At the very beginning, the value of all the labor listed above is not much. And that’s not to say that YOU aren’t worth much. You are a diamond. But the work isn’t bringing value to the business yet. You’re bootstrapping.

When you calculate out all the time it took you (let’s say 100 hours), if you sell 50 patterns at $10/pattern, then you’ve made just $5.00 per hour of work … and that’s revenue, not profit! To calculate profit you’d have to subtract the cost of printing, the cost of your web host, any online shop fees (including credit card fees), the cost of fabric, batting, thread, longarming… once you do this math your take-home might be closer to $2/hour!

So why would anyone want to be a quilt pattern designer? Because you get better at streamlining the work. And, hopefully, you grow your sales from just 50 patterns to hundreds or thousands. 50 patterns at $10/pattern is $500. If you can do the same amount of work and sell 500 patterns, you’ve made $5,000 in revenue. 1,000 patterns is $10,000 in revenue… and now your time is as valuable as you are. Which is why you’ll want to simplify with opportunity cost.

How do you create more time?

At some point, you’ll find that you don’t have enough time to do all the things. The first step is to streamline your work – find systems and processes for repetitive tasks. This might be a template for your to-do list, a morning routine that gets you going, or organization to make month-end book keeping less time-consuming.

Then, remove the things that don’t add significant value. Perhaps you don’t need to add a hand-written note to each package you ship. Maybe you can take two trips to the post office each week instead of going each day.

At some point, you may find that you’ve streamlined and stripped down your business as much as you can, and yet you’re still staying up past your bedtime most nights and not getting to all the things you want (or need) to in a day, it may be time to look at bringing on some help

Where does opportunity cost factor in?

Opportunity cost is the cost of the activity you’re doing, as a factor of what you’re not doing, because of this activity. For example, the opportunity cost of you reading this article might be reading your email, scrolling social media, or designing a new pattern. When we look at opportunity costs in business, we consider what our activities are taking us away from. For example, if I’m spending 8 hours a week packing orders, that is 8 hours that I’m not designing a new pattern. Based on your business, you need to decide what your “high value” activities are, and find the best ways to create time for those, while still making sure that the business functions are taken care of.

Now that you understand it, let’s make decisions to simplify with opportunity cost. I might say to myself that the cost of writing a note to each of my customers is just the cost of paper and ink. Or even paper, ink, and my time. But because time is a finite resource, it is also costing me the value of any other work I could be doing instead. If I spend 4 hours a week writing notes, that is 16 hours over the course of a week. In that time I could have a draft of a new pattern. Do my personalized notes bring in enough repeat customers that it is more valuable than writing a new pattern? Depending on your business, that is a judgement call you have to make.

Relaxation time has value

Yes, relaxation time has value. If all you’re doing is working, eating, and sleeping (and sometimes two of those at the same time), you will reach burnout. Just like time and money are finite resources, so is your health. Both your mental health and physical health. If you don’t take care of your body, that can lead to medical problems that will take you away from your business. If you don’t take care of your mental and spiritual self, that can also lead to problems. Mental, physical, spiritual, and relationship problems come up suddenly, unexpectedly, and cause a huge upheaval in the business. There is value in taking time for a walk around the block. And there is value in sitting on the sofa to watch a show with your partner. There is also value in reading a fiction book for fun. Rest is productive.

In terms of opportunity cost, the opportunity cost of being a workaholic may be your health, your relationships, or your mental well being. These have huge value.

Try an opportunity cost analysis on your day

As you go about your day today, think about the tasks that you’re doing, and what you could be doing with this time. Don’t judge yourself too harshly. It is okay to spend time scrolling through social media, chatting with a neighbor, or go out of your way to the “good” coffee shop. But consider which tasks really aren’t worth their opportunity cost, and then find ways to make those changes.

The post Simplify with Opportunity Cost appeared first on Quilt Pattern Designer.

What are affiliate links?

Affiliate links are links to shops, or specific items in shops, that have been altered to reference who referred the customer to the shop.

For example, I’m an affiliate for Accuquilt. This is a link to the Accuquilt 12″ Qube:

www.accuquilt.com/go-cutter-dies/go-qubes.html

This is that same link, but after it has been turned into an affiliate link:

https://shrsl.com/3kjbo

In some cases, such as with Amazon links, the referral code is simply added to the end of the product link. In some cases, as shown above, the link with the affiliate code does not resemble the original link at all. The affiliate code is a reference seen by the shop that the customer was referred by you. Any purchases that the customer makes may result in you being sent a commission, depending on the rules of that affiliate program.

