Growing an Agency with Aeolidia Founder Arianne Foulks

Growing an Agency with Aeolidia Founder Arianne Foulks on Profit. Power. Pursuit. with Tara Gentile

When I first started thinking about adding more people to the team, I was totally resistant to it, because I would not call myself a perfectionist, but I have a very high standard for the work that I’m doing, and people need so much stuff when they want to put together an ecommerce site.

— Arianne Foulks, Founder of Aeolidia

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Tara:  Welcome to Profit. Power. Pursuit.  I’m your host, Tara Gentile, and together with my friends at CreativeLive, we talk to powerhouse small business owners about the nitty gritty details of running their businesses, making money, and pursuing what’s most important to them.  Each week, I deep dive with a thriving entrepreneur on topics like time management, team building, marketing, business models, and mindset.  Our goal each week is to expose you to something new that you can immediately apply to growing your own business.

This week, I sit down with Arianne Foulks, the captain and founder of Aeolidia, a web and graphic design studio that’s been working with creative, design-oriented shops since 2004.  Aeolidia serves those at early stages on their path with an informative blog and supportive community, and her agency builds fully custom ecommerce sites for established business at that tipping point where strategic design can be transformative and cause exponential growth.  Learn how Arianne decided to build an agency instead of going it alone at web design.  We talk about who she hired first, how her team works together, and both the first and last steps of any client project.

Arianne Foulks, welcome to Profit. Power. Pursuit.  Thank you so much for joining me today.

Arianne:  Thank you for having me, Tara.

Tara:  Absolutely.  So I’ve always looked to your agency as sort of a leader in web design for creative business.  You guys have been around for a long time, but everyone starts somewhere, right?  So how did Aeolidia get started?

Arianne:  Thank you.  We definitely did start somewhere.  We started very small and humble, and in fact, like, I’m always so busy keeping my nose in my own textbook, that I don’t even really notice how much word about us has spread, and I always get kind of surprised when people have heard of me.  But yeah, we started as just me sitting on my couch with my laptop.  I didn’t have a computer when I was growing up, so when I went away to college, and I had unlimited access to the computer lab, I found myself spending a ton of time in there, and I figured out how to make a website on GeoCities.

Tara:  Nice.

Arianne:  Which will be hilarious to anybody as old as I am.  And I spent a lot of time designing a website for my zine and redesigning it and redesigning and redesigning it, because it was fun, and eventually, my friends noticed that I had a skill there, and they wanted websites for their band or their record label.  Most of the people that I helped out at the start were in the music business somehow, and of course, they were not loaded with riches or anything like that, so I ended up doing a lot of websites as favors, or just for fun, or maybe as a trade or something like that.  And then eventually, I had a friend who had an ecommerce shop, which I had no experience with ecommerce, yet, but she wanted me to help her make it look better.  So I came in and helped her figure out this new ecommerce software, which I’d never heard of, and I was like, oh, look at all this, it’s HTML, which I know, but there’s also this PHP and all this crazy stuff, but I figured it out and we made her website, and it looked pretty darn good, and from that one project, I got introduced to kind of this world of pre-Etsy handcrafters.  They had a little community going, and I think it was the year before Etsy began that I really started working on projects with crafters.  And so before Etsy, there was no easy way to get a website up online.  You had to actually get web hosting and know how to use ftp and upload all these files to your server, and you had to, if you wanted to change anything, you had to know HTML or CSS or PHP, so you know, they couldn’t really just pop up a website like you can nowadays.  They needed somebody technical to be able to help them, so I was quite busy for quite a while in this little niche that, you know, had a need that wasn’t really being served.  So yeah, I was super busy with a bunch of crafters, and it was all word of mouth.  I wasn’t trying to advertise or find new clients or anything like that.  In fact, I was often turning away people when they asked me, because I was just too darn busy, because it was just me.

Tara:  Yeah.  And were you operating under the Aeolidia brand then?  Or was that something that kind of came along later?

Arianne:  I was.  I think I had a couple different names as I was transitioning from hobby to more of a business, but when we, when I started doing sites for crafters, we were … I was Aeolidia back then, yeah.

Tara:  Got ya.  All right, well, that’s a really good segue into my next question, then, which is about, you know, how lots of web designers really, they choose to go it on their own, or they think that that’s kind of their only option.  Either they’re working with, you know, a developer, or they’re doing even everything, you know, development-wise themselves.  How did you make the decision to build out an agency and start working with more and more people to produce the sites that you wanted to produce?

Arianne:  Right.  Well, that’s very complimentary that you called it decision.  I was not making any strategic decisions back then.  It’s something that just kind of happened.  So, in fact, when I first started thinking about adding more people to the team, I was totally resistant to it, because I knew I didn’t want to become just like the boss, and I wasn’t doing any creative fun work anymore, and I was like, nope, nope, that’s never going to happen, I don’t want to do anything like that.  But at the same time, I would not call myself a perfectionist, but I have a very high standard for the work that I’m doing, and people need so much stuff when they want to put together an ecommerce site.  So, you know, I would just dig in there and get going, but they would come to me and they wouldn’t have a logo, and so I’d have to like try and just type their name in a nice font, and I eventually ended up learning how to design logos myself, because people needed them so often.  People needed product photography, and I’m not a photographer, but I didn’t know any photographers to refer them to, and I didn’t really like the idea of referring people to a third party, because it was totally out of my control.  I didn’t know if the quality was going to be high.  I didn’t know if the product they brought back to me was going to work for the website.  The whole thing just felt very uncomfortable. 

So I ended up actually bringing on people to do all these different services that it turns out my clients just kept needing that would pop up as a surprise.  Eventually, we ended up adding people to do all of those things in house, so we could, you know, be in charge of the whole project, and know what was going to happen with all the parts and know we were going to get something that was up to our standards.  So you know, it all ended up being in house, and I was so worried about losing the work that I had to do sitting there and designing websites, but let me tell you right now, I am thankful every day that I don’t need to sit down at Photoshop looking at that blank white screen and try to figure out what to make for somebody.  I don’t regret it at all, now that I see how it worked out.

Tara:  Yeah.  And I love that you talk about the reason that you brought people in house, the reason you, you know, wanted to bring other people in period is because you had this need, you know, you’re a bit of a perfectionist, maybe even a bit of a control freak, and so I love thinking about going the agency route as being a way to appease your perfectionism and control freakness, because I think a lot of times, perfectionists kind of isolate themselves, and I love your solution much better.

Arianne:  Well, the best part is, it turns out everybody I’ve hired along the way has ended up being much better than I ever was at all the things I was trying to do by myself, which I love and is the best thing about running Aeolidia.

Tara:  Yes.  Amen to that.  Okay, so who was your first hire?

Arianne:  So I was thinking about this.  My first hire was actually a small troop of illustrators, because I just loved illustration so much, personally, and when I was sitting there with that blank, white Photoshop page, I really wanted to have something awesome to start with, and I hated having to have a very text-heavy site or just sticking with my clients’ awful photography or going to some terrible clip art or stock photography site, which back then, there were not a lot of options, and it was really kind of terrible.  So I just reached out to a few illustrators.  They weren’t, some of them weren’t even doing client work.  Some of them were just illustrators that were doing it as a creative hobby, and I asked them if they would like to be paid to make illustrations for my clients, and that worked out really nicely.  And even though I was working with maybe, I don’t know, at some point, we had … we had a lot of illustrators at one point, and things have gotten a lot more sleek and clean and modern lately, but you know, I would have maybe five different illustrators and me, but people would tell me back then that they knew it was an Aeolidia site before they even scrolled to the bottom and saw our credit, just because I think we were doing something there that you didn’t see a lot on the internet at that time, and our sites looked a lot more creative and illustrated and arty and interesting than people were used to seeing, so that was really awesome.

Tara:  Yes.

Arianne:  But, you know, that didn’t feel like, I didn’t feel like a studio at that point.  I felt like I was just making websites and I had a couple helpers.  I did bring my friend, and my best friend from college had been doing web design and development, and when she moved up to Seattle, I was like, you know, I’m turning away clients left and right.  I think it would make a lot of sense if we just worked together on this, and then you could do some and I could do some, and maybe I wouldn’t have to say no so often.  And so we both ended up working together.  She managed her own projects.  I mostly just kind of got people started and took care of the money part of it, but we were basically two freelancers who happened to be working together.  And then I also brought my husband in.  He had been doing this really boring cubicle-style office job, and I think I just wanted to save him from the cube.  I was like hey, you know, you could learn MySQL and PHP and help us with these databases and we can all work together. 

So that still didn’t feel like I was building an agency.  That felt like we were maybe like a mom and pop shop kind of thing, like a little family business.  I think the big change happened when a designer who I admired reach out to me to ask if she could work with us.  And this seemed, I mean, already, I had hired some people, but this seemed super foreign to me when she said this, and I was like what?  Hire somebody?  That’s crazy.  I don’t know if we should do that.  I mean, how would we keep control of what’s going on?  Will it still look like an Aeolidia site?  Like it all just seemed fraught with peril, but I was pregnant with my first child, and I knew that I had no idea what was going to happen to my schedule after he was born.  So it seemed like a really good time to just go for it and see how it worked out.  So we hired her, and it was awesome.  It was the best.  I was able to just like fade into the background with a baby for a while.  She was designing sites, my husband was developing them, my friend, Shoshanna, who’d been working with me all along was taking care of her own clients, and it was really a great way for the business to keep afloat while I basically could hardly do anything.  So I think that was our big tipping point where it began to be more of an agency.

Tara:  Yeah, I love that.  And so now, is … are … are … is the group that you have, are they a mix of, like, W2 employees and contractors?  Or is it one way or the other?

Arianne:  So all of our workers that provide a service are contract workers, so they’re all either freelancers or they have their own small studio.  My only employee is my project manager, Sam, and she takes care of all the project management stuff that I started having to do when we brought more people onto the team.  Other than that, everybody who works for me, you know, we all live in different places.  We have a designer in Australia, we’ve got a developer in Canada, we have people all over the United States.  My one employee, Sam, is actually in San Jose while I’m in Seattle, so we all work remotely as a, just kind of a magical team.

Tara:  Nice.  I love that.  I love that.  Sounds like you’re super-flexible.  Is flexibility important to you?

Arianne:  Yeah, it totally is.  I … I always think if I had to go back to like a regular job and lose my flexibility, I don’t even know if I’m employable anymore.

Tara:  That’s great.  That’s great.  So you mentioned earlier that you’re really glad you don’t have to stare at the white, scary Photoshop screen anymore, and so that makes me curious how you’re actually spending your time in your business.  What role are you personally, or have you personally taken on with the agency?

Arianne:  So it’s super-interesting to me, because when I was resisting the role that I have now, I was not fully imagining what I would actually be doing.  I just pictured myself bossing people around all day long, which I totally don’t do.  I hardly ever boss anybody around.  I spend most of my day doing content creation and marketing type stuff, because finding work for 19 people is a lot more work than finding work for yourself or maybe three people.  So I write for the blog a lot, I do our social media.  I’m the mastermind of thinking of what new things we need to be doing or how we need to change our process or what we should be working on next or what our clients need, all that kind of thing.  I’m the tricky situation smoother-outer.  Whenever anything weird comes up, I get to pop in there and unruffle everybody’s feathers and figure out good solutions.  And all that kind of problem-solving stuff is what I love doing, and I’m way better at problem-solving than I ever was at designing a website, so I’m really glad I’m doing what I do now.  And I do still have the blank page problem, because I write for the blog a lot, so I sit there in front of the blank WordPress screen, but that is a lot less intimidating to me.

Tara:  That’s awesome.  So it sounds like it’s sort of a, like, dual CEO/CMO role.

Arianne:  Yeah, I guess so.  I would eventually like some help with the marketing, because a lot of it is a drag to me.  Like, I love doing the blogging, and I love talking one-on-one with business owners and solving people’s problems.  In fact, I spent a lot of time kind of doing free consulting work for people, just because if somebody puts a really interesting question in my inbox, I cannot resist getting in there and figuring out how to crack that nut.

Tara:  Yup.

Arianne:  So sometimes, I’ll just go and I’ll help people out, but then what I do is I turn it into a blog post that is super helpful for other people in the business.  So it all works out, but yeah, it’s all fun for me to just sort of figure out how to make things better for Aeolidia and for our clients and other small business owners.

Tara:  Perfect.  Cool.  So you’ve started talking about this a little bit, but I want to drill down into it a little bit more, too, and that is how have you decided to add people to your team?  It sounds like some of them have presented themselves to you, some of it’s been by need.  When you’re looking at your business right now and thinking about those new directions, or you know, maybe new services that you want to add for clients, how are you thinking about who you’re going to bring into the business, too?

Arianne:  Right.  So I have become a lot more strategic about this in recent years, but in the olden days, I used to just kind of add people if somebody asked and I thought that they would be an amazing fit or if I saw somebody online where I just loved their design work and I thought they’d be perfect, and we also spent some time trying to figure out to balance our team, because for a website project, you need a web designer and a web developer, and we didn’t want one group of people being super busy while the other was kind of sitting around twiddling their thumbs looking for work. 

So we would do that kind of thing or maybe replace people as they left, but now we have a more businessy type way of figuring this out.  So we have a certain amount of projects that we would like to be working on each month, and we’ve actually finally gone through the numbers and figured out how we stay profitable, and so we’ve just figured out how many projects each person can do, and that tends to be different for each different worker, and then we plan our team based on that.  So if we know that want to be doing 12 or 14 projects in one of our two-month blocks, we look at who we’re going to have then and how many they can do, and if it looks like we don’t have enough manpower, then I can go out and try to find somebody else to add to the team, and that is what we have been doing recently.  And right now, we, it feels like we’re at just the perfect size, because we’ve recently added a couple designers to the team to replace some designers who are out on maternity leave, and I think we should be set for a while.

Tara:  Nice.  Awesome.  How do your team members work together?  Are they talking to each other?  Does everything go through the project manager?  How does that work?

Arianne:  So we have used Basecamp ever since it existed, I think, to talk to our clients.  I was thinking the other day, I was doing something before Basecamp where I just had like a bunch of tasks written out into a text document, and I seriously have no idea how I used to ever get any work done.  But now we have wonderful tools, so we use Basecamp with our clients, but the thing that’s been huge for us internally is we started using Slack when Slack started existing, and that is a tool that lets us all chat with each other with no clients ever involved.  Like we definitely had a couple of mistakes in the early years where we think we were sending a private message on Basecamp and the client would get it, so now, you know, we’ve got our internal team on the internal software with no clients on it and we can all just sit there and chat with each other, and that has been huge not only for just organizing projects, but it has really made our team feel like a cohesive team of people that all actually work together, whereas I think before everybody kind of felt like freelancer that was just doing their own job, and the project manager would be popping in to ask them about it, and you know, we would be emailing back and forth on Basecamp to ask each other questions, but now with Slack, we have a way to all, you know, make jokes and share random stuff we like on the internet and figure out ways to do stuff better and have little chats where we improve things, which has been so awesome, and I feel like we’re much more of a team now.

