How much does it cost to create an online course? FREE template Included

by Welly Mulia - October 16, 2024

Whether you’re an expert wanting to share your skills or a business wanting to train employees, online courses are a flexible and scalable way to teach.

But… creating a course isn’t just about recording a few videos and calling it a day. There’s a lot that goes into it and yes, that includes money.

Knowing the costs upfront is super important. It helps you plan better, avoid nasty surprises and ultimately create an online course that’s both high-quality and profitable.

After reading this blog post, you’ll have a rough estimate of how much it costs to create an online course.

If you’re short on time, here’s the online course pricing template.

Your Purpose (The Most Important)

Before we talk dollars and cents, let’s talk about why you’re creating the course in the first place.

Ask yourself: What do I want to achieve with this course?

Maybe you want to:

  • Share your expertise with the world

  • Create a new income stream

  • Better train your teammates

  • Build your brand as an industry leader

Whatever your goal, make it specific.

E.g. Instead of just saying “I want to make money”, say “I want to generate $1,000 in course sales within the first 6 months.”

Next, think about who you’re creating this training course for. Are they complete beginners or advanced learners? What problems are they trying to solve? Knowing your audience helps you create content that really resonates.

Finally, think about the results you want your students to achieve. Maybe it’s learning a new skill, improving productivity or solving a specific problem. Having clear outcomes in mind will help you design a course that delivers real value.

Average Cost Range and Breakdown

development costs: shut up take money

Now let’s talk money. How much does it actually cost to create an online course? The short answer is: it varies. A lot.

On the low end you might spend as little as $200 if you’re doing everything yourself and using basic tools. On the high end especially for complex courses or if you’re hiring professionals, costs can go up to $10,000+.

Why such a big range? It all depends on:

  • The length and complexity of your course

  • The production quality you want

  • Whether you’re doing it yourself or hiring help

  • The tools and platforms you’re using

Let’s break down the main cost categories:

A/ Content Creation

This is often the biggest chunk of your budget. It includes:

  • Writing scripts or course materials

  • Recording and editing videos

  • Creating graphics and visual aids

If you DIY, you only need to invest your time.

But if you outsource, especially to pros, it can get expensive fast.

It’s not uncommon for a professional scriptwriter to cost between $50-$150 per hour. Video editors? They can cost $25-$200 per hour, depending on the complexity of the task and their experience + skill.

B/ Equipment & Software

You’ll also need to invest in some gear (unless you already have them):

  • A quality microphone ($50-$200)

  • A video recording camera ($200-$1,000)

  • Lighting equipment ($100-$500)

For software (most offer a limited, free version):

  • Video editing app ($0-$100/month)

  • Screen recording software ($0-$50/month)

  • Graphic design tools ($0-$50/month)

C/ Platform & Hosting

You’ll need “a place” where students can login and access your course. This is usually done using a Learning Management System (LMS).

  • Basic plans on platforms like Teachable or Thinkific start at $49-$59/month

  • More advanced platforms like Kajabi can cost $69-$399/month

  • Enterprise-level solutions can run into thousands per month

If your needs are simple and you only need to provide a download area for your PDFs / files though, CartMango can be a good fit. It’s also free to use at this time.

D/ Marketing & Promotion

Forget about selling your courses if you don’t actively do marketing.

Some typical marketing costs:

  • Advertising on social media or Google ($100-$1000+ per month)

  • An email marketing tool like BirdSend ($9 per month, depending on number of subscribers)

  • Content marketing (blog posts, social media content)

Keep in mind the above numbers are just estimates. Actual costs will vary depending on your needs/wants.

The 3-Stage Plan for Your Course Creation & Promotion

Creating an online course isn’t only about taking out your fancy camera and then shooting some videos. It’s a process that needs careful, diligent planning.

Stage #1: Plan

The famous saying: “If you fail to plan, you plan to fail” is absolutely true. In this planning phase, you:

  • Research your topic and audience

  • Outline your course structure

  • Plan your content

Costs:

  • Your time (or a consultant’s time if you’re outsourcing)

  • Market research tools ($0-$100 per month)

  • Project management software ($0-$25 per month)

Stage #2: Create

This is the meat when creating your online course. It’s where you actually create your content and decide how to present it.

