How to Price Your Online Course: One-Time vs Subscription vs Membership

Determining the right price for your online course can be strangely overwhelming. After dedicating weeks to its creation, you now face the challenge of assigning a value—$29 might be leaving profits on the table, while $199 could deter potential students.

Relax. Pricing isn’t simply guesswork; it’s a logical decision based on various factors: the results your course provides, payment preferences of your audience, and the hidden costs associated with each pricing strategy, including fees, refunds, and student drop-offs.

This guide outlines how the three primary pricing models (one-time payment, subscription, and membership) function, along with the psychology behind pricing strategies worth implementing, and the fee structures often overlooked by course creators. Expect practical insights, labelled guidelines, and substantive figures where applicable.

Let’s dive in!

Understanding Your Three Pricing Models

Definitions to clarify any confusion:

• One-time pricing. Students make a single payment for access, usually for a lifetime, or for a specified duration. One course, one transaction, easy.
• Subscription pricing. Students pay a recurring fee (monthly or annually) to maintain access to a course. Discontinuing payments results in loss of access.
• Membership pricing. Students pay a recurring fee for unlimited access to everything: your entire course library, often complemented by community features or additional benefits.

The distinction between subscription and membership can be fuzzy, as various platforms define them in differing ways. For this discussion: subscription equals a recurring payment for one course, whereas membership entails recurring payments for your entire course catalogue. The underlying psychology is akin; however, the workload varies.

Start with Value, Choose a Suitable Price

Many new creators approach pricing backwards: they select a figure that “feels right” and hope for the best. Instead, focus on four key factors that should influence your pricing:

• The result. What benefit does your course offer once completed? For example, a course aiding in certification could command a higher price than a casual painting class, not necessarily because it’s superior but due to its market value.
• Your target audience. Professionals are more likely to expense their learning; casual learners may hesitate. The same content can fetch different prices based on the audience segment.
• Competing options. Your real competitors aren’t just other courses; they’re sources like YouTube, books, and self-directed learning. If available free content satisfies approximately 80% of what you teach, your pricing must account for the additional value you offer through structure, expert feedback, or time-saving shortcuts.
• Your credibility. Testimonials, an established following, and recognisable branding help justify higher prices. Without these, demanding premium pricing may be ineffective.

Here’s a handy guideline (note: it’s just that—a guideline, not an exact science): price at a fraction of the outcome’s worth. For instance, if your course saves a student 20 hours of trial and error, consider what an hour of their time signifies. This indicates your maximum price point. The lower threshold compares with what similar courses are priced at, as buyers will likely compare before making a choice.

Effective Pricing Psychology

While pricing psychology is inundated with exaggerated research findings, here are some practical effects worth leveraging:

Anchoring. Consumers evaluate a price in relation to the first figure they encounter. Presenting a $149 course alongside a crossed-out price of $249 makes it appear more attractive than a standalone $149 price, even though both are the same. Your regular price is significant, regardless of discounts planned.

Three-tiered pricing. By offering Basic / Standard / Premium options, customers often lean towards the middle option—not due to any immutable law, but because it feels like the safest choice. A useful guideline is to ensure the middle tier is your preferred offering.

Charm pricing. The difference between $49 and $50. Some entrepreneurs swear by this practice, though results can vary. Rounded numbers can even benefit premium products, where $500 feels more authoritative compared to $499.99.

Discount discipline. Frequently holding sales can condition your audience to anticipate discounts. Eventually, the sale price becomes the norm.

PRO TIP Establish your standard price first, even if you’re launching with a discount. This anchor will enhance your position from the outset, and adjusting prices down is far simpler than increasing them later.

Model 1: One-Time Pricing

The traditional model. A single payment grants enduring access to the course.

When one-time pricing excels:

• Your course imparts a concrete outcome: learn A, pass B, build C. Once completed, no further action is required from the student.
• The content remains consistent. Timeless material doesn’t necessitate a recurring expense.
• You prefer simplicity: one price, one transaction, straightforward accounting, and uncomplicated refunds.

