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Pricing your offer

This is the formula I use when working with clients to figure out how much to charge for their memberships, communities, courses, or cohorts. The following is the CALM Method – Clarity, Awareness, Learning, and Motion. 

Clarity on Timeline — “When am I doing this program or membership based on my lifestyle, needs, and desire to have a deeper connection with the people who join because I want to help them do something amazing together?.”

Awareness of the number of members — “Based on my current audience size and the number of people I want to bring together I’m aware that I need to be realistic in my expectations.”

Learning what’s true based on research- “After doing discovery and validating my offer, pricing, and length of the program and/or membership, I’ve learned what to charge that aligns with my expectations and needs.”

Motion to move forward with pricing — “I’ve got a solid plan for either going back to discovery to validate pricing, if I haven’t done that — or — I am confident in the pricing of my program based on my expectations, needs, and the discovery/validation from my ideal members.”

1 –

What is the timeline of your program or membership? (Ex. — 8-week course, 6-month program, or monthly membership)

2 –

How much income do you need to make from this to make it worth your time and effort? (Ex. — $5k for 8 wks, $12K for 6 months, $2K monthly)

3-

How big is your current audience? (Ex. — 50K SM followers, 1K email subscribers, 50 LinkedIn Connections)

4-

Of the audience, what is the number of “Ideal Members” you realistically could convert to this? (Ex. — Audience of 100K, Ideal Members 15K, Active Respondents 1K, Waitlist 500 ppl)

5-

Take the number of months or weeks and calculate the desired revenue that will be generated and review that number, then divide it by the number of your audience’s actual conversions.

Example below –

  1. 8-wk course
  2. I need to make $10K
  3. My waitlist has 500 people but of these, I think that 250 are interested in this offer
  4. I realistically can convert (based on discovery and validation) 20 people
  5. I need to charge at least $500 per person for this 8-week course by converting 20 people into my community and/or program.

Using this formula and some discovery interviews, you can be much more confident in your offer because you’ve validated it with your ideal members.

If you find that the people you talk to just don’t want to invest, it might not be the right time for them or the right message they need to hear. You have an amazing vision — it will find its way to the ideal member who needs your help to transform!

Let me know if I can help you!

Deb Schell is the Founder of Find Calm Here LLC— As a community consultant, designer, copywriter, and strategist, she helps entrepreneurs find calm in building, launching, and growing their paid online communities.