How to Sell Crafts - Turn Your Hobby into a Business and Make Money

Take a good, hard look at your work. Despite what family may say, is it really good enough to ask money for? Does it look professional? Do you receive compliments from strangers about your work? Would *you* pay money to have your work, if you could not do it yourself? Look around at other items similar to yours, and see how they compare. People may pay more for handmade items, but there is a difference between handmade and thrown together!

There is a lot of competition in craft selling, especially in jewelry, so if your items are not up to standard, you are probably wasting your time. If you are unsure, get some books on your craft or read up online about techniques, and spend more time practicing and perfecting your craft first - this investment will pay off.

So, you are skilled in your craft and produce great items. Now, how are you going to persuade people to buy *your* work, rather than anyone else's? Whatever your craft, you can be assured that there are already sellers out there who produce equally good work, and you will have to compete for sales. You need to give people a reason to fall in love with your items and choose your crocheted hats (or example) rather than any other crocheted hat they could buy.

One way to overcome this, aside from great marketing, is to find your own niche. Study others' work and see what you could do differently. Is there a gap in the market you could fill? A different angle you can take? If you can make your items stand out from the others in some way, your chances of selling are greatly increased.

If you can't think of a way to make your item different enough to stand out from other sellers, sometimes even just the way you describe it can make it different and memorable. For example, say you make green crocheted hats, just like 5 other online sellers. However, your hat is inspired by the color of the cloak worn by a popular fantasy fictional character, and you paint a picture of the character's exploits in the cloak inspiring you to create the hat. Which hat is more memorable, one described like this, or one just described as 'green hat'? The products may be almost the same, but suddenly one is much more attractive.

If you intend to sell online, great photographs are essential. If someone is not attracted by the photograph, they probably won't even both to read the description and discover more about your product. However good your product is, if your photos don't show this to the buyer, you will not get sales.

Your photos need to:

Create a professional impression
Obviously, this first means that the photos you use need to be in focus and not blurry. Read up on the instructions for your camera if you are unsure about its features, and use the 'macro' setting (often shown by a small flower) for close-ups.

Make sure that your item is well presented (for example, not creased if you make clothes) and you have at least one picture showing the item in its entirety.

Think about the background. In general, dark items are best photographed against a light background, and vice versa. Make sure the background is uncluttered and does not distract from the item.

Show the item in detail, so potential buyers can see how great it is
In most online venues, you will be able to have 4-5 photos of each item, so take advantage of them. Have at least one close-up, so buyers can see the detail and get an idea of how good your workmanship is. Buyers won't buy a great item unless you show them how great it is! A good way to take full advantage of say 4 photos per item is to take photos of:
- the whole item
- a close-up of detail
- a second close-up of another detail
- the item in use, or an example of how it could be used

Should I use a model for photographing clothes?
For clothing and other wearable items, you may have the option of using a model in your photographs. This is a debatable strategy, as some buyers don't want to buy something that someone has worn, and feel that if it's shown in pictures being worn, that means that it is 'used'. However, maybe your item will be made to order in the buyer's size, and so they will not receive the one in the photos - make this clear in your item description, if it applies to you. There are several advantages to using a model for clothes.

- Buyers can see how the clothes hang and fit on a 'real person' - it's hard to tell from clothes hanging on a hanger, what they would really look like on. Some items can look unattractive or strange on a hanger, but great once they are actually worn.

- You can shoot your pictures with a theme to match your clothing, by choosing a particular location for your photoshoot. While you need to make sure that your background does not detract from your work, photos shot in a great location can let your buyers imagine how and when they could wear your clothing. Aspirational marketing works (think of all those 'wear this perfume/drink this soda and you'll be the most attractive person in the room' ads on TV) - make your buyer want to *be* your model. Think of the backgrounds used for fashion shoots and what you see people doing while wearing your clothing - create an image for yourself. An image also helps you stand out and be memorable.

If you can't use a model or prefer not to, a great alternative is to use a mannequin/tailor's dummy for clothes or a display stand for jewelry. This allows buyers to see how clothing would hang, and gives a professional impression.

