Are you ready to learn the benefits of course start pricing for your business? Among all the options for pricing models, charging by course start is the most optimal and cost-effective. This post will explain why the course start pricing model is best and how it can influence the way that you price your courses.
The benefits of course start pricing include knowing your costs per user, keeping costs down on longer courses, removing unnecessary financial risks, having the ability to grow and scale your business easily, and making it easy for you to determine the right price point for your courses.
1. Know Your Cost Per User
One of the top benefits of course start pricing is knowing the cost for each user so you can design your course with this in mind. This enables you to charge each learner appropriately and maintain a good ROI. Use data analytics and run reports to optimize your training business accordingly. The best part of using a course start pricing model is that even with an unlimited number of users, you will only pay for the ones who start the course. So, if users log in without accessing the materials or never log in at all, you don’t have to pay.
2. Keep Costs Down Even on Long Courses
No matter how long a user has access to the course, the price is the same, and it does not matter if a user remains active. Having an open time frame gives users the ability to finish a course at their prefered pace. The course start pricing model is highly efficient; users can access learning materials repeatedly without incurring more costs. This pricing model is also good for courses with a large amount of material that will take a while to complete, such as compliance training.
3. Remove Financial Risks
You can save money by removing the risk of having users who log in and do not work on the course. This risk is especially prominent in other models, such as active user pricing. If learners take a long time to finish materials or if they are active on and off, they may bleed into multiple billing cycles. Then, you must pay repeat fees, driving up costs. Why waste your precious resources on users who aren’t putting in the time and effort on their courses? Those dollars are much better spent on active users who value your content.
4. Make It Easy to Scale and Grow Your Business
When your user volume goes up, the cheaper the price per course start is. So, your customers continue to pay the same amount, while your fees continue to diminish. You can keep costs down and use that savings to continue growing your training business. All the money that you save can be put back into your business. You can add to your marketing plan, create more content, or work on making the content that you have more valuable. Your business can grow and scale in any way that you see fit!
5. Help Determine Your Price
When using course start pricing, your number-one consideration should be the cost of your base service. First, determine your total costs. Put together critical factors such as how much it costs to use the LMS and the time and resources used for admin duties like course updates or support. Also, add the costs of any tools that you use for content creation. Then, consider your costs versus your price point. This intersection makes up your base pricing.
This model enables you to know your cost per user ahead of time so you can build it into your pricing. Be sure to also check out the price of your competitors and research your market. You want to have comparable pricing, while also keeping in mind that you have something unique and valuable to offer your clients. Remember to always be strategic in your pricing strategy. Feel free to try out different price points and see what works best for you and your customers.
The benefits of course start pricing are clear. This model is a great way for training companies to reduce costs while delivering exceptional training for users. You can price courses with a sound understanding of your costs per user, you can keep additional costs low even if your content is long and complex, and you can remove the financial risk associated with active user pricing and give yourself the ability to grow and scale your business. Knowing the benefits of this pricing model allows you to build an efficient and profitable training business with ease.
Here at Firmwater, we don’t just sell an LMS for training providers. We partner with our clients, giving them the tools and insights they need to implement the best practices in e-learning course development, growth, and delivery. We care too much about our customers’ businesses to have them wade through forums and chatbots for help.
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