Day 1 – Mindset: Business & Technology
Welcome to the first **official** day of the Handmadeology U marketing course!
Today we are focusing on MINDSET. More specifically, we are focusing on two types of mindset: Business and Technology.
First, let’s talk a little bit about business. When I first started my Etsy shop, it was nothing but a hobby. I loved to create art with metal. It was my passion and I was simply amazed that I could actually make a couple extra bucks selling it online.
I never thought that I could actually do it full time… Until I started thinking of myself as an **entrepreneur** instead of just someone with a hobby.
“Entrepreneur” can be a scary word… And this mentality didn’t just switch over night. It actually took me a really long time to actually identify with the phrase. See, I was raised in a family that had no entrepreneurial spirit… go to school and get a job is what I was taught. That is the only way. But that couldn’t be farther from the truth.
The point is, when you begin to look at yourself as a business owner instead of someone who has a hobby, something changes. You begin to look for new ways to do things. To promote your products. To create new products. And to be more efficient in what you’re doing.
So before we ever begin to talk about marketing, always remember that you are marketing your **business** and not your hobby.
Ok enough about business… moving onto technology. I can’t tell you how many emails I get from people saying, “I don’t GET social media.” They’re usually referring to Twitter, blogs, Facebook, Myspace, analytics, or anything else along those lines. Everyone seems to think that technology is an “age” thing…
People think since I’m 29 years old, all this stuff comes natural to me… Hopefully you won’t believe that after you read a few of these statistics:
- The fastest growing demographic on Facebook right now is women over the age of 55. The number of users grew by 175% between January and March.
- The number of users over the age of 35 doubled on Facebook between January and March.
- The most common age demographic on Twitter are people between 45-54 years old
- Baby Boomers are using social networkings sites 80x faster than Gen Y.
So what do all of these statistics mean? Technology is about ATTITUDE… Not AGE.
If you have the mindset that “this technology stuff just isn’t for me…” then you’ll never be successful with it.
But if you can just take a couple baby steps… and then see the power in these technologies, I have no doubt that you’ll be hooked. So before Wednesday, there are three steps I’d like you to take:
1) Sign up for a Facebook account
2) Sign up for a Twitter account
3) Sign up for a blog
I’ve provided some step by step directions with screen shots below. If you already have all three of these accounts setup, congrats! We’ll be going over specific strategies on Wed-Fri.
Until then… Scroll down to the bottom of this text and check out the marketing tip. (It’s one you won’t want to miss.)
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Facebook Sign up:
Head over to Facebook.com
When you sign up for your new Facebook account make sure you use your name not your business name. In Facebook Term’s of Service it states that it’s actually illegal for entities to sign up for personal accounts. If you don’t use your name, you run the risk of Facebook shutting down your account.
When you activate your account you will be prompted to fill out some info.. you can skip these if you like.
Make sure you pick your network.. this is where you live!
Real Quick Facebook Tip…. Adding your clickable link to your profile left column!
You can see mine below…
Click on the edit your information button…
That will bring up this box. You will want to enter all your links here so your friend can click through to your sites.
This is the basics to setting up your Facebook account.. there will be more to come!
Twitter Sign up:
First you need to head over to Twitter.com… Once you are there just click the green Get Started button!
Fill out all the info here. Make sure you sign up with the user name you like… you can change this later.. but you want it to be either your name, your Etsy shop’s name or something very close to it.
Once your account is created you are ready to start Tweeting!
Some Twitter Channels you should follow:
Blog Set up:
I recommend Blogger.com if you are setting up a blog for the first time. Blogger is very user friendly and is very customizable! Here are 2 of the blogs I have built on
the Blogger platform: TimothyAdamdesigns Found-handmade
First step.. head over to Blogger.com and click the create a blog button:
If you don’t have a Google Account, you can sign up here:
Here is where you want to pick your name. Once again, pick a name that fits with your Etsy shop.
Pick your template and you are ready to start blogging.