What’s involved:

  • Writing scripts or course materials

  • Recording videos

  • Creating quizzes or assignments

  • Designing slides or other visual aids

Costs:

  • Content creation ($0 if DIY, $500-$3,000+ depending on their skill level and/or experience)

  • Graphic design ($0 if DIY, $500-$2,000 for professional help)

  • Video production ($0 if DIY, $1,000-$10,000+ when you outsource)

Stage #3: Set Up & Launch

In this phase, you:

  • Set up your course on your chosen Learning Management System (LMS)

  • Test everything to make sure there’s no error

  • Prepare launch materials (emails, social media posts, ad creatives, etc.)

Costs:

  • LMS ($50 – $200/month)

  • Quality assurance (testing) ($0 if DIY, $100 – $500+ depending on how detailed you want)

  • Marketing materials for launch ($0 if DIY, $100-$1,000 depending on how serious you are)

DIY or Professional Help

One big decision you’ll need to make is whether to create your course yourself or hire professionals to help. Let’s weigh the pros and cons:

DIY

Pros:

  • Lower cost

  • Complete control over the process

  • Opportunity to learn new skills

Cons:

  • Time-consuming

  • Steeper learning curve

  • Potentially lower production quality

Professional Help

Pros:

  • Higher production quality

  • Faster turnaround

  • Feedback and ideas from experienced experts

Cons:

  • More expensive

  • Less control

  • Might lead to communication issues (any time you outsource there’s a possibility of miscommunication)

So, when should you outsource?

When:

  • You have more money than time

  • You want a polished course that looks good on the outside

  • You don’t have complete expertise in the topic of your course

Keep this in mind though: It doesn’t have to all or nothing. You could DIY on areas that you like, and outsource those that you don’t like.

Choosing the Right Tools for Online Course Development

no idea what i'm doing

The tools you use can play a huge part in determining how much it costs to create your course. Tools like:

Learning Management System (LMS)

This is where you’ll host your course. We’ve already covered some of them above:

  • Teachable: Great for beginners, starts at 59/month

  • Thinkific: Offers a free plan to start, paid plans from $49/month

  • Kajabi: All-in-one platform, starts at $69/month

  • LearnWorlds: Focuses on interactivity, starts at $29/month

When choosing an LMS, consider:

  • Ease of use: How tech-savvy are you?

  • Features: What do you need? (Quizzes, certificates, etc.)

  • Pricing: What can you afford?

  • Support: What kind of help is available if you get stuck?

Video Recording & Editing

  • Cameras: Your smartphone might be enough to start, or invest in a DSLR ($500-$1000)

  • Microphones: A good USB mic like the Blue Yeti ($130) can make a big difference

  • Screen recording: OBS Studio (free) or Camtasia ($250)

  • Video editing: iMovie (free for Mac), DaVinci Resolve (free), or Adobe Premiere Pro ($21/month)

Design

  • Canva: Great for beginners, offers a free plan

  • Adobe Creative Suite: More advanced

  • Snapseed: Free mobile app for quick edits

Project Management

  • Trello: Free, great for visual organization

  • Asana: Free for basic use, paid plans start at $10.99/user/month

  • Notion: Free for personal use, team plans start at $8/user/month

You don’t need to buy everything at once. Start with the essentials and upgrade as you go along.

Boosting Your Online Course with AI Tools

is this AI

Artificial Intelligence isn’t just for sci-fi movies anymore. It’s making its way into online course creation and can save you time and money. Here’s how:

Content Creation

  • AI writing tools can help generate ideas

  • Tools like Jasper.ai (starts at $29/month) can help with writing course descriptions or marketing copy

Video Production

  • AI video editors like Runway ($15/month) can help with tasks like removing backgrounds or upscaling video quality

  • Text-to-speech tools can create voiceovers, save you recording time

Personalization

  • AI-powered LMS features can track student progress and suggest personalized learning paths

  • Chatbots can provide 24/7 support to students, answer common questions

Assessment / Quiz to test students’ knowledge

  • Use AI to come up with quizzes based on your course content

  • Some advanced tools can even grade open-ended answers

Remember though that AI tools are just that — tools. The definitely save you time and energy, but they’re not magic. You should always review their output to make sure everything’s in order and meet your standards.

