A Guide for Course Creators, Coaches & Online Entrepreneurs

As you empower your audience to achieve their goals through online courses, memberships, or coaching, you deserve to be fairly compensated for your expertise. But how do you know when it's the right time to raise your prices?

When I was just starting my business, I was hesitant to raise my rates. I remember talking with a coach who was encouraging me to do it. I was at $50/hour and she was saying I could easily charge $100. The first time I said it to a prospect, I literally felt sick to my stomach! I wondered if anyone would ever pay me that much…so much doubt and fear crept in.

Just this week, I was in a meeting with entrepreneurs and this question about raising rates came up. The entrepreneur, who is fairly new to the work they do, started off at a fairly low rate to get started. But, they were ready to increase their rates to the norm in the industry. They are currently charging $60 and are thinking about a move to $100. Standard is $200. There were quite a few opinions about this, as you might imagine.

But, here's the truth: there's no magic formula.

However, there are some key indicators that can aid your decision-making and help you confidently adjust your pricing strategy. Here are a few to consider:

Value Amplification: Have you significantly improved your course content, added exclusive features to your membership site, or expanded the scope of your coaching services? If you're equipping your clients to achieve greater results, like increased income, improved efficiency, or reaching their goals faster, a price increase can reflect the enhanced value and transformation you now deliver. When the focus is on delivering more transformation, a price increase can reflect that enhanced offering.
Profitability Matters: Are you struggling to make a sustainable profit with your current pricing model? Don't be afraid to raise prices to ensure the long-term viability of your business. Remember, a profitable business allows you to serve your clients better and create even more valuable resources.
Demand Outpaces Supply: Are your courses consistently selling out? Is your waitlist for coaching overflowing? High demand is a great sign that your offerings resonate with your audience. A price increase can help manage that demand while reflecting the value you bring.
Confidence in Your Craft: Do you feel a strong sense of pride and expertise in what you offer? If you can confidently communicate the difference your services provide, price becomes less of a barrier and more of an investment in a better future.
Competitive Landscape: It's helpful to be aware of the market landscape but shouldn't base your pricing on competitors. But, comparing yourself to others is a dangerous place to go. We are all different. We bring different experience, history, stories, education, and personality to the table. Nobody can be us.

Remember, raising prices isn't just about making more money. It's about:

Sustainability: Ensuring you have the resources to keep creating high-quality content and serving your clients effectively.
Perception: A higher price point can sometimes communicate increased value and exclusivity to potential clients.

Communicating Value is King: The Key to a Successful Price Increase

Before you announce a change, take some time to solidify how your offering delivers a transformation for your ideal client.

What specific problems do you solve?
What results can they expect to achieve?
How does your offering make their lives or businesses demonstrably better?

Once you've identified the core value proposition, craft compelling messaging that clearly communicates the benefits. Leverage testimonials, case studies, and data-driven results to showcase the impact you've made on past clients.

Here are some additional tips for a smooth price increase:

Communicate Clearly: Be upfront and transparent with about the price. Focus on the additional value they'll receive.
Offer a Grace Period: Consider a grace period and/or keep current rates for existing clients who enrolled at the previous price point. This shows appreciation for their loyalty.
Highlight New Benefits: Emphasize the improvements or new features that justify the price.

By following these ideas and implementing a thoughtful communication strategy that emphasizes value, you can raise your prices with confidence, ensuring your business thrives while continuing to deliver exceptional value to your audience.

FREE: 10 Signs You're Stuck in Email Marketing Mania...and How to Escape