Mixed Media Artists That Want To Make Money Series I: Part 4

Congrats!

You've made it to the end of Series I!

In this post, I am going to make sure you have all the tools that are necessary in order to succeed before beginning Series II of mixed media artists that want to make money. In the last two parts, I went into a lot of details about the right and left sides of the business model canvas. In this part 4, I am going to reveal the secrets regarding a cost structure and a revenue stream tailored to artists.

-This post contains affiliate links. When clicked they will open in a new tab on your browser. When you purchase something from one of my links I receive a small commission at no additional cost to you!

The basic business model canvas again as a reference point before I transform it!

Ahhh, much better and artsy! We are going to start in the middle again with the value proposition and follow the arrows down to the bottom this time. What is it going to cost to deliver your value to each customer segment? How much are you going to make after the costs are taken into consideration?

Cost Structure

There are two ways to break down the cost structure of making money as a mixed media artist. Between the scale of a cost-driven framework and a value-driven infrastructure, your best decision would be to land somewhere in the middle. What in the world does that mean? In the artist world, think of cost-driven as a dime a dozen, batching, selling prints, using the cheapest materials, keeping all costs to a bare minimum. Value-driven is when you only have your eye on the prize aka the value that you give your collectors not concerning the costs. If you are on the ground level right now, its probably best to start in the middle with a mix of both still giving collectors that value, however, using professional materials and keeping other costs moderate. When I first started selling my art I kept my costs low by creating in a garage I turned into an art studio as I developed customer relationships and accepted commissions. I used items that I already had instead of buying anything not absolutely necessary right away. Once I started making sales I updated my studio and moved it indoors just in time for the polar vortex in North Eastern Ohio!

Costs are not just about red numbers with dollar signs, think of them also in terms of time it takes to create, building and developing collector relationships, understanding where the customer is coming from, honing your skills as an artist, and showing empathy to clients and partners.

Gallery representation is not always what its hyped to be. If you are thinking of that route, keep in mind most start galleries charge a monthly lease along with a percentage (ballpark around 20-35%) for each artwork that they sell for you. Be careful with any legal paperwork that you agree upon with a gallery, as some will not let you sell your art anywhere else as you work for them even though you're paying them a lease and a commission. They do most of the legwork for you though so that you can take more time to create more art....use caution as some galleries will want you to start creating artworks that will sell more for them and less of artworks that will sell eventually but that you actually enjoy making from your own ideas.

Revenue Stream

How much are collectors willing to pay for the value that you provide? What are people already paying for the value that you deliver? What value are your competitors delivering and at what price?

This is the part where you make money!

Not just selling your art but gaining repeat customers, accepting commissions, branding your art business, affiliate advertising, and sponsorships.

Recurring revenue streams are when a collector loves the first artwork that they bought and the entire experience that you gave them from receiving the art properly packaged that was Fed-Exed overnight at no additional charge to them, the certificate of authenticity signed, numbered, and dated, and a thank you note with your official brand letterhead on quality paper that they can't help but to order another painting from you within a few days. Mind you that this situation doesn't always happen or goes so smoothly and its sort of a gambling dollar wise on your end, however, the profits from returning collectors usually cross over into the world of commissions which are custom orders that you negotiate with them.

Why did I list branding as being an important part of this? When you have an art business people want to associate something with your reputation for being trustworthy and reliable. That's just part of the whole branding idea. It's like putting together a 1000 piece puzzle and there are two pieces that go together but they look originally like they weren't going to fit. You don't want to be in that dilemma! You want to be in a situation where they already know that those two puzzle pieces are going to fit and make it really easy for them to connect those two pieces! That's where branding is going to help you! When you network with other artists, show up at places asking them to show your art, or have anyone ask what you do for a living be prepared to start using your branding with a handy business card! I ordered mine from Vista Print after I saw their commercial on TV. Front and back business cards are a must, and I would also recommend the card stock that's as thick as a credit card because the cards that aren't as thick I can't read the contact info anymore after I put them in my wallet in one of the card slots and when I pulled out that business card to contact the person their number was worn off. I am in no way affiliated with Vista Print but I was so pleased after purchasing my business cards through them that I wanted to share this with all of my readers!

Which brings me to my next points, affiliate advertising, and sponsorships. These are awesome revenue streams that are a little tricky to maneuver if you haven't yet got your branding and following set in place yet. If you already have a blog, or a Pinterest, or a website going with a following I would recommend Awin. This is one of the affiliates that I use. It's basically more of a platform with advertising companies where you will have to apply to each company after applying and being accepted by Awin in order to advertise further. Once accepted by Awin, which only takes about 2 days after you apply, go through and find the companies that you have used their products and/or services and who fit into something your audience is going to not only be receptive to but also how it would further help them by having you send this advertising message in their direction. No one likes spam or being wrongly targeted!

Sponsorships and small business grants are great ideas to get things going also. Taco Bell Foundation offers sponsorships to anyone 14-24 years of age with innovative and creative entrepreneurship ideas that need a boost to get the ball rolling. You do not have to be an employee to apply for their grants. I'm too old for this avenue however, don't be afraid to ask local corporations if they would sponsor you in some way as you would be surprised with the connections that they have with others even if you don't end up with a deal that day, you most likely will if you are patiently persistent.

Keep in mind that this specific business model canvas is tailored to mixed media artists that want to make money with the intent to keep the costs of creating moderate, delivering high value with a high profit. A business model will not always stay the same with the ever-evolving world growing with it. As your business grows or you've come to a point where you want to create a change in your business a newer updated business model with a different approach will serve you well. Different value propositions are going to yield different directions across the canvas. The entire left portion of the canvas is based on logic where the entire right side is based on emotion.

Want to know the secret to understanding your client's thought process before they make a purchase? I will reveal this secret next week when Series II: Part 1 arrives! In the meantime, check out my new website!