Hidden Costs

hidden costs suprise

Many folks skip this part — not sure if it’s because it’s too taboo or because they just totally forgot about it. But there are “hidden” costs to take into account. Free isn’t really free.

Time Investment

This is probably the biggest hidden cost. Creating a course takes time – often more than you expect. Consider:

  • Research and planning time

  • Content creation time

  • Time spent learning new tools or skills

  • Time spent on revisions and improvements

You won’t be paying for this time directly, but it’s time you could be spending on other projects or activities. Try to estimate how many hours you’ll spend and put a value on your time.

Ongoing Maintenance & Updates

Your course isn’t done once it launches. You’ll need to:

  • Keep content up-to-date

  • Fix any technical issues that arise

  • Respond to student feedback and make improvements

Budget time and possibly money for these ongoing tasks.

Customer Support

Once students start taking your course, they’ll have questions. You’ll need to factor in time for:

  • Answering emails

  • Moderating the discussion forum (if any)

  • Providing feedback on assignments

If your course grows, you might need to hire help for this.

Software Subscriptions

Many tools charge monthly or annual fees. These can add up over time. Consider:

Make sure to factor these ongoing costs into your budget.

Marketing Costs

Getting your course in front of potential students isn’t free. You might need to budget for:

  • Paid advertising

  • Content marketing (blog posts, social media content)

  • Email list building

Legal & Administrative Costs

Depending on your situation, you might need to consider:

  • Business registration fees

  • Taxes on course income

  • Legal fees for terms of service or copyright protection

By keeping these hidden costs in mind, you can create a more accurate budget and avoid surprises down the road.

Pricing Strategy

pricing online courses

Now that we’ve talked about how much it costs to create a course, let’s flip the script and talk about how much you should charge for it.

Pricing your course right is important – too high and you might scare away potential student / customers; too low and you might not cover your costs or reflect the true value of your course (low perceived value).

Consider These Factors

  • Your costs: At least you want to cover what you spent on the course.

  • Time investment: Don’t forget to factor in the value of your time.

  • Market rates: Look at similar courses in your niche. Where do you fit in?

  • Your brand and expertise: If you’re a well-known expert, you can charge more.

  • Course length and depth: Generally, more in-depth courses can command higher prices.

  • Target audience: What can your ideal student afford?

  • Value provided: What results can students expect? How will the course impact their lives or careers?

Online Course Pricing Strategies

  • Cost-plus pricing: Add up your costs, add your desired profit margin, and there’s your price.

  • Value-based pricing: Base your price on the value students will get from the course.

  • Competitive pricing: Set your price in relation to similar courses in the market.

  • Tiered pricing: Offer different levels (e.g., basic, premium, VIP) at different price points.

Using a Pricing Calculator

There are online tools that can help you determine a profitable price. They typically factor in:

  • Your course creation costs

  • Desired profit margin

  • Estimated number of sales

While these can be helpful, remember they’re just a starting point. You’ll need to adjust based on your specific situation and market.

ROI Considerations

Think about the return on investment (ROI) – both for you and your students.

For you:

  • How many courses do you need to sell to break even?

  • What’s your profit per sale?

  • How long will it take to recoup your investment?

For your students:

  • What value will they get from the course?

  • How does the course price compare to this value?

  • Can you quantify the benefits (e.g., potential salary increase, time saved)?

Use the above as GUIDELINES to price your course, not as mantras. The pricing isn’t set in stone. Many course creators I know start with a lower price point to gain traction and reputation before gradually increasing their prices and making the course better over time.

Making sure your course is USEFUL

True value is not determined by how “long” or “meaty” your course is. If something can be taught in 10 minutes, why would you need a 2-hour video? People are busy and would rather spend the least amount of time going through your course.

