Types of Digital Courses

Before delving into these indicators, let me clarify that I am specifically discussing courses you own and host. This excludes platforms like Udemy or Skillshare, where you are not responsible for marketing, hosting, or customer service.

For instance, my courses are hosted on my website using Systeme.io (referral link), along with other platforms like Thinkific, Teachable, and Kajabi. I handle the backend operations, marketing, and customer support.

The advantage of this approach is that I retain a larger share of the profits and can manage the customer experience. However, this requires additional time and energy. Now, let’s explore the signs that indicate creating a course may not be ideal for your business.

Your Average Customer Can't Afford $100

Your course's profitability is closely tied to how many potential customers can afford and are willing to pay for it. If your average customer can't allocate at least $100 for your course, your return on investment is likely to be minimal. This often leads to underpricing your course to meet your customers' budgets.

Consider offering a mini-course on a specific topic instead, as a $100 price tag might deter potential sales.

For example, in my venture, Science Grad School Coach, my clientele consists of graduate students, early-stage researchers, and academics, who often struggle to spend money. Many are from developing countries where $100 represents a significant portion of their income. Consequently, I receive more discount requests than actual sales.

Before deciding to create a course, thoroughly assess how many of your audience members can afford it. If only a small fraction (1% to 10%) would purchase it, is it still worth your effort?

What to Consider Instead?

There are various other products that may yield better results for businesses with budget-conscious customers. Consider creating lower-effort products that justify a reduced price point, such as:

• Workbooks
• Templates
• Newsletters
• Mini-courses
• Ebooks

For instance, after realizing that many couldn't afford my Write Your Research Article course at $97, I launched a Research Article Workbook priced at $15, which has proven to be successful with far less customer service involvement.

Perceived Value of Your Course

As previously mentioned, your course's profitability hinges on customer willingness to pay. A successful course needs to present a compelling value proposition.

Prospective customers often seek deals, expecting that a $100 course could help them earn $10,000 in the near future.

While many courses make extravagant claims, the perceived value must significantly exceed the price. This perceived value can be intangible, but if you are considering creating a course, I suggest you undertake the following exercise:

Draft a plausible scenario where a typical customer could earn ten times the course fee.

Business courses typically command higher prices due to the direct link between knowledge and income. For example, I charge $97 for a course on writing research articles, with the expectation that my average customer could potentially earn around $1,000 from it.

There are two primary ways they could achieve this:

1. A graduate student might save months in publishing their article, expediting their graduation and increasing their earning potential.
2. A better quality article or publication in a reputable journal could lead to improved job prospects.

However, these outcomes are not guaranteed, and many factors could influence them. Thus, the perceived value may fall short of the actual value.

Completing this exercise can help you assess whether customers would perceive your course as valuable, providing a great angle to incorporate into your sales strategy.

What to Consider Instead?

If the knowledge or system lacks high perceived value, consider developing actionable products that enhance conversions. Examples include:

• Templates
• Workbooks
• Software
• Tools

For instance, I offer an $8 Notion template that assists researchers in organizing their references. Although a course on this topic might not attract buyers, the template saves time and provides a clear value that customers can recognize.

Lack of Passion for Course Creation

Regardless of the financial potential, if you do not enjoy creating online courses, it may be a sign to reconsider. Developing an online course demands significant effort, and if you see it merely as a series of tedious tasks, the outcome will likely be subpar.

While not every task in business will be enjoyable, a lack of passion in course creation could result in poor quality, leading to dissatisfied customers.

If your motivation for creating an online course is solely financial, consider it a significant red flag.

What to Consider Instead?

If course creation doesn't excite you, explore alternative ways to serve your customers. Identify what you would happily do for free in your business. While you shouldn't work for free, engaging in activities you love will likely yield better products.

Lack of Teaching Experience

It’s surprising how many individuals create online courses without any teaching experience. Teaching doesn’t have to occur in a formal setting, but you should have some background in helping others achieve learning goals.

Even if you have a helpful system, if you lack experience in both the content and teaching methods, selling an online course may not be wise. I didn’t initially teach research officially, but I supported peers throughout my academic journey, shaping my teaching style and course structure.

What to Consider Instead?

If you lack this essential experience, consider coaching clients first to refine your teaching materials. This approach also serves as an excellent way to gauge the market for your idea while generating income as you prepare to launch your course.

Absence of an Audience

The notion of "build it and they will come" is a common misconception among aspiring course creators. Regardless of how exceptional your course is, without an audience, sales are unlikely. If you lack at least 1,000 followers or email subscribers, achieving your desired return on investment will be a challenge.

Typical sales rates range from 0.5% to 5% of an email list. If you have a mere 100 followers, even with a stellar course and sales page, you might expect only 0-5 sales.

What to Consider Instead?

If you don’t have a considerable audience, prioritize building your audience over creating courses. Focusing on audience development can help test the market for your course. If people aren’t engaging with your free content, they are unlikely to invest in paid content.