Overview of Business Model

Online craft sites became popular as soon as the Internet became a household reality. One of the greatest benefits of the craft industry is the variety of items and the fact that they can be made at home. Much like the art market, customers will buy a craft based on their own preferences. They will tend to look at many sites before finding one that they like.

The content on the site should make each craft seem unique in every way, and there should be contests and interactive features throughout the Web site that keep the users coming back and entertained.

At start-up your craft store will most likely include only the products you produce yourself. However, if you know other people who produce crafts, you can ask if they would be interested in having their products sold online. Since your main source of income will be from selling crafts through your Web site, it

Is in your interest to work out a deal with your colleagues where you get paid a commission if and when their products are sold.

Skills Needed

The homemade craft industry operates in a unique and insular fashion. A broad familiarity with people in the homemade craft industry as well as a fairly comprehensive knowledge of the products will be required to gain the respect of the people involved and should be considered basic skills for this project. You will need Web publishing and digital imaging skills. You will have to manage the online store, process payments, and interact with customers regarding their orders and shipping details.

Cost to Start This Business

The cost to set up and run this type of business ranges from $3,000 to $7,000. Your initial setup costs will include a personal computer, a scanner or digital camera, and the appropriate software to process the images and publish them on the Web site. You will also need to have your own Web site designed, developed, and hosted. Additional costs associated with opening your own business are the promoting of your business online and offline. If you have your own computer, then you can reduce your expenses accordingly.

Number of Employees Needed to Start

This type of business can easily be started as a one-person part-time venture from the comfort of your home.

International Potential

Crafts are already an international industry. In fact, you should be prepared to have people all over the world showing interest and purchasing your crafts, depending on their size and the cost of shipping.

E-Business Model/Payment Processing Method

E-business level 3 is most appropriate for this type of business. For more information, see Part 1.

Important Business Issues to Be Addressed

The value of crafts is a disputed topic. The prices should be reasonable and competitive with other craft sites on the Web. Make sure to align yourself with crafters who produce quality goods that do not get damaged easily during shipment.

Online Marketing Techniques

• Start an affiliate program where others can recommend and provide a link to your site. You will have to pay a referral fee for every order that comes to you via your associates’ links.

• Joining or operating a Web ring related to crafts will likely generate substantial traffic to your site. The average person will tend to look through a few craft sites looking for something they like.

• Use a viral marketing approach by allowing your customers to send e-mails or screen shots to their friends of items of interest. These Tell a Friend programs are growing in popularity.

• Develop a sponsored listings campaign to bid on appropriate keyword phrases with the popular search engines.

• Use permission marketing. Ask if your customers would like to be notified when the new crafts for the season are up for sale—Christmas, Thanksgiving, and Valentine’s Day, for example.

• Approach the operators of e-mail reminder services and get them to suggest your site as a good place to look for an affordable gift for their clients’ loved ones.

For a more detailed description of these techniques, along with many other effective online marketing methods, I recommend the companion book 101 Ways to Promote Your Web Site. You can also find tons of free resources at Http:// www. susansweeney. com/resources. html.

Additional Income

You can sell banner advertising from your site or provide sponsorship opportunities in your mail list.