What type of e-commerce payment plan should I use for my education website?
I have a series of DVDs that I made for people to pass a specific test. I have put the video lessons on a website and have also added practice tests, quizzes and various exercises. I'm having trouble thinking of a pricing model. Should I offer a one time payment to customers? Should I offer a monthly subscription plan? Should I continue to sell the DVDs as well or just go with the website?
Hi Randall, the best way to figure out your revenue model is to get out and talk to people until you find out what the majority of your target audience is willing to pay. Ask them questions. In person interviews are best for this research. Explain your value proposition, what problem you're going to solve for them, and ask them how much they'd pay for that. Ask them if they would prefer to pay a monthly subscription. My guess is most won't find value in a monthly subscription, since it sounds like you won't get too many repeat customers. Seems like you're training them to pass a test, then once they do, they won't need your training materials. Maybe there are opportunities to create a passive revenue stream? Talking to the people you're targeting will help you uncover these as well. Good luck!
Hi Mr. League,
In all of these scenarios, one has to have a "Pull" effect instead of a traditional "Push" strategy.
Your business model depends on video lessons and a test taken by customers. Now your process of educating them - How long is the lead time? Is it a month half a year, or a full year?
So let us discuss the following situations just to tease your thinking and arrive at a practical solution:
a - Say you pay your student to enroll - what do they gain financially?
b - Now you invite students for an entire lessons quality check - what do they gain?
c - Finally - You ask them to pay or invest in it - What do they gain financially?
Without a conversion of our product into a financial return, we face the barrier of justifying the cost, be it I pay, they pay, or someone else pays, let alone monthly or yearly.
How does the product/service value proposition convert to financial returns like a ROI or payoff time?
I encourage you to think of this as you are the SME in this area. Should you wish to speak offline, we can do so.
Dr. Shree Nanguneri
How many DVD's do you have and are they split up or just a database of them? This will have a large impact on how you should price. If its smaller than you may want to do a one time fee. If it's longer database or you bring out stuff monthly you may look at a subscription model.
A website will help sell your DVD's on a different platform. A lot of businesses sell in multiple locations. A website would help no matter what. As long as the cost works out with your revenue from it.
Split up per chapters, keep chapters individual based on topics with additional material + sell also as a bundle. You have to find a balance of giving something great away for free vs. selling the rest at price so you inspire desire to buy vs weaken it. Subscription works well ONLY if you add content all the time, otherwise there's no reason for it.
Keep in mind: it's about the value you provide to your target audience not so much the $, don't compete with prices, compete with content, quality and value or you will chase a price tag tail forever, no need. Communicate clearly benefits for them and why you even created the products to make them understand what it is exactly that you're selling.
Too many people focus on price and undervalue their products, don't pay the money game, play the quality + value game. Give someone what they want, the way they want it and they will pay. We pay so much $$ for things we don't need but want that undervaluing and underpricing is useless and will break, not make you
Look at the end value. Customers don't want your DVDs unless they want to pass the test. Therefore, the value of your training program cannot ever exceed the value of passing the test itself. If the value of the test declines, so does the value of your program. (Hence the need to continuously create new material for newer tests).
So don't sell the training. Sell the value of the test. If the test costs $200 to take, see if you can make a deal with the company that provides the test, so that YOU sell the test to the student, and you get a cut of that $200. Then offer a package deal: the student gets either the test + the site for $300, or the test + the DVDs for $300, or the test + both site and DVDs for $400.
One price. This is not a subscription business.
Now, if you want to make subscription fees, you will need to create ongoing continuous value. Either you offer a community (which is not worth a great deal in the age of free communities on LinkedIn), or you offer ongoing value in the form of new information, articles, templates, or some other kinds of value every month.
If your training helps them to do MORE than just pass a test, then you could get some subscription value out of people who want to be trained "just in time". Keep in mind that YouTube is your competitor in that space. You are still not talking about a lot of revenue, so you'd have to scale very well (handle a large number of people with small incremental value per person).
Interesting concept. I would think as a starter, a one time lump payment through either clickBank ClickSure, or Pay Pal, you need to keep a large amount in a cash reserve for those who claim a return as well. What means of accounting do you think you would use, I would suggest Quick Books, is is fairly easy to set up and because it is maintained on your PC files easily accessible. The reason I give you to not begin with Payment or access plans are there are so many folks on hard times in this economy, which increases your risk of not collecting. Your clientele is also untested at this time, credit on materials sent out and unpaid for can burn holes in you profit/ Loss statements as well.
