You can sell courses in 2 ways to your students.
First, is the One time purchase model.
Second, is the subscription model.
So, what are these models?
How should you pick them?
Lets cover these points:
One Time Purchase vs Subscriptions: What is the difference?
One Time Purchase Model
Learners pay for the content library on a recurring basis
Learners can pick and purchase individual courses
You sell your contents as a package
You sell your contents as individual courses/tests
You will be creating new contents regularly for a specific stream
You create new courses or new subject streams
You will usually price it lower as learners will pay on a recurring basis
Pricing could be higher as learners get longer course access
Best for K12 & test-prep segments. You can regularly update contents & easily help students prepare for exam
Best for vocational, skill development, training & life style courses that doesn't need regular updation
Next, let us see what the pros and cons of each model are.
One Time Payment: Pros & Cons
Set a high sale price:
Since your course provides a life time access to a solution, you can charge a higher price. You can build your income much faster.
Efforts are only upfront:
You don't need to constantly rework on course creation. Once done, you don't need to come back to it.
Teach targeted topics:
People will love a targeted course that helps them learn a niche are like playing a guitar. It is easier to teach a topic that is targeted.
Keep It Short & Simple:
You can start with a small niche topic and create a simple 1-2 hour course. You don't need to be an expert
Don’t need constant update:
You don't have to worry about creating new contents for your students. As long as a sale happens, you are good to go.
Revenue limited to sales:
You make revenue only when a student buys your course.
Constant update is hard:
An update usually means revamping the entire course
Hard to keep student engagement:
As courses are passive in nature, retaining course engagement is hard.
Harder to estimate future revenue:
As the revenue you earn is non-recurring, its difficult to earn a steady income from the course sale without a sales funnel.
Subscriptions: Pros & Cons
You get consistent monthly/yearly revenue from learners subscriptions
More Course Sales:
With more value on offer at less cost, you can get more learners and increase sales
Easy To Market:
Use subscriptions to market targeted exam courses or tests. Students will find it easy to buy
Grow Your Brand:
You can keep creating new content, sell multiple subscriptions & grow as a brand
Build and retain learners:
Use free subscriptions to build your students. Retain learners by giving them more courses over time.
Building income takes time:
As subscriptions are priced low, it takes longer time to consistently build your income.
Constant effort required:
You need to constantly create new content to keep your students engaged & not cancel the subscriptions.
You need an athority to sell subscriptions:
Students look for a proven track record of success before they can buy the subscription.
One time purchase vs Subscriptions: Which one should you choose?
Both models have their own plus and minuses. You can make profits by using either of these models. Here is a short criteria you can use to decide.
One time Purchase
You are a beginner, new to content creation or marketing
You are an expert, have sold courses & have a good student base
You are teaching a specific evergreen topic that doesn't change much
You have a broad topic where contents need to be updated regularly
You don't want to add new content or rapidly expand your business fast.
You are commited to providing constant value to students every month
You are doing this as a part time gig than as a full time job
You are looking to make a more stable full time income from course sales.
You are not looking to build a huge following of students
You want to stamp your authority by building your own student following
Things To Know
If you an existing user, and want to switch to subscriptions, please read this first, before switching.
Its a best practice to create the subscription plan and add it within a relevant segment. Refer to this article to add subscription plans within segments
1. Who can use Subscriptions?
Subscriptions work well for test prep institutes and for institutes that keep adding content for a particular stream of study.
2. How many subscriptions can I create?
If you are not using segments feature, you can create 1 subscription and 3 pricing tiers within it.
3. Can I switch between one time purchase and subscriptions?
Yes, you can. But before that, please read this article to know the pros and cons.
4. What will be the validity for subscriptions?
You can totally customize this. Here is how you can control the validity of your subscriptions
5. Is my contents secure in subscriptions or one time payment?
Don't worry. Your contents will be secured with DRM encryption irrespective of subscription mode or one time purchase mode. You can activate the anti-piracy pack features to prevent credentials sharing, screen-recording & so on.