Having an audience, working with other brands, creating products, building and managing a brand are all natural steps in the life of a Content Creator. Yet, in this industry of more than 2 million players, it’s getting harder and harder to breath. The constant need to keep oneself relevant through the algorithms while sustaining balanced mental health is a hassle. It’s increasingly challenging to be in control of it all, and the business is growing more further decentralized.
Especially since the practice of platforms to demonetize or ban creators has become a norm. Can you imagine how harmful such practices can be, since one can lose all that they’ve created thus far in the blink of an eye?
Is there an alternative for it?
Yes and here it is: diversify your revenue.
For you to diversify your revenue, you can better understand your info product options here. Yet, if you want to try something new, something that it’s aligned with the next most popular forms of monetizing content creation, you might want to try creating your Community.
One of the most common pains we’ve heard from creators, regarding all options of monetization, was about how to define a price for each product, each strategy and each project.
Digital content has different types of costs from physical products. When talking about digital products, we’re talking about something that doesn’t require retailing, that it has a low production cost and that can be scaled repeatedly. Therefore, it is only natural that defining prices for such products rise many questions.
Throughout this text, we’ll guide you through the thought process that digital content demands in regards to pricing and we’ll show you different strategies so that the value you charge for your content or info product is fair, lucrative, and impactful to your community.
During the process of creating content, it’s likely that you are already familiar and have a deep knowledge of who is your community and how must you direct your communications to it. If you haven’t really divided and conquered your community, please check our advice about it. We must always keep in mind that knowing the Members of our Community and their pain and needs are key to understanding who you are speaking to.
There are different people inside a community, and their interests as to why they would pay for your content can vary.
Sometimes, defining prices may generate a price stagnation effect. Meaning, that people will associate that price with that product forever. This is understandable and since you spent so much time building trust with your audience, the price definition may be single-layered. Nevertheless, breaking down the price to the audience can help with more professional growth and development, plus it can make you feel more valued for your time and effort in this process.
That said, let’s docus on three key aspects:
Your community will not avoid your content because of a price you set for exclusive access. Therefore, do not limited your knowledge to prices! Be as clear as possible as to which are the benefits you offer and how you can solve people’s pains and needs. Transform it into a unique proposition with a lot of value.
Avoid defining a price for your content solely based on competition. This is a very shallow strategy and will result in low revenue.
Mind you, you’re developing quality content. Identify what’s unique, what gives your content a chance to stand out in front of all this sea of content that is the internet. The more value you offer, the more it’s worth.
This is a crucial point for attracting additional Members to your Community which are willing to pay more because they recognize the power of transformation on what you deliver.
Selling can be a long and winding road. It may lead to your wallet, though. Not to mention that these days we have access to a bunch of services and tools that make developing, selling and distributing online content fairly easier and more automatic. So, don’t quit! Be persistent, keeping in mind two main factors: frequency and repetition.
The number asset you have is the trust invested in you by the powers of your members. Talk to them. Write down their feedback. Learn from their ideas and add them to your work. There’s only one way to learn what actually works: trying it out.
The equation to set a price to your content has two main factors: time + cost of investment
The best way to know how much to charge per exclusive content or digital product is to calculate how much investment it will require. By investment, we mean the time and cost of producing the content.
Time is money, my friends. Or, better yet, in the words of James Joyce, ‘time is, time was, but time shall never be again’. Alright, enough with the pedant talk. The bottom line here is: that you must calculate how many hours it takes you to study, research, produce and edit/review your content.
All the energy, effort and dedication that each content will demand is directly related to the result that you should get in return. This return must be relevant, profitable and viable.
Regardless of what kind of content you produce, fixed costs have small or no variation. They’re mainly electricity, internet fees, the value of your hour, hosting fees depending on which platform you’re using, marketing expenses, and possibly other costs like outsourcing.
Upon reviewing such costs in different productions, you will get to an average cost for fixed costs. This will help set a price and thus have a lot more control over your decisions and on how to reach final price.
At this stage, however, there’s a two-way street in your way. To charge a high ticket or a low ticket for people to access your content?
High Ticket: choosing this path should be based on how much innovation you will offer for your niche and for the market as a whole. You’re offering something new, an experience that people will not have anywhere else. Something that hasn’t been really done before, or at least very rarely and with very low competition. Here’s where you drive the curiosity of the consumer who’s always thirsty for new and unique things.
Low Ticket: By choosing this option, you will likely get most of your audience’s attention and potential new audiences’ interest. That’s because your content is now more accessible. Yet, it’s a common misconception to think that lower prices always mean more volume in sales. It isn’t that logical. Not to mention that this will decrease your profit margin, so your sales must always be high in volume. This will make you align the quality of the content with the price charged, so you can keep costs low and have a decent profit margin. It’s advisable, indeed, to use lower prices to attract a more difficult market or type of consumer. Eventually, you can offer products with higher tickets to this audience too.
As quality grows, so does client loyalty.
Considering all the variables present in this journey, from the conception of sales up until content itself, pricing is the most flexible concept.
What does that mean? Regardless of which strategy best fits your business, you are able to change prices regularly depending on circumstances or pivots that you may decide. Prices aren’t static. Quite the opposite, we encourage you to be always considering and reconsidering your prices.
Ideally, your price must meet a balance between high and low tickets. You want to have a ticket that it’s high enough for you to have a significant profit margin, while also being accessible enough for you to reach wider audiences.
Establishing a price for people to access your exclusive content means a lot more than simply defining a monetary value. It’s about defining the value of your wisdom and your work.
A good pricing strategy involves several different factors and concepts that we go over during this journey to reach a number that seems so abstract at first.
You can only validate what will be your monetizing route, your final price and the best content delivery schedule, once you go through some milestones first. Which are diving deep into it and experimenting with numerous ways and strategies to bring revenue.
You must fully comprehend these concepts and have your communication style very well defined, before setting on specific strategies of pricing.
Make sure to pay close attention to the level of authority that your content represents within your niche.
We hope this Guide will help you to find the most adequate price for your content!