What's the subject of DVDs?
This is a very difficult question to answer because the value of the value of the information can vary depending on subject and also your credibility. I know of people who would be charging over 1000 for a course of this type, but i also know people who would be lucky to get 5 euros. So by building your credibility you can increase the price.
I would suggest that you look at some of the video material for free by Andy Harrington who provides some great training/info on this. Also have look for Presentation Profits Blueprint by Dr Joanna Martin - its free and well worth the read.
I think the best option would be that you charge them for test and practice session.
1. Low monthly subscription plan (with the possibility to pay 4, 6 or 12 months in advance)
2. Get back-end products to increase the value of your customers (once they are members)
3. Validate if your customers are interested in DVDs (ask them)
I would try funnelmaker as the vehicle to sell them and connect it to authorize.net OR paypal OR both
Going by your description looks like all lessons are part of one course? Typically for an education website, unless there is continual education throughout the year or so, subscription model will not make sense. It should be first time Registration (Free), offer some sample lessons + tests / quizzes so people see the quality, then they buy the lessons (lesson + all its tests / quizzes). Let me what your programs are about. Look at www.pmsoft.com to get an idea.
Sounds like a solid product. I would offer both, you could use a company like Kunaki.com to fulfill orders for your DVD's-very cheap production and professional standard. also keep the website option, some people prefer a physical product, some like direct access online. Depending on the value of the training, how long it lasts, I would go for a one off price-if you can drive a lot of targeted traffic you will have a good thing going-you do not mention the genre of training but if the test leads to increased earning potential I would go high.
Why not give the first lesson for free, then create a subscription plan for the remainder of your videos.
You should check out some other companies that do something similar. For instance, check out TreeHouse or Adobe.
In the end, tinkering will be needed, and whatever you do at the beginning likely won't be the same as what you'll need to do as your subscription/customer base grows.
Offer the customized payment like ...give them option like per test, per week, per month and unlimited yearly option.
Please do share the feedback and thoughts.
Hi Randall, contact my office and lets explore the options.
I am in the e-commerce payments industry. I can direct a few different options.
Video lessons should be subscription. As for quizzes and tests... can they be taken/scored/stored online? Or do you provide a pdf document for download? If delivery of quiz/test is online, I think just make part of subscription. If downloadable documents, then charge flat fee via eCommerce. The benefit of a secure access site for viewing/taking the quizzes is that it makes it a bit harder for people to share with others (although not impossible).
My strategy would be to have the intro videos as freemium, with a pay-with-a-like option, or else email-capture opt-in for your mailing list.
Then, have a subscription model which is annual or lifetime. Every so often you can run a promotion with a coupon-code for a discount from your regular fee.
If you want to extend your distribution you might consider partnering with MightyDeals or other Group Discount places that have huge mailing lists.
I would consider selling DVDs until they stop selling.
I assume you already have a web designer/developer, but if not I'd love to help. I'm very good at setting up WordPress ecommerce sites with secure payment gateways, pay-with-a-like, etc.
Hello Randall, from a business development point of view it would be of greater value to offer a monthly subscription. This would require you to also commit to keep providing your products on a consistent basis.
Having clients commit to a longer term has a great benefit, guaranteed income for a longer period of time. It is more expensive to obtain a new client than to keep an old one.
As word of advice I would have to say that you need to keep selling the DVD's because this is how people got to know you. You can gradually move to solely provide your services through the website on a later basis.
This can be done by leaving subtle messages to clients that you will be migrating to the website in six months or something of that nature. These hints can be given when sending an email out to your clients (very cost efficient) or social media channels.
If you would need help with the website, my team and I can also help with that, simply send me a message and we can see what works best for you.
I hope this helps a bit.
Shopify works great but make sure you have a chargeback solution like centurionid
Well, Before preceding with choosing any plan I would say first try reaching out with the visitors who recently buying your tutorials or DVD. It would be better if you throw them a questionnaire which seeks out the answer of this question. But If I talk about my opinion them I would say if your DVDs and videos lessons are that much interesting I would love to have a monthly subscription plan because this would not hurt my pocket and I can anytime switch the subscription to hold if I am not liking it. Why I think it would be better is just because of it gives the power to stop at anytime and trust me this is again going to help you in generating revenue. What are in the mind of people it they think just paying few bucks for trails isn't that much odd.... because I always have an option to opt out but one time payment makes then think a bit as for one time payment there is a need of thinking before preceding.