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Pricing a digital product

How to pick a price you can defend, and how to change it without upsetting anyone.

5 min read

There’s no correct price. There’s a price your buyers will pay that’s worth your time after fees and splits.

Start from three numbers

  1. What it replaces. Hiring someone, buying several other things, or hours of doing it from scratch. Your price should be clearly less than that.
  2. What similar products sell for. Look at five real competitors. Being the cheapest isn’t a plan; being clearly better at a similar price is.
  3. What each partner takes home. Run your price through the calculator. If a $9 product leaves each of three equal partners about $2.81 after Stripe’s fee, ask whether that’s worth the support emails.

Fees at low prices

Stripe’s fee has a fixed part (in the US, commonly 30¢ per card payment) plus a percentage, so it takes a bigger bite of small prices. On a $5 product, the fee is around 9% of the price; on a $27 product, it’s around 4%. Check Stripe’s pricing page for your rates.

Affiliates and price

If you want affiliates, leave room for a meaningful commission. Many digital product sellers offer 30 to 50%. A 40% commission on $9 is $3.60; few affiliates will work hard for that.

Launch prices

A lower price for launch week is fine if it’s true: say when it ends, and end it then. Changing the price is a change your partners approve (or the leader makes). A new price applies to new sales only.

Raising prices later

Add something real first (a new section, a bonus, an update), then raise the price for new buyers. People who already bought keep what they bought.

Honest

Most first-time sellers price too low. If nobody ever says it’s too expensive, it probably is too cheap.

Still stuck? Email a person at hello@splitpartner.com. Say which product and what you saw; a screenshot helps.