Tara:  I love it.  I love Slack for all the same reasons.  It brings … it brings people together.  It brings the team together.  It creates a culture, and it’s, obviously, it’s just great for communicating, too.  So that’s …

Arianne:  Totally.

Tara:  Yeah, so that’s super helpful.  Okay, so can you walk us through what happens internally after you’ve signed a new client?  What are the … what are the first steps there?  How do you get started working on that new project?

Arianne:  Yes.  And I am very happy with what we’re doing now.  We spent the last year kind of building this out, and it’s all working so well.  So we used to just take on a project willy-nilly whenever the client was ready.  We’re like, okay, here we go, let’s get started.  And it was chaos.  And now we have kind of switched to a block system.  So in the block system, we have two-month blocks throughout the year.  We have five this year.  I think next we’re going to try to make it six.  And each client project is going to take at least one block, or maybe two, possibly three.  So if you’re doing a logo and a website, that ends up being three blocks, because we do two months on the logo, two on the website design, and two on the website development.  So before the block starts, we have a phase that we call Phase 0, and we like that to be about a month long, although we can get away with less, sometimes, but a month gives us lots of time to get everything done.  So what we have been doing, we used to just kind of collect content from clients as we worked, and if they didn’t have photos, for instance, we would use placeholders, and it was hard to do our best work. 

Now, we insist on having everything totally ready for us before design begins.  So Sam works with our client to gather content, so that would be like product descriptions, whatever they want to write on the home page, what the about page is going to say, all their photography, their preferences, feature requests, that all happens during Phase 0, and that is also when we bring in our copywriter to create content for them or edit what they’ve got, and our product photographer to take their beautiful hero shots for the front page of their website and all their product shots, and so all that time is mostly, you know, the designer and developer relaxing and Sam is in there with the client digging everything together.  At the end of Phase 0, when we have everything ready, we all get together in Slack for an internal project planning meeting, and this has been wonderful.  We used to just kind of go by whatever the proposal said and then work out any kinks as they happened.  Now, we try to work out all the kinds before they happen, which is a much better way of doing it.  So now, we look at both what the client has given us and all the content, and we check out their goals and their objectives and first, we look through the proposal and make sure that we didn’t put in anything that was unnecessary or didn’t leave out anything that is going to be really helpful.  So sometimes, we make some adjustments to scope right there at the start with the client’s agreement, and then we spend some time just kind of making our rough plan for how we’re going to do things, and we try to pinpoint any possible problems that might come up or like unusual requests or things that we don’t often do, and we try to make a plan for how that’s going to work and what’s going to happen, and during this time, we also tend to show the client either a wireframe of what we’re planning for their site, or we will give them some information, like for example, we often end up editing and adjusting a client’s category list.  So they’ll give us this list of like maybe 18 product categories, and we help them whittle it down and reorganize it and make it make sense to their customer.

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Tara:  Is the average project that you’re doing average?  Like, do the projects look very similar or is there a lot of disparity between the different types of projects that you’re taking on? 

Arianne:  They do look very similar, and the reason is because we only do ecommerce projects right now, so we don’t do informational sites or service-based businesses, we only do product-based businesses, and if you want somebody to shop online, there are a certain about of expectations that your customer has from shopping on Amazon and other big sites.  They’re expecting the cart to be in a certain place, they’re expecting the login link to be in a certain place, they know kind of what an add-to-cart button looks like.  So you have a lot of constraints when you’re designing for ecommerce, which actually turns out to be wonderful, because you’re not reinventing the wheel each time.  So most of our client projects are very similar.  Like, they’re so similar, in fact, that we just kind of go through a checklist when we’re making a proposal of which things to include and not include.  We don’t have to come up with new crazy things very often.  We usually have a flat rate or a set price for each type of feature we’re adding.  Yeah, so things, you know, we get to put our own spin on it and our own details, and there’s usually not a lot of wild variation going on.

Tara:  Got you.  That’s … that’s really interesting, and I love the … I love the hyperfocus that you have on who your target client is, and how that not only makes it probably easier to find new clients, but also has streamlined your process so that it’s as efficient as possible for you, and I think that should be a huge takeaway for anybody, whether they’re running a web design agency, or you know, any kind of business that they’re doing, I think that kind of hyperfocus on who you’re selling to really has ripple effects through your entire business strategy, so that’s awesome.  Do you mind if I ask you what your average project fee is?

Arianne:  So we have kind of a minimum and maximum right now.

Tara:  Okay.

Arianne:  So most of our clients that come in … So we have a starting at price and then we just add on features that they need to it.  So some clients want a blog and some don’t.  Some clients have a bunch of informational pages.  Some need to add things like downloadable products and stuff like that.  So our starting at price for a custom Shopify site is $14,000, and we have had projects go up to $25,000 and $30,000, but that’s usually when we’re adding in completely separate services like marketing and SEO and stuff like that on top of what we normally do.

Tara:  Great.  Awesome.  That’s super helpful.  I think fees for web design, well, one, are all over the place, and two, people never know what to expect, and I just, I love hearing, you know, what people are charging.  I think that’s really helpful.

Arianne:  Right.  And they’re totally all over the place, because there’s so many different things you can get.

Tara:  Right.

Arianne:  Because if you want to set up a shop on Shopify, you could do it over the weekend for $0 by getting a theme from the theme store, and that is probably going to work for you, though it might not be the best.  The clients we work with have been in business for a while, and they have seen success and things are working for them, but they feel like it could be working better, so when we come in, we are not starting with any kind of framework or theme or anything.  We are starting from scratch based on their goals, based on their objectives.  We’ve been huge on return on investment lately, and figuring out what’s actually going to help the client make money, not just make a pretty website.  So yeah, there’s a big difference in services there.

Tara:  Perfect.  Absolutely perfect.  Okay.  So we’ve talked about the beginning of the process.  Now, can you walk us through what happens when you’re completing with a client?  What are … what are those last few steps where someone’s working with you, you’re finishing up this site, what does that look like?

Arianne:  So the last thing we do is testing.  We have a browser tester on staff who goes through and looks at each website we’ve designed on every reasonable platform.  So she’s in there looking on the iPad and the iPhone and on Android and different browsers and Macs and PCs, and she sends this whole crazy report back to the developer to get everything fixed up, and then when we like it on our end, we send it to the client to do their user testing, because we found over the years when you don’t have the website owner go through the entire checkout process, they come back two months later surprised by something that they’ve never seen before, or they didn’t realize their shipping was working that way or something like that, so we have our clients go through the site as a customer, and we have them complete checkout and use the different payment methods, try the different shipping methods, make sure the order emails they get all make sense.  You know, we want them to see everything their customer’s going to see, so they have a chance to customize it if needed and change it if they don’t think it’s going to work and all that good stuff.  And then we are ready to launch their site, and then after launch, we spent some time to prepare them and our team for their six-month checkup, which is something we started doing this last year, where we launch them on their way and they get to set sail, and then we meet back up with them after six months to see if they’re on the path to achieving their goal and how it’s going, what’s working, what hasn’t been working, and we’re available at that point to do some updates or changes to the site if needed, and we try to make that very stats and sales-based, so we’re not just, you know, changing the blue to a lighter blue for fun, but doing something that’s actually going to be effective for them.  And then it’s just we have a week in between ending a block and starting a new block, and during that week, we do a lot of internal marketing type stuff, like the designer makes some graphics for the portfolio and blog posts, and I plan out what we’re going to blog about for each client, and we get their testimonial, and we see if they’ll send us the print work we designed for them so we can take photos and all that good stuff.

Tara:  Cool.  Very, very cool.  Are there any trends that you see coming in web design or in ecommerce?

Arianne:  Oh my goodness.  It’s so hard to know, like, what is going to be an important thing to do and what is going to be a silly trend that nobody’s going to care about in a little while.  But you know, we keep our eye out, and it’s actually really good, Shopify has got a really good blog for following along and seeing what is happening with ecommerce, because they really are trying to stay ahead of the curve.  In fact, we went to the Shopify partner conference just for their developers and designers and experts, and they were demonstrating virtual reality shopping, where you put on like the headgear and the gloves and you’re walking around in a store and grabbing things off the shelves, and I have no plans to start doing anything like that for Aeolidia clients yet, but it’s definitely interesting to look at.  We, personally, have been seeing a lot more video on websites, which is nice.  Like you can do video on product pages to just make people really understand what it’s going to be like to have the product, or like a video of your brick and mortar shop, or whatever your process, whatever’s special on the home page to get people interested, so that is something we’ve been looking at.  Mostly, we try to stick to what we know works and not get too wild, because if you get super experimental with somebody’s product-based business, you could be costing them money, so we try to stick to what we know is working at the time.

Tara:  Cool.  Awesome.  All right, last question for today.  What’s next for you and Aeolidia?

Arianne:  What’s next?  So I am working with one of my developers on building kind of a members area on the Aeolidia site, which is just something for our newsletter subscribers.  It’s free.  It’s something that exists right now, but it’s a total mess, because it … it made sense when I had three things for them, but now that I have tons of things for them, it’s just getting confusing.  So I’ve been making a lot of content upgrades for my blog posts where there’s maybe some more information or like a guide you could use or a workbook or a video to watch and all that kind of good stuff.  So I’ve been saving that stuff in a members area for people who subscribe to my newsletter.  It doesn’t cost anything, just your email address, but that is kind of just, I just keep adding to it, and it’s been going totally crazy, so I’m trying to turn it into an actual nice resource area for somebody who is either starting or growing a small creative business can use all the info we’ve put together over the years to really make some good next steps for themselves.  So we’re working at that, tapping away at it.  I am also speaking at the State of Making summit, which is something the Academy of Handmade is putting on, and we’re going to be talking about what changes we have seen in the industry over the last year, and I am pretty excited about that, and other than that, I’m just kind of sitting back hear and any time I see things that are not perfect in our process, I am sneaking in there and improving them, and making it better for everybody.

Tara:  Awesome, awesome, awesome.  Well, that’s a perfect place to leave it.  Arianne Foulks, thank you so much for talking with me today.

Arianne:  Thank you, it’s been fun.

Tara:  Find out more about Arianne Foulks and Aeolidia at Aeolidia.com

Next week, I talk with Jill Knouse, who gave up a lucrative career in the financial field to become a certified yoga instructor and massage therapist.  Jill and I talk about creating an innovative business model in a saturated field, and we jam about collaboration, creating events people love, and testing new ideas.

CreativeLive is highly-curated classes from the world’s top experts.  Watch free, live video classes from acclaimed instructors in photography, design, craft, business, and personal development every day at CreativeLive.com/podcast or on our brand new iOS or AppleTV app.  Use code PPP15 to get 15% off your next purchase.

That’s it for this week’s episode of Profit. Power. Pursuit.  You can download other episodes of this podcast and subscribe in the iTunes store.  If you enjoy what you heard, we appreciate your reviews and recommendations, because they help us reach as many emerging entrepreneurs as possible.

This episode was produced by Michael Karsh at CreativeLive.  Our audio engineer was Chris Stow.  Daniel Peterson wrote our theme song and also edited this episode.  Tune in every week for new interviews that give you the inside scoop on how successful small businesses run and grow.

Erin Dollar on Time Management and Connecting With Big Brands

Erin Dollar, from Cotton & Flax, on Profit. Power. Pursuit. with Tara Gentile

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Tara:  Hey everyone, welcome to Profit. Power. Pursuit.  I’m Tara Gentile, your host, and together with CreativeLive, we explore the unique strategies that creative entrepreneurs use to take control of their lives, profit from their passions, and pursue what’s truly important to them.

This week, I talk with Erin Dollar, the founder of, and textile designer behind, the home decor brand Cotton & Flax.  Her striking hand-drawn patterns set her textiles apart as a blend of fine art and fine craft.  Her work has been carried in retail stores across the USA and Canada, including West Elm and CB2.  Erin and I discuss how she discovered print-making, how she ramps up production for big orders from companies like West Elm, and how she manages her time while largely running the business by herself.

Erin Dollar, welcome to Profit. Power. Pursuit.  Thank you so much for joining me.

Erin:  Thanks so much for having me.  I’m excited to be here.

Tara:  Absolutely.  So I’d love to start off by talking about how you decided on print-making, because when I was in college, I don’t think I even realized that print-making was a thing.

Erin:  I mean, yeah.  Honestly, I didn’t know either.  I think I, you know, I was just telling someone about this the other day about when I went to college, I had this vision for my life, and I was going to be … I was going to study poetry and environmental studies, and I was going to live up in a Redwood tree and just be like writing my amazing poetry, and yeah, about a year into college, that, I realized, probably to my benefit, that that was a terrible idea for me.  Maybe for someone else, but not for me, and so you know, I was focused on a lot of creative pursuits at that time.  I’ve always been interested in fine arts, and so I was studying for a fine arts major, and you know, it wasn’t until probably my second or third year of being at the university that I discovered the print-making program, and I just fell instantly in love.  I, you know, I got into the studio, I started trying my hand at some of these techniques, and it was just … it’s hard to describe, because you know, I think a lot of people look at art and they think, oh, you know, what’s really the difference between making a painting or making a print or making a drawing, and for a lot of us artists, I think when you find your medium, something just clicks in your brain, and it just … it’s an amazing, unforgettable moment in my life, and I think that it was something that once I found that place, once I found that studio and those processes, I didn’t want to do anything else.  So it was sort of luck.

Tara:  Wow, that is fascinating.  So when you first got started, did you have a vision for it?  Like did you make your first print and think wow, I can just see all of the possibilities for this?

Erin:  Yeah, yeah.

Tara:  Or was it something that more unfolded over time?  More of a process.

