Key takeaways
- Price from the result you deliver, not your hours.
- Check competitor prices to find the normal range.
- Use a three tier ladder to serve more buyers.
- Raise prices as reviews and results grow.
On this page
Why most new sellers undercharge
New sellers price low out of fear. Low prices signal low value. They also force you to sell far more copies to earn the same income.
What the research says
Research backs this. McKinsey found that a 1 percent price increase raises operating profit by about 8 percent on average. (1) Small changes matter.
Use value based pricing
Ask one question. What is this result worth to the buyer? A template that saves ten hours is worth more than ten dollars. A guide that lands a client is worth more than the PDF it lives in.
The 10 to 20 percent rule
Price at 10 to 20 percent of the value you deliver. (3) Buyers feel they win. You earn a fair return.
Check the market range
Search your product type on Gumroad and Etsy. Note the prices of products with good reviews.
Typical price ranges
- Checklists and printables. 5 to 15 dollars.
- Ebooks and guides. 9 to 39 dollars.
- Template packs and toolkits. 19 to 79 dollars.
- Courses. 49 to 299 dollars.
Place your price inside the range. Go higher when you offer more depth or proof.
Free guide
Get the full 8-step selling playbook
From niche to launch: the complete, no-hype roadmap for your first digital product.
Read the free guide →Build a three tier price ladder
Offer three levels. Each one serves a different buyer.
The three tiers
- Starter. The core product at an easy price.
- Standard. The product plus templates or bonuses.
- Premium. Everything plus a checklist, workbook or extra support.
Most buyers pick the middle option. (3) The premium tier makes it look like a smart deal.
Test and raise your price
Launch at your chosen price. Watch sales for two weeks. Strong sales and good reviews tell you to raise it.
Tools and next steps
Learn more in our free selling guide. Pick the right format with our list of the best digital products to sell. Write your sales page faster with the free AI tools.
Frequently asked questions
Should I start with a low price to get sales?
Start fair, not cheap. Use a short launch discount instead.
Can I raise prices later?
Yes. Raise them as you add reviews and improvements.
Should I offer free products?
A free sample builds trust. Keep your main product paid.
Do discounts hurt my brand?
Frequent discounts train buyers to wait. Use them rarely.
What price ends work best?
Prices ending in 7 or 9 work well for most digital products.
Sources and notes
Numbers in brackets in this article point to the sources below.
- (1) Michael Marn, Eric Roegner and Craig Zawada, McKinsey, The power of pricing, 2003. The study found an average 8.7 percent profit gain across large companies.
- (2) Warren Buffett, Berkshire Hathaway 2008 shareholder letter, quoting Benjamin Graham.
- (3) Lifestylebiz editorial guidance, based on our own product launches. Treat it as a rule of thumb, not a published statistic.
From the catalog
3-Step 5-Figure Niches
A framework for finding niches where buyers already spend — so your pricing starts from real demand.
View on Gumroad $37 →This article is general information, not financial or legal advice. Results vary.