Determining the price. This isn’t based on fictitious figures, but rather sound reasoning:

• Below ~$50: This is impulse buying territory. Customers rarely deliberate long, but a lower price may suggest reduced value, necessitating higher volume.
• ~$50–$200: This range is standard for outcome-based courses by creators without an established reputation. The price is high enough to reflect substance yet low enough to avoid needing a sales conversation.
• $200+: Possible but requires a strong level of proof: quality testimonials, a solid sales page, and perhaps a satisfaction guarantee. An exorbitant price without demonstrated value will result in stagnation.

The refund trade-off. A money-back guarantee (typically 14 to 30 days) eases buying hesitation, but for expensive courses, it creates an awkward dilemma: purchase, consume, then claim a refund. With increased pricing, reconsider your refund strategy.

Downsides: Earnings can be inconsistent. Each month begins with a blank slate, and your income relies solely on your most recent launch.

Practical application. The images below illustrate Masteriyo, the learning management system plugin from our Themeisle group. Setting a one-time price takes about a minute: access your course, navigate to Settings → Pricing, select Paid → One Time, and input the amount. The free version independently manages transactions: PayPal and offline payments come built-in, Stripe is an add-on, and Masteriyo imposes no transaction fees. Customers see your pricing alongside the ‘Buy Now’ button:

(Thinking of creating your course? Start with our guide on crafting an online course using WordPress, then return here.)

Model 2: Subscription Pricing

The same course, new terms: students pay monthly or yearly to maintain access as long as they keep paying.

When subscription pricing is advantageous:

• The course evolves, featuring continual updates, new lessons, and fresh content. Recurring income funds those developments.
• The value is ongoing: support, regular feedback, office hours, or a job board offer repeated usage.
• A hefty one-time fee might dissuade potential buyers. A $30/month charge is often more palatable than a $300 upfront cost, even though dedicated students end up paying more overall.

Calculate churn before you commit. Use this rule of thumb: if your average student remains subscribed for around six months, a $20/month plan generates approximately $120 per student. Honestly compare this with what a single sale price might yield. At times, subscription models prove beneficial, while at others, you may be sacrificing a $150 sale today for $80 in future subscription income, not to mention added administrative tasks.

Annual plans alter the landscape. As a general rule, price the yearly plan at about 10–12 times the monthly rate. This affords you upfront cash while reducing the number of reconsideration points for the student.

Challenges include: churn is an ongoing issue, managing billing can become time-consuming, and terminating access to a completed course can seem harsh. Be prepared to clearly articulate the continuous value.

Practical application. Recurring pricing features are part of the Pro version of Masteriyo ($149/year introductory price, renewing at $299/year). The setup is straightforward: navigate to Settings → Pricing, select Paid → Recurring, set the price and interval (in this instance, $20 each month) along with optional expiration settings:

Model 3: Membership Pricing

An access-all-areas model: a single recurring charge grants access to your entire course library, often bolstered by additional benefits such as community engagement, live sessions, or resource access.

When membership pricing succeeds:

• You possess (or intend to create) multiple courses on interconnected subjects. A membership model optimises income better than selling each course separately to the same audience.
• You aim to forge a lasting connection: the content serves as a draw; the community encourages retention.
• You prefer to cultivate steady monthly revenue rather than endure the unpredictable rollercoaster of course launches.

Understanding churn realities. Memberships thrive while new content is provided. Once your content pipeline slows, cancellations are likely, which is rooted in the nature of what customers pay for. Set your pricing against the total value members receive: if individual course pricing would total $400, a $30/month membership appears as a bargain and enhances the perceived value of the catalogue. This model entails the most effort of the three and can be challenging to launch without an existing audience.

We won’t delve into technical aspects here; membership levels, safeguarding content, and community engagement have their own detailed guides: our membership instructions for course-specific configurations and our walkthrough on establishing a membership site are excellent resources.

