Building Your Handmade Online Empire {A Five Part Series} Tip #3

Welcome to my five tip series to help get the web on your side, a little bit at a time.  Each month I will provide a new tip to get you inspired!

My last Tip #2, "Harness The Power Of Stats" gave you a crash course in approaching stats for your various websites, social networks and shops. I hope you cracked open a few stats pages and got excited about the wealth of information there. Did you find my article helpful? If you missed it, please be sure to read it here!

--- If you missed the first tip, be sure to read it here! ---

Tip #3. Ask Yourself The Hard Questions About Being In Business

I see it all the time: new sellers open a shop, list their wares and then get extremely discouraged when no sales happen right away (hey...that is where I started too!). If you're a handmade seller, you simply cannot ignore the part of the puzzle that requires you to be a business person. Here are some hard but necessary questions to ask yourself if you are at this crossroads.

Question: Are you ready to run a business?

Most handmade sellers don’t start out with a huge budget for advertising, paying employees, hiring accountants or business advisors. Being a one-person business means that besides making awesome stuff, you’ll be in charge of:

• Accounting (Taxes, Payroll, Inventory Management, Banking, Pricing, Billing)
• Marketing (Branding, Websites, Blogging, Writing Copy, Social Networking & Advertising, Product Photography)
• Customer Service (Sales, Packing & Shipping, Correspondence, Inquiries, Tracking, Refunds)
• Research & Development (Product Testing and Quality Assurance)

That amount of responsibility can be stressful, overwhelming and discouraging at times. It is a lot for one person to manage, but it can be done. 

Approach your business as a business, and create a schedule and a plan for handling all of those elements. Be sure to research legal issues concerning safety, insurance, taxes and licensing for what you sell. I know it isn’t any fun, but if you want to do this for a living, it needs to be taken seriously.

Question: Do you have a plan for getting traffic to your shop?

I’m sure you’ve seen this topic before. You simply cannot expect that if you put something on the internet that anyone is going to find it. On a tight budget this can be especially daunting.

Think of marketing like a starter home. Have you heard the term “Sweat Equity”? Well, when applied to improving a house, it means do-it-yourself to increase the monetary value of the house. If you apply it to marketing, the value is increased traffic and sales.

Here are some examples of marketing techniques that cost more time and effort than money:

• Bring business cards everywhere you go. Hand them out. Yes that part is important!
• Put your shop and facebook links in the footer of your email.
• Mention that you are available 24/7 online at xyz.com on your voicemail and your email footer.
• Use social networking to get your brand some visibility.
• If you sell at craft fairs, hand out business cards to people who stop and look.
• Swap packs of 20 business cards with other sellers. Package up the cards as a “freebie” to send out with your orders, and have yours go out with those you’ve swapped with. There is a Craft Cafe group for this. Request to be added in the comments of this post.
• Add a coupon code to the back of your business card to entice visitors.
• Wear and gift your own work, and hand a card to anyone who asks about it.
• Donate a product to a local fundraiser, as in return they may add your business name and link to a website or flyer.

Most of all: be willing to spend a great deal of time getting your links out to potential customers. Organic or "guerilla" marketing is different for every seller. There are myriad ideas for marketing on the cheap. Be bold, be patient and be willing to try new things. In time, this will pay off!

If you have a budget for advertising, things are just as tricky. Where to spend it? What ads will reach the most potential buyers for your products? What can you risk for the potential success or failure of any given ad investment? Again, different for every seller.

Question: Do people want to buy what you’re selling?

Have you ever seen someone posting links to something they are selling that makes you wonder “who would buy that?” I have. In fact, I’m sure some of my products have inspired such a response. We all have our own style and that comes through in our handmade work. It is tough to admit, but sometimes people won’t want to buy what you make, be it the price it needs to be for you to make a profit, the style of the product, the nature of the product, and so on. 

If you've made it, priced it right to make a profit, listed it, marketed it and it just isn't selling: you might be trying to sell something nobody wants. Not a fun revelation, but a really really important one.

Question: What makes your shop, product, business different AND better than your competition?

This is Marketing 101: “Differentiation”. If you can’t determine what makes your business or product better than the rest, I suggest you sit down and think about it. If you can’t explain why someone should choose you over the rest, you’ve got some soul searching to do.

If you’re struggling with that question, keep it simple. Is it your superior customer service? Fast turn-around times? Do you use premium materials or ingredients? Do you use a special technique? Perhaps your background makes you an expert in your craft.

When you determine one or more reasons you’re brand is better than the rest, you’ve created a resource for your sales and marketing. Now you know what to say that will make people choose you over the others. Talk about it in your listings, your social networking and on your business cards.