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Now I know I promised marketing tips… Today is dedicated to setting a solid foundation for your marketing strategy. But, to hold you over until Wednesday, here is a tip that will *instantly* increase your profit…
Take your highest price product and increase it’s price by 25%. (Or create a new product that costs 150% more than anything else in your shop.)
I know what you’re thinking: “Doesn’t a higher price lead to less sales?” Not exactly…
You are thinking in traditional economic terms. Traditional economic theory states: When price goes up, quantity sold goes down.
Fortunately, consumers don’t operate under rational terms… Consumers are irrational. Let’s take two different scenarios:
Scenario A: You go into a restaurant that has bottles of wine priced between $10-$20. Assuming you have no knowledge of wine, how much money would you spend on a bottle?
Scenario B: You go into a fancier restaurant. This one has wines priced between $20-$30. Now how much money would you spend?
80-90% of people choose $13-16 in the first example and $23-26 in the second example.
What does this mean?
People naturally regress towards the mean. AKA – People like to be AVERAGE. Nobody wants to get the cheapest wine. And nobody wants to get the most expensive one. People like to fall somewhere in the middle.
So how does this help you?
If you increase the price of your highest price product (or create a new higher priced product all together), it will make your lower priced products look more attractive to buyers.
It’s called price anchoring. You might add a new product that is 150% more expensive than anything else you have… and you might not sell any of those items. But the point of adding that product isn’t to increase the sales of it. The point of adding a higher priced product is to increase the sales of your LOWER priced products.
If you have products between $10-$40, I bet 80% of your sales come from $15-$35 items. When you add a $60 product, you’ll see the majority of your sales shift to the $25-$45 range.
This is exactly what I did with my jewelry trees. I have a tree for $19 and a tree for $95. Most of my sales are in between $30 and $50.
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Ok – so that’s the first day. I really hope you learned something new!
Understand just the tip of the ice berg… There is plenty more to learn. I’ve packaged some of the best content that I’ve ever created into the infamous Handmadeology Curriculum. It’s five different books that will teach you EVERYTHING you need to know about selling handmade products online.
You can learn more about the books here and this page will teach you about how to join Handmadeology University.
207 Responses to “Day 1 – Mindset: Business & Technology”
Leave a Reply
Janis
27. Apr, 2009
Great tech information given in easy to understand language. I am signed up in Facebook and in Twitter but find it difficult to work both networks on a daily basis. I will have to do better!
Thanks!
Katerina Damilos
27. Apr, 2009
Thanks, Timothy, for the first lesson. All good stuff and i’m really intrigued by the pricing tip. I’ll apply and monitor!
Look forward to the next installment.
Katerina
Renee Kingsley
27. Apr, 2009
Wonderful advice!!! Can’t wait to put it into practice! Off now to get a blog set up!
Rosie
27. Apr, 2009
Excellent, well presented, easy to read – thanks Tim
Judy at Artsy Clay
27. Apr, 2009
I already do the 3 but hadn’t heard the pricing info before. Very interesting. Thanks so much for sharing your wisdom!
Sheila Hobson
27. Apr, 2009
Really good advice. Simple directions
Marla
27. Apr, 2009
Excellent advise, as always, Tim!
Heather Dixey
27. Apr, 2009
I shared your facebook statistics on my profile. Thanks
Heather Dixey
K Joann Russell
27. Apr, 2009
Thanks for sharing what you’ve learned. Anchoring is a “Winner”. Ditto on mindset of business owner. I might add that the challenge comes when some people look down their nose at you because you’re not the huge company with bricks ‘n mortar, etc.
As for technology, you’re “right on”. I’m one of those “older” ones and into technology even tho’ I haven’t done a facebook or twitter acct yet. I have a hard enough time making time to do my blog and websites. With the stats you provided, I have no excuse for not opening those accounts. But, how much time do you devote to technology each day and still remain the artist that you are?
Heather
27. Apr, 2009
The price point time is interesting Timothy…I have the blog and I’m on Facebook but never made it to Twitter…will give it a try!