True value is measured by how “USEFUL” your course is to them.

Here are a few ways to do just that:

Solve a Specific Problem

  • Focus on solving a specific problem or teaching a specific skill

  • Provide practical, actionable steps… not just theories

  • Include real-world examples and case studies for better comprehension

E.g. Instead of “How to become a master at communication”, you might create “How to talk like a pro TED speaker in 90 days.”

Create an Online Community

  • Set up a private Facebook group or Discord server for your students

  • Encourage healthy discussions & online learning

  • Show up and engage with the community regularly to answer questions and provide extra tips

This creates a sense of belonging and support that can be super valuable to students.

This not only creates a sense of belonging, it also presents you in a good light.

Host Q&A Sessions

  • Schedule regular live calls (monthly, weekly, etc.) to answer any questions & provide extra tips

  • You can also bring in guest experts that don’t overlap with your expertise

Live interaction with you is a personal touch that many students love.

Provide Downloadable Resources

  • Create worksheets that help students apply what they’ve learned

  • Offer templates that students can use in their own work

  • Include checklists to help students track their progress

These resources help students take action on what they’re learning, so the course is more practical.

Offer Personalized Feedback

  • Feedback on assignments or projects

  • One-on-one coaching sessions (perhaps as a premium add-on)

  • AI tools to provide automated personalized feedback on quizzes or assignments

Personal feedback can add a lot of value to your course.

Keep Your Content Fresh

  • Review and update your course content regularly

  • Add new lessons or modules as your industry changes

  • Promote these updates to show your course is current

Being current shows you’re committed to ongoing value for your students.

Offer Certificates of Completion

  • A professional-looking certificate when students complete the course

  • Make sure the certificate includes course name, date and your signature

  • Consider getting your course accredited if applicable in your industry

Certificates provide proof of learning or e-learning which many students value. Some jobs might require people to show their certificates – so this will be helpful to them too.

Launching & Marketing Online Courses

Creating a great course is only half the battle. To make it successful you need to get it in front of the right people. Here’s how to launch and market your online course:

Build Hype

  1. Tease Your Course: Start talking about your course on social media, your blog or your email list well before the launch.

  2. Offer Pre-Launch Content: Share some of your course content or create a free mini-course to give people a sneak peek.

  3. Create a Waiting List: Allow people to sign up for launch notifications. This creates a sense of scarcity.

Launch Plan

  1. Choose a Launch Model: Open/closed launch (enrollment only available for a limited time) or evergreen (always open for enrollment)

  2. Launch Timeline: Create a schedule for your launch, including when you’ll start promotions, when enrollment opens and any special offers.

  3. Launch Materials: Create sales pages, email sequences, social media posts etc.

Use Multiple Marketing Channels

  1. Email Marketing: If you have an email list this should be your main focus. Send a sequence of emails before and during your launch.

  2. Social Media: Use your socials to create buzz. Consider using live videos or stories to give a sneak peek into your course.

  3. Content Marketing: Write blog posts or create videos around your course topic to attract interested students.

  4. Paid Ads: If you have the budget, paying for Facebook Ads and Google Adwords can help you reach a bigger audience.

  5. Affiliate Marketing: Who has your audience? You can offer them a commission in exchange for them promoting your course to their audience.

Launch Specials

  1. Early Bird Discount: Offer discounts for folks who enroll early. These are “early adopters” and should be rewarded accordingly.

  2. Bonuses: 1:1 coaching sessions, access to a private community, or extra templates and tools for launch period only.

  3. Payment Plans: Increase sign-ups by making your course more affordable. Payment plans aren’t restricted for physical goods only.

Nurturing Your Audience

  1. Webinar: Host a free training program around your course topic… making sure to cover the what, why, and a bit of the how. Then pitch your course at the end.

  2. Q&A Sessions: Host live Q&A’s to answer any questions potential students may have. The more thorough your answers are, the higher the chance people sign up.

  3. Reply to questions and comments: Make sure to check your social media and email inbox to answer questions and address feedback.

