This is terrifying.
On Monday at 11AM EST, we are updating our pricing for all new customers - and adding the good parts for all existing customers (hey, you).
What does this mean for you? More features at each level, lower transaction fees and a more affordable way to get paid instantly.
Here's what you need to know...
(Don’t want to read this behemoth of a post? Jump to the TL;DR)
The Basic Plan
The bad news first... for all new customers, the price of the Basic Plan goes up by $10 to from $29/month to $39/month.
With that said, every single person already on the Basic Plan at $29/month and anyone else that can sneak in before Monday will be able to lock in the $29/month plan indefinitely until they downgrade. (To upgrade click here)
The new $39/month price will include everything that is currently on the Basic Plan AND some of the features that were previously on the Professional Plan - like drip content - with the same transaction fee as the original Professional Plan of 5%.
And what’s more - if you are on the $29/month Basic Plan at 11AM on Monday, you automatically get drip content AND the lower transaction fee at the same price.
AND you can keep it till the day you change your plan or stop being a paying Teachable customer.
Point blank, if you are a free user, the next 3 days is probably the best time to upgrade to the basic plan.
The Professional Plan
The Professional Plan is the real winner in this pricing change and in my opinion will go on to become our most popular plan.
The price of the Professional Plan stays exactly the same.. but it becomes much, much better value.
We are now giving you the ability to directly integrate your bank account (via Stripe Connect) and Paypal account on the Professional plan. This means immediate payouts & lower transaction fees. Can I get a fist-pump?
If you do integrate your accounts:
- Teachable is removing all transaction fees up to $5,000 per month in sales.
- You no longer need to wait for us to pay you every month. You get instant access to funds with each course sale not touching Teachable at all and going straight to you.
If you go over $5,000 per month in sales, you won’t necessarily need to jump straight up to the high-volume plan at $299/month. You can instead opt to pay a 10 cent overage on every dollar… so if you make $5,001, your bill would be $99.10.
If you do not choose to plug in your own gateways (which we highly, highly recommend you do) and want to continue to use us as your payment processor, we charge a 2% fee (down from 5%) and stick to monthly payouts.
Same price, instant payouts, no transaction fee.
We built the new Professional Plan to have the most requested features that we have been asked for.
This is the most terrifying part of our pricing change - we are giving you all back tens of thousands of dollars in transaction fees, inviting a lot of people that might be paying us $299 / month to *downgrade* back to Professional in the hope that this makes for a better experience for the majority of people.
Scary, but exciting.
High-Volume Plans and the Free Plan
The Free Plan
These plans stay mostly the same.
People on the free plan will lose the ability to create coupons. Why? We found a lot of people using Teachable for free, selling their courses elsewhere and using free coupons to bypass the transaction fee.
Yes, a few bad apples ruined it for the rest.
We will still let you have unlimited courses, students and bandwidth on the free plan and you can continue to distribute courses entirely for free without any limits. You just can't have a paid course with a coupon.
If you want beta testers etc. you can still add people to courses for free directly from the admin panel.
The High-Volume Plan
The high-volume plan gets a couple of new features like the ability to bulk import students into your school, bulk enroll students in a specific course and a specific support SLA of a first-response in 2 hours and a resolution in 6 hours.
If you are a Basic or Professional customer, you get to keep more money than before (yay). If you are on the Free or High-Volume plans, you probably won’t notice anything.
Frequently Asked Questions
Q: When do these changes go live?
Monday April 18 at 11AM EST
Q: What do I need to do take advantage of the lower transaction fees?
Grab a drink (or three) and chill till Monday at 11AM EST.
At that point, the transaction fees for Basic will drop to 5%. On the Professional plan, they will drop to 2% - until you take the time to set up your payment gateways when they will drop to NADA.
Q: How long can I keep my $29 / month Basic account?
For as long as you keep paying us :)
No seriously, we’re grandfathering you in at the old pricing forever until you decide to change plans or downgrade back to free in which case, you’ll be treated as a new customer.
Q: Can I upgrade to the Basic plan between now and Monday and lock in the $29 / month price forever?
Q: Cut the B.S… I see the benefits of the new pricing. What’s the downside.. how can this potentially cost me more in any way at all?
As an existing customer, there is literally no way you become worse off.
For a new customer that does not make any sales at all (so they don’t have the benefit of the lower transaction fee) and does not use drip content, they now need to spend $10/month more - but if you’re reading this, you have until Monday to get the existing $29/month price.
The only segment that’s slightly worse off than before is free users that have no intention of upgrading that were bypassing our payment system that now need to upgrade to at least the Basic level to keep doing that.
Q: Who pays my authors and affiliates if I receive direct payouts?
You do. If you receive direct payouts, Teachable never touches any of the money - it goes straight from your student to you so in that case, you’d be responsible for paying out your authors and affiliates.
If you still want us to pay out your authors and affiliates, do not enable direct payouts and we’ll keep doing paying you, your authors and your affiliates on a monthly cadence.
Since we are handling payments, cover the payment fees ourselves along with the end of year tax forms, we charge a 2% fee if you do not set up direct payouts.
Q: Thank you for bringing drip content on the Basic level - I appreciate it.
Q: The new Professional Plan is slick.
A: We know
Q: Most SaaS companies increase their pricing over time. Why are you (mostly) lowering your prices?
A: A combination of factors -- the most important of which was giving people a more affordable way of receiving their money instantly. We also believe with lower (or no) transaction fees people will end up running more transactions through us than they otherwise would… and it’d be pretty cool to process over a $1b a year.
We’re also a venture-backed company that’s doing reasonably well so this is a calculated risk that we feel pretty good about. Because of that, we’re OK with a short-term loss if we believe it grows the long-term business.
Q: Do you anticipate any future pricing changes?
A: We do not. However if something changes and we do end up changing our prices, we will always grandfather existing customers into the deal they signed up for - unless the new pricing is better.