Cheers
Lisa
27. Apr, 2009
Great lesson Tim! Like Lynn in comment 12, I feel like I don’t have near enough time to actually create anymore as I seem to be on the computer so much. Thank you Tim for creating these lessons for us, can’t wait to see the next lessons
Lenore
27. Apr, 2009
Wow! thanks, Time for the average pricing tips.
tana
27. Apr, 2009
I have Facebook, Twitter, and a blog already. I’ve always known that pricing is some sort of “science” and your price anchoring theory may just be the piece of the puzzle I’ve been missing. Thanks!! I look forward to the next 4 days of Etsy Secrets!
Linda Williams
27. Apr, 2009
I agree 100% with FB and Twitter and attitude. I’m 57 and get on just fine with both.
Patti
27. Apr, 2009
Thank you, Tim…I’m off to raise a price and we’ll see what happens! Can hardly wait for the rest of the week!
Aletha J. Williams
27. Apr, 2009
Thanks for the advice. I have 2 out of 3. Now the blogging…I have to find the time to commit the time. But everyone asks if I blog. Thanks again, and I am looking for further reads.
Aletha
Maria
27. Apr, 2009
Excellent!
I already have accounts on these three social networks, but I find the tip about the prices really helpful. Thank you!
Can’t wait for the next lesson
Sue Fragiacomo
27. Apr, 2009
Thanks Tim, lots of great info and I’m so excited for more!! Fixed my facebook adding the links!
Sue
Heather Cunningham
27. Apr, 2009
My blog needs some work in regards to marketing my product – I’m lost in the garden right now
http://www.artreverie.com Looking forward to progressing with you. ~ Heather
Meghann
27. Apr, 2009
Great advice, great for the first day, can’t wait to see how it will progress from here
Heather
27. Apr, 2009
I have the social media set up already but you’re right about price anchoring. I’ve made more sales since I starting increasing the pricing/complexity of my items. Thanks!
Tommye Bunce
27. Apr, 2009
Oh, Tim, this is great. I’m actually doing something right! I Twitter, FB, and blog. And just yesterday, I listed something expensive! I can hardly wait til Wednesday.
Kristen Andrews
27. Apr, 2009
Tim this is a excellent tip and I can’t wait to see what else you have in store for us.
Nubia Gonçalves
27. Apr, 2009
Thank you so much for sharing Tim!
I am anxious to read it all!
Cheers!
Nubia (danugs)
Marcie
27. Apr, 2009
Thanks for Day 1. I had 2 of 3 and I learned something about Facebook today. Looking forward to more!
Marcie
samsstuff
27. Apr, 2009
Interesting advice!
I’ll try the adding to the highest priced item tip. One question, how do current shop visitors react to the price increase? I’ve been thinking of adding to the price of product, but am a bit afraid that shop viewers/customers will react negatively. At this point though, I am getting views & hearts, but few sales, so, maybe, I have little to lose.
On another note, to encourage that “older” demographic that thinks it’s too old for this “new-fangled” technology stuff, I am 48, quickly heading towards 49 & when I was in college, personal computers where just beginning & the vast majority of computers where the size of small buildings & used cards for programming. I have figured out how to set up the above mentioned accounts, without help & so can you!
Anyway, thanks for the help. Can’t wait for the next installment! (sorry for the novel)SAM
Elegantrose
27. Apr, 2009
Great tips! Thanks so much for all of the help! I look forward to learning more on my journey in business! I’m off to brainstorm on a new item!
http://www.elegantroseboutique.etsy.com
Karen Weight
27. Apr, 2009
Thank you so much! This is great advice! I am so glad I signed up….I can’t wait to see what is next!
Tresijas
27. Apr, 2009
Excellent tips, I’m looking forward to the next installment. I am signed up for all of these sites, but hadn’t really done much with them so this is a great start. I’m also curious to know how you answer people when they ask you what you do. Currently I just stammer and say something like I make things out of recycled objects. It’s not really convincing and a little pathetic to tell you the truth. Like you said today, the confidence factor is so important and while I think that I do pretty well with it online, I so utterly lack it in the real world.
amanda conley
27. Apr, 2009
I kind of sub-consciously understood about “price anchoring” and was doing that in my shop (until my high priced products sold) but to have it put in words really helps me remember to keep doing that – because you are totally right. And I know – I’m one of those “irrational consumers!” LoL!