Determining differentiation for your product, service or brand also provides a road map for how to run your business. If you sing the praises of orders going out the door within 24 hours, then I suggest you make that your number one priority. If it takes two weeks to turn around an order because you make custom knitted accessories upon order, then you’ve got a different angle. You offer variety based on the customer’s EXACT preferences, and you go make what they tell you to make, when they tell you to make it. That is pretty cool too. So brag it up, whatever your strengths.

If you’re still struggling to figure out why you’re better....head back to the drawing board and see if this whole business thing is for you, or if you’d rather just make stuff and not have to compete in the marketplace. I know plenty of creative people who decided after selling for awhile, they realized they weren’t even spending half their time on making what they love to make, and it just wasn’t what they set out to do. That is perfectly reasonable! Give it some thought and keep on moving the right direction for you!

Question: Are your prices working?

This topic challenges handmade sellers to take a leap of faith that what they’re making is WORTH IT. You are not competing with Walmart. Not everyone is a handmade customer. If somebody wants the $5 version of what you can sell for $25, then let that customer go. It is not judgmental or exclusive to say no to a customer who wants what you have for less than you can offer it. You can be polite and consider it a good time to educate the customer about why yours is more expensive. An opportunity to help raise the awareness for you and your fellow handmakers....who can resist?

Wait for your customer. That is, a customer who understands the value of your work, creativity and product. The handmade, DIY wave is here! Those customers are everywhere, so don’t give in to desperation and self-doubt. It takes time and hard work to get your products in front of those customers, be willing to wait!

No-nos of the pricing variety:

• Don’t simply price your items by guessing.
• Don’t price based on what you think people will pay.
• Don’t price based solely on what your competition is charging.
• Don’t follow a pricing algorithm that you find doesn’t actually work for you.
• Don’t price low out of desperation to make a sale.
• Don’t allow a customer to tell you what they are willing to pay.
• Don’t price materials & labor only (consider how to compensate expertise, design, service, overhead costs of your business within your pricing scheme)

If you’re pricing your products with these practices, you’ll have a hard time making a profit and getting paid to be in business.

Handmade sellers frequently devalue their own work and products (and the handmade marketplace in general) by pricing to compete with the market at-large. Don’t do it! If you truly plan to become a full-time business owner, you’re going to need to let some customers go. I hereby give you permission to be polite, but inform customers that your work is handmade and custom and your expertise costs more. If you need support or advice about pricing, please comment here. The community of handmade sellers on Craft Cafe and elsewhere offers a giant pool of talent and expertise.

Question: Do you have what it takes emotionally to make it through the tough stuff?

I’ve talked about all of the hard work, skills and other nuts & bolts of what it means to run a business...but there is another side to it all. EMOTIONS! Yes, I said it. Emotions are a HUGE part of getting somewhere in business. So, if you have a thin skin, prepare to get a few blisters and toughen up. 

Dealing with the many first time situations, slow sales days, confusing paperwork challenges, budget issues (or lack there-of) and crazy customers can make you want to scream. I can’t change that, but I can offer some techniques for dealing with it all gracefully.

Here are a few general guidelines to managing the rollercoasters you’ll certainly encounter.

• Negativity is poison. If you are frustrated and discouraged, don’t expect your peers to talk you down or be responsible for helping you when you’re being a jerk. Did you read an article hoping for a particular answer and it wasn’t there? Just ask nicely and maybe the author or other commentors will give you some advice or input. Complaining and being insulting will get you nowhere. Plus people tend to remember negative experiences longer than positives. Sad but true. So don’t go poison a group or a comment thread with a bad attitude. Just don’t! One more thing...this includes being snippy! Don’t comment if you’re just here to minimize or sabotage. Contribute positivity, and watch it come back to you!
  
  
• Are you having a slow sales day? Tell your peers in a private group that you need some cheering up, or ideas for dealing with it. Ask for tips. Say you’re discouraged. But please remember to bring a pro-active attitude to the party. If somebody encourages you to try A B or C and you already did, it might be nice to say “I’ve been using those techniques, and I’m not seeing results. I wonder if you could take a look at my product description and see if you have any insight” instead of “I’ve tried everything and nothing works. Nobody is buying anything and I think I might quit”. Especially DO NOT BLAME THE INTERNET! It is not anyone’s job but yours to make your business work.
  
