How to Scale Your Handmade Business With Multiple Revenue Streams
Multiple revenue streams are truly the way to go when scaling your handmade business. You probably heard the saying don't put all of your eggs in one basket, and it is absolutely true for running a successful handmade business. Growing a handmade business with only one revenue stream and only selling in one place is really hard to do. You need to diversify your income streams to scale your business.
You can't rely on one platform or area to build a successful handmade business. Showcasing your work on multiple platforms allows you to connect with and tap into brand new audiences.
Sell on Etsy
Of course, we are going to start with selling on Etsy. Etsy has been around as the go-to handmade seller marketplace for a long time, and there's a good reason for that. It is a fantastic platform for selling your handmade products. It doesn't cost anything to create a shop and attempt to sell your handmade creations, making it super easy to get started.
Is it possible to sell 6 or even 7 figures per year just on Etsy alone? Possibly. But why would you want to rely on just one platform you don't own?
So while Etsy is a fantastic choice for handmade sellers it shouldn't be the only focus or the only place you are selling your products.
Sell on Amazon Handmade
I am an Amazon Handmade coach so of course, I'm going to talk about selling your handmade products on Amazon Handmade. I see many people ask why do I need to sell on Amazon if I'm selling on Etsy? The main reason is to diversify your income streams.
I have seen people who couldn't get to the level of success that they wanted to on Etsy but found immediate success on Amazon Handmade. I've also seen it the other way around where a seller had amazing success selling on Etsy but not Amazon Handmade. This is why tapping into different audiences and learning different platforms is essential for growth.
If you are ready to take the plunge and sell on Handmade at Amazon, check out my Amazon Handmade 101 course.
Selling on Your Own Website
The best and most reliable way to grow your handmade business is by selling on your own website when it comes to selling online. While Amazon Handmade and Etsy are great platforms and can increase your revenue considerably, they are not owned by you. One of the big reasons why having your own website should be a priority is because it's something that you own. You can also use it to grow your audience through your email list, which you also own.
Depending on your products and profit margins, another excellent revenue stream is wholesaling to other businesses and stores. No matter what type of product you make, there is a market for it through wholesale. The only factor you need to consider on if wholesale is suitable for you and your business is:
Do my profit margins allow for wholesaling?
Do I have the production capability to fulfill potentially big wholesale orders? If not, that may be something that you need to figure out before you decide to wholesale.
If you want to dip into wholesaling, a fantastic platform for handmade businesses is Faire.com.
Craft Shows and In-Person Events
Craft shows and in-person events can be a great additional revenue stream for handmade sellers who love to connect with their customers. If you are an extrovert and love talking about your products and interacting with people selling in person can be a great way to get to know your customers better and make even more sales.
When it comes to craft shows and events, you want to make sure that the show is tailored to handmade Artisans and that it will be a good fit for your business and your products.
Lastly, an additional revenue stream is creating your own subscription box. A subscription box can be a great revenue stream because it's recurring revenue. Your customers sign up for a recurring monthly or quarterly subscription box, which almost guarantees you repeat customers and income.
Not all products are going to be perfect for a subscription box option. Again it's going to depend a lot on your profit margins and how it will make sense profit-wise to create a subscription box that your audience will want to sign up for. If you don't have a high-profit margin on your products, or they are higher-priced instead of a monthly subscription box, you could test out a quarterly subscription box as well at a higher price point.
How many of these revenue streams are you currently using in your handmade business? Let me know in the comments.