Erin:  Yeah, well, when I was in school, it was really more of a creative sort of discovery process at that point.  I think the idea of running a business was sort of pretty far from my mind at that point.  Obviously, I think one of the biggest differences with thinking about print-making rather than other artistic pursuits is that prints are generally created in multiples, so you have the opportunity to be able to sell them.  And you know, you can sell all pieces of art, but I think prints are uniquely suited to reach a wider audience, because you can make multiples and sell them to multiple people, and really disseminate your work in a very different way than if you spend a year making one painting and it’s, of course, really beautiful and really incredible experience to create those larger pieces of work, but then, you know, that goes to one gallery or one museum or one owner, and it’s a little bit … it’s just a sort of different way to … to experience your art when you’re creating multiples versus creating one-of-a-kind pieces, and of course, prints are really special and one-of-a-kind in their own ways, but I think it … sort of that process of creating, you know, editions of prints, you know, up to 50 prints, you know, even more at a time, you start to think, okay, well, I’m not going to keep all 50 of these prints, where are these going to go? 

So I think naturally something in your brain as a print-maker starts to kind of turn.  Okay, where are these going to live?  Who am I going to disseminate these to?  Am I going to sell some of these prints or am I going to put these into my own personal collection?  I think it presents a little bit more of a challenge in terms of the archival process maybe than other artists have to deal with, so yeah, it’s interesting.  It sort of fed naturally into … into my business later on in life.  I think … I think sort of part of why I started my business was circumstantial.  I graduated from college in the middle of the recession.  It was 2008, and so it was just the beginning of the real downturn, especially where I was living in Portland, it’s already hard to find creative work, and so instead of sort of piecing together a bunch of part-time jobs and just really not enjoying my work life, I decided to start selling some of those fine art prints that I had created during college.

Tara:  So it sounds like print-makers might be the natural entrepreneurs of the maker world.

Erin:  Yeah, yeah.  And I don’t know that everyone relates to that necessarily, but for me, it was a really obvious … an obvious choice, because I had all of these extra prints from my editions laying around and you know, kind of just sitting in a flat file, and it seemed like, you know, why not try to put these out there.  I’d been getting a lot of great feedback when I would do gallery shows and things like that, and you know, it seemed like why not just go ahead and start.  You know, in 2008, it was so easy just to go ahead, start an Etsy shop, see how that works out, and you know, it kind of changed from there, and I rebranded under Cotton & Flax a little bit later on, but that was really my first sort of taste of, yeah, being a creative entrepreneur and kind of getting my work out there in a bigger way.

Tara:  Love it.  So let’s talk about where you are right now in your business.

Erin:  Yeah.

Tara:  How is your print-making business currently generating revenue?

Erin:  Yeah, yeah.  So it’s a lot of things.  I think a lot of artists and creative people understand that process of needing to have, you know, I don’t know if it’s wearing a bunch of different hats or having a bunch of different sort of buckets to collect the money that comes in, but it’s very rarely I think one thing.  So for me, I have Cotton & Flax, which is my product-based business, and that has, you know, a range of home decor products that I sell both online and direct to other business, so I have both the retail and the wholesale side.  The wholesale side is generally to smaller indie shops, little boutiques around the country, but I also sometimes do sell to larger mass market stores like West Elm or CB2.  So those experiences are pretty, pretty different, but really, really great in terms of generating income for the product side of the business as well as obviously the ecommerce side where it’s my … my customers coming directly to me and purchasing things for their homes or you know, for gifts.  So that’s sort of one-third of how I’m making my income. 

Another third would be teaching.  So I do both creative classes, creative workshops that are based mostly in print-making.  I do teach block printing and silk screen printing, and you know, some sort of, like, more hands on monoprinting classes from time to time, or poster printing.  Those things that are more rooted in my … my creative practice.  But then I also do some amount of teaching around creative entrepreneurship, people who are also interested in running creative businesses who want to get tips or tricks from me about how to grow their social media presence or how to share their work in a compelling way online, and so I do some amount of education around those topics as well, so that’s kind of another third.

And then the last third is licensing.  So I … part of my practice through Cotton & Flax is creating all of these beautiful patterns and some of them get added into my product business and you know, get used there, but then I have a lot of extra patterns that I’ve developed that, you know, don’t … that end up kind of languishing because I just don’t have the resources to create 100 new products a year.  That would be really overwhelming for me.  It isn’t something I’m interested in taking on.  And so now, I have the opportunity to license those patterns to other companies for them to put on products or to use in other … other fields. 

So it’s kind of a nice three-pronged revenue generation system at this point.  It’s something that I feel pretty comfortable with.  I think it’s … it always sort of shifts, and sometimes the products are bringing in more income and sometimes the teaching is bringing more income in, and you know, I just kind of go with the flow.

Tara:  Got you.  So you mentioned thirds.  Does that break down revenue-wise as well?  So like a third for products, a third for licensing, and a third for teaching?

Erin:  I mean, honestly, no.  Generally, the products business is the main bread and butter of the income for me.  This year, I’ve been doing a lot more teaching.  For whatever reason, there’s been a huge demand for that.  I’ve been getting in touch … I’ve had a lot of consulting work kind of come to me naturally just as people have been exposed to some of my classes online and so that side of the business, the teaching third, I guess, has really grown a lot in the last maybe six or seven months to where that is probably taking up more of that revenue base than it was before.  Licensing is still a pretty small component of that because it’s something that I haven’t really thrown myself into wholeheartedly yet.  I’m more passionate about growing the product business than I am about starting a second career as sort of an illustrator, so yeah.  It’s uneven.  I would love to see it become more even, and to maybe hand off some of those duties for the product-based business to, you know, other assistants or employees, and kind of move towards the licensing side eventually, but for right now, it’s a little bit more heavily weighted towards the product business in terms of revenue generation.

Tara:  Got ya, got ya, got ya.  So how do you plan for that money situation, because I think that’s a pretty tricky equation for a lot of creative entrepreneurs?

Erin:  Right.  Exactly.  And that’s part of why I think most of us don’t just earn income from our product business.  I think we all generally figure out what that ebb and flow looks like.  We know that obviously, a lot more revenue’s coming in towards the end of the year around the Christmas holiday, and it’s just you kind of have to figure out what that ebb and flow looks like for your business and kind of make adjustments based on that, and for me, that means that I do … I generally would do a lot more teaching during the beginning of the year and maybe in the late summer, early fall months when I don’t have trade shows to be doing and I don’t have as much demand for my product-based business as I do towards the end of the year when I’m just too busy to be teaching classes. 

I think, you know, if someone invited me to come and teach a workshop in November or December, I would have to say no, because it’s just too many … too many things to be juggling at that point in the year, but it’s nice that I get to kind of … the side benefit of that is just that I get to keep myself engaged with my work and really stay interested in what I’m doing, because I think that another thing that I’ve learned from doing the product business for Cotton & Flax for years is that I think that it’s not … it’s not enough to keep me interested.  It’s really an amazing challenge and I love developing the products, but I think that being most of the time by myself in the studio developing these things and then putting them out into the world, I miss that human contact and I miss sharing the sort of artistry of the print-making side with people, and so having those … those opportunities to teach and to … to share that love of print-making with people in the flesh, that’s really, really important to me.

Tara:  Got it.  So I love that you talked about the ebb and flow and kind of adding things in during those ebb periods.

Erin:  Mmhmm.  Right.  Exactly.

Tara:  You know, when I talked to Melanie Duncan, it was very much the same thing.  She started an apparel company and kind of figured that all out, found out where that ebb period was, and then started another company on top of that to even things out and to maximize her revenue flow.

Erin:  Mmhmm.  Mmhmm.

Tara:  I just think that’s really helpful for helping people figure out that kind of long-term planning around the ups and downs of making money when you’re working for yourself or when you have your own company.

Erin:  Well, yeah, and I think that it can be, you know, I’ll speak for myself.  I don’t know if this is something that all makers or people who are selling their products that they create online, you know, I … I would always have these really sort of depressing episodes in like February or March where things would slow down and for whatever reason, my brain would just forget that that was natural in the course of my company.  It’s like I can look at sales documents and be like, oh, yeah, this happens pretty much every year, that, you know, folks are getting ready to pay their taxes, and they’ve, you know, they’ve done all their holiday shopping, they’re not coming back for gifts for a little while, yet, and I would take it so personally somehow.  It was really kind of ridiculous, but you know, when you look at the numbers, it’s like, oh no, this is the natural ebb and flow of my sales cycle, but I think that … you know, we’re human.  We forget to kind of keep those things in check, especially when our egos are involved.  You know, my ego is so involved in my work because it’s all my original designs, and you know, I’m involved in so much of the creation process that when things slow down, I do take it really personally, which is so dangerous.  I think it’s one of those things, being able to kind of create space for that ebb and flow and to understand there are other ways for me to occupy my time during a slower period that are productive, that are enriching for me and my creative life and will build upon the business that I’ve already created with the product line.

Tara:  I’m so glad you brought that up, because I think it’s so common.  I deal with the same thing.  In fact, I even pride myself …

Erin:  Yeah.

Tara:  On planning so that it doesn’t happen, but you know, inevitably, there are times where it still does.

Erin:  Yeah, and I’ve gotten better this year at … my calendar is so much better, like, flushed out.  Even from, you know, January 1, I have most of the year kind of roughly planned out, which is a huge, huge thing for me, and it helps me to remember, oh, you know, I am going to have some time in early March maybe to do some teaching.  I’ll reach out to … to studios or make a plan for how I’m going to market a class a little bit before then, and you know, so I don’t get into these periods of sort of looking up and thinking, oh, there’s no orders, what am I supposed to be doing right now?  That’s not a thing in my life anymore.

Tara:  So you mentioned that your products are sold in some pretty big stores, like West Elm, which happens to be a personal favorite of mine.

Erin:  Yeah.  They’re amazing.

Tara:  So how have you been able to scale your production to meet that kind of demand, those kind of orders?

Erin:  Yeah, for me, the answer has come from finding contract helpers.  I know that for a lot of businesses, they look to make, like, in-house sort of hiring decisions to scale up those production elements, but for me, it really was wanting to get things almost completely off of my plate, and luckily, I was able to find a group of contract sewers here in L.A. that I can just drop off, you know, cut pieces of printed fabric, and then show up, and hey, the pillows are done.  This is great.  It’s very, like, it’s very hands off, and it took me a long time to find those trusted partners, but in my mind, I would much rather have a team of experts at my disposal, rather than doing the sort of hiring hunt to find the perfect people to bring in and, you know, have in the studio with me.  That has been a better fit.  But that’s not true for everyone, obviously, but I think that in my mind, I’m … it’s almost … it’s almost like I’m avoiding hiring people in some ways. 

It’s not that I look at hiring as a failure, but I would much rather search out … L.A. in particular is such an incredible resource for creative people, because almost anything you might need is somewhere here in this city.  It’s an enormous resource, and so it just takes a little bit of digging to find those experts who are already set up to help you with whatever it is that you might need for your … for your product-based business.  So in my mind, the challenge was really find those people who know exactly what you need and how to give it to you, and so when I found that group of sewing people to help me, it was just like angels singing, yes, okay, I don’t need to hire a bunch of helpers to come in and hang with me in the studio and bring their sewing machines in.  This was much more … much better fit for my business.  But in terms of working with somebody like West Elm, those … those accounts are coming in, you know, maybe a few times a year.  This isn’t steady work that’s happening all year round, it’s really coming in bursts, right?  So they place an order, and then I have to fulfill that order within a couple of months, and for me, it’s enough of kind of a cushion of time that I can plan around, okay, I can reach out to my sewing helper and ramp it up on their end.  But for me, but my … my personal workflow doesn’t change all that much.  Luckily.  Gosh, yeah, because otherwise, it can really derail the whole process if all of a sudden I’m in charge of sewing hundreds and hundreds of napkins or hundreds and hundreds of pillows.  It’s lucky that I’m able to kind of pass off that work.

Tara:  Got it.  So you’re really focused on the print work.

Erin:  Yeah.

Tara:  And then you’re dropping that off for the finished sewing.

Erin:  Yeah, exactly.  And so my … my expertise is really in prototyping the product, creating, you know, exactly what I want it to look like, figuring out the pattern, the layout, the color, all of those kind of aesthetic elements, and then I hand that off to a local production partner, and they actually manufacture it using the … the fabrics that I’ve chosen, the fabrics that I’ve printed on.  You know, I still do a lot of the direct silk screen printing onto the fabric, so that’s, you know, that’s still very much my responsibility, and that’s something that I could outsource, but at this point, I really choose not to, because it’s probably where the heart of the business is for me.  I think in a lot of ways, that will probably be, even though it would be an easy … easy part to hand off to a production partner, it’s something that I still really cling to. 

Maybe in a sort of irrational way, because I love that part of the process, and I still feel so deeply connected to it.  For me, the sewing was something that I felt more comfortable handing off, because the passion for sewing isn’t as … it’s not there as much to me as for the print-making side.  So yeah, I think there’s definitely things that I’ve done to kind of relieve some of that stress around taking in bigger orders, because that’s the worst, right?  If you can’t … if you can’t scale up your business to meet that higher demand, if … if getting a big order like that only represents stress and anxiety and oh my God, I can’t handle this much work, then you know, your business is naturally going to be limited to working with much smaller partners and not being able to reach that wider audience, and I didn’t want to limit myself in that way.

Tara:  All right, let’s talk about this pricing piece for a little bit, because of course, that’s a big challenge for people as well.

Erin:  Oh, yeah.

Tara:  How are you going to price your work so that it still sells, so that West Elm can still sell it …

Erin:  Yeah.

Tara:  And make what they want to make?  How can you price it so that you’re still profitable, even when you’re outsourcing all this extra work as well?

Erin:  Right, exactly.  Pricing is really tough, and I … you know, I think the general sort of thought is that it should be some … some blend of materials cost and your time and, you know, all of those things, and then multiply it by a certain amount so that you can have that wholesale margin, and you’ll be able to retail it to … to other shops, but honestly, there’s so much more that goes into that, right?  You have to think about the pricing in terms of what kind of value does that project to your customers, because you know, maybe I could sell something at a lower price-point, but it might not make sense to sell it there, because there might be an assumed judgment about the quality of the item that I’m selling, and so you know, on the other side of that, there are some items that the profit margin is really, really, really slim, almost to the point of why am I even bothering to have this product, it’s not making me very much money, but at the same time, it actually adds value to the business as a whole, because it’s the type of lifestyle product that my customers really are excited to see, and even if it maybe at that much higher price point that not a lot of folks are able to purchase it, it’s something that rounds out the collection and tells a larger story about the type of home that I’m helping my customers decorate for.  Does that make sense? 