  
• Do you feel like you can’t take another article, piece of advice or slow sales day or you’re gonna go insane? This is a real trick, but I promise you it works: Walk away. Close your laptop. Go on a walk, meet a friend for coffee, GET OUT OF YOUR WORK SPACE!!!! We all need to give ourselves permission to give up for the day once in awhile. If you find yourself being negative about everything and anything, you need to go enjoy something. ANYTHING. Ice cream, coffee, a walk with your dog, play with your kids, have dinner out with your friends. Tell somebody you love that you’re discouraged. You’ll come back with new energy. Bonus points: you won’t associate being in your work space with negative feelings. That rocks!
  
  
• Do you have a customer who is borderline abusive, insulting or making you feel scared or unsafe? Never write to a customer who is insulting you until you’ve had some time to cool off. It isn’t worth it. Don’t argue. If a customer becomes abusive, report them to your shopping host such as Craft Cafe. There are policies that handle this stuff. Don’t let into fights. If you’re in above your head with a nutcase, get help!

One last question: Did you survive the tough questions?

Have a healthy relationship with your business, just as you would a significant other. You need open lines of communication. You need truth. You need boundaries, and you want a rewarding future together. A hobby is like dating. Going in to business is a real committed relationship to your craft. One that involves planning, ups and downs and putting up with the annoying stuff...because you’re in love! The passion should get you through the moments where you want to just throw in the towel.

If you read this, you were willing to face some scary stuff, and maybe it seems a little less scary now. Remember that not every day involves every issue I’ve gone over here. But the nature of being a one-person, or a very small business will guarantee that some days will be over-the-top with lots of the difficult stuff. If you can get through it all one day at a time, you will get somewhere.

Above: After years of turning down requests for freebies,

I recently created a web page to handle the issue

instead of handling the requests one email at a time.

Create some guidelines for making progress on the business side of things. Make some rules about working hours vs. non-working hours. Look to your fellow online sellers for advice and encouragement, and observe their methods of success. Pay attention to issues that arise and create Policies & Procedures that give your business structure.

Whatever you daydream about spending less time on...that is where you’ll want to start thinking about your long-term plans for growing your business. When something is hard, think of what would make it easier, and then work toward that goal. Create a vision for a future where you spend more time doing what you love. Without that vision, you may be looking at burn-out in the not-so-distant future.

Creative businesses take lots of love, but what you get back can change your life.

I hope asking yourself the tough questions has already made you tougher! Rome wasn’t built in a day. Give yourself time to think things through and come up with the answers only after lots and lots and lots of careful thought. I am happy to share my experiences, so please do comment on this article if you would like my input!

Be sure to follow my shops on facebook to get announcements about more articles like this!

Spoiled Cowgirl by MDB Here

M Design Boutique Here

Thanks!
Melissa Machowski

Owner, Designer, Maker at Spoiled Cowgirl by MDB, M Design Boutique, MDB Weddings and Events

Why listen to my advice? I believe in getting perspectives from all over the place. I have learned from other people succeeding at what I am trying to do. I’ve tried a lot, read a lot, failed a lot, and ultimately found some real success at running an online handmade business. My lessons learned can be yours too...at least, I hope so! ----> next tip coming in one month! Follow Craft Cafe and Spoiled Cowgirl to get the anouncement!

Building Your Handmade Online Empire {A Five Part Series} Tip #2

Welcome to my five tip series to help get the web on your side, a little bit at a time.  Each month I will provide a new tip to get you inspired!

My last Tip #2, "Harness The Power Of Stats" gave you a crash course in approaching stats for your various websites, social networks and shops. I hope you cracked open a few stats pages and got excited about the wealth of information there. Did you find my article helpful? If you missed it, please be sure to read it here!

 If you missed the first tip, be sure to read it here!

Tip #2. Harness The Power Of Stats

Once you have tried creating some new online places such as a Facebook or Twitter account, a Pinterest page or maybe a YouTube Channel, it is time to determine what is working, and try to figure out why! The power of stats will make your online presence drive traffic and sales to your shop!

This article is not a detailed course in specific stat applications, but rather a crash course in recognizing the importance of watching your stats (even if only once a month!), and a resource guide to get you started and keep you learning about what stats can do for you.  So..let's get started!

WHAT ARE STATS? Stats are collections of data that provide information about activity on the web. You can find stats almost anywhere you create an account, including Craft Cafe, Etsy, Big Cartel, Facebook, Twitter, and of course, the great Google Analytics, which allows you to see your website traffic in lots of great visual ways. 

Start Simple: Ask these three questions, and look for the answers in your stats:

1. Where is my traffic coming from? (search engines? referrals? links from your facebook posts? outside links?)

Here is a sample of my website stats that shows where my traffic came from during a 7 day period last month.

