Episode 56: 6 Income Streams for Yarn-Related Businesses

01/23/16 • 34 min

I share six different income streams for yarn-related business owners to consider in this episode. Many of us start our own businesses part time and by leveraging our existing skills. As you plan for expansion in 2016 and beyond, consider these different options for earning money for your business.

Six Income Streams for Your Yarn-Related Business

Here are some options to consider. Most successful businesses have a combination of income streams which helps to mitigate risk and to standardize cash flow.

Consumer Products: This is a very broad category including...
- Handmade products you sell directly to the end user (e.g., crochet/knit finished objects, artisan hooks and needles, hand dyed or hand spun yarn),
- Handmade products you sell via retailers (wholesale or consignment),
- Items you purchase from a manufacturer/wholesaler and resell,
- Digital products you sell directly to the end user (e.g., patterns, ebooks), and
- Services including teaching face-to-face and online.
Advertising and Sponsorship: You may work with an ad network (like Google AdSense, Media.net, Rivit, etc.) or negotiate your own relationships with brands.
Affiliate Marketing: As an affiliate, you promote another company's products and earn a commission when items are purchased through you.
Business to Business Services: Many yarn-related business owners provide services to other businesses on a freelance or contractual basis. Some examples include writing, designing patterns, tech editing, sample making, social media coordination, and virtual assistance.
Membership/Subscriptions: Magazines, pattern subscriptions, and yarn clubs are some examples of yarn-related membership and subscription options.
Crowdfunding: Crowdfunding can be used in exchange for product pre-orders through KickStarter, IndieGogo, and other services, or by allowing your fans to support your business on an ongoing basis through Patreon and related services.

If you enjoyed this episode

The Creative Yarn Entrepreneur Show is no longer broadcasting. Episodes are available as a service to the yarn community. This episode originally aired in January, 2016. Be aware that content may be outdated.

If you'd like to chat with other yarn-related business owners, join the Creative Yarn Entrepreneurs Facebook group. Support Marie's work by buying one of her books, Make Money Teaching Crochet: Launch Your Business, Increase Your Side Income, Reach More Students (Amazon | Gumroad) or Design It, Promote It, Sell It: Online Marketing for Your Crochet and Knit Patterns (Amazon | Gumroad).

Six Income Streams for Your Yarn-Related Business

Here are some options to consider. Most successful businesses have a combination of income streams which helps to mitigate risk and to standardize cash flow.

Consumer Products: This is a very broad category including...
- Handmade products you sell directly to the end user (e.g., crochet/knit finished objects, artisan hooks and needles, hand dyed or hand spun yarn),
- Handmade products you sell via retailers (wholesale or consignment),
- Items you purchase from a manufacturer/wholesaler and resell,
- Digital products you sell directly to the end user (e.g., patterns, ebooks), and
- Services including teaching face-to-face and online.
Advertising and Sponsorship: You may work with an ad network (like Google AdSense, Media.net, Rivit, etc.) or negotiate your own relationships with brands.
Affiliate Marketing: As an affiliate, you promote another company's products and earn a commission when items are purchased through you.
Business to Business Services: Many yarn-related business owners provide services to other businesses on a freelance or contractual basis. Some examples include writing, designing patterns, tech editing, sample making, social media coordination, and virtual assistance.
Membership/Subscriptions: Magazines, pattern subscriptions, and yarn clubs are some examples of yarn-related membership and subscription options.
Crowdfunding: Crowdfunding can be used in exchange for product pre-orders through KickStarter, IndieGogo, and other services, or by allowing your fans to support your business on an ongoing basis through Patreon and related services.

If you enjoyed this episode

Previous Episode

Episode 55: Email Marketing 101: Or, Why and How to Set Up an Email List for Your Creative Business

If setting up (or enhancing) an email list for your business is on your list of New Year’s Resolutions, listen to this episode.

In this episode, I talk about why you should start an email list, how to get started, the different approaches you can take to an email list, and how to grow your subscriber base.

Why should you have an email list?

Here are just a few reasons why having an email list by benefit your business.

It provides you with a direct connection to your fanbase without another platform as an intermediary.
People check their email regularly throughout the day, so you can connect with them on their schedule.
Your subscribers will have a direct, individual connection to your emails (rather than the feeling of being "broadcasted at" that comes with social media posting).
Business report seeing boosts in sales after sending out emails to their subscribers.
When your business faces another disruption (e.g., your website goes down), it's a great way of letting your audience know what is happening.