It’s sort of, you know, it’s … it’s more than just time plus materials plus, you know, add your wholesale margin in.  There’s a lot … lot more moving parts that I have to consider to make sure that I’m kind of in that sweet spot.  Keeping margins low enough, though, to work with those bigger … those bigger retailers like West Elm is really tricky, and honestly, in some ways, I think that they are getting savvy, too, about understanding that there’s going to be a difference between a vendor like me, who’s handcrafting and working with local partners to handcraft all of these amazing products versus somebody who’s got their production completely abroad, and you know, they … they might have much better margins, and they … and there’s some flexibility there. 

I think that that was something that really intimidated me at first, but I think that there is a benefit for West Elm to work with a company like mine.  They get a little bit of that cool credibility from working with an up and coming designer, and they’re willing to be a little bit more flexible on those margins for that … the ability to have some of that cultural cache of working with indie designers.  So yeah, I think, you know, my advice to other up and coming sort of young designers who are creating these products themselves, I think just like don’t be intimidated by that process.  If they’re coming to you, that means that they see something in your work that they think is really marketable, and so, you know, be able to kind of ask for what you need to … to be able to work with a big partner like that.  There’s more flexibility than you might think.

Tara:  Oh, I am so glad you shared that.  I’m really excited about that trend.

Erin:  Yeah.

Tara:  Because I’ve … I’ve certainly had friends who were nearly put out of business by the, you know, big Anthropologie order or whatever.

Erin:  Yeah, no, it can be a huge thing, and I think it can really be a make or break point for a lot of businesses when they finally get that recognition from a big retailer like that.  It can be really exciting, a huge ego boost, you know, it’s fun.  It’s always fun for me to hear my customers say, “Oh, I saw your work at West Elm,” or, “I saw your work at CB2,” and you know, that, I think, is meaningful, not just for me, but also for my customers to see my work at that level.  I think it’s a fun, fun thing to experience, but yeah, the logistics can be … can be complicated.  The contracts are insane, there’s a lot of stuff to go over, and you know, it’s something that I think that a lot of makers and folks who are focused more on an ecommerce business that get approached by these bigger companies aren’t always ready for, and so I think, you know, the best thing that I did to prepare for that was to have those partners who I could work with at a moment’s notice to be able to help me reach those levels of production that I really needed to get to on a quick turnaround.  I think that that was such a valuable asset for me to be able to have.

Tara:  So you mentioned that you prepared for it.  Was working with big brands like West Elm or Anthropologie sort of a goal for you from the get go?

Erin:  Yeah, no, absolutely, and I don’t think that … my goal really isn’t just to work with any sort of big, you know, mass market brand.  There were definitely a handful, and still are kind of a few that I would like to work with at some point, just because I love the … the direction that they’re going as a brand, that they’re valuing artisan-made products, they have a really great eye for aesthetics, there’s … you know, and that would include West Elm, that would include CB2, that would include Anthropologie.  There’s a lot of businesses like that that I think have that mass market appeal, but really do a great job with aesthetics.  They almost have like this art direction appeal that I really love.  There’s this … this eye for aesthetics or for style that I … that I’m just totally drawn to, and I think my customers are drawn to as well, so it’s nice to … nice to try and find ways to work with those bigger brands and get a little bit more of that exposure.  But honestly, working with smaller business and, you know, boutiques that I’m selling to as well, those can be just as fun, and I think that seeing the impact of these small businesses around the country who are focused on more designer-made goods and things that are handmade, I think that they’re making a really big impact in their communities, and really sharing that love of handmade objects with their customers, and you know, not to knock the indies in favor of working with big brands, because I think that there’s power in those relationships as well.

Tara:  All right, before we move on from this part of the conversation, let’s talk about one more thing.

Erin:  Sure.

Tara:  Which is how have you connected with retail brands thus far.  What have been the best ways for you to get in front of those big brands and start working with them as a retail account?

Erin:  Yeah, absolutely.  I do about two big product releases a year, and I don’t always have the ability to go and do trade shows and do those big wholesale trade shows where retail buyers are going and walking the floor and looking for new brands to carry in their shops, so my solution to that is to do those shows when I have the time or when I have the budget to be able to do them, but in the meantime, to also be able to send out a catalog or a really beautiful pdf mailer on … over email that shows all my new products.  They’re styled in a beautiful way, they’re photographed really beautifully. 

I try to do a really strong focus on lifestyle photography so that my … my retail customers can understand sort of who my customer demographic is, what their values are, what their style is like, and just sort of showcase that in the most beautiful, professional way that I can, and whether it’s in person or sending them something in the mail or something over email just to be able to highlight those products as strongly as I can on a regular basis.  And you know, finding the name of a buyer for a retail store isn’t usually that hard.  A lot of them have, you know, their own websites where you can kind of go and read a little bit more about the store.  If it’s a local shop, you can go in person and talk to them about, you know, how things are going with their shop, what they’re seeing is doing well, what their sales are like, and kind of get a sense of what their needs are, and reach out to them with sort of a new product that might intrigue their audience as well.  So for me, just that direct contact kind of highlighting my products in the best way that I can, and making sure that they have what they need has really worked well.

Tara:  So it sounds like you marketing to retailers isn’t all that different from you marketing to consumers.  The process might be a little different, but you know, you’re still kind of following the same cues.

Erin:  Yeah, yeah, it’s definitely not.  I think that retail buyers have a very specific set of needs.  They need to understand how it’s going to look on a shelf, what the packaging is like, you know, how the price point fits in with their other goods that they carry, but generally, they’re looking for the same things.  They’re looking for beautiful products that their customers are going to love, and you know, I think that most of the … most of the time, there’s a lot of that overlap.  The retail buyers who are buying my work would probably buy it for their own homes as well, which is really nice.  It’s fun … fun way to tie it all together.

Tara:  Awesome.  Let’s talk a little bit more about your team.  You’ve mentioned that you have out-of-house production partners.  Do you have any team members or contractors that you work with in-house to help you get work done?

Erin:  Yeah.  So generally, I have a personal assistant that I will hire for like the last quarter of the year.  Generally, my time is sort of managed well enough that I don’t need any in-house help at this point.  Honestly, it would be great to have, but it’s something that I just don’t have the budget for at this point.  So I don’t have any in-house employees, except for really at that tail-end of the year when things get so, so busy with holiday production and shipping out orders and wanting to make sure that we get everything fulfilled really quickly.  We want to make sure everyone gets their gifts on time, so that’s important to me to make sure that I have a small team of either one or two assistants for that part of the year, but during the rest of the year, I … I generally don’t have any employees.  I will occasionally take on an intern from a local university who is curious about either social media marketing or business operations and want to kind of get a sense of how a business of my size works and what the moving parts look like, but I think most people who’ve had an intern understand that like that’s not really an employee, that’s somebody who’s sort of almost is job shadowing, and it’s an educational process for them, but the benefit that I get from that is a fresh set of eyes on everything that I’m doing.  A lot of these younger folks have some really, really great ideas to bring to the table and I think are excited to get the opportunity to have input in a big way.  For a company like mine where it’s really just me steering the ship, you know, one other person contributing ideas can make a huge impact, so that’s, you know, that’s the benefit for me, even though they’re technically not, you know, a full-time employee who’s doing work for me.  Just that fresh infusion of brain power can be really invigorating to the business.

Tara:  I love that.  Can you tell us about maybe a specific idea that intern had and why you were so excited about it?

Erin:  Well, yeah.  Honestly, it’s … some of the ideas might not be that glamorous, but they … you know, I feel like they always have a tendency to catch these little things that we can tweak or shift to just make a much bigger impact.  One of the things that … I had an intern a couple cycles back who was focused kind of on the editorial side.  She was really interested in the blog, which is something that I wish that I could keep up with more, but you know, as I said, because it’s just me, I only have time for updates sort of on a periodic basis, and she was really interested in just kind of getting things there, a little bit more regimented, getting a better content calendar together, and one of the things that she proposed was just putting together like a monthly recap every month, because we had been letting all of these little details of the process slip through the crack, right, and so there were all these moments during the month where, you know, we would get a press mention somewhere or, you know, we’d get a new stockist that was carrying my work, or you know, any of those little details that maybe would get mentioned on social media, and then never talked about again. 

It was a nice way to sort of create these monthly recaps on the blog, to highlight all of those little things that were happening in a bigger way, remind people of all of the exciting things that are going on in the studio during any given month, and honestly, weirdly, it kind of had a benefit for myself as well, because I think a lot of the time, I get so bogged down in the details of what’s going on in the business that I forget to kind of take a moment to look up and celebrate all of the things that have happened in a week, in a month, in a year, and it can just feel like everything’s kind of flying by, and you don’t get to have that sort of celebratory moment for like whoo, we got mentioned in a magazine, woo, we got like four new stockists in Canada, that’s amazing.  Taking that time every month to remind both my customers and my fans that this stuff is happening, as well as reminding myself that it’s happening, honestly, you know, that was something that an intern proposed to me, and we executed, and it’s been going on on the blog for about a year now, and it’s just … it’s made a huge difference.  It’s made a huge difference in how I feel about the business and in how I think our customers are perceiving everything that’s going on.

Tara:  You mentioned that you manage your time pretty well, and this is definitely something that our listeners always want to hear more about.  So do you have any particular systems or tools that you use to manage your time well?

Erin:  Yeah.  So I’m obsessed with Google Calendar.  I am on there way too much fine-tuning everything, and that’s really where I put together that sort of content calendar, that promotional calendar, where I sort of plan for the different product releases that I’m going to have during the year, and then work backwards to figure out when I need to be focused on more production tasks, when I need to be developing different marketing for … for different product releases, for different holidays, or anything that might be going on, planning for when I’m going to be at trade shows or in-person sales and events, and kind of just mapping out the year.  So I really, really depend … God, I mean, if my Google Calendar disappeared, I would be in so much trouble.

Tara:  Oh, yeah.

Erin:  I should really figure out like a backup for my backup for that, because it’s probably the most vital tool that helps get me … get me through the day and to help me stay on track with my goal setting for all of the things that I want to accomplish in a given year.  I think that if I didn’t have those things mapped out on the calendar, it just wouldn’t happen.  I wouldn’t make time for those things if I hadn’t blocked them out as tasks, as things to check off of my calendar.  So that’s a big one for me, and I think that making sure that I have those … those product releases especially planned for and all of the … all of the things that need to go into a product release, you know, booking time with the photographer to make sure that everything gets photographed really beautifully for our catalog.  You know, making sure that I make time to edit all of these photos that are going into the web shop, you know, writing the copy, all of these little tiny tasks that maybe, you know, only take a few hours at a time, but if they get left off the schedule, oh my God, it’s so disastrous, and it piles up, you know.  Having that real plan in place, especially for those big things like a product release has been really, really valuable.  And it’s something that took, God, at least a year and a half, two years to really get that ironed out.  The first year, it was not as … not as smoothly planned as it is now.  It took … it took a long time to figure that out for myself.

Tara:  Okay, let’s dive into this a little bit more, because I … I love this stuff.

Erin:  Yeah.

Tara:  Can you tell us what the actual process, your process looks like for getting a goal onto your calendar.

Erin:  Sure, sure.

Tara:  And really filling in all the details, all the extra things that need to happen to make that goal accomplished?

Erin:  Right, right.  So for example, like with a product release like I’m going to be having in the fall, I’m trying to plan a product release that’s going to happen I guess in mid-August, really, to kind of time it with New York Now, which is the big sort of wholesale trade show that happens towards the end of the year for buyers to … retail buyers to come through and make purchases for their stores for the holiday season.  So I need to have all of those sort of holiday releases ready by mid-August and ready to launch.  So for me, that means I need to kind of go through my calendar and figure out, okay, if I need, you know, a week to plan for a photoshoot for that fall or for a fall/winter release, and you know, that means maybe an hour on the phone with my photographer planning for where the location is going to be, what props we’re going to need, what time we’re going to shoot, what day we’re going to shoot, you know, get that planning process on the calendar, as well as the actual shoot day needs to be on the calendar, as well as, you know, what day she’s going to deliver the photos so I can edit things and make any last minute tweaks.  You know, it’s pretty much every … you know, I know that the photography’s part of it, the writing is part of it, so scheduling time on the calendar for writing the product descriptions, writing the copy for the catalog that I’m going to need to create, what day do I need to send the catalog to the printer to make sure I get it in time for the product release day so that I can send it out to my retail buyers.  You know, all of those things I think some of them have hard and fast deadlines.  Like obviously, if there’s a cutoff day for printing, I need to make sure that I meet that deadline so that goes on the calendar really early, and some of them are a little more fuzzy, right?  Like I can … I can schedule some time to do maybe some brainstorming about how I’ll be talking about this release on social media and write down some ideas so I’m not creating everything from scratch on the go. 

I think that that, that to me has been really important is to not undervalue my ability to plan ahead for basically any aspect of my business.  And I don’t want that to come across as not being genuine and in the moment when I’m actually sharing things on social media, because there’s a time and a place for that, too, but I, especially when it comes to a product release or a part of my business that I take really seriously and I put a lot of effort towards, I don’t want to leave those last minute details like how am I going to talk about this on Instagram to chance.  I want to make sure that I have a plan in place, I have ideas written down, that I’ve taken the time to really map that out in a full way well, well ahead of the actual launch date, so yeah.  So like I’m saying, basically putting all of this little tiny tasks into a part of my calendar, and then it’s almost just figuring out what that last day is, and then backing up from there, right?  So that could mean that, you know, in the next couple of weeks, I’m going to be working on the designs that I’m going to be releasing in August, so you know, I understand that basically, I have to start now to work towards that goal of having the products finished and done by August 15th or so.  There’s so many different, and like I can open up my calendar and list off all the things, but yeah, it’s a lot.  It’s a lot.  And I think that people tend to forget how many different tasks there are in just … even in just releasing one new product.  I think it can be … it can be really overwhelming.  That’s why the calendar is so helpful for me.  I know some people maybe have that skill, or maybe that’s their strong suit is kind of holding all of those different tasks in their mind and being able to kind of juggle them around, but I know to … to combat overwhelm, particularly for me, I found that I need to have that schedule written down so that I can kind of let it go from my brain.  I think that when I’ve had the 20 million tasks sort of cycling through my head is when I start to feel that anxiety or feel that pressure of how am I going to get this all done, but once I’ve programmed it into Google Calendar, it’s like, oh, I don’t have to think about that right now.  That’s for two weeks from now.  I can think about that in two weeks.

Tara:  Thank you so much for sharing that.  So as we start to wrap up here, I’d love to ask you one of the questions that I ask just about all of our guests.  How do you balance the roles of creative in your business and executive for your business?

