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This issue is presented by:
Podcasting 101 – The Complete Guide to Podcasting
Hi There,
The race to digitize our knowledge is over. Anything you want to teach and sell is already out there. I’m sorry, but it’s true. 😭 Knowledge as a product has been commoditized.
(a moment of silence to mourn your dreams of passive income 💸💸💸)
To add salt to the wound, you won’t solve all your course creation problems by trying to build an email list. Yes a list can help you sell, but build a list can be even harder than building an online course.
Here’s the thing… when anything (including online courses) gets commoditized, succeeding in the market requires differentiation and value beyond the basic product itself. In a commoditized market, focusing on exceptional experiences, adding complementary services, and fostering a strong brand community can transform how customers perceive your product.
These approaches go beyond the product itself, ensuring that your brand maintains its value and appeal even in a competitive landscape.
Now let’s talk about online courses specifically.
The online course industry has experienced explosive growth, especially in the wake of remote work and learning trends. Yet, while the dream of passive income from courses is appealing, making consistent revenue in this market is notoriously difficult.
Here’s a look at why so many struggle to profit from online courses and practical ways to turn things around 💩
1. Market Saturation
- Problem: The boom in online learning platforms has created a highly saturated market. Whether it’s cooking, marketing, coding, or fitness, there are countless courses available, making it challenging to stand out. This saturation is compounded by big players with large advertising budgets and loyal followers, making it difficult for newcomers to get noticed.
- Impact: Potential learners have endless choices, which means they often gravitate toward well-known brands or creators they already trust. The increased competition can lead to price wars, and lower prices mean smaller profit margins.
2. Low Barriers to Entry
- Problem: Nearly anyone with knowledge of a topic can create a course, which has democratized education but also led to a massive influx of courses of varying quality. With relatively low upfront costs, many people enter the market, even if their content lacks depth or professionalism.
- Impact: The abundance of courses has led to skepticism among potential buyers. Without clear quality standards, learners may hesitate to pay for yet another course, especially if they’ve had poor experiences before.
3. Customer Expectations for Free Content
- Problem: Today’s internet culture is flooded with free content. Between YouTube tutorials, blog posts, and social media, people can learn a lot without spending a dime. This free content often competes with paid courses, as prospective students may question why they should pay for something they feel they could find online for free.
- Impact: The abundance of free information devalues paid content, making it challenging to justify the cost of a course. Many creators find themselves pressured to lower their prices or add an extensive amount of content to make their offerings seem worth the price.
4. Marketing Overhead and Complexity
- Problem: Building a great course is only half the battle; marketing it effectively is essential to generating sales. For many course creators, especially those without a strong brand or following, marketing can be overwhelming and expensive. Paid ads, email marketing, social media, and SEO all play a role but often require expertise, time, and budget to be effective.
- Impact: Without strong marketing strategies, even the best courses can go unnoticed. Many creators struggle with balancing the cost of marketing with the need to stay profitable, leading to disappointing returns on their efforts.
5. Course Completion Rates and Reputation
- Problem: Research shows that online courses often have low completion rates, with many students starting a course only to abandon it halfway through. This trend can damage the reputation of online courses as a whole, as people may perceive them as less effective or worth the investment.
- Impact: When learners don’t complete a course, they’re less likely to recommend it or return for more. Additionally, potential customers may hesitate to purchase if they worry about their own ability to finish the course.
Strategies to Increase Profitability in the Online Course Market 😀
While the challenges are significant, there are strategies that course creators can use to overcome these obstacles and increase their chances of success.
1. Niche Down and Find Your Unique Value Proposition
- Solution: Instead of trying to appeal to a broad audience, focus on a specific niche where your expertise stands out. For example, instead of creating a general “digital marketing” course, you could offer “digital marketing for early-stage tech startups.” This approach allows you to target an audience with very specific needs and makes it easier to differentiate yourself in the market.
- Benefit: By defining a clear, unique value proposition, you’re better positioned to stand out and attract loyal customers who are willing to pay for specialized knowledge.
2. Offer Tangible Outcomes and Transformation
- Solution: Emphasize the real-world outcomes and transformations students can expect from your course. Instead of just listing what you’ll cover, explain how the course will change their lives or careers. Testimonials and success stories can reinforce this by showing potential students the tangible results they can achieve.
- Benefit: When customers see a direct link between the course and their goals, they’re more likely to invest in the content and stay engaged.
3. Create a Tiered Pricing Model
- Solution: Consider offering multiple levels of your course, such as a basic self-paced version, a mid-tier with group coaching, and a premium level with one-on-one support. This pricing structure allows you to attract a broader range of customers while increasing the overall lifetime value of your students.
- Benefit: A tiered model can address varying budget constraints and preferences, potentially increasing revenue and making your courses accessible to a wider audience.
4. Develop a Strong Pre-Launch Strategy
- Solution: Building anticipation before launching your course can drive immediate sales. Utilize email marketing, content previews, social media campaigns, and limited-time offers to generate interest and excitement among your target audience.
- Benefit: A pre-launch strategy creates a sense of urgency, encouraging early sign-ups and providing an initial revenue boost.
5. Invest in Building a Community
- Solution: Many students value a sense of community and accountability in their learning. Create a group—on a platform like Discord, Slack, or Facebook—where students can connect, share progress, and ask questions. Offering group coaching sessions or Q&A webinars can also foster engagement and increase perceived value.
- Benefit: A community-based approach increases course completion rates and fosters loyalty, leading to more referrals and potentially repeat business.
Wrap Up
The online course industry is challenging, but by niching down, focusing on outcomes, offering tiered pricing, building anticipation, and fostering community, you can differentiate yourself and improve profitability. With a strategic approach and commitment to high-quality content, you’ll be better positioned to thrive in this competitive but rewarding space.
I especially want to highlight the idea of building community. As a personal brand selling online courses, your audience needs to see you as a leader in your space and wants access to your brilliance. But they don’t just want your knowledge, they want you.
Figuring out where you show up in the experience is one of the best ways to stand out in a crowded market.
😝Thanks for reading! Do you have any questions you’d like answered? Email me at brandon@brandsonbrands.com and let me know!
Talk soon,
Brandon Birkmeyer
Personal Branding Coach, Bestselling author of Front & Center Leadership
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