Photographing jewelry
Jewelry is some of the most difficult work to photograph. Photos need to be close-ups, and show detail against a plain background. You may be able to take good pictures by placing your item on card or another background in good light (daylight is great). Alternatively, cut the top off a box and place a piece of plain paper inside, with a piece of glass over the open top. Place your item on the glass and shoot downwards towards the paper. The glass removes the shadow. One of the best ways to shoot jewelry is with a light box, which can either be bought or made at home. Google 'light box' to find out more.

Many people struggle with pricing their work, and feel guilty or arrogant if they think they are charging too much. Remember, you deserve to be paid for your time. Not charging enough for your time is the most common mistake new crafters make, and is bad for everyone as low prices drive the prices of crafts down, making it harder for anyone to earn a decent wage crafting. If you price your work too low, you may actually put off buyers, as they may feel that you did not spend much time or effort over it or used cheap, low quality supplies. Obviously though, you do not want to overprice your items either.

Look around at similar items for sale. How much are they? This tells you how much the market will bear.

Consider the cost of your supplies needed to make the item, and how much time you spend on making it. How much should you pay yourself per hour? It has to be at least the minimum wage, and consider the skill level involved. Could anyone do it, or would it take someone ages to perfect your skill? Like any job, the more skilled you are, the more you should pay yourself. So, if the supplies for your item cost $5, and you spent 3 hours creating your item. If you pay yourself a modest wage of $9/hour, then your item cost will be $32.

Another common way people use to figure out a selling price is to take the cost of their supplies and double or triple it.

Are you going to consign or wholesale your items? If you wholesale, you will probably only receive 50-60% of the price that the wholesale buyer sells on for. To avoid competition for customers, the price must be the same whether a customer comes directly to you or buys from the wholesaler. Therefore, make sure that you set your retail price (price when selling direct to individual customers) is high enough that you can afford to receive only around 50% of it when selling wholesale.

Considering all this, decide on a price for your items. You can always modify this as you go along, craftspeople rarely decide on a price once and stick to it!

Etsy is the premier online marketplace for the handmade and hand-crafted. Although it is based in the US, for a primarily North American audience, you can sell on Etsy from anywhere in the world, and there are buyers worldwide.

To get started on Etsy, you need to first set up your shop. For this you'll need a credit card, which is kept on file and used to pay your fees. Fees are US$0.20 to list an item, and 3.5% of the sale price once an item is sold.

Now you need to design your shop. You need a memorable name, and think carefully, as the name you use to get your Etsy domain name (www.yourname.etsy.com) cannot be changed later. Try to come up with something memorable, which also gives the right impression about your shop - are you looking to give for example a classy, funky or kitschy image?

You will also need a shop banner, which is an image containing your name that is displayed at the top of your page. Banners are very important, as they are the first thing buyers see and again, contribute to the image of your shop. Whatever your image, make sure your banner is professional-looking, with clear, legible text and no blurs. If you are not happy creating your own banner, there are Etsy sellers who will create one for you, just search for 'banners' on Etsy.

Once you have your banner, write a little about yourself for your shop profile. Etsy buyers are looking for the handmade and like to know you are a real person, so include a little information about you as a person. Losing the anonymity helps buyers trust you.

Don't forget your shop policies - this includes information about how quickly you will ship items, what your return policy is and more. Look at other shops' policies for help with this. Buyers are generally put off shops that do not include this information, and completing it shows that you are serious about selling and looking after your customers.

Now you are ready, you can list your first items. The Etsy site will guide you through this step by step. Etsy also has great forums where you can connect with other sellers and get advice about any questions you may have. Check out Art for Hair at Etsy for an example of an Etsy shop!

DaWanda is similar to Etsy, but is newer and is based in Germany, for a primarily European market. Setting up a shop is basically the same as for Etsy, but it is free to list items. DaWanda charges 5% of the sale price when a item sells, and listings stay up indefinitely. You can upload up to four pictures per item.

