In his article, I want to talk to you about how to price your program.
A lot of times, people start thinking about creating their online products or any of their coaching programs and they make a big mistake. I’m here to help you to avoid this mistake.
How to Price Your Program for Max Profit
How to Price Your Program: The Value of Transformation
I’ve talked about it a little bit in previous articles, but the big mistake is that most people price things based on quantity, like what it is they’re going to get, and how much of it they’re going to get.
So when you start thinking about creating an online program, you’re like, “Okay, if I create 10 videos, then the price is going to be this,” or “If I create five videos, the price is going to be this.” They make the big mistake on quantity.
You may be like most people who are trained in a linear fashion. They’re like, “Quantity, quantity, quantity. Based on how much I get and what I get, this is how I’m going to price the program.” That is a mistake.
I want you to start switching your thinking from a quantity thinker or ‘how much’ thinker to a value thinker. This is really important.
Value is based on who somebody becomes, and this is a different approach because the pricing is defined by what it is you’re creating versus the quantity you want to sell.
The ultimate question that you need to answer in creating a product is: Is the value there for the client? Who are they going to become?
Who they’re going to become is a function of the outcome they’re going to get when they work with you.
Coaching Program Pricing Involves Transformation
This is really important. When I look at some of my clients, many would think that soft products are worth less than hard products, or worth less than business products which might be defined by a more tangible result. They value the soft results of personal development, like becoming more fulfilled, as less valuable.
So people will always make the argument and say, “Well, we’ll pay less for the more intangible, soft stuff than we will for the more hard, tangible stuff.” I’m going to make a case for this right now.
Even though I’ve told you that if you’re going to price personal development stuff, you might price it a little bit lower. I’m just now getting to something that can switch your framework on this because it’s not a written rule.
For example, in some of my clients’ coaching programs, like one of my clients, David Mehler. He’s a chiropractor. Chiropractic work is a little bit of more the soft, the intangible. He’s selling his brand, Man on Fire, which is about how men can feel more passionate and feel more powerful. It’s more of an intangible outcome, right? And so it’s more of a soft service, more of a personal development service.
However, when he sells his coaching programs and even tickets to his retreat, his pricing is more than most people in the business community who sell business products. He’s sold programs that are $50,000 in his coaching programs. He’s sold retreats that are $6,500 or even $10,000 for a weekend retreat.
So I teach my clients to answer the question around value. What’s the value that somebody’s going to get and experience through your product or program?
How to Price Your Program: The Formula Centers on Change
Now, I’m teaching this formula, because as you go more from low-tier products like the $37 to $97, to mid-tier products, which might be like a membership community where they pay monthly, or a $500 product, to high-tier online products, which might be $1000 or $2000 to then your coaching programs, which can be $10, $20, $30, $100 thousand.
I’m teaching you this formula so you understand pricing from my perspective, which is not always about the quantity, the linear perspective that people have of how much am I going to get. It’s more value of who somebody’s going to become.
That’s really important. Who somebody becomes is of great value to them in the world, so if somebody’s becoming more fulfilled in their life, there’s great value to that. If somebody’s becoming more passionate, there’s great value to that.
Perhaps those qualities of being more fulfilled and being more passionate are as valuable as learning the skill set of how to make money, because the two go hand-in-hand – we want to be fulfilled in life, and we want to make money.
I think it’s important, no matter what you sell, that you talk about who people are going to become in the process of working with you. Show that your programs help people in some sense become more fulfilled, become a better person.
For me, I’m in the business of sharing Message to Millions as my flagship brand. Yes, it’s about growing a coaching business or a speaking business or an online business, but it’s about becoming the person you want to become. It’s about sharing your life’s story and your message, and sharing something that’s personal and meaningful to the world, and living your passion, and serving humanity, and giving your gift in a way that helps people, and you get paid to do that. Getting paid is a function of the business model, but who somebody becomes is more important.
How to Price Your Program: Being and Becoming
— Ted McGrath (@ted_mcgrath) December 17, 2017
When it comes to pricing, never forget that value is who somebody’s going to become in the process.
You’re going to have to inspire people and sell them on a bigger future whenever you’re selling your product or programs – whether that’s in a video, on a sales page, in a stage presentation.
If you’re not clear on who your client is becoming, and what your customer really desires deep down inside, you’re not going to be clear on your value.
Think of this when you go to make the offer and as you create your sales pages and your sales videos. If you’re not clear on the value you have to the world, everything you do after this isn’t going to be as powerful.
How to Price Your Program: Imagine What They’ll Become
I want you to do a little exercise right now.
Before you price your products and programs, I want you to think through first, and answer one simple question for me:
Who is your client becoming as a result of going through this curriculum?
When you’ve answered this question, I want you to write down your price point of what you’d value this at. Not what you’d price it at – what’s the value worth to your clients?
How to Price Your Program: Bringing It All Together
If you’ve done the exercise above, you’ll know the value is worth way more than you think your product should be priced at.
Take for example, one of my online products, Book More Stages, which is a $47 product. If somebody is able to get on a stage, is that worth more than $47 to them? The answer is, “Yes.”
When I’m selling my products through my sales letters and sales copy, I’ll confidently be able to say, “Hey, the value of this product is easy $497 for anybody who decides to take me up on this, today. But today, you’re going to get really special pricing.”
Going through this exercise establishes the value of your products and programs in your mind, so you know why your clients would choose to work with you over others who might be selling similar services.
Who your clients are going to become is a super-important part of your pricing.
I have one more question for you: Who have you become by going through your own product?
How to Price Your Program: Your Program Exceeds Its Dollar Value
If you can start to see the true value in your own life in answering the question, “Who have I become?” this changes the game, because you’ll know the deep value you’re offering up. When you go to sell your program, you’re going to be awesome at writing your sales copy because you’ll be so inspired by the level of value you’re delivering!
Like to me, when I am selling my methods of getting booked on a stage, I know in my business, one of the first stages I ever got on, I made $41,000 from being on that stage.
That knowledge of how to get on a stage is worth more than $47 bucks. It’s worth more than the $497 value that I even placed on it in my sales video.
Telling those personal stories of value helps people see the value far more than, “You’re going to get three videos in this product,” or “You’re going to get six videos. You’re going to get three modules.”
Do you now know how to price your program? What life-changing offer are you going to give your clients? Comment down below and let’s see if I can guide you further.