Erin:  Oh, sure.  Yeah, and that’s … that’s tough.  I think that it’s … oh, it’s a challenge, and it’s something that I’m still kind of trying to figure out what that … what balance looks like for me, because I think, to be completely honest, it’s very easy for me to slip into that executive role.  I kind of love the managerial aspects of my business.  I love thinking big picture and trying to map out how to get there.  The thing that can fall apart for me is the creative side, because I think that that is … sometimes feels a little bit more fragile, or more … it’s easier for me to lose sight of that and to get busy, busy, busy with, you know, shipping orders and figuring out marketing and figuring out, you know, long-term planning stuff, and then forgetting to make time to nurture that creative side and to leave space in my day to do those sort of arts enrichment activities and to do those self-care routines around my creative self, because I think that we … all creative people have had that experience of coming up against a creative block and just feeling that … that so, so frustrating feeling of not being able to create the work that they know that they can create, that they have the ability to create, but to just feel so, so stuck, and so I … I try to do as much as I can to kind of have a self-care routine for my creative side, make sure that I’m getting time to go to see museum exhibits and gallery exhibits, seeing other people’s work, making time for exercise, getting outside, making sure that I’m able to get some fresh air, talk with other creative entrepreneurs, see what they’re up to, all of those activities kind of help to keep me feeling rested and recharged after, you know, even during a busy period or a busy season of my business, and help me to be able to create that … that design work without … without as much effort.  I think that there … there’s two ways to kind of create those … those same patterns, right? 

I can create them at the very last second under a deadline, feeling like right up against the day that I need to release these products, or I can kind of be building in time for sketching, building in time for creating new work throughout the year, and kind of never letting that bucket kind of get down to that … that creative inspiration bucket get down to the last couple of drops, right?  If I keep kind of filling it in with … with trips to the museum, trips to a garden to sketch flowers or wildlife, you know, if I have that in my schedule on a regular basis, I never feel frantic when I’m … when I’m working on creative projects.  So that’s … that for me has worked pretty well, and I think that as I’ve had … as I’ve had the ability to start to step back from … you know, in my first couple of years, I know I worked too much.  I probably still work too much, and I … I think that I do that because I love my work and because I’m excited about what I’m doing, but also, because I have trouble kind of putting things down and saying that’s enough for today, we’re going to pick this up again tomorrow.  I think that a lot of creative people are … are almost burdened by their enthusiasm for their work, because we … we tend to forget, oh, like rest is actually really important for me to be able to kind of build on what I did for the previous day.  If we’re not well-rested, if we’re not able to let our brains kind of power down for the night and really take those self-care routines seriously, we’re not bringing our best selves to the table, and for me, I know that what suffers first isn’t the executive side, it’s the creative side.  And that’s so precious to me that I’m … I take my self-care stuff really seriously now.

Tara:  That’s awesome.  So what’s next for you?

Erin:  Oh, what’s next?  Okay, so more licensing.  That is something, you know, the one-third of the revenue I’m trying to aim for is licensing, right?  It’s a pillar that’s already in the business, and I just want to keep growing it, because I think it’s a really fun way to see my work kind of take on new life in ways that I’m not able to physically create those types of products or really give it that full potential.  So I’m excited to work with more partners on licensing and maybe see the work grow in that way.  I’m really kind of hoping to do a little bit more traveling and get a little bit more inspiration from traveling.  I think that that’s something that I haven’t been able to do as much in the last few years, and it’s going to be something that I’m really putting as a priority in 2016 and 2017, and yeah, I think that’s, you know, those two are the big ones for me right now.  I think that Cotton & Flax as a product-based business is really, has met a lot of the goals that I had for it when I … when I set out to … to found the business, and I’m … I’m just excited to kind of see what happens next.  I think that the licensing is a big part of it, and there’s always kind of new partners that I either stumble upon or stumble upon me, and those partnerships are always so, so fun, and so exciting for me, so it’s … it’s a little bit of a mystery right now, but I think it’s going to be a fun year.

Tara:  All right, Erin Dollar, thank you so much for joining me.

Erin:  Thanks so much.  It was a great, great talk.

Tara:  Discover Erin’s hand-printed home goods at cottonandflax.com.  You can also find her classes on print-making and social media at CreativeLive.com/Craft.

Next week, I talk with brand and sales strategist Monaica Liddell.  Monaica and I talk about her process for creating stories and brands that sell, how she connects with clients who don’t have time for your content marketing, and how she divides her time between her client services and business development.

That’s a wrap for this week’s episode of Profit. Power. Pursuit. A CreativeLive podcast.  Download more episodes of this podcast and subscribe on iTunes.  If you appreciate this kind of in-depth content, please leave us a review or share this podcast with a friend.  It means the world to us.

Our theme song was written by Daniel Peterson, who also edited this episode.  Our audio engineer was Kellen Shimizu.  This episode was produced by Michael Karsh.  We add a new episode of Profit. Power. Pursuit. every week.  Subscribe on iTunes, Stitcher, or wherever you love to listen to podcasts so you never miss an episode.

How to Generate Revenue (Even When You’re In a Slump)

How to Generate Revenue (even if you're in a slump)

Launching a new product isn’t likely to get you out of a slump.

Neither is having a blow-out sale.

There comes a time in every business when you need to generate revenue — fast. And it could be for any number of reasons — something didn’t play out as you had expected, unforeseen expenses, maybe you had to take some time away…

Your bank account starts looking a little lonely and you need to generate revenue quickly, and without resorting to coupons or deep discounts.

I always encourage my clients to look at their business as a money machine: it has different parts that may need to be added, greased up, or fueled, but once you get it working properly, you should be able to turn on the money machine and generate revenue any time you need to.

How do you reconfigure your business to be a money machine?  A few dos and don’ts.

1) DON’T try to launch a new product.

Launching all the time, creating products all the time (even if you’re an idea person like me!), and selling all the time is exhausting. Beyond that, it’s not building a legacy for your business. It doesn’t give your prospects something to remember your business for.

But most importantly, constantly creating new offers doesn’t set you up for making more money in the long run.

Every time you launch a new product or program, you’re only tapping into a very small segment of your potential customer base (the Early Adopters). If you stop there, other customers might trickle in over time but most people won’t even know you have that offer available.

This is a great case study on this very topic by Jeff Goins.

That just puts your business back in the position of needing to generate revenue with another new product. It’s a vicious cycle.

2) DO send a sales email about your best-selling product or service.

Instead of a vicious cycle, your business needs a system for marketing, launching, and selling your best offers over & over again. And when that system also includes products that work together to create more value for your customers and your business than they could alone, it’s a Business Model.

When your business has that kind of system in place, revenue becomes predictable and more consistent. At the very least, you know when it’s coming. Best of all, you’ll find that your offers start to generate more and more revenue each time you enter a sales cycle because your customers are expecting them, planning for them, and eager to buy them.

What’s your No. 1 seller? There are people on your list who haven’t bought this product or service and likely would, if they knew about it. Even when we think “everyone” has bought our main product, there are people you’re connected to who still don’t know it exists.

Sometimes the best way to generate new revenue is to focus on old assets. What could you craft a fresh sales cycle for?

3) DON’T wait until you have the perfect “next big thing.”

I know you: you’re sitting on a great idea. You haven’t figured out how to make the time, find the money, or craft the sales process for that new product or program you have in mind.

Pro tip: don’t.

I’m not saying don’t make the thing, I’m saying don’t make the time.  Because more time isn’t going to magically appear in your schedule.

Instead, write down everything you know about the first iteration of this product. Then write down all the reasons your best customers or most engaged audience members need it. Put those things together with a strong pitch and…

4) DO beta test a new product or service with a small group of hand-picked customers.

…present it to a select few you know will dig it.

In Quiet Power Strategy, we call this the Living Room Strategy, and it’s a simple way to test out a new idea on a few of those Early Adopters who will be thrilled to work with you. You’ll generate revenue while doing the work to create the product, instead of waiting for the product to be ready & waiting to get paid.

5) DON’T discount your prices.

It seems to me that whenever entrepreneurs need to generate revenue fast, their first thought is to discount — but really, that’s backward thinking. If you lower your prices, you actually have to sell more to make up the difference.

In addition, discounting, sales, and coupons train your customers not to buy. It tells them that if they just wait long enough, there will be a sale and they can pay less.

6) DO consider raising your prices or adding a bonus.

Instead of discounting, consider if there’s a way you can raise a price or add more value.

There are two ways you can approach raising your prices. If you’re regularly selling something that’s been on the shelf for a while, you can just raise the price to give you a revenue boost.

The other way to tackle this is by giving your customers a heads up on an impending price increase. There’s probably something sitting on your “shelf” that could use a 10–50% bump in price. Craft an email that lets people know the price is going up and they have until a certain date to get the item/program/service at a lower rate.

If you’re not ready to raise prices, you can run a promotion instead of a sale, and add a bonus to entice people to take action. Promotions are very different than sales, but they almost always motivate people nearly as much.

In almost every case, I encourage you to add value instead of subtracting from your price.

7) DO repackage and reposition.

Many times, businesses have several smaller products that can be repackaged as a bundle with more value. In fact, the repackaged product might be a more compelling offer than the individual products.

If you’re a jewelry designer, you might try to package up a necklace, bracelet, and pair of earrings. Simple, right? But the result is a greater value than the sum of its parts; it’s now a night-on-the-town kit.

If you’re a health coach, you might try to package a recipe book, coaching program, and one-off session with you. Again, simple. And again, the result is a higher value than the sum of its parts; it’s now the method, the accountability, and the day-to-day information you need to succeed all-in-one.

8) DO reach out and find a collaborator.

You can also bundle your products or services with someone else’s to increase value for both of your audiences.

For example, a yoga studio and a massage therapist could come together and create a package deal to help people de-stress.  A handbag designer could pair up with a clothing designer to do trunk shows. A copywriter could pair up with a graphic designer to offer a single price for a finished ebook.

The possibilities are practically endless if you look at what else your customer might need.

The best collaborations often start from very small joint ventures. If there’s someone in your network you’ve been dying to connect and create with, this could be the time to jump on it.

By your powers combined, you could whip up a workshop or small event that will have both of your audiences asking for more. You get the chance to test drive the partnership, your audiences get value that they couldn’t have gotten from either one of you individually, and you generate some revenue to boot.

The trick here is to keep the scope small and the expectations for each party well-defined. That benefits both of you… and your customers.

The truth is, once you get the pieces in place, your business should be able to generate revenue any time you need it.  Of course, that doesn’t matter much if the prices you charge don’t support your growth. Enter your email address below to get my FREE “Price for Growth” course:

Andy Hayes on Subscription Boxes, Community, and Email Marketing

Andy Hayes, founder of Plum Deluxe, on Profit Power Pursuit with Tara Gentile

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Tara:  Hey everyone.  Welcome to Profit. Power. Pursuit.  I’m Tara Gentile, your host, and together with CreativeLive, we explore the unique strategies that creative entrepreneurs use to take control of their lives, profit from their passions, and pursue what’s truly important to them.

Today, I’ll talk to my friend, Andy Hayes, founder of Plum Deluxe, a subscription tea service that helps people create moments that matter.  I spoke with Andy about the windy road he took to finally find the business idea that would work, what he’s learned about growing a business with a physical product, and the unusual way he’s finding new subscribers.  Andy Hayes, welcome to Profit. Power. Pursuit.  Thank you so much for joining me.

Andy:  Absolutely.

Tara:  All right.  So let’s dive right in.  When you first told me about the idea behind Plum Deluxe, you told me about your vision for helping people find affordable luxury.  What does affordable luxury mean to you today?

Andy:  Juicy question to start.  I feel like it’s changed a lot for me, and that in turn has helped me be a better teacher of that to other people.  So for me, what does affordable luxury mean to me?  To me, it’s a very individual concept, and to me, it’s the things in your life, the experiences, the objects that do not require a large amount of time or money to make you feel really good, and so for some people, that may be a walk in the park, more time with your grandchildren, or for other people, it might be frozen yogurt, House of Cards on Netflix, etc.  So it’s a very individual thing, but to me, it’s a small amount of effort equals a delicious reward.

Tara:  Ooh, that’s awesome.  I love the personalized aspect of it, too.

Andy:  Well, absolutely, because otherwise, it doesn’t feel very luxurious I don’t think.

Tara:  That’s a good a point.  So why, I think you’ve basically already answered this, but I want to dig a little further.  Why actually pursue luxury?  I think it’s something that we think of as beyond the necessities, so why put attention to it?  Why pursue it?

Andy:  Well, I feel like our lives have so many challenges to them, you know, building a career, building a portfolio or book of work.  I know a lot of people listening to this call have their own businesses, and that’s a whole endeavor into itself.  Raising children is a big piece of work.  So if our lives have so many big kind of seemingly heavy things to them, not to say that, you know, any of those things are heavy, but it’s just there’s a lot to take in and a lot to hold, then we owe it to ourselves to take care of ourself.  To take good care of ourselves, so that we can show up fully in all those things, and to me, luxury represents the things that sort of really make you feel like you’re able to take on the world.  They are the things that as we say in the cliché, make you feel like a million bucks, and you know, I think we owe it to ourselves those things.  I think in today’s culture, luxury has a very specific connotation, and it’s not necessarily a good one, and we need to change our tunes a bit on that, and remind ourselves, and this is … if you’re hearing this, this is a reminder for you, that whatever you feel like a little luxury is in your life, you deserve it.  You can have it.  It’s totally okay, and even if your definition of the thing that really makes you feel good is kind of weird or different or strange, that’s totally cool.  Like rock on with it.  You know, I … nobody’s going to judge.

Tara:  Nice.  I love kind of thinking of you as a spokesperson for luxury for everyone, not just, you know, the rich or the famous. 

Andy:  Thanks.  I like that.

Tara:  Yeah.

Andy:  I like that.  I had someone else also told me they felt like I was a spokesperson for helping people to slow down.

Tara:  Oh, nice.

Andy:  And I feel like that kind of goes hand-in-hand.  I think Plum Deluxe is a great place to stop for a moment, and it’s in those spaces that you can get a feel for the things that are really important to you and what they look like and how you can make room for them.

Tara:  I love that.  So tell us a little bit more about Plum Deluxe.  What is your business?

Andy Hayes, founder of Plum Deluxe, on Profit Power Pursuit with Tara GentileAndy:  Plum Deluxe.  Well, the business of Plum Deluxe is actually a purveyor of premium loose leaf tea.  All organic, all free trade, free of artificial chemicals, sweeteners, etc.  That is our business, per se, but I think, as I like to tell people, we’re more in the business of helping people create moments that matter, and that ties right into that thing about slowing down.  So if you think about tea, tea is often paired with a lot of very slow, thoughtful moments.  You know, catching up with an old friend.  Mothers and daughters getting together, you know, for thoughtful conversation.  Slowing down and trying to take in everything that’s happened at the end of a busy day, and so that’s why, if you go to the Plum Deluxe website, under our logo, it doesn’t say, you know, organic tea, you know, oh my God, you know, get all of it before it’s gone.  It says making moments matter, because that’s what I feel like our mission truly is try to help people create those moments, and the tea is just how we actually pay ourselves along that path.

Tara:  I love that, because, so I’m a big fan of thinking of products as tools.  We buy products to help us accomplish something, and often, especially people who sell physical goods kind of get caught up in that, because they don’t see what it is that their product helps someone accomplish.  All they see is the product, and so I love hearing from you that you see tea as really being a tool for helping people accomplish those moments that matter.

Andy:  And it took me awhile to figure it out, so I, you know, I don’t want to overlook that statement that you just made that it’s easy to get yourself lost in that.  I mean, I came at it from a different angle.  I had Plum Deluxe before the tea, and I tried a lot of different things to see what fit, and having a physical product for me worked the best, because it’s physical.  People actually have an experience with it.  You know, they taste it, they see it, they smell it, they, you know, can meet other customers in our Facebook group, so there’s, you know, the conversation.  So for me, that’s what worked best, but I came to that along a journey.  It didn’t … you know, I would love to say I was so genius that I was like, oh, you know, this is, you know, we’re about moments, and you know, the tea’s how it all works.  That all came together, but it took a long time.  Like, you know, five years.

Tara:  Yeah.

Andy:  So …

Tara:  I’m really glad you pointed that out, so let’s actually hear a little bit more about your journey, because I think, you know, the different things that you’ve been doing in online business are really interesting.  You had a travel blog for awhile, Plum Deluxe started and was maybe something a little bit different, and then you’ve evolved into the tea.  Can you tell us what that journey actually looked like?

Andy:  Oh my goodness, we’re going to need three episodes for this.  Okay, so I used to be in IT corporate software, and was really burnt out and seeking a change, really wanted, I had experienced two or three different corporate mergers.  Each time, I ended up on the shorter end of the stick.  I didn’t lose my job, but I just found myself in a worse and worse work environment, and so I decided I was going to take control of my future, and I left, and the thing that I started, that you mentioned, travel, that was where I started, because I was living in Edinburgh, Scotland, and Edinburgh’s a big tourism town, and I kind of ended up in there, and travel, the thing that I was talking about when I was in travel was I wanted to understand why we were better versions of ourselves when we were on vacation.

Tara:  Ooh.

Andy:  That is the thing that started it all.  I wanted to understand that, and when I started to get my head around it, I learned, and I realized that to be in the travel business, you needed to travel all of the time, or hire people to travel for you, and it just doesn’t, it just didn’t really, wasn’t clicking for me.

Tara:  Mmhmm.

Andy:  I had a lot of early success.  You know, I was blogging and kind of in the social media things really early, and so I did have a lot of visual success in terms of followers, you know, page views, things that I don’t think mean a whole lot, but as a business, it was not very stable.  It was just, yeah, not … it was very unstable.  So that’s when the brand came in, because I felt like I had started and not really done that step, and that’s something that I knew how to do really well was creating brands.  It was part of my old work in the IT space.  So I stopped and kind of got myself around Plum Deluxe, and the whole, you know, affordable luxury, life’s little luxuries thing, and so that really established me as a footprint, and I said okay, you know, I kind of have an idea about what I stand for.  I stand for moments.  I stand for slowing down and finding things that are important to you.  I stand for understanding how to be the best version of yourself.  I stand, you know, I was really trying to find the right words for it, but I knew what I stood for, you know, and I think that part of having a good brand, especially if you’re an artisan or a small business, is knowing what you stand for, whether it’s you state your values or you have a great tagline or mission statement, but you know, I think of it as like what do you stand for?  Like what do you want to be known for?  When you die and the business is left behind, what are people going to say about it?  What do you want people to say about it?  So I was getting my feet around that, and I still was this elusive what is the business model that supports this thing?  This site, this structure that’s trying to talk to people about moments?  And let’s see, what did … I think I started out first with affiliates and selling other people’s stuff, and I found out that to make that successful, you needed to have just a crappola ton of traffic.

Tara:  Yes.

Andy:  I’m sure you can link to a footnote on how much traffic that is.  I do not know, but it’s a lot, and I also found that very unfulfilling, because I was selling other people’s stuff.  Like, you know, affiliate links to teapots on Amazon.  There’s nothing wrong with it, but I found it unfulfilling.  So then we started doing sponsorships.  You know, having people sponsor different sections of the site, because at this point, we’d really broadened our horizons, and we were not just talking about this travel and how do you really become the best version of yourself, but it’s like how do you bring that home?  So we had a lot about recipes and entertaining.  I mean, the same things that you see now in Plum Deluxe, if you go to our blog, you see a lot about entertaining and gathering, small gatherings, having people together.  You see a lot about mindfulness and self-care.  So this was already starting to show up.  We still don’t have a business model.  So then I thought about the sponsorships, and I would have sponsors in different sections, and the problem with that model was I found that sponsors didn’t want to pay what I thought I was worth, so that was always really difficult, and sponsorships are a difficult sell.  I find it really interesting now, and we’ll get to that later, I actually purchase a lot of sponsorships now as a successful product business, but at the time, I was really not very good at selling sponsorships, and so that fizzled, and then I moved into events, which was the worst thing that I’ve ever done as a business owner is host events.  If you’re listening and went to one of my events, I’m sure you had a good time, please tell everyone that you did, but I would do like these themed events, so it’s like you, you know, I think it was a good concept, and maybe someday it’ll be a thing again, but you would be part of this Plum Deluxe community and having these conversations and you know, reading stories about great parties and you know, how to, you know, talk about politics without angering your friends, and just did different things, and then you would actually go and meet people who also follow Plum Deluxe in person at these themed events.  So we’d have like, you know, Washington Wine night, or you know, Oregon Bourbon Party, like all these different things.  And that was very stressful.  Events are very hard, because you have to do sales twice.  You have to sell the seats, and you also have to sell all the sponsorships and products and promotions that pay for everything.  They’re very difficult.  At least I felt they were difficult.

So I decided after that I really needed to take stock of what I was going to do, because at this point, you could imagine I’m feeling like wow, I’ve been doing this for a long time, and I’ve not really made any results, and while people are really liking what I’m doing and very interested, you know, I felt like I have always had a following of people who really want to know what I’m going to do next, because I’ve always, you know, knew what I stood for, and I feel like people always saw where I was going, but I didn’t.  So people were like, oh, you know, I really want to see where this goes, and I decided that I was going to … The only thing that I had not done that I would try to do was my own products, and I will say that I had a lot of people tell me if I had sold my own stuff, they would buy it, no matter what it was.  So I took them up on their offer, and I said, okay, Plum Deluxe, you know, little luxuries, slowing down, moments that matter, you know, like what product would we sell, and I’ve lived in Europe for a good part of my life and very steeped in tea culture, pun intended, and you knew that was going to come in there, didn’t you?

Tara:  Oh, yeah.

Andy:  So I decided that tea would be a lot of fun, and I would give it a try, and I really lucked out into finding a mentor who helped me get started, and the amazing thing was that all those people on my newsletter list or in my community were correct.  They said if I would make something, they would buy it.  They have.  And so the tea, I think I’m just I’m now in to my, about to start my third year into it, but I’ve had a more successful two years than all the other ones combined, and doubled and tripled, I’m sure.

Tara:  That’s awesome.  So when I first saw that you were coming out with the tea, I was like that is brilliant and awesome, and then I was also thinking how the heck did he work that out?  How did he get that product developed?  Is it like is he white labeling someone else’s product?  Like can you tell us like actually kind of the step-by-step of how you went about developing the tea line?

Andy:  Yeah, yeah.  It’s a good question, because I had the same question, Tara.  How the heck am I going to do that, and I really lucked into someone who could help me.  I found a mentor who had a successful tea business on the east coast, in Pennsylvania.  We had a mutual connection, who you know, Tara, Carrie Keplinger.  She introduced me, and I got a lot of mentoring.  And I feel like in this particular business, some mentoring is really useful, but let’s just break it down into general steps.  So the first thing is you need to know what your concepts are going to be.  So how did I want to appear in the tea world?  And I knew that I was really excited about creating things.  You know, I really wanted to have lots of like seasonal teas.  You know, some of my tea favorites are things that are like, you know, just for the holidays or pumpkin spice, or you know, these like just really limited edition things, and to me, it seemed like a tea club where the things would change every month really suited my personality, because I could be creating all the time and actually have a place for it to go.  So that really suited me.  A lot of people might think that’s a terrible idea for them, that that would be way too much, so you really need to think about your concepts, and the other thing that I also thought about for my tea products is I wanted to really tie into my moments mission, and so a lot of the earlier teas that we developed were kind of tied to moments.  Reading Nook tea was one of the first, and it says it’s great for reading and writing.  You know, we have, for years, we had published blog posts about reading nooks and about journaling prompts and about conversation starters.  Well, here is a tea for all those things.  You know, it just, it fit right in there.  We had Cuddle Time Tea was one of our first, it helps you sleep, and that fit right into, you know, the turning your brain off at night and trying to calm down and with stress and self-care.  You know, you had Self-Care Blend.  So for me, that was my shtick was the moments, and so I think that’s what people were thinking about something like this would really need to look at is how would your product show up in the world?  And for me, you know, it’s like these really interesting names that are tied to activities all underlying a foundation that is a tea club where the tea changes every month.  So I kind of laid out that.  If you think of it as almost like a blueprint, you know, like I was kind of an architect here, like saying okay, what are the, how are the, what’s the structure that puts this all in place?

And so from there, I then went and got the help I needed to actually, like, write recipes, you know, learn how to write recipes, and put things together.  Now, you could, at that point, said I’m just going to white label someone else’s product.  And that does happen in this industry a lot, and there’s nothing wrong with that, but I just made a decision, a very conscious decision, and for almost all physical product people, you have to actually do this side of this.  This is … I wanted to manufacture the product.  I wanted to have, like, really tight control over how it was put together, because, and this is partly because I had had so many failures, I really wanted to be able to turn on a dime.  You know, if I controlled all the pieces, I could just like, errr, you know, nope, that’s not right.  You know, change that up here, down here, left here.  So that’s why I did it like that, but all physical products, you do have that kind of big decision point, and it can be different for different people, and we might even, you know, later do tea ware or something where we white label it.  You know, it can go either way, but I don’t white label.  We make everything our self, because it just happens to be something that, you know, we’ve gotten really good at and we like it, so that’s how I do it, but you can white label.

The downside, and let’s talk about that for a second.  The upside of white labeling is you get started faster, and you don’t have to recreate the wheel.  The downside of white labeling is you have less control, most of the time, and you also are paying a little bit of your profit out, because you have to, you know, like whomever is providing the white label product has set the price, whereas I can shop around for my ingredients, I can kind of work my recipes to get my pricing down, etc.

Tara:  Nice.  And we should probably clarify, too, that white labeling is when you put your brand on someone else’s product.  It looks like your product, but it’s made by someone else.

Andy:  Yeah.  So like in the tea world, here’s an example.  In the tea world, you could white label tea.  So what would happen is you would have this box arrive with a big bag full of tea, and then you would put it into tins that had your label on them.  Or maybe the supplier does that for you, but that tea is also in someone else’s tin somewhere.

Tara:  Right.

Andy:  But you could name it something else.  You could have a different marketing tactic for it, but it’s the same product in the inside.

Tara:  Perfect.  So are you … are you physically manufacturing your tea, or are you blending it, deciding on the recipes, and outsourcing that manufacturing?  How does that work?

Andy:  So we’re a tea blender.  So we don’t have … we’re not a manufacturer, because I don’t have like tea plants in my backyard or something.

Tara:  Right.

Andy:  You know, here in Oregon, there is a tea plantation, but even I would outstrip their production.

Tara:  Oh, wow.

Andy:  So it’s just, it’s not… yeah.  Yeah.  So there’s a lot going on.  So we buy the raw ingredients, and then blend everything in-house.

Tara:  Nice.  Okay, awesome.  I am so glad that I know how that works now.

Andy:  Yeah, yeah.  It’s really interesting to see it all come together.  You know, it’s different, they’re different colors, they smell differently, they look different, and then when they come together, you know, the tea actually kind of transforms, in a way, even before you put it in hot water.  So it’s kind of fun.

Tara:  Yeah, that is so cool.  I mean, really, as I’ve watched, you know, each kind of iteration of how you’ve been working on this, it keeps coming into my mind exactly what you just said.  Like the product itself is so almost like sensuous the way, you know, there’s a smell and there’s color and there’s texture and there’s so many ways that you sense the product itself.  It seemed like it would be just so much fun to do.

Andy:  I love it.  It’s a lot of fun, and it’s … We have kind of this, I feel, real close attachment to our customers, because just of the nature of the product.

Tara:  Yeah.

Andy:  So it makes … It means you have to really be on your game for customer service, but it also means that you can really establish a lifelong customer, if you show up for that conversation I feel like.

Tara:  Yeah, that’s awesome.  Okay, so let’s talk about the ways that Plum Deluxe is generating revenue today.  You mentioned the Tea Club, and so tell us about that, and then tell us, also, how else you’re generating revenue right now.

Andy:  Yeah, so Tea Club is our main revenue driver, and so that’s a $10 a month subscription that people pay quarterly, and I created that program modeled off of Amazon Prime.

Tara:  Nice.

Andy:  With the exception that you get something with it.  I guess Amazon Prime you get like free movies, so maybe it does correlate, but the thing that I wanted to create was sort of $10 and you get all these extra things in addition to the tea.  And that really seems to have hit with people.  So we charge that, and you get a tea in the month.  So in each month, it’s different, and it’s kind of themed, so in the summer, it’ll be more light, iced, citrus, you know, little fun, fruitier, and then in the winter, it’s heavier, spicier, maybe just better with heavier food, so it’s kind of, you know, the tea, you don’t know what you’re going to get, but you know that it’s going to be great for what’s happening in March in your life or you’re going to enjoy it in a pitcher in the backyard in the summer in July.  So that’s the main thing, and then they get a sample of something else from our shop, and then they get free shipping on anything else that they want, and then they get just periodic special offers or freebies or just, you know, extras.  Like one thing I do, and my community decides these things.  I don’t always come up with them.  When we make a mistake in the blending room, which happens on occasion, we don’t do it too often thankfully, but if we make a mistake and the tea is still good, it’s just not what somebody ordered or what is supposed to be the recipe, we put them up as Blooper Teas, and they’re like half off, you know, and people, there’s been some ones that people are like you should just sell this, because this is really good.

Tara:  Yeah.

Andy:  You know, like it’s, you know, had lemon peel instead of orange peel or something, so it totally changes it.  So the Tea Club is really the driver, and it’s the driver of our community.  They do gift exchanges every quarter and there’s a secret Facebook group that everybody hangs out in, and so that’s really the core.  Like just such a huge bulk of our revenue comes from that, and not just the subscriptions, but also them buying extras.  You know, they say hey, you know, send me extra this, I’m buying something for my mother-in-law for Mother’s Day.  So that’s the main thing, but then if you go under our website, there’s a shop, there’s an ecommerce shop that has signature blends that we have all year round and then limited edition blends that change throughout the year, and then a small selection of accessories.  So like honey sticks, sugar, tea infusers, that sort of thing.

Tara:  Awesome.  And are you handling all the shipping in-house as well?

Andy:  Yes.

Tara:  Wow.  That’s a lot.  So the subscription models completely fascinate me, because there are so many upsides to it, but there are so many, I wouldn’t say downsides, but there’s so many things to think about when it comes to a subscription model that so many people don’t think about.  The chief one is reducing churn and keeping people in the subscription.  Keeping them happy, keeping them, you know, really glad to see that line item on their credit card every month.

Andy:  That’s right.  That’s right.

Tara:  So what do you do to reduce churn and keep your subscribers around longer?

Andy:  Well, the number one thing that I try to do is create community.  So often, when people have to leave my club, they send me an email that’s like a breakup letter.

Tara:  Awww.

Andy:  And they like begged if they can stay in the Facebook group.  You know, they really feel attached, and so that, I think, is the number one thing.  It’s not just a packet of tea in the mail every month.  It’s tea and you get to share it with these people who also like tea and also who are really interesting people.  So that’s my number one piece of advice.  Get them invested in your success and in what you’re building, because they will stay.  The other thing is very practical, and it’s keeping your costs down.  You know, $10 a month, not too bad.  You know, I have to say I spent and inordinate amount of time on the pricing and all of our stuff, and I remember a previous guest of yours, Carrie Chapin, I was, I said hey, Carrie, look at this spreadsheet again, and she was like, you just need to launch.  Like you’ve been looking at these numbers forever.  You know, like, your numbers are good, go, I’m like, go for it.  But you do need to take that time, especially for a subscription, because it’s very hard to change after the fact, especially if you want to go up.  Like good luck with that.  If nothing else, you have to grandfather the people in or you lose a lot of them, so make sure you spend the time working on that. 

The last thing, and you know, you were talking about the downsides, and this is another downside, besides churn, is logistics.  Subscriptions have logistics because there’s so much going on at any one time.  Like today, today that we’re recording this podcast, we had a shipping day for the club, and Tara asked me to be on the show, and I was like, oh, I don’t know, like that’s our club day, and she’s like well, you know, can you do it like at the end of the day, and I was like sure.  So I’m here, so it’s a sign that our logistics are very good, but it’s something that we work on.

Tara:  Yeah.

Andy:  Because we have to process so many different packages and the variations.  You know, if you have even one variation on your subscription, it makes things twice as complicated.  So you really need to think about that.  So why do … I mention that because the logistics goes into your pricing and it also affects people’s experience, so you want to make sure that you know how you’re going to deliver the subscription so that people don’t get screw ups.  And trust me, we screw up every month.  We always have something that we mess up, and I own it, I make it right with them.  You know, people understand, you know, that it’s a, you know, artisan company, our stuff is made by hand, so people kind of get it, so I have a little leeway, but you gotta really think about that stuff.  Like how’s it going to work?

Tara:  Yeah, amen.  So how are you growing your customer base today?  What are the things that you’re doing that are actually working that’s putting, you know, getting more people on your list and then putting more customers into your club?

Andy:  Yeah.  Email is huge for us.  The email list really does wonders for us, and so we have a … we’ve always done that blog, you know, Plum Deluxe has always had a really great blog, and I now today look at the blog as like a way to get people onto the email.

Tara:  Mmhmm.

Andy:  You know, it’s like we publish a blog so there’s something to put in the emails, and I say that kind of in jest, but I do kind of think that way.  But you know, it’s all part of the thing.  You know, I’m not saying that you should just have a blog just so you can stuff it in a newsletter.  We’re really intentional about what we put in there, and we are very proud of the things that we publish and think of, but it’s a big driver.  It’s a big driver.  It creates SEO, it creates social media, but you know, as far as customer acquisition, you know, I’m kind of in a huge growth phase, doing a lot of investing, and I’m even doing, like, print advertising.

Tara:  Oh, really?

Andy:  Yeah, which I thought would be crazy, but I’m in tea, and there’s a tea magazine, Tea Time, and it drives sales for me.

Tara:  That’s awesome.

Andy:  So, yeah, so I’m really creating a relationship with them.  But you know, one of my best methods is, right now, podcast sponsorships.  Would you believe that?

Tara:  I am hearing that from a lot of people right now, actually.

Andy:  Yeah, I’m really obsessive about tracking my cost per acquisition.

Tara:  Mmhmm.

Andy:  And podcasts is the lowest.

Tara:  That is awesome.  What podcasts are you advertising on?

Andy:  Let’s see, I was just on, there’s a podcast called the Psychic Teachers, and they talk about these kind of esoteric mysteries and interesting things, and I got the best people from that podcast.  I loved it, it was so nice, and the women that run it are so nice.  They’re so kind, and so that was a really fun one.  And that just happened to be one that I had discovered, you know, along the way and was, you know, a listener of.  I think, you know, that’s maybe a great tip is you probably listen to podcasts that might be a great fit.  Some of the ones that I’m looking at this year, I’m trying to think of the names, like I’m doing a couple of crafty ones.

Tara:  Mmhmm.

Andy:  This is where you’ve really got to understand your customer, like what’s in their head.

Tara:  Yeah, because you’re not just targeting tea podcasts, you’re targeting the podcasts where people who drink tea listen, right?

Andy:  Exactly.  Exactly.  Because there’s not that many tea podcasts, and a lot of them don’t have the reach that I need, you know.

Tara:  Of course not.

Andy:  Yeah, I want a … you know, I have a bigger reach than some of them, so that’s, you know, I’m kind of really getting out of my boundaries.  I do some pay-per-click and it’s really expensive, I just haven’t figured out how to make it work.  I do some Facebook ads.  I can’t get my conversions up enough where it works for me.

Tara:  Yeah.

Andy:  But yeah, the sponsorships.  Oh, and I do, like there’s tea festivals, so I do some post cards and sampling for those, and I have really good experiences sponsoring events, like retreats, you know, where my tea can be enjoyed in kind of the experience that it was meant for.  So that’s a big one for me.  So like really small events.  One that I didn’t talk about I guess I should add, too, is word of mouth, and the way I do word of mouth is if I hear about, say, one of my Tea Club members is sharing a lot of their tea at their office, I will send them extra to put in the kitchen in the office.  Or for the Downton Abbey finale …

Tara:  Yeah.

Andy:  You know, we had somebody that was hosting a big shindig, and I was like oh, like let me be involved, like, can I send you some tea, and they were like, oh, of course, and so and it’s totally non-salesy, but it really got people to try it, and I think, you know, really thinking about if you have a physical product, like where would you love it to be?  Where would it be in its natural state, and for me, like a bunch of Downton Abbey watchers having a party dressed in, you know, all the getup, that would be perfect.  So I, most of those opportunities seem to find me, but I am always on the lookout for them.  Like I kind of have my ears raised for those kind of things, and if I see one, I say oh, hey, like, I would, you know, I’m happy to … Because they don’t usually ask, and I think they would maybe feel like it would turn into a salesy thing, but when I say oh, I’d love to just gift, it’s my gift, you know, I’d love to be involved, they’re usually happy to have me.

Tara:  Yeah.  So you’ve already got this group of brand evangelists, and really, you’re just giving them what they need to do the job you need them to do.

Andy:  Yeah, yeah, and I always try to remind them, too, that I’m a resource for them, so if they’re planning something, and they, you know, want to run an idea by me, like what would be a good tea for this, or have you ever tried this.  I kind of try to remind them that I, and I demonstrate that with trust.  Like I don’t … I don’t try to sell them on anything, I just say, oh, you know, my suggestion would be this, and you know, if you want a bag of it to try, you know, I’ll send you one, it’s no problem, but I don’t push it.

Tara:  That’s awesome.  I love that.

Andy:  Yeah.

Tara:  So you’ve a little bit about money when you talked about, you know, really pricing out the club and making sure that your numbers all work.  How do you … I’m sorry … What role does money play in the way you plan for your business?  How … what numbers are you looking at?  What systems are you using to figure out, you know, what you’re going to be up to for the next year?

Andy:  Mm, that’s a good question.  I pay a lot of attention, I mentioned earlier, to my cost per acquisition, so how much it costs me to acquire a customer.  I’m really obsessive about that right now, but I’m in a growth phase and investing a lot, so I need to pay attention, you know, so I don’t lose my shirt, you know, advertising.  As far as like the core, you know, that churn percentage is an important one.  Mine’s very low, and I like to keep it that way.  And then I pay attention to the breakdown of our monthly revenue.  So for us, it’s subscriptions, and then a la carte, it’s what it’s called in our … you know, my spreadsheet or whatever, but people just buying in the shop, and then what percentage of the people who are buying from the shop are new.  So it’s kind of seeing, you know, like what’s … because people often will buy stuff from the shop to try and then become a club member, versus, you know, somebody who’s totally open to the concept becomes a club member first, and then uses, you know, free shipping to try other things.  So there’s kind of two methods.  So I’m really kind of … I see those numbers just to kind of see what’s the trend.  You know, like … and right now, we’ve done a lot to promote our a la carte offerings, because our club has been so successful.  It’s been so successful that it’s like going to blow us out of our new facility that I just moved into in October.  So you know, we really wanted to try to get people to buy, you know, some of our accessories and things that we had made for the store, and I’m seeing our store numbers go up, so I’m checking to make sure that the things that I’m really pushing on social media or in advertisements are moving.

And then the other one is because it drives so much that we have a tool, we use Moonclerk.  I wouldn’t necessarily recommend it to everyone, but it’s what drives our subscriptions, and it’s just a front-end for Stripe, to create … you know, Stripe, which is a payment system, very popular payment system.  It has subscription plans built into it, but you have to have to have some kind of front end.  You know, it’s more like an API or something, like a program.  You know, you can’t just like go in and type in subscriptions on your own, so we use Moonclerk to do that, and I pay a lot of attention to, say, what amount of money is coming in for renewals in the next month.  You know, is there anything funny about that?  Is the number of subscribers that are coming in more or less than before?  And then of course, for me also, because we make everything, I have to really stay on top of the inventory attached to what’s coming in and out.

Tara:  Yeah, I can’t even imagine.  Better you than me, man.

Andy:  It’s not too bad.  Once you have a routine established, it’s not too bad.  But it does take, especially, and this is frank advice for people who have subscriptions, I really think it takes about six months for you to get your head around it, and I tell you what, your first holiday season, you’re going to have your behind handed to you, but you’ll be better for it.  You’re going to be like, wow, we made so much money, and then you think I’ve got to save some of this and buy, like, you know, a hand truck, or new cardboard boxes, or that kind of thing, but it takes a good six months for you to get into a really good place with subscriptions.

Tara:  Yeah, that’s a great benchmark for people to keep in mind, because it is not all … you know, you think, oh great, these people are paying me every single month, but there’s way more to it than that.

Andy:  Yeah.

Tara:  Yeah.  Okay, let’s talk about your team.  Who’s on your team right now?

Andy:  Well, I had a big shift at the beginning of the year.  I went from a lot of people who were specialized, and I kind of shifted direction into having fewer people who were more invested.

Tara:  Hmm.

Andy:  Which seems to be working out for me.  But the main things I have right now is I have one person who handles all of the social media and the marketing, and is kind of like my wingman on product development. So that person has quite a bit of stuff to do. 

Tara:  Yeah.

Andy:  Oh, and she also manages the blog, too, comes under that.  Making sure our writers, because we pay them, you know, making sure the writers send in their stuff, making sure that I know that they need paid, getting it loaded into WordPress, but you know, that, we kind of created this wheelhouse, all these things that go together.  So it’s working.  And then the other person that I really rely on heavily is I have a woman that comes in to help with packing and shipping, particularly the club, because you can be down there a whole day of working on one thing.  Like you know, if the club, for example, if the club is getting, everybody’s getting the same thing for the month, we have a caffeine free option and a caffeinated, so sometimes, there’s more than one thing being made, but if we’re doing like one thing, well, you can just, it’s like you can spend hours making this one recipe, and I can’t do that, because I have so much else to hold and to focus on and I need to be like where are we going to invest for growth, and are we, you know, managing our expenses correctly, and you know, all the CEO things.  So I’m so thankful I have someone down there that’s kind of just stocking, making sure things are ready for ship, and then the bonus is on her way home, she drives by the post office, it’s right there, so she always is dropping off our shipments.

Tara:  Fantastic.

Andy:  So it’s really nice, because often, you know, we … Because tea is light, we are always post office, USPS, and I feel … I feel like I have to buy our new postman, you know, after we moved, like this most splendiferous gift basket because of all the mail that I leave out for him.  It can be crazy sometimes, but whenever she is here, she’s always like what do I need to take with me.  Like you know, what have you not dropped off that needs dropped off.

Tara:  That’s awesome.

Andy:  That’s the core.  Here and there, you know, I have a graphic designer that pops in and works, helps us with the website upgrades, and you know, I might hire someone for advice on pay-per-click or something like that, but the core is really, that’s the core.

Tara:  Nice. 

Andy:  Yeah.

Tara:  That’s great.  So you mentioned there’s a lot on your plate.  There’s a lot that you need to kind of hold in your head and hold in your bandwidth, really.  Do you have a system or a strategy for managing your time?

