How to Price Your Digital Products (And Stop Undercharging)

My first template sold for $7.

I thought $7 was reasonable because I didn't feel like an expert, the template wasn't very long, and I was worried a higher price would scare people off.

After selling it at $7 for two months, I raised the price to $27 on a whim to see what happened. Not only did I not lose sales — I actually sold more. The same template at $27 had better conversion than at $7.

That experience broke my assumptions about pricing. Here's what I've learned since.

Why Undercharging Is More Common Than You Think

Most digital product creators underprice their work, and it comes from a predictable set of beliefs:

"I'm not an expert." — But buyers don't evaluate your credentials. They evaluate whether the product solves their problem.

"Anyone could make this." — Maybe, but they didn't. You did. And they're coming to you because they don't want to make it themselves.

"I don't want to seem greedy." — Pricing for the value you deliver isn't greedy. Underpricing actually disrespects your own work.

"Higher prices will hurt sales." — This is the big one — and it's often false.

The truth about pricing: in many markets, a higher price signals higher quality. A $9 ebook can feel like low-value filler. The same ebook at $29 signals that the information inside is worth real money. Buyers sometimes buy more confidently at the higher price.

This isn't universal — price too high and you'll obviously hurt sales. But the assumption that lower = more sales is wrong often enough that it's worth testing.

The Right Framework for Pricing Digital Products

I use a framework based on three inputs:

1. The transformation value

What specific outcome does the buyer get from this product? How much is that outcome worth to them?

A template that helps a freelancer put together professional client proposals doesn't just save them time — it potentially helps them win clients they'd otherwise lose. If winning one client is worth $1,000 to that freelancer, a $37 proposal template is obviously a bargain. The transformation is worth far more than the price.

Start by articulating the specific transformation your product enables. Then price based on that value, not on how long it took you to create it.

2. Market benchmarking

What are similar products selling for? Search Etsy, Gumroad, and other digital product marketplaces for products comparable to yours. Look at price points, not just the range.

Importantly, look at best-sellers. What's the pricing of the top-selling products in your category? That tells you what buyers are comfortable paying.

If top-selling Notion templates for freelancers sell for $25–$45, pricing yours at $9 doesn't make you competitive — it makes you look low-quality.

3. Your audience's willingness and ability to pay

Who are you selling to, and what's their context?

A freelancer earning $75/hour who needs a client onboarding system will pay $47 without hesitation if it saves them 2 hours of setup. A high school student starting their first side hustle might balk at $47.

The more specific your audience, the better you can calibrate to their context. "Business owners" is too broad. "Freelance graphic designers billing $50–$100/hour" tells you a lot about how much they'll value a professional business tool.

A Practical Pricing Guide by Product Type

These are rough ranges based on my experience and observation across the digital products market:

Short guides and ebooks (10–40 pages): $12–$29 Longer guides and playbooks (40+ pages, comprehensive): $27–$67 Single templates (Notion, Google Docs, Canva): $15–$37 Template bundles or packs: $27–$97 Prompt libraries and swipe files: $17–$47 Mini-courses (video, under 3 hours): $47–$147 Full courses: $97–$497

These are starting points, not ceilings. I've seen well-positioned templates sell for $150+ and stripped-down guides sell for $200 because the positioning and target audience justified it.

Why Your First Instinct on Price Is Probably Too Low

There's a cognitive bias at play when you price your own work: you know exactly how you made it. You know how the sausage is made. That knowledge makes it feel less valuable.

Your buyer doesn't have that knowledge. They see the finished product, the transformation it promises, and the price relative to alternatives.

My rule: take your initial price instinct and multiply it by 1.5–2x. That's often closer to the right number. Then test it.

How to Test Pricing

Don't agonize over the "perfect" price. Put it out at your starting price and collect data.

After 20–30 visitors to your product page with no sales: your price might be fine, but something else is off (usually the description or the product itself). Don't automatically lower the price.

After 50+ visitors with low conversion: that's worth testing a price change. Try dropping by 20% for two weeks and see if conversion improves meaningfully.

After selling consistently: try a price increase of 20–30% and see if conversion holds. If it does, you've found higher revenue per sale with the same traffic.

The key insight: a 50% price increase that results in a 25% drop in sales still increases your revenue. You're earning more money while doing less customer service and delivery work. Run the math.

The Anchoring Trick That Increases Average Order Value

One technique that consistently improves revenue per customer: offer a second tier.

Instead of one product at $27, offer:

• Basic: $27 (the core product)
• Bundle: $47 (the core product + a bonus resource)

The bundle tier does two things. It gives you a higher-value option for buyers willing to spend more. And it makes the $27 option feel like a clear value rather than the only choice.

Most sellers find that 20–30% of buyers choose the higher tier — which meaningfully increases average revenue per sale.

The Last Thing I'd Tell My Past Self About Pricing

Stop pricing based on what you paid for things.

The fact that a 25-page ebook "only cost you 3 days to write" is irrelevant. The fact that a Notion template "only takes 4 hours to set up" is irrelevant. Buyers don't pay for your time. They pay for the result they get.

Price for the result. Adjust based on data. Don't apologize for your prices.

Once you've nailed pricing, you need a platform that presents your product without undermining it. MadeThis gives your digital products a clean, professional home — the kind of product page that makes a $47 price tag look completely reasonable.