How I Decided To Price My Digital Products
Have you ever stumbled over how to price your digital products and online services (whether they may be courses, ebooks, templates, monthly memberships, etc.)?
Because I have.
In fact, when I started brainstorming on what my prices would be, I jumped from one number to the next number …and then switched it back to the original number only to change it about 3 more times.
If you’ve ever tried to put a price tag on a product, course, service, etc. before, I’m sure this is not news to you.
Before we dive deep into this topic of pricing your products, I wanted to briefly go over why I’m even writing this blog post in the first place.
The main reason is because this is something all entrepreneurs and small business owners go through. Or even hobbyists who have ever sold anything online.
There are so many factors to take into consideration, including but not limited to:
- supply and demand,
- competitor’s pricing,
- customer expectations,
- positioning, profit,
Not to mention... your mental health, level of self-care, emotional sanity, and money mindset.
I mean… when you think about it, pricing your online products should be easy. Or at least, not this challenging and daunting.
Also, I thought it would be cool and insightful to see how I ended up with the pricing that I did. And of course, I wanted to be transparent and share the process with you.
So let’s go back to the beginning.
How did I decide to price my digital products?
1. The pricing world of 4, 7, and 9’s.
If you’ve ever found yourself in someone’s sales funnel for this course, membership program, mastermind, etc., you’ve most likely seen whatever they were selling ending with a 4, 7, or 9.
There’s something called “psychological pricing”, which is basically a pricing and marketing strategy many use to get you to buy. Here’s an article by Entrepreneur that talks about this if you’re curious.
Honestly, I’ve never been a fan of this. I always thought it was so annoying when someone priced something at $999 or $1,999, because they’re not tricking anyone, right?
At the same time, when you see everyone else doing something and they seem to be successful, you can’t help but want to do what they’re doing. Because… they must be doing something right, right?
So when I first started pricing my products, I came up with numbers like: $12, $15, $17, $19, $27, etc.
(Which, now thinking about it, is so weird because I don’t even like odd numbers. They make me feel… odd.)
I’ve always been a fan of Caroline from Made Vibrant (who also happens to be Jason’s wife) and her work.
A few years ago, I bought Caroline’s course Better Lettering Course for $20. Last year, I bought Caroline’s course Create Your First Online E-Course for $30.
So evidently, seeing whole numbers did not stop me from buying something. In fact, sometimes it made me more excited, because it didn't feel like someone was trying to "market" me and that they were focused more on providing valuable education and resources.
That was my first sign that maybe I should just round up to whole numbers.
2. Rising Tide Society - Tuesdays Together event
Fortunately, by the time the Tuesdays Together monthly meeting came around, I was already a few days into 12 Days to Launch, so I wasn’t completely in concept and brainstorming stage anymore.
By this time, I had a few of my products built out, knew what each of them included, and how they would help someone’s business.
And since my goal is to sell the design templates to creative entrepreneurs, bloggers, influencers, photographers, etc., I thought it’d be a good idea to ask the group I was in.
Pro tip: Ask people who are your ideal clients and customers for feedback. Sometimes, we want to think we know everything ourselves - but we don’t.
The result? They didn’t like the odd numbers, either. It can feel like someone is tricking you into thinking it’s a “better” deal because the price tag ended in a certain number.
So after that conversation and reading Jason’s article at Wandering Aimfully, I decided to round up my pricing to whole numbers.
The other thing I did?
3. Increased my prices.
Why? Because I realized I was providing a lot of value in time, energy, knowledge, and expertise in what I was offering.
I'm not talking about like majorrrr price increases, but an additional $10-20 here and there. Which let's be honest, is about how much a lunch meal ends up costing anyway.
Also, I know what works well with blog posts, Pinterest, and what’s going to help you make the most impact and get the best engagement.
Another major part of it is that I’m not designing things just to make them look pretty (although that’s a huge part of it because creating good experiences is essential), I’m also incorporating my knowledge of branding, marketing, and the Internet into my designs.
Increasing your prices to $20-30 when someone can find a $5-10 template can be scary, but what ultimately helped me get over this fear was realizing that my design templates are unique.
Every digital product and online service out there is unique and different, whether it’s a copywriting service, a productivity membership site, an ebook on how to create your first course, etc.
Just like how every brand has its own personality, every designer has their own personality too.
I’m not designing templates for everyone; I’m creating design templates for soulful bloggers, brands, and creative businesses who want to effectively reach their ideal customers, clients, and community.
If you're trying to reach everyone, you end up reaching no one.
4. Pricing that feels good to you.
Sometimes, pricing can feel like you’re pulling numbers out of thin air.
At the end of the day, I think it really comes down to what feels good to you.
So ask yourself if what you're pricing your digital products at feels good to you.
Does it make sense to you? Does it feel aligned? Are you confident in it?
$10/template didn’t feel good to me.
Especially when I'm providing more than one variation for each template.
It felt like it came from a place of scarcity, fear, and worry that no one would want to buy my products. Because there were so many other products out there, I “should” lower my pricing so other people would think it’s a better deal.
But wouldn’t it be better to come from a place to confidence and clarity (in knowing that the value you’re providing is amazing)?
From a place of abundance (in knowing that potential customers are everywhere and there’s enough to go around)?
From a place of believing in yourself (because it’s really exhausting not to)?
As Gary Vee always says, "What's the alternative?"
Believe in yourself and believe in what you’re making.
Self-doubt will not only kill your productivity, but it can slowly chip away at your passion and soul as well.
While I may not have the answer to how to actually price your own digital products and courses, I hope that by sharing my own experiences through this whole journey, you’re able to see that there is no right or wrong answer.
There is no magic formula that will solve everything, but instead there are a lot of factors to take in and that there is no right or wrong way to do anything.
Do what feels good to you, because the most important thing is that you keep doing it.
Test and experiment. Be okay with making mistakes. We learn by doing, taking action, and putting ourselves.
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Hi there! I'm Molly, the founder of Wholehearted Woman.
Be the person you needed when you were younger and share your story, because you're the one who someone else needs today.