How should you set up an email list?

The most important thing is to get started, not to develop the most masterful email strategy that ever existed. You can always improve and update over time.

I recommend starting with MadMimi or MailChimp, both of which have permanently free accounts for small subscriber lists. Both offer affordable plans for people with smaller lists, as well, so you can grow your list before spending a lot of time researching different companies and features. MadMimi is a bit easier (more "low tech") to use, while MailChimp offers more features in its free plan.

How should you approach your email list?

There are several simple options to consider for your email list.

RSS feed: If you have a website or blog that you update with some regularity, you can set up an RSS feed so that your subscribers are alerted via email to any new posts on your site.
Newsletter: You may want to write an email to your list on a regular basis (e.g., weekly, biweekly, monthly, quarterly). This can include links to your latest posts, original content for subscribers, roundups of relevant information you’ve found online, and more.
Updates: You may choose to send sporadic emails to your list when something new happens in your business (e.g., a new product is released, you’re teaching a new class, or there’s a sale).
Autoresponders: You may choose to set up a sequence of replies that are automatically delivered to your subscribers on a schedule based on when they subscribed. For example, the first email can be sent one day after they subscribe and the second email can be sent two weeks after they subscribe.

Listen to the episode for more details about each approach.

How do you get subscribers?

Once you understand your approach, you can start recruiting subscribers. Consider letting potential subscribers know more about your approach wherever they can opt-in to subscribe.

Here are some other ways to grow your email list.

Update your website: Include subscription opt-ins in a sidebar, your About and Contact pages, and even in posts on your site.
Update your social media profiles: Use the “sign up” option on your Facebook page, and include a link to your email list on your Ravelry, Etsy, G+, and other social profiles.
Update your “thank you” message: Change the automatic reply sent to your customers on Etsy and Ravelry (or other marketplaces) to include a link to your mailing list.
Giveaways: Some companies offer giveaways to their subscribers as an incentive to encourage people to sign up.
Lead magnet: Offer a free ebook, checklist, or other desirable product “in exchange” for a subscription. Tip: Do not get stuck on this. If you don’t have a lead magnet, you can still start an email list.

Resources mentioned in this episode

Listen to Episode 27: Connecting with Your Mailing List and More with Vashti Braha to learn more about Vashti's approach to her email list and how it impacts her business.
Read 10 Reasons To Use Email Marketing (As Told By Small Businesses) on Forbes
Check out the Useletter by Amy Lynn Andrews as an example of a curated/roundup approach to an email list
Read more about (or sign up for) a free MadMimi or MailChimp account

If...

Next Episode

Episode 58: How To Organize and Participate in Multi-Business Collaborations

This episode is all about multi-business collaborations, including blog hops, multi-designer make-a-longs, and in-person events. I share 4 reasons you might want to participate in such a collaboration, 7 tips for organization a multi-business collaboration, and 5 ways for being an ideal collaborator when you're not organizing the event.

4 reasons you might want to participate in a multi-business collaboration

There are many reasons you may want to participate in such an event, but here are the four major ones:

Introduce your business to a new audience and expand your reach.
Network with other businesses and sponsors you may not have access to on your own.
Earn more money.
Develop friendships with like-minded business owners.

I share more details about each of these in the episode.

So, are you ready to organize one of these collaborative shindigs?

If so, here are 7 tips for successfully organizing a collaborative event.

Manage your fear of rejection.
Decide who's in charge.
Choose to curate or have open invitations.
Get organized.
Invite and follow up.
Reach out to sponsors.
Keep your word and thank your collaborators.

I go into more detail about each tip in the episode.

Hmm, that sounds hard. I'd rather participate than organize.

Here are 6 ways to be an ideal collaborator that gets invited back again and again.

Join groups.
Read and follow directions.
Ask questions if you're confused or have concerns.
Communicate, especially about problems or delays.
Promote the entire event/collaboration, not just your participation in it.

And, for bonus brownie points, offer to help the organizer(s). I share more details on each way in the episode.

If you enjoyed this episode

The Creative Yarn Entrepreneur Show is no longer broadcasting. Episodes are available as a service to the yarn community. This episode originally aired in February, 2016. Be aware that content may be outdated.