research
- Research 10 competitors in your niche
- Survey 20 people from your target audience
- Analyze successful courses in adjacent markets
- Document pricing ranges and value propositions
Step 2: Value Calculation
- List all course components and assign values
- Calculate your hourly rate based on expertise
- Identify unique elements that justify premium pricing
- Create value stack presentation
Step 3: Testing and Optimization
- Launch with beta pricing to gather feedback
- A/B test different price points and presentations
- Monitor conversion rates and customer feedback
- Adjust based on data and market response
Key Takeaways
Pricing your course is a strategic decision that affects every aspect of your business. Don't leave money on the table by undervaluing your expertise, but also don't price yourself out of your market.
The most successful course creators:
- Research their market thoroughly but aren't afraid to price above competitors
- Focus on value creation rather than cost reduction
- Test and optimize their pricing based on real data
- Build pricing strategies that support long-term business growth
- Use pricing as a tool for attracting their ideal students
Remember: Your course pricing affects who buys, how they engage, and what results they achieve. Price confidently, deliver exceptional value, and your students will thank you for it.
With Teeeach's revenue-share model, you're aligned with a platform that wants you to succeed at premium prices. Take advantage of this partnership to build a sustainable, profitable course business that reflects the true value of your expertise.
What's Next?
Next up: Where to Host and Sell Your Course (Teeeach!)
This article is part of the Ultimate Guide to Creating and Selling Online Video Courses. Explore other parts of the guide: