What happens when you succeed?

Not everyone succeeds with online selling, but there are still countless stories of those whose humble beginnings lead them to incredible success; Etsy.com boasts many of these stories. But for each of these stories, Etsy shop owners have had to make difficult choices about the future of their businesses. Because Etsy is restricted to only handmade items, when the demand becomes greater than one person can handle, shop owners must decide if they want to reduce their business to a more manageable size or if they are willing move away from Etsy in order to mass produce their items. Learning these things, I've really realized that online business owners need to be prepared to make this decision if and when the time comes.

One Etsy success story comes from Mackswell Sherman and Sarah Jones, a pair who now operates a actual clothing store called Ruffeo Heart Lil Snotty in Brooklyn. In just four years, these two were transformed from “dumpster diving college students” to “comers on New York’s indie fashion scene.” They credit their success to their humble beginnings on Etsy.

Su Stella and Stacy Gibs were featured in Louisiana's oldest, continuously operating newspaper, April 27 Etsy article, she was in the spotlight for being as the “owner, operator and entire staff of Opelle Creative,” her shop selling handmade leather bags.

Etsy’s founder Rob Kalin hopes success stories like these “become more rule than exception.” However, there is a problem inherent in Etsy’s framework that makes success difficult for store owners.

In an April 1st article in Inc., a small business resource magazine, Max Chafkin explains:

If [an Etsy store] gets substantial orders…they will probably want to use a factory [to produce the items], which will effectively disqualify them from selling on Etsy, given that the company’s rules require that Etsy members personally make what they sell.

So then, successful Etsy sellers, face the choice of whether or not to stay on Etsy. And if they move on, where do they go? Sherman and Jones chose the route of many successful sellers—they left the Etsy community and opened a physical shop where they mass produce their products.

But other sellers have chosen to scale down their businesses to stay in the Etsy community and to keep their production manageable. Chafkin interviewed Ryan McAbery, the founder of the Etsy shop Littleput Books. Mrs. McAbery’s shop was a huge success, but she was forced to work nearly 100 hours a week to keep up with the demand. Because she decided that she wanted to keep Etsy selling as more of a hobby, she sold her highly successful Etsy business and started a new one with new ideas that aren't as time consuming.

I think the bottom line is that if you become successful selling on an online platform, you have to be prepared to make tough decisions involving the nature of your work and what you truly want to gain from it. You may have to weigh profits against your personal sanity, or come up with creative alternatives to accommodate both.

I wish you the best!



Photo Credit
Etsy Logo: Scraps
Buy Handmade Image: Her Outdoors

Spreading the Word: Online Marketing

You have a solid business plan, you have your products, you have an awesome web site and everything is up and running. But there’s one big problem...you have no customers.

There are two of the primary advertising methods that online businesses can use to attract customers. The first method is to buy ads on Facebook that are customized to users based on profile information. This method of advertising is difficult to monitor and has a relatively narrower scope, but it has the huge advantage of being noticed by people who have interests in the same area. Another advertising method you could is search-based pay-per-click ads which can be hosted by large or small advertising networks, each offering slightly different options and benefits. This type of advertising has a far reach, is easy to monitor, and has a clear return rate. I believe a combination of these two methods is an ideal approach to online advertising.

With Facebook gaining popularity daily, Facebook advertising is becoming more and more profitable. . Using public information on people's profiles, Facebook displays advertisements on topics that relate to each particular person's interests. A drawback to Facebook advertisements is that people do not always click on them (because they are reluctant to leave Facebook), but this type of advertising is extremely effective for promoting awareness of your business. In my experience, after I have seen a certain advertisement a few times I become more interested and will eventually click on it.

While Facebook advertising is a relatively new development, pay-per-click advertising has traditionally been the most used method of online advertisement. There are many varieties to this kind of adverting. In this April 20 Practical E-Commerce article, Mett Ferner provides an up-to-date and extensive list of 25 different advertising options for online businesses, including both large and small networks.

One large search engine affiliated network that Ferner describes is Google AdSense, which he calls:

One of the most widely used and popular ad platform for online publishers to earn revenue by displaying relevant ads on a wide variety of content that is suited to an audiences specific interests. Participation in AdSense is free and advertisers pay Google for clicks or impressions of ads displayed on participating sites.

Ferner describes the features of a smaller, alternative advertising network called PocketCents in the following way:

Create and display text, image or video ads directly to the kind of users who are interested in your product or service on the PocketCents Network. Set up a fixed monthly budget per ad, eliminate competitive placement based on bidding and much more with PocketCents. PocketCents features a flat rate of $.25 per click on text or image ad or per play of video ad.

How does this type of advertising compare with Facebook ads? This video gives a good comparison of the two advertising methods.


To summarize, Scott Smigler wrote a Practical Ecommerce article on March 2, "Comparing Facebook Ads to Search-Based Advertising." He pointed out the following benefits of each:

Paid Search Ads:

1.Targets Direct Intent.
2.Easy to Calculate Return on Investment.
3.More Control.
4.Reach Most of the Internet.

Facebook Ads:

1.Targets Human Beings Based on Volunteered Data.
2.Increases Trust.
3.Calculate Your Ad’s Reach in Real Time.
4.Build Awareness.

Smigler's overall recommendation is that business owners should try out both types of advertising. I agree and think that the most important thing is to be open to trying different approaches until you find a combination that works for you. I would also encourage you to take Smigler’s advice and “look at your social marketing as a longer-term investment in your business.”

What do you get when you cross a stay at home mom with a great business idea?

A Mompreneur.

It’s a term and career path gaining popularity across the country. Search “mompreneur” online and you’ll find countless examples and listings of entrepreneural moms making a living right from her home—very likely with babies crying or little kids running around.

Mompreneurs Online is a resource and community for these ambitious women. The website features discussion boards, groups, and even a live chatroom! The website is currently trying to promote local groups for mompreneurs to get connected with others in similar geographic areas.

The Mompreneur is another resource—this site provides page after page of information and resources pertaining not only to doing business online, but also to parenting! There is a Mompreneur magazine sponsored by this website that regularly provides subscribers with resources, tips, the latest news, and builds the mompreneur network.

Skaskatoon CTV reported on March 30 about "Mom's Marketplace," which is a gathering of mompreneurs hosted by Mompreneur’s Magazine happening right now, with a contest for “Saskatoon's finest Mom-preneur.” The contest winner was just announced to be Celeste Bodnar who started a chocolate cake ball company called Sphere-liscious.

Another event of similar nature will be happening soon in Ontario-- The Spring 2011 Vaughan Mompreneur Showcase is designed give mother/businessowners exposure to the public—over 2,000 people are anticipated to attend. Because many of these are startup businesses without a lot of financial assets, this event also an affordable opportunity for mompreneurs. In a March 28 York Region article, the Showcase was featured. The article explained that “booths at bigger shows can come with price tags around $1,000 or $1,500, the organizers of the Vaughan event are aiming to keep it affordable so spots at the local show cost either $185 or $250 depending on the package you choose.”

Canada seems to be the place for budding mompreneurs—“Calling All Mompreneurs,” a March 21st BCNews article, reported about workshops for mompreneurs being held on April 5 and 6 in British Columbia.

One of these workshops, called “Passionately You-Create the Life you Dream About” helps prospective mompreneurs determine if they have what it takes to succeed in business by looking at personality types, passions, abilities, careers goals and dreams. There will also be help on writing a mission statement and how to make their dreams a reality.

In another workshop, “Succeeding as a Mompreneur,” participants will learn some of the more technical sides of the business—such as technicalities of becoming a CEO and a full rundown of what it takes to run a business from home.

These are just some of the many opportunities and assistance available for mompreneurs! If you take the time to seek it out, there is a whole community of others with similar interests who are perfectly willing and happy to help you out!

One more thing, for my male audience—“Dad-preneurs” exist out there too! And all of these resources I've talked about are just as applicable to you!

Sources:

Mompreneur Cartoon: Feisty, Frugal, and Fabulous

Mom's Marketplace Photo: CTV News

Magazine Image: Ordinary God Blog