Marie
27. Apr, 2009
I can’t wait to put your advice into motion, thanks so much, I’m looking forward to the next lessons. Fantastic!
Linda
27. Apr, 2009
Great Advice!!!
Deborah
27. Apr, 2009
Tim, thanks for sharing your great advice with the rest of us! Thanks to you I am not only blogging )which I love) but am on facebook, myspace and twitter. I too need something more expensive in my shop and I actually know exactly what it is going to be! I can’t wait to learn more to get my business moving!
Deborah
Alix of Bigbluebed
27. Apr, 2009
Thanks for the tips. I too am already on all 3, but will go and do the price increase now!!
Thank you and looking forward to tomorrow.
Gayle
27. Apr, 2009
Thanks so much for the pricing tip. You described me as a consumer very well. I didn’t realize how much I do this average price gig. Thanks for pointing it out. I do have a blog and a twitter account. I’ve tried not to add yet another social network site to my growing list. How important is getting a facebook account?
Elissa
27. Apr, 2009
Great info and well laid out, as always! I’ve heard of this same Marketing tip explained a lil differently too… the mind likes to compare stuff when its shopping. So, if you have two similar items priced very differently the mind likes to compare the prices and “jump on” the lower priced item… no matter how similar the items are! Its almost better the MORE similar they are… otherwise the mind starts comparing features etc… Cant wait for WED!!!
Tara Wood
27. Apr, 2009
This is awesome! Thank you so much, I never would have thought of doing that and after reading what you wrote it makes perfect sense. Going to make a new item to list high right now :O)
Tara
Traci
27. Apr, 2009
Great tips! I’m off to work on the items you mentioned and set up a Facebook account. Thanks again for offering this course!
lynnk
27. Apr, 2009
thanks so much – good advice on the social marketing…how much of your time (working hours) do you dedicate to actual creating and networking,ect. i feel like i spend more time at my computer than creating….
lynn : )
Leah
27. Apr, 2009
Great advice. I’m already blogging & on twitter and facebook, so I guess all I need to do is list something expensive
By the way, love those jewelry trees!
lynn whelan
27. Apr, 2009
Thanks Tim. I am so excited about the whole package. I do already have the above things in place and part of the reason for that is some advice I had gotten from you (and others) in the Etsy forums. Now I am looking forward to hear ways to improve and expand upon their effectiveness!
thank so much
lynn
Kelly Warren
27. Apr, 2009
Thanks so much, Tim! I’ve heard the suggestion about increasing some product prices, yet I’ve worried that, at least comparatively speaking on Etsy, my prices are already a little on the high side since I use all precious metals. I guess it all comes down to perpection as you suggest.
meltem
27. Apr, 2009
This advice is great! I really like this lesson today:) Thank you so much!
Ruthie
27. Apr, 2009
Great tips! I already had all those social sites – but for some reason had never put my web-sites on my facebook profile! All fixed now
Thanks!
Lorin
27. Apr, 2009
Your marketing tip makes a lot of sense. It’s not something I had thought of, but I’d like to give it a try. Thanks.
OvertheTop
27. Apr, 2009
Bravo, Tim! Excellent advice and interesting statistics. I guess I’ll be increasing my prices! Looking forward to reading more.
Katie
27. Apr, 2009
Wow, this is GREAT!! I really appreciate the time you put into this, and it will definitely help me! I’m so glad I signed up for this before I redo my shop! Thanks again.
Mendy
27. Apr, 2009
Wow! The price anchoring makes so much sense. This has given me a lot to think about. Thank you!
Florence Wang
27. Apr, 2009
Really great advice! These are awesome first steps. It’s encouraging!
Megan Tallen
27. Apr, 2009
This is really great advice! Thank you. I’m looking forward to seeing what the next four days will bring!