How to multiply your design business income
Many designers and design business owners are struggling to get to a comfortable level of income, and one reason to this is the seasonal variations, and how that affects the demand. Luckily there are solutions to this, and many creatives have started to create multiple revenue streams – both regarding the service and product offerings. I want to list some ideas for design business owners that can contribute to the increased revenues. Let’s go!
Launch a product line
If you are a service provider, like a decorator or an interior designer, fashion stylist or a photographer, it’s wise to add a product line into your offering mix. Why? Because your products have a completely different lifetime value, and you can monetize your business even if you don’t have any customer cases at the moment. There are many alternatives to creating a collection, here I write about how the manufacturing process works. Here are some popular options:
+ create a collection on co-operation with a manufacturing company. This is called licensing and it means that a company will manufacture products and you borrow your name. In order to do this, you need to work on your brand.
+ white labeling. You source the items you want to add your label onto and launch as your own. This is a widely used case for global big brands. They visit the manufacturers and trade fairs, pick what they want to have in their collection and ask the manufacturers to label and pack the goods according to their instructions. In this case, the product itself is not unique to your brand, but it’s a great way to build a collection without manufacturing a huge amount of goods.
+ ODM – Original Design Manufacturing. This is the option where you work with a manufacturing company who makes all the products according to your specifications, hence they are unique to you. Depending on where you manufacture your goods, and what goods you’re working on, the MOQ (Minimum Order Quantity) vary.
Alternatively, if you’re in product based business, a web shop or brick-and-mortar owner, you should consider launching some services that are related to your products but can be offered in addition to your product sales. The profit margins are completely different to products and services, where services have much higher product margins since the costs of manufacturing, logistics, and warehousing products are quite enormous. Then again, there are only a limited hours per day and possibility to deliver services is hence limited.
If you have services, you can package and sell them to your clients online. Any service (with maybe some restrictions) can be packaged and sold to a larger audience. I have packaged my consulting services to group programs which means I can help more people simultaneously.
If you blog, which I absolutely think you should, you can monetize by adding affiliate products into your posts. This means, if you’re a fashion blogger and you create outfits every other day on your blog, you can add affiliate links to your posts and images so that every time your reader clicks your recommended product and purchases through the online store yo link to, you earn a small commission. You can also create sales funnels to market and sell products and services you are an affiliate for.
Product placements & influencer marketing
If you have a popular blog, YouTube Channel or Instagram account you can partner up with companies and market their products and services. This requires that you have a lot of followers and very engaged fan base, but you want to have that anyhow in order to sell your own products and services, right?
If you are a graphic designer you can sell your templates, cards, or any other ready packages creations online. Website templates are great to sell online too if you know how to do them. If you are a photographer you can sell your images and posters.
Package your services
Lastly, sometimes your customers need some help in deciding what they want. Help them by packaging your services and products so that they are easy to purchase. One example of this is online decor and styling services, color plans, floor plans, style guides and so on. Let your creativity flow and create some wonderful, smart revenue models for your business!Great ideas to boost your #designbusiness revenue. #interiordesign #productdesign Click To Tweet
Do you have more tips? Have you already implemented multiple revenues to your business?