Considering that the other parts of the work involve the development of the digital product itself and the marketing efforts to promote it, pricing is really left aside until almost the last minute.
Or worse: it’s built beforehand, based on benchmarks and competitor research — basically looking at the prices of other courses and deciding which one will be yours, with very weak foundations.
But just as there is a right way to price physical products, pricing a digital product is a job that involves some calculations.
Let’s talk more about these calculations in today’s article. Are you ready?
Enumerating the Elements that Make Up a Digital Product
The first step to pricing a digital product is to truly understand the costs involved in its production.
This is true for any product, whether it’s on a shelf or listed on Hotmart.
The thing is, the costs of a physical product country email list that has just arrived are often quite simple to calculate. And yet it is possible to simplify it further.
Fixed costs that affect a physical product by holding parent meetings are calculated in the finance department and reviewed a few times a year. They don’t usually change that drastically. So they are added to the variable costs and act as a constant.
At the same time, variable costs are extracted from the product itself, mainly related to the purchase price, shipping, etc.
Adding the two together and adding the profit margin, voila: you have a priced product.
Digital products work in a similar way, but they come with their own particularities. The investment in their creation is more abstract, and in many cases they are even confused with personal expenses — especially for first-time creators.
In the next items, we will talk in more detail about the elements that make up a digital product.
And then, let’s talk about how to price them correctly. Let’s do it together:
1 – Physical Resources
The first point we need to discuss concerns caseno data the equipment that needs to be purchased to create a digital product.
This depends, of course, on the type of digital product you’re creating. For this article, we’ll consider a classic course — primarily multimedia but with some additional digital features, such as an e-book of course materials and a checklist of activities.
So, we can consider that the equipment needed to produce this course is:
- Computer with a good video card and good memory for rendering;
- At least one microphone;
- Setting up a scene;
- Lighting (at least one ring light );
- Simple soundboard for capturing audio;
- Camera;
These are the basic equipment for assembling a digital product, with variations depending on its particularities, of course.
It is important to highlight the computer among these resources, which often ends up being left aside because it is the most expensive equipment and is only essential for editing.
Editing a video is a very intensive task for any PC. If yours has less than 16GB of memory, doesn’t have an SSD installed, and doesn’t have a dedicated graphics card, rendering a single video can take more than 10 hours.
So either look for good equipment or partner with a videographer to do the editing on your own.
2 – Variable Resources
In addition to these features that you go out and spend money to buy, there are also some other, more specific ones that are not so obvious.
For example: if you have another source of income and need to take some time off to create your course, the impact on your financial life can be used to price the digital product as well.
It’s almost like a pro-labore. You’re investing your personal time in creating a digital product. In many cases, that time has a price.
This includes all types of variable expenses you can think of. Gas for travel, if necessary. Hiring a temporary team. The launch. All of this needs to be included in the account.
And speaking of launch:
3 – Marketing Resources
It is important to have a marketing plan already defined before launching the product.
The marketing plan will determine all the actions you will take, with a special focus on the pre-launch of the product and the launch itself.
In fact, in our text on product marketing , we explore these three steps in more detail.
Marketing is quite variable. Since we’re talking about a digital product, where the price can be changed at any time, it’s not necessary to have all the costs down pat when pricing.
In fact, when it comes to digital marketing with a greater focus on Inbound Marketing , it’s very likely that you won’t have all the costs described if you work alone, without a partner agency.