How do affiliate programs work?

You must apply to an affiliate program, and be accepted, to be able to create these links with tags on them. For some programs, you apply directly through that company’s site. Amazon, for example, runs their own affiliate program. For some programs, you must first apply to the company they run their program through, and then apply for the program itself. For example, Accuquilt at Fat Quarter Shop both have their affiliate programs on the Share a Sale platform.

When you’re evaluating which affiliate programs to apply to, look at how they pay out. The two most important metrics will be the percentage and the “cookie.” The percentage tells you what percent of the sale you receive. For some programs, this is a flat percentage based on the total dollar volume of the sale. For some programs, it varies depending on the products purchased. Some programs offer a “bounty” rather than a percentage. A bounty is a fixed amount regardless of the dollar amount of the purchase.

The cookie length is also important. When a potential customer clicks a a link that has been tagged with your affiliate code, a timer starts. This is the cookie window. If the customer makes a purchase within that window, you receive the commission. If they don’t make their purchase within that window, you do not. Let’s use an example of a 5-day cookie. If a customer clicks on the link on Friday, but doesn’t complete the purchase until their payday on the following Friday, the cookie will have expired and you do not get commission on that sale. However, if they click on the link on Wednesday but come back on Friday to complete the purchase, you will get the commission because the sale was completed within the cookie window.

With most affiliate programs, you will receive a commission based on the total sale, not just the item you referred. If the customer clicked the link to check out a specific brand of needles, but ended up buying backing fabric for all their UFOs – you get commission on both the needles AND all of that backing fabric. While your initial instinct may be just to add affiliate links to high-dollar items, links to small items can turn into real dollars in your pocket!

How do you use affiliate links?

You want to carefully read the terms of any affiliate program you join. Some affiliate programs do not allow you to include affiliate links in emails. To share these kinds of links you may be able to create a blog post that includes information and the affiliate links, then refer email subscribers to the blog post. Some affiliate programs don’t allow you to advertise using variants of their name. Some affiliate programs don’t allow you to include the links on sites you do not own (social media sites, for example). Failure to follow the rules can get you removed from the affiliate program.

Once you understand the terms, simply add links to your regular content. But make sure to disclose that they are affiliate links. You can add the affiliate links to supply lists, shopping lists, unboxing videos, tutorials, and more. While this site does not offer legal advice, you should be aware of regulations regarding affiliate links. One of these is that you must disclose that you are using affiliate links before offering the link (not in a line of text at the very bottom of an email or blog post). You can read more about this on the FTC site. They have some information in the FTC endorsement guide.

Affiliate Link Best Practices

When using affiliate links, make sure that you know the guidelines for your location, as well as the affiliate program rules. And then use them naturally. Link to items that you know, love, and use. Consumers can spot a fake, and the affiliate commission isn’t worth tarnishing your integrity. You should focus on items your readers would actually be interested in. For quilters, we tend to link to quilting products. If you have a niche within quilting, such as green/sustainable quilting, faith-based quilting, or budget-friendly quilting, linking to items within your area of expertise will yield the best results.

As long as the program guidelines allow it, you can include links in a variety of places. Share your favorite products in your Facebook group. Link to items you’re using in your weekly newsletter. Include a supply list in the description of your YouTube video. If what you’re sharing would prompt a reader to ask “where can I buy that?” then it makes sense to include a link.

Learn more about email marketing here.

Are Affiliate Links worth it?

It may make lots of sense to use affiliate links, or it may not be worth your time. This is an evaluation you need to make for your own business based on your business model and goals.

If you’re trying to grow your own shop, it may not make sense to send people to other shops to make purchases, even if it does result in a commission. But if you regularly refer your followers to other shops, or recommend products you don’t carry, or don’t have a shop of your own… affiliate sales may be a great way to boost your revenue. In 2021, affiliate commissions represented 13% of my revenue. In 2022 I focused more on my own products, but affiliate commissions were still 5% of my revenue. By simply adding links to items I already love and talk about, I grew my revenue. What could an extra 5-10% do for your business?

Want to learn more about affiliate links? I gave an interview on the Craft to Career Podcast with more tips on affiliate links. Find the episode here.

The post How to use Affiliate Links (for Quilters) appeared first on Quilt Pattern Designer.