An important difference between Etsy and DaWanda is that since DaWanda is European, items can be listed in English, French, German and other languages. Listing in several languages definitely increases the number of people who will view your items. Beware of automated translation services, as most free translators will not give an accurate translation (especially of technical words) and you could easily end up giving people the wrong idea! If you are not confident with languages, you may be able to find someone on the DaWanda forums who will translate for you, in return for a piece of your work or other favor.

DaWanda also has helpful forums, and for more information on selling, check out the DaWanda seller's FAQ page. Check out Art for Hair at DaWanda for an example DaWanda shop!

Another option for selling online is online consignment stores. Consignment stores differ from Etsy/DaWanda, as:
- You send your items to the company, and they deal with putting them on their website, marketing, taking orders and sending your items to buyers
- they take 30-40% of the amount your item sells for

You will therefore receive less money by selling an item through a consignment store, but conversely, they will do more work for you than Etsy/DaWanda. Only you can decide whether this will be worth it for the amount that you will receive per item.

Setting up your own website is probably the most time-consuming way to sell online, and there are various advantages and disadvantages:

Advantages of having your own website for your craft
- You keep all the proceeds of each sale, and don't have to give someone else a cut
- You can control the look of your site and exactly how your items are displayed
- It's another type of promotion for your items - you can promote your own site in the same way as you promote your Etsy/DaWanda stores, and more exposure = more chance of selling
- You can add the web address to your Etsy/DaWanda shops, and so encourage people to come from there to you, where

Disadvantages of having your own website to sell your craft
- Another expense - you'll probably need to pay for hosting and a domain name
- You need to have the knowledge to create a site, or have someone create one for you - your site needs to look professional, and give the right image
- You will have much less traffic to your own site than a site like Etsy, so you will need to work hard to promote your site and gain traffic

Domain names and hosting
You may have some kind of free hosting with your internet access account, but it's generally worth buying your own domain name and paying for separate hosting. Domain names are typically around $10/year, and GoDaddy is one of the largest companies selling domain names and hosting. Buying a domain name allows you to have a short, catchy url that people will remember and find easy to type and recognize. Hosting is usually only around $3-5/month for a small site.

Shopping carts
If you have your own website, you need some way for your buyers to pay you. You can ask people to email you with their order, and then send you a check/pay with PayPal, but will people bother to do this? You need a shopping cart to create a professional image, and a PayPal shopping cart is one of the easiest to set up. Register for a PayPal merchant account, and then you will be able to generate code for the 'buy now' and 'view cart' buttons you will need to place on each page.

Check out Art for Hair for an example craft website!

Craft fairs are a great way to sell your work, but to really make money from them, they'll probably mean traveling. Craft fairs may be juried, meaning that you'll have to submit photos of your work, or non-juried, meaning that all you have to do is apply and turn up. The larger fairs will often provide you with a tent and tables, but smaller ones will generally require you to bring your own.

You will generally need to pay to exhibit at craft fairs, and the cost reflects the size of the show and number of people expected. With craft fairs you can earn a large amount of money on a single day, but this also means that you need a lot of product available and with you at the show. To work out how much stock you should bring, a common rule is that you should bring merchandise to a value such that the exhibiting fee is 10% of the value of stock you bring to sell. For example, if you paid $300 to exhibit, you need to $3000 worth of stock, at least.

As well as online consignment stores, there may be boutiques and shops in your area which will buy your items wholesale to resell or take them on consignment.

Like the online stores, consignment shops will market and sell your work, but take 30-40% of the price for doing this. You will make less money, but also you have had to work less hard for the sale. Always make sure that you have discussed price and have a written contract before leaving your work at a consignment shop. Check out shops in your area and see what other items they have before committing, to make sure the shop is an environment you would like your work to be associated with and has a suitable clientele for your work.

Wholesalers will buy large quantities of the same item(s) for resale. They will expect to buy at around 50% of your normal price to customers, and then sell on for your normal retail price. As discussed in the pricing section, make sure that you are comfortable with such a reduction in price. Is there some way you can streamline your technique, or a cheaper supplier you can find? You are receiving less per item, but you are putting much less effort and time into sales, you do not have to deal with many individual customers and you have the opportunity to sell a high volume of items, especially if you develop a good relationship with the wholesaler.