2. What do people click on? (most popular pages, posts, items in your shops)

3. Are those clicks turning into sales? (example: if you get 1000 clicks to your necklace and earring set, but no sales...you might reconsider your pricing, or see if you need to make a more alluring or informative description)

QUICK TIP: Look in your "admin", your "dashboard" or "shop tools" for stats. Click around and get familiar with what each account looks like!

From the simplest numbers (how many clicked your link, visited your site) to complex and visual information sliced and diced (so you can see exactly how people reacted to your link, post, sale, campaign), stats enlighten what goes on after you post a listing, a sale announcement and so on. Don’t ignore stats! Look around at all the different places where you have stats available. Do you see any trends? Do you see anything unexpected? 

Facebook Shares, Likes, Comments

TAKING A CLOSER LOOK: Stats give you information about WHAT people react to, and as you observe your stats, you might begin to see trends that tell you which things you posted that brought customers, fans and sales to your shops, pages and accounts.

The screen grab of my facebook post illustrates a very simple version of stats you can see right on your facebook page. Every time you post, facebook shows you how many people saw the post (lower left corner of the image), how many likes, comments and shares. Note the posts that get a great reaction and keep up the good work!

Something to think about: You might see that nobody clicks when you simply post a link to your listing, but when you talked about a new technique you used to create your product (and yes, add your link to it in your shop), you got a lot of clicks and a couple of new fans. That example is actually one I learned about in my stats. When I first created my Facebook fan page for M Design Boutique, I used to post links to my items for sale in my shop. I got very few clicks on those posts. When I began posting about orders I was making or new ideas I was looking for feedback about...I got a lot more clicks, more comments, questions and that lead to more sales.

What makes you interesting? Think about each post as a potential conversation, and when you get a click...you’re being a good conversationalist. Handmade small business owners are interesting. What makes you interesting? Think about that every time you post. This works to attract bloggers and fans who might decide to share what you posted! That is the definition of viral activity! Be so interesting that everybody wants to share what you have to say. It all links back to your page!

Think like a customer: As a customer, I am more likely to click and see your link if you tell me something I didn’t know before. I am more likely to find you interesting and want to know more. I am more likely to become your customer because you’re not selling to me, you’re inviting me to learn more about something I’m interested in. You are an expert! Be interesting! It sounds a little touchy-feely, but it works. Just watch your stats to see it working!

What to watch for: Spikes in traffic can indicate that somebody on the internet has linked into your shop or page! That is exciting! 

                                                                                                                     

READER CONTRIBUTION: Carrie Foster of Frawgz Dezignz submitted this example of her Craft Cafe Stats page, which shows the direct correlation between her facebook fan page posts and the traffic into her Craft Cafe shop.

 "I check every day. I know the days I post new items on groups or my fan page, the days I even post at all on my fan page with a link to my shop, my stats go up. The occasions I'm featured somewhere, my stats go up." -- Carrie Foster, Frawgz Dezignz

                                                                                                                      

Etsy Stats from M Design Boutique on Etsy

Here is an example from my Etsy shop stats. Last June there was a major spike in traffic to one of my listings. I was in the midst of my busiest season for filling orders, so I didn't look till later to see why. I ended up figuring out that a VERY beloved website "Regretsy" listed one of my products in a post they made. Look at that traffic! Without looking at stats, I would never have known why so many clicks happened all at once. Especially since I don't promote my Etsy shop on my social network sites.  

Notice also that I get a good amount of clicks coming from other places where my products are showing up in search queries. I'll talk about it in another post, but well-written KEY WORDS, TITLES and DESCRIPTIONS all help with those rankings and click-throughs.

This is a good time to stop, breath and go brave those stats. You're armed with some basics...and before you know it you'll be excited every week or day or month...to go see what your stats have to offer you.

Thanks for taking the time to read! Watch next month for Tip #3: Ask Yourself The Hard Questions

Please do leave comments and questions here! I will be sure to respond to everyone. I know that many of you are experts. I welcome your input, as I am speaking only from my experience. What works for one works for many. Increase the expertise! Add your advice to the discussion!

Thanks!
Melissa Machowski
Owner, Designer, Maker at Spoiled Cowgirl by MDB, M Design Boutique, MDB Weddings and Events and Spoiled Cowgirl by MDB at Craft Cafe

Why listen to my advice? I believe in getting perspectives from all over the place. I have learned from other people succeeding at what I am trying to do. I’ve tried a lot, read a lot, failed a lot, and ultimately found some real success at running an online handmade business. My lessons learned can be yours too...at least, I hope so! ----> next tip coming in one month! Follow Craft Cafe and Spoiled Cowgirl to get the announcement!