Measure / Track

  1. Sales: Note down your your enrollment numbers throughout the launch.

  2. Marketing: Use data to determine which marketing channel(s) drive the mort sales. Do more of these.

  3. Feedback: The market (your audience) is the most important factor. Ask early students why they signed up for your course.

After the Launch

  1. Get the truth on the table: Most people won’t buy and that’s normal in any industry or market. But them not buying during the launch period doesn’t mean they won’t buy in the future. Ask them why they didn’t buy this time around. We want to get “the truth on the table”. We don’t want fake answers. So encourage them to be honest in their response. Assure them you won’t be offended.

  2. Improve: By getting the real reasons why people don’t buy, you can improve your offer, messaging, and positioning to get better results the next time you re-open your course.

  3. Social proof: Share your launch results with your audience to build credibility and authority. They might want to get your course the next time it opens.

Remember launching and marketing your course is an ongoing process. Be prepared to adjust your strategy as you go based on what works for your audience and your course. With consistency and the right approach you can get your course in front of the people who need it most.

Cost Saving Tips

got cost saving tips for online course pricing

You don’t have to break the bank to create an online course. Here are some ways to save your course development costs without sacrificing quality:

Free & Low Cost Tools

  1. Free LMS Platforms: Use free plans to test your course idea before moving to paid plans.

  2. Open-Source Software: Use free, open-source video editing software (OpenShot), graphic design software (GIMP) and audio editing software (Audacity).

  3. Free Stock Resources: Use free stock photo and video sites like Pexels, Unsplash and Pixabay for course visuals.

DIY Where Possible

  1. Record Yourself: With a smartphone and good lighting you can create decent quality videos without professional equipment.

  2. Create Your Own Graphics: Use user-friendly tools like Canva to create course materials and promotional content.

  3. Write Your Own Content: Use your expertise without hiring writers.

Gradual Scaling

  1. Start small with a low price point: Start with a mini-course or a series of workshops to test your idea before investing in a full course.

  2. Reinvest Profits: Use the profits from your initial launches to fund improvements and expansions.

  3. Upgrade incrementally to eventually reach premium pricing: Start with basic tools and upgrade to more advanced options as your course grows and generates revenue.

Real Examples

Let’s take a look at some real life examples of course creation costs and results:

Case Study #1: Pat Flynn’s “Power-Up Podcasting”

Pat Flynn, a well known online entrepreneur created the “Power-Up Podcasting” course.

Price: $799

Revenue:

  • Over $500,000 in the first year

  • Students: Over 1,500 in the first year

Strategy:

Flynn used his existing audience from his blog and podcast to launch the course. He also offered a free “Podcast Cheat Sheet” as a lead magnet to build his email list specifically for this course.

Source: Smart Passive Income Blog

Case Study #2: Melyssa Griffin’s “Pinfinite Growth”

Melyssa Griffin, business strategist and online educator created the “Pinfinite Growth” course on Pinterest marketing.

Price: $397

  • Revenue: Over $1 million in year 1

  • Students: Over 2,500 in year 1

Strategy:

She ran webinars that educate people about the importance of using Pinterest for their marketing. She provided upfront value, then at the end of the webinars she pitched her course.

Source: Melyssa Griffin’s Blog

Case Study #3: John Lee Dumas’ “Podcasters’ Paradise”

John is host of the Entrepreneurs on Fire podcast. He created the “Podcasters’ Paradise” course on starting and growing a podcast.

Price: $997 (one-time) or $97/month

  • Revenue: Over $4 million

  • Students: Over 3,000 members

Strategy:

This is one of the best “putting your mouth where your money is” examples. How so?

1/ John is famous for his podcast

2/ His course is about using podcast to create a strong brand and following

3/ He uses his podcast to promote his “podcasting” course

Source: Entrepreneurs on Fire Income Reports

These examples show that to sell your courses successfully, you need to have a targeted audience who’s interested in your topic. There are many ways to build an audience — webinars, podcasting, ads, social media, etc.

