Why Most Coaches Underprice Their Masterclasses and How to Charge with Confidence (Includes Calculator)

One of the first questions almost every coach asks when creating a masterclass is surprisingly simple: “How much should I charge?”

Unfortunately, the answers they usually receive are anything but helpful. Some people suggest looking at what competitors charge. Others recommend choosing a number that “feels right.” Still others encourage pricing based on confidence, intuition, or what they believe their audience can afford.

While there may be a place for each of these ideas, none of them answers the most important question. Will this price actually support your business?

Many coaches unknowingly price their programs based on emotion instead of mathematics. The result is often a successful-looking program that quietly loses money or generates far less income than expected. Fortunately, there is a much better way to approach pricing.

Pricing Starts with Your Business, Not Your Competitors

One of the biggest mistakes entrepreneurs make is starting their pricing strategy by researching everyone else. While understanding the market is certainly useful, your competitors don’t know your expenses, your financial goals, your business model, or the number of hours you want to work each year. A price that works perfectly for another coach may be completely unsustainable for you.

Instead of asking, “What does everyone else charge?” ask a different question:

• “What does my business actually need?”

That shift changes everything. Rather than guessing, you begin calculating.

Your Masterclass Is One Product in a Larger Business

Very few businesses rely on a single product. Perhaps you also offer private coaching, digital courses, memberships, consulting, books, templates, workshops, or speaking engagements. Every one of those offers contributes to your overall business revenue. That means your masterclass doesn’t necessarily have to generate all of your income.

Perhaps you want it to contribute 30%. Maybe 50%. Or perhaps it is your flagship offer and should generate 80% of your revenue.

Once you decide what role the masterclass plays within your business, pricing becomes far more logical. Instead of choosing a random number, you begin working backwards from your financial goals.

Capacity Matters More Than Most People Realise

Another common mistake is assuming every masterclass will be completely full. In reality, very few programs consistently achieve a 100% fill rate. Some groups may sell out. Others may reach 70% or 80% capacity. Occasionally, a cohort may be smaller than expected. A sustainable pricing strategy accounts for this reality instead of hoping for the best.

The same applies to group size. Although adding more participants increases revenue, larger groups eventually reduce the quality of the experience. Discussions become more difficult to manage, quieter participants contribute less frequently, and individual attention naturally decreases.

At some point, increasing revenue begins reducing value. Finding the right balance between group size, participant experience, and pricing is one of the most important business decisions you’ll make.

Don’t Forget the Cost of Delivery

Many coaches calculate revenue but forget to account for how the program is delivered. Will you facilitate every masterclass yourself? Will you eventually hire associate coaches or freelancers to lead additional groups?

If someone else delivers the program, they’ll usually receive a percentage of the revenue. That percentage needs to be reflected in your pricing calculations. Otherwise, your margins may become much smaller than you expected. Thinking about scalability early helps you create a pricing model that continues working as your business grows.

Pricing Should Reduce Stress, Not Create It

One of the greatest benefits of calculating your pricing properly is the peace of mind it creates. Instead of wondering whether you’re charging too much or too little, you understand exactly how your price supports your business. You know how many masterclasses you can realistically facilitate each year.

You know how many participants each group can comfortably accommodate. You understand how different fill rates affect your revenue. Most importantly, you know that your pricing is built upon numbers rather than guesswork.

That confidence changes the way you talk about your programs. You’re no longer apologising for your prices. You’re simply running a sustainable business.

A Simple Calculator Can Save You Hours of Guesswork

If you’ve ever found yourself opening a spreadsheet, changing numbers repeatedly, and still feeling unsure whether your pricing makes sense, you’re not alone. That’s exactly why I created the Masterclass Pricing Calculator.

Simply enter:

• How much monthly revenue your business needs.
• What percentage of that revenue should come from this masterclass.
• How many cohorts you can realistically facilitate each year.
• Your ideal group size.
• Your expected fill rate.
• Whether you’re delivering the program yourself or sharing revenue with another facilitator.

The calculator instantly estimates the minimum seat price required to support your business, along with recommended and premium pricing options that provide additional room for growth. Instead of relying on intuition, you’ll have a pricing strategy based on the realities of your business. Because when your numbers work, your business becomes far more enjoyable to run.