Understand Your Conversion Rates for Effective Pricing

To achieve specific revenue goals, understanding conversion rates based on pricing is crucial. For a $100 course, a seller needs to sell 100 units to reach $10,000, typically experiencing a conversion rate between 7% to 15%. The first launch generally garners the highest sales from dedicated fans. Increasing the course price to $200 reduces the required sales to 50, with conversion rates averaging around 7%. At a $500 price point, the conversation rates stabilize, while a $1,000 program sees rates drop to 2-3%. Interestingly, there is not a drastic difference in conversion rates between $500 and $1,000 offerings, indicating a challenging market for products priced between $300 to $500. Higher-priced products could potentially yield more revenue despite lower conversion rates.