Practical implementation. Notably, Masteriyo currently lacks a built-in membership structure. A realistic implementation involves Masteriyo Pro (the same $149/year introductory plan), which can be integrated with Paid Memberships Pro and Restrict Content Pro. The membership plugin manages levels and access conditions while Masteriyo delivers course content. Pro also features course bundles, enhancing your ability to create a lightweight “all-access” option without requiring a full membership plugin.

Understanding the Fees Most Creators Overlook

The displayed price is not the same as your income. The platform from which you sell can impact how much you ultimately retain, which should inform your pricing decision. Here’s how a $50 course breaks down on various platforms:

Key points to note:

• On Udemy, the revenue share is 97/3 when you drive the buyer, but shifts to 37/63 when Udemy attracts the customer (upon calculating the net amount after taxes and app store fees). This marketplace’s broad reach accounts for the 63% cut.
• When selling on your own site, the only expense is the payment processor’s fee. Masteriyo itself charges 0%.
• Fixed fees can be burdensome for lower-priced courses. That $0.30 charge is just 0.6% of a $50 transaction, but for a $12 course (as shown in the earlier screenshots), the effective Stripe fee approaches 5.4%. If you sell at a lower price, evaluate your actual net income first.
• Hosted platforms, such as Teachable, introduce additional costs—starting at $29 per month for annual plans. This becomes part of your expenses.

Marketplaces often implement aggressive discounts beyond the basic split, meaning your listed price serves primarily as an anchor.

Discounts, Coupons, and Refunds

Regardless of your selected model, discounting inevitably arises. Here are some guiding principles:

• Discount with a purpose: seasonal themes, launches, or bundling products. A permanent discount ceases to be a discount; it simply becomes your revised price.
• Keep discounts moderate. Aim for a 10–30% reduction on course prices. Deep discounts can train customers to wait for sales, potentially alienating those who purchased at full price.
• Align your policies with your model: For one-time courses, prioritise a clear refund policy to boost conversions over a small percentage discount. In contrast for subscriptions and memberships, facilitate easy cancellations instead of refunds.

Practical application. Coupons are another Pro feature in Masteriyo (at the same $149/year introductory rate). Access Masteriyo → Coupons → Add New to create coupon codes with discount types and amounts, course-specific targeting, stacking rules, and usage limits:

The student view shows the coupon field within the checkout order summary, adjacent to the total amount:

Notable to remember: The advertised prices for Masteriyo are introductory; Pro renews at $299 annually after the first term. While fair for the offered features, budget for the renewal rather than just the introductory rate.

Which Model Should You Choose?

In summary:

• One completed course, timeless subject, first launch? Opt for one-time pricing. It’s the easiest to market and manage without further obligation, and you can introduce recurring options later.
• Courses that will be continuously updated, or have an ongoing value? Choose subscription, but calculate churn in advance and offer an annual option.
• A suite of interconnected courses with community engagement? Select membership, particularly if you already have an audience.
• Struggling to decide? Default to one-time. It’s the sole model that doesn’t anchor you to a content release schedule, and “lifetime access” is a compelling selling point.

Numerous creators blend models: one-time pricing for distinct courses, and a membership plan as the ultimate all-in-one option. This hybrid approach works well as the membership serves to position the single purchases, while the individual courses funnel towards the membership.

Concluding Remarks

Quick recap:

• Base your price on the outcome, not just your effort, then double-check against market alternatives and your proof points.
• Use psychology judiciously: focus on anchoring, tiered pricing, and discount approach; overlook the rest.
• One-time pricing for distinct courses, subscription for evolving content, membership for contiguous course offerings.
• Assess the fee structure before finalising, as the platform can significantly influence your takeaway.

If you’re about to launch your inaugural course, here’s a strategic takeaway: identify a one-time price that aligns with the proof you possess, market it through your own platform to keep most of the revenue, and consider recurring models once you have data on course completions.

For help with implementation (payment gateways, checkout procedures, ensuring payment), refer to our guide on selling online courses through your own website. If you’re keen to try the tools mentioned in this piece, Masteriyo’s free version supports one-time pricing right out of the box.

Final question: how did you determine your course pricing? Was it based on intuition, competitive analysis, or solid calculations? Share your approach in the comments below!

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