Some crafters do not like to wholesale, feeling that they deserve to get more than 50% of the retail price and preferring to work on a piece individually, instead of feeling like a production line. The choice is up to you!

A craft party is where you invite people to your home (or other venue) to view and buy your work. A party is typically 2-3 hours long, and your work will be on display. It's similar to a Tupperware party.

For a successful party, you need to have plenty of your work available, at a variety of prices. People may well impulse buy a piece if they can have it instantly, but be put off if you say it will take weeks to be delivered. Your work needs to be professionally displayed, with good lighting so buyers can see how great your work is.

Most parties have light refreshments, but you do not need to go to great lengths for elaborate food - they have come to socialize and shop, not for dinner. Also, you do not want greasy fingerprints on your work, so offer drinks and light snacks which are easily eaten without creating unnecessary mess! If you do not feel confident having a party in your home, maybe you can persuade a friend to host one for you, in exchange for free items. Invite your friends and people from your work, and encourage your friends to invite people too. However, make sure that everyone you invite is known to you or close friends, for safety.

To make your party interesting and encourage people to buy, have special 'party only' deals, or items only available at the party.

Parties are great for getting your name known locally.

Unfortunately, it's not enough to simply list your items with Etsy/DaWanda, or set up your own website, and wait for the orders to roll in. No matter how good your work is, you need to work to get people to visit your shop.

A blog
Starting your own blog about your craft work is a great form of promotion. Blogs tend to come up high in search engine rankings. partly as they are updated often. You can start a blog for free at Blogger or WordPress. Submit your blog to as many blog catalogs as possible, and update it frequently. Ideas for posts include what you're working on currently, new shop items, features on other crafters and craft tutorials. Entrecard is a great way to promote your blog, but takes time every day.

Social networking sites
Make pages for your craft shop at Facebook, MySpace and other similar sites. You can also submit your own content to Stumblupon, Digg, Mixx and other such sites.

Lastly, don't forget to make a lens about your work here at Squidoo!

Marketing and promoting your work in your local area is also important to generate sales. Locally, there may be less competition from other sellers of the same kinds of item. Marketing ideas include:

- Print flyers, and distribute them wherever you can. Stores and coffee shops often have boards where you can display a small poster, as do apartment complexes, student unions and offices.

- Leave business cards wherever you can, and give them to all your friends.

- Contact your local newspaper and see if they would be interested in featuring you - if not, try a paid advertisement.

- Come up with ideas specific to your craft. For example, if you paint, see if local businesses would like a free painting to display in exchange for putting your business cards out. Some businesses which have waiting areas for customers, for example tattoo shops, may have a small gallery where you can display craft items for free.

- If possible, wear your items as much as possible, and carry business cards to give to anyone who compliments you.

If you are in the US
In the US, regulations vary from state to state and city to city. You will need to register your business with your county/city and will probably need a 'home business permit', which gives you permission to make items at home to sell. You will also need to register to charge sales tax, which is applicable to all orders from people in your state. Contact your state's Department of Revenue for this.

Organizations which may help you with the legal aspects include:

SCORE - counselors to America's small businesses - free advice from volunteers
LegalZoom - service to help with filling in legal forms (fee payable)

If you are in the UK
You will need to register as self-employed, and register the name you are trading under. If you are not already paying National Insurance contributions, you will need to pay the basic level of self-employment contributions, and will be sent a bill every 3 months. If you declare an income of over your tax-free allowance per year, you will have to pay supplementary contributions also.

You do not need to be registered for VAT if your turnover is less than 50,000 pounds a year, so this is unlikely to become necessary! However, if you are selling as your only job, it may be advantageous to register so that you can claim back the VAT you pay on supply and business related purchases. Remember though, that you may need to raise your prices to reflect the 17.5% VAT charge. Unless you become a high-volume seller, there is no need to worry about VAT at this stage.

Always keep good records!
Wherever you are, always make sure you record how much you spend and how much you earn from your crafty enterprises. Keep receipts from your purchases and sales. It's much easier to keep records along the way than in a panic at the end of the year!