But one thing is clear: Regardless of which channel you go for — make sure to have an email list that you can contact over and over. If they don’t buy now, you can always nurture your relationships with them so they buy in the future.

7 Steps to Answer “How Much Does It Cost to Create an Online Course”?

Step 1: Define Your Course

  • How many hours of content?

  • What type of content (video, text, quizzes etc.)?

Step 2: List The Resources Needed

  • What kind of equipment (camera, mic, lighting)

  • What type of software (video editing, graphic design, LMS)

  • What services will you outsource (if any)

Step 3: Research

  • Get quotes for the services you need

  • Compare prices for equipment & software

Step 4: Estimate The Time Required

  • How long will planning and research take?

  • How long will content creation take?

  • How long will editing take?

  • How long will marketing and promotion take?

Step 5: Add Up Costs

  • Total monetary costs

  • Time value (your time x hourly rate)

Step 6: Factor in Ongoing Costs

  • Software recurring fees

  • Marketing budget

  • Costs for keeping the course up-to-date

Step 7: Contingency

  • Add 10-20% for unexpected expenses that may come up

Here’s a Simple Online Course Pricing Calculator Template:


Equipment: $________

Software: $________

Services: $________

Marketing: $________

Your Time (hours * hourly rate): $________

Ongoing: $________

Subtotal: $________

Contingency (20% of subtotal): $________

Total Cost: $________

Of course, this is just an estimate. Actual numbers will vary. But it’s still better than not having any estimate at all.

Summing Up

sell online courses is no easy task

As you can see, answering the question “How much does it cost to create an online course” is no easy task.

But creating + marketing it is even harder.

You’d need to: build an audience to sell to, actually create USEFUL content that solve’s people’s problems, make the content practical and actionable, understanding marketing and copywriting, etc.

But if you ask me? The rewards are well worth it.

Takeaways:

1/ Understand your course creation goals: If something doesn’t align with your goals, don’t do it.

2/ Plan wisely: It’s not just about creating the content of the course, it’s also about marketing.

3/ Price your course wisely: Apart from factoring in hardware and software costs, remember to factor in your time too.

4/ Pick the right tools: Choose those that fit your needs and budget.

5/ Focus on making students WIN: Nothing else matters if your students don’t get good results from your course.

6/ Build it and they’ll come is BS: Even the best course needs a good promotion strategy to sell well.

7/ Adapt: Always be on the lookout to new trends and developments. Be prepared to update your course accordingly.

Remember, the most expensive course isn’t the most successful. What matters most is the value you deliver to your students. With planning, investment and focus on quality you can create a course that covers its costs and generates big profits and impact.

Whether you’re a first time online course creator or an experienced educator looking to add to your offerings, I hope this guide has been helpful in understanding the costs and considerations of creating an online course.

If you’re a solo course creator with less than 10 teammates, and you you just want a fast cart / checkout software that works, check out our very own CartMango (free to use at this time)

Frequently Asked Questions

Q: How long does it take to create an online course?

Time frame varies depending on course complexity and your time. A simple course might take 4-6 weeks, a full program several months.

Q: Can I update my course after it’s launched?

Yes. In fact you should. Most LMS platforms make it easy to update content.

Q: Is there a market for my course?

Research your niche, look at competitor courses and engage with your target audience on social media or through surveys to gauge interest in your course.

Q: Should I offer a money back guarantee for my course?

Many course creators offer money back guarantees to reduce the risk for students. But it’s a personal decision based on your confidence in your course and your target market.

Q: How do I stand out in a crowded market?

Focus on your strengths and specificity. Offer more value and consider niching down to a specific part of your broader topic.

Q: One time purchase or subscription model?

This depends on your course structure and content. One time purchases work for self-contained courses, subscription models for continuously updated content or community based programs.

Q: Is it important to have a professional looking course?

While content is king, a professional look can increase credibility and student engagement. Aim for the best you can do within your budget.

By answering these questions and following this guide you’ll be ready to dive into the world of online course creation.

Every expert was once a beginner – your knowledge and perspective have value and there are students out there who want to learn from you.

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