Pay What You Want Pricing: The Hack Earning Heroes 20% More
Heroes who split test Pay What You Want against fixed pricing earn 20% more on average. Here's how to set it up in Kajabi in under 60 seconds.
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Summary
Kajabi's Pay What You Want (PWYW) pricing lets customers choose what they pay, at or above a minimum you set. Heroes using it are earning more on average than with fixed pricing. This article explains why it works, when to use it, and how to set it up in under 60 seconds.
Pay What You Want Pricing: The Hack Earning Heroes More
Most experts spend hours agonizing over pricing.
"Is $97 too much? Should I do $47? What about $197?"
They survey their audience. They stalk competitors. They run spreadsheets. And after all that analysis, they still feel like they're guessing.
Here's the counterintuitive truth: the best pricing strategy might be letting your audience decide.
Kajabi's Pay What You Want (PWYW) feature lets customers choose what they pay. And the data tells a clear story. Heroes who split test PWYW against fixed pricing earn more on average.*
Not a marginal bump. Not "about the same." Meaningfully more revenue by giving buyers the choice.
Let's break down why it works, when to use it, and exactly how to set it up.
Why Pay What You Want Actually Works
PWYW pricing sounds risky. If people can pay whatever they want, won't they just pay the minimum?
Some will. But here's what the data shows.
The high-value buyers pay MORE than you'd charge. These are the people who deeply value your expertise. When you set a fixed price of $97, they pay $97. When you let them choose, they pay $147, $197, sometimes more. They're signaling how much your work means to them, and you're capturing value you'd otherwise leave on the table.
The lower barrier means more buyers get in. The person who wouldn't buy at $97 might come in at $47. You've now got a customer in your ecosystem, someone who can buy your next product, join your community, or upgrade later.
You capture both ends of the market. Fixed pricing forces you to guess the middle. PWYW lets you serve the budget-conscious and the premium buyer at the same time.
The Psychology Behind It
PWYW taps into reciprocity and autonomy, two of the strongest psychological drivers in purchasing decisions.
When you trust someone to choose their own price, you're making a statement:
"I believe my work is valuable enough that you'll pay fairly for it."
That trust is returned. Studies consistently show that PWYW pricing, when framed correctly, produces higher average prices than sellers expect.
The key phrase there is "when framed correctly." More on that below.
When to Use PWYW (and When Not To)
Great candidates for PWYW:
- Lead magnets you currently give away free. Instead of $0, set a PWYW with a $0 minimum. Some people will pay for what others get free. Free money.
- Workshops and mini-courses. Lower-commitment products where the barrier to entry matters more than maximizing per-unit revenue.
- Digital products with near-zero marginal cost. Templates, guides, swipe files. Every dollar above $0 is profit.
- Split tests against your existing pricing. Run PWYW alongside your fixed price and let the data decide.
Think twice before using PWYW for:
- High-ticket coaching. The anchoring effect of a strong fixed price communicates premium value.
- Products with significant fulfillment cost. If your margin depends on hitting a specific price point, PWYW introduces risk.
- Your flagship product. Your core offer should have confident, fixed pricing. Use PWYW for supporting products.
How to Set It Up in Kajabi (60 Seconds)
This is not a complicated feature. Here's the setup.
Step 1: Go to any product in your Kajabi dashboard.
Step 2: Navigate to the pricing section.
Step 3: Select "Pay What You Want" as the pricing type.
Step 4: Set your minimum price. This is your floor. No one pays less than this. If you want to allow $0, you can. If you want a $27 minimum, set that.
Step 5: Optionally, set a suggested price. This is the number that shows up by default in the price field. It anchors buyers and significantly influences what they pay. Pro tip: set this higher than what you'd charge as a fixed price.
Step 6: Publish.
That's it. Your customers now see a price field where they can enter their own amount, with your minimum as the floor and your suggestion as the starting point.
Pro Tips for Maximizing PWYW Revenue
Set a Strategic Suggested Price. The suggested price is the most important lever. It's the anchor. If your fixed price would be $97, try suggesting $127 or $147. Many buyers will pay the suggested amount without changing it, and those who adjust still tend to stay above your old fixed price.
Frame the Value Before the Price. PWYW works best when the buyer already understands the value. Don't put the price field at the top of a sales page. Build the case first, outcomes, testimonials, what they'll learn, then reveal that they can choose their own price.
Split Test It. Don't guess. Run PWYW alongside your fixed price offer for 2 to 4 weeks. Send 50% of traffic to each. Let the numbers speak.
Use It as a Funnel Entry Point. A PWYW mini-course at $17 to $47 is an incredible top-of-funnel product. You acquire a customer (not just a lead), prove your value, and then upsell them into your flagship program.
Add Pricing Tiers as Social Proof. Some creators frame PWYW tiers: "Supporter ($27) / Champion ($47) / Believer ($97)." This gives buyers a framework for deciding and adds a subtle social proof element. Nobody wants to be the cheapest tier.
The Bottom Line
Pricing doesn't have to be a guess. With PWYW, you let your market tell you what your work is worth, and the data says they'll tell you it's worth more than you think.
The setup takes 60 seconds. The risk is essentially zero if you split test it.
Sometimes the best pricing strategy is trusting your audience.
Go turn it on.