Andy:  Well, I make sure that everything is in Asana, so that if it’s recurring or if it’s something that I need to do later that I have it, and then I use a print planner, like paper, paper journal, and it’s right here.  I’m trying not to move everything around to make a loud noise, but it has two pages.  I use them, where is this one from, May Designs, M-A-Y, like the month, MayDesigns.com, and this is a really plain journal, and it just has on the left a schedule, so anything, any meetings I have, and I really try to minimize meetings.  I do not need to be in many meetings.  So those are on the left, and then on the right it’s kind of to do list, but I have them in different areas.  So I have like production things that I have to do, like this week, we’re launching something new this month, and so I have I need to make the labels and go down and make sure the recipes are right.  I could give that to somebody else, but we haven’t made it before, so I want to make sure that it’s right.  So I have like production things, but then I have more strategic things.  So it’s like PR, you know, I do a lot of the PR, and then, you know, I have on here checking our paid advertising, making sure that we’re not, you know, spending a fortune, even though we do spend a fortune.  So that’s how I kind of break it down, and so each day, so I have this whole big list here for the week.  I don’t know if I said that.  This is for a week.

Tara:  Okay.

Andy:  And then at the end of the day, I make a little post it note, and I highlight what are the most important things that I need to work on the next day.

Tara:  You are the second guest who has given that particular tip today.

Andy:  And on that list, I include things like working out, so you know, that’s important to me.  I feel 100 times better if I work out, so it’s on the list, because it needs to happen.  So that’s kind of how I do it. It’s kind of loose, and you know, flexible, because that’s how I like it.  But that’s how I do it.

Tara:  That’s awesome.

Andy:  Asana and a paper journal.  And some post its.

Tara:  I think a lot of people can relate to that for sure.  I love the idea of breaking your to do list down into pieces, so you can kind of see, I mean, that’s … We run in Trello as opposed to Asana, and that’s one of the reasons we like Trello is because we can see pieces like that, but I love the idea of having it just in a paper journal as well.

Andy:  Yeah, and I like the pieces because it’s a couple of things.  It reminds me that I need to be both strategic and tactical, and I’m making, you know, I’m aware of how much time I’m spending in each, and then it helps me, for some reason, just having this kind of big squares, it helps me make sure I don’t forget anything, because things can get … I’m one of those people that if it doesn’t get onto a list somewhere, it gets forgotten.

Tara:  Oh yeah.

Andy:  And when I’m writing this down, putting a big square in, you know, strategic … Strategic items, and I’m putting them down, for some reason, the squares like trigger my memory.  It’s like oh, you know, I’ve got to remember to prep for that call with Tara, you know, or I’ve got to do this other thing.  So for me, it’s just that paper and pen moment kind of really gets, make sure it gets the bases covered.

Tara:  Nice.  All right.  So what’s next for you and what’s next for Plum Deluxe?

Andy:  Well, we’re upgrading our packaging this year.  We’re trying to go 100% recyclable.

Tara:  Oh, cool.

Andy:  Yeah, and just the packaging that we have is fine, but we want to just make it even better.  You know, like we don’t have any tea tins, we only have the smaller packages, so upgrading our packaging is on the list for this year, and this is another great reminder for people.  It’s like, you know, if you have things that are just okay, like sometimes they can be just okay for a whole year or two.  You know, like our packaging is fine. We’re ready now to make it truly like what we want it to be, and you know, that could have taken another year.  It’s totally fine.  The other thing is we have some really great, new products coming online.  So we mostly have flavored teas, you know, the essential oils, you know, vanilla or citrus or fruit, and so we’re launching, we’re calling them Royale Teas, and they’re unflavored blends.

Tara:  Oh, nice.

Andy:  So we’re doing a small selection.  Our club will still primarily be, you know, the flavored ones, which I see as kind of more fun and interesting and different, but we’ll have this new core line-up of something that appeals to, you know, another segment of tea drinkers, and it’s something we’ve always wanted to do, but it’s just not, it’s just one of the things that’s like not been on the list yet.  So we’re excited that that’s on the list, because that’s a big thing, and interestingly enough, it … Getting the recipes right more difficult, because there’s like nothing to hide behind.

Tara:  Right.

Andy:  You know.  It’s like, oh, you know, throw in a little more orange peel and a little extra vanilla, that’ll be fine.  Not that we do that often, but you know, if it’s just a very simple black or green tea, you really got to get it right, because there’s just nothing in between you and that taste bud, so I feel like we’ve done a really good job, so I’m excited about that.

Tara:  That sounds awesome.  Well, Andy Hayes, thank you so much for joining me.  It’s been really interesting seeing inside Plum Deluxe.

Andy:  Thanks.  Thanks for letting me share.  I appreciate it.

Tara:  Absolutely.  You can find Andy and the Tea Club at PlumDeluxe.com. 

Next time, we’ll talk to Nathan Berry, founder of ConvertKit, about making the decision to pursue growing ConvertKit full-time while putting his lucrative digital products business on the back burner, the direct sales strategy he used to woo influencers to his product, and what he’s learned about building a Software as a Service venture.

What can boost your credibility, woo new clients, and bring in more cash for your business, publishing a book.  Luckily, you don’t have to wait for a big name publisher to tap you on the shoulder.  In my brand new CreativeLive class, I’ll guide you through writing and publishing your book faster than you thought possible.  Find it at CreativeLive.com/eBook.

That’s it for this week’s episode of Profit. Power. Pursuit.  You can download other episodes of this podcast and subscribe in the iTunes store.  If you enjoy what you heard, we appreciate your reviews and recommendations, because they help us reach as many emerging entrepreneurs as possible.  Our theme song was written by Daniel Peterson who also edited this episode.  Our audio engineer was Jaime Blake.  This episode was produced by Elizabeth Madariaga.  You can catch up on older episodes in the iTunes store, where new episodes are added every week, and you can learn more by going to CreativeLive.com.

Collaboration, Fierce Loyalty, and Being Boss With Kathleen Shannon

Kathleen Shannon of Being Boss on Profit. Power. Pursuit.

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Tara: Hey, everyone. Welcome to Profit. Power. Pursuit. I’m Tara Gentile, your host and together with Creative Live we explore the unique strategies that creative entrepreneurs use to take control of their lives, profit from their passions and pursue what’s truly important to them. Today on the podcast I’ll be talking to Kathleen Shannon, co-founder of Braid Creative and co-host of the popular Being Boss Podcast. Kathleen transitioned her career from graphic design and art direction and an advertising agency to entrepreneurship and branding for creative entrepreneurs.
 
She created the Braid Method to help entrepreneurs blend who they are with what they do. Now, Kathleen is focusing her attention on Being Boss and growing her agency to run without her at the helm every day. I spoke with Kathleen about balancing both Braid Creative and Being Boss, how an episode of Being Boss gets creative from start to finish and how she and co-host Emily Thompson planned to grow what was just a podcast into a full-fledged business venture. Kathleen Shannon, welcome to Profit. Power. Pursuit. Thank you so much for joining me today.

Kathleen: Thank you so much for having me.

Tara: Absolutely. I want to start off by talking about the pursuit side of things. You’ve said you believed that creatives can best find success, happiness and a nice paycheck by blending who we are with what we do. Can you just talk a little bit about how that’s played out in your own life and business?

Kathleen: Absolutely. This is the part that it’s really probably philosophical foundation that drives all the very specific actions and behaviors that I take in my business. Really, blending who I am with what I do is really what I call personal branding and I think that we’ve all heard the term personal brand. What that means for me is just being who I am a 100% of the time. To get really specific, I found my personal brand while working a day job but I started a blog where I started talking about things like remodeling my home and learning how to cook. I was really becoming known for being a story teller and talking about also things like work and so I quit my day job and I started blogging about what it was like to become a freelancer. I do not come from a family of creative entrepreneurs.
 
Everyone in my family has a pension. They have 401K, they have a steady day job, they have health insurance. I was a trailblazer whenever it comes to doing what I was doing in the context of where I’ve come from. I started blogging about the adventure of working for myself and through that, I accidentally positioned myself as an expert in working for myself even though I had no idea what I was doing. With that, I started attracting my tribe of other creatives who are trying to figure it out along with me and I feel like everything in my business has really stemmed from that very first adventure of quitting my day job and really sharing the story along the way. I guess that’s what I mean whenever I talk about blending who we are with what we do is sharing the story along the way. Having your values, be your values in work and life and maybe not creating so much of a separation between what you do and who you are.

Tara: It also sounds like really finding your voice too.

Kathleen Shannon of Being Boss on Profit. Power. Pursuit.Kathleen: A 100% and I’ve been getting asked a lot lately about how to find your voice and my easiest answer is to use it. You find your voice by using your voice and you just got to mock through it and it might take years but try different voices on for size and try speaking loudly, try speaking quietly, try listening. There are lots of ways to use your voice but you have to use it to find it.

Tara: Yeah, I love that. I love what you shared about your definition of personal branding too because I think that a lot of people think having a, “personal brand,” means saying basically, “Look at me, look at me, look at me.” I don’t see it that way and it sounds like you don’t see it that way and that instead it’s about really finding out what your voice is, what your message is, what your values are and using that to transfer from yourself as a person into a brand that you have as a business.

Kathleen: Absolutely. I think that we see a lot of extroverts with personal brands and I myself am an extrovert which often I feel really out of place amongst my tribe and probably even a lot of your listeners are introverts, I know that with Quiet Power Strategy. You’re really speaking to a crowd of people who feel like they haven’t been able to stand out amongst the noise but I don’t think that you have to be a loud extrovert even though that’s what I am, to have a personal brand. I think that it really is about just knowing what you stand for and standing for that a 100% of the time.

Tara: Yeah, I mean for me as an introvert, a very pretty hard core introvert, having a personal brand has allowed me to amplify my voice instead of having to say, “Look at me, look at me, look me.” I really, really appreciate that. All right, let’s talk a little bit about Braid Creative, you started Braid Creative with your sister Tara Street. How did that happen?

Kathleen: My sister and I actually worked together in advertising. She was the boss of me. She was my creative director for five years like a traditional day job. It was something that we kept a secret while we were working in the real world in advertising. Not on purpose but there is a stigma against working with family and I decided to quit my job in advertising. I felt like the landscape of advertising was changing and as a young creative I really didn’t know the difference between advertising and marketing and branding. As I started to learn the difference between those things, I realized that my heart was with branding and that my heart was with creative entrepreneurs. In advertising I was working with credit unions and small banks.
 
I decided to follow my heart which I know sounds really lofty but just to get very real about it, I wanted to use my talents to help people like photographers, designers, developers, coaches, really find our voice and make sure that their insides match their outsides. Making sure that the inside of who they are matches their outside brand and identity and even logo that they are putting out there. About a year after quitting my day job, my sister was becoming increasingly unhappy as a creative director and she had a really high powered job. On paper, everything looked amazing so she was working with an executive coach named Jay Pryor who is the best at what he does. He was like, “If you could be doing anything what would it be?”
 
Without hesitation she said, “I would be working with my sister.” About a week later we had a business plan developed, we had our identity developed, we had our process hammered out. We worked really fast on that and out the gates started working with creative entrepreneurs to help them with their own brand and business visioning and really bringing a lot of our agency strategy and experience to not smaller industry but to the solopreneur. I mean, it has been such a ride and we’ve been doing this now for five years and I love every day of it.

Tara: That is so awesome. What it’s like to work with your sister on a daily basis?Kathleen:

Kathleen: I get asked that a lot. It’s funny. My sister is seven years older than me and she’s pretty much always been the boss of me. Even since we were really little I would crawl into bed with her as a little kid. I hated being alone in my own bed so I’d crawl into bed with her and even on business trips at our advertising agency we would have separate hotel rooms and I’d sneak into her hotel room and watch TV and eat snacks with her all night. We’ve always really been best friends. There was a bit of a struggle and a shift that had to occur whenever it went from her being my boss to as being co-bosses together.
 
Many times I was paving the way into trying to do new things like creating ecourses or developing other digital products or trying a new way of doing things. We really are two sides of the same coin. We have a really fantastic short hand. I’m the extrovert to her introvert. I’m the right brain to her left brain. I’m the person who’s usually out there willing to take risks and to talk to a lot of people. She’s the person who is methodically and logistically hammering out the details. I mean, it’s been really good. It comes with its challenges but it’s totally worth it.

Tara: I love that. Who else is on your team then?

Kathleen: We’re all about blurring lines and my best friend Liz is our creative director and really just our right hand person. We couldn’t run Braid without her. She worked with us in the advertising agency as well so we raised her up into her creative career training her to pretty much be exactly like us, not in a bad way. She can do everything that we can do and then some which is amazing. She’s on our team full time. Then we have an assistant who is so much more than an assistant and really one of the best hires I’ve ever made. Her name is Caitlin Brehm. She contracts for us and just launched her own business doing SEO and content management. It’s been really great having her on our team. We also have a junior designer named Jessica who helps us with some of our daily design needs. For a while we had another designer on staff full time but she moved to New York and went on to work at another amazing place. That’s who is on the Braid team for now.

Tara: Okay, great. We’ll get to the other side of things, a little of that. How do you manage your team? Are there particular tools? Like meetings that you guys use. What’s your system for managing your team?

Kathleen: We’ve tried a lot of things over the years and what we have found works best for us is some good old Google Mail, Google Drive. We live and die by a to do list that is simply in our Google Drive. I tried switching my Braid team over to Asana recently and they were like, “Nope. I can’t do it.” They like their list in Google. What else do we use? My Google Calendar. I could not do anything without my Google calendar. Those are really the tools that we utilize in Braid Creative. Then really our own creative process so that isn’t really an application that was developed by someone else. It was our own process for working, from having to reinvent the wheel every time we work with someone new. It was a method that we knew that we could use and rely on to get the information that we needed in order to brand someone in a way that is authentic and true and meaningful to who they are.

Tara: Nice. I’m so glad that you brought up your own methodology or your own process as an important part of how you work with your team because I think a lot of people don’t elevate it in that way, they don’t recognize it in that way. I think that’s a real disservice to your business if you don’t see your own methodology as that valuable to the way you do business.

Kathleen: Absolutely. The way that I recommend to recognize your method I mean, for just a typical designer it is not anything that is particularly earth-shattering, it’s just being able to articulate it. One thing I recommend to people that I work with in finding their own method is to literally write down everything that happens with a customer from the time they land on your website to the time that you’re sending them their final invoice and what happens in between. How can you begin to efficiently collect information? Are there gaps in your process? Where are the pain points that you’re always struggling with?
 
I grew up in advertising as a graphic designer and that’s really what my original craft and trade was and maybe some other graphic designers listening to this may resonate but every time I start a new project I thought, “I’m not going to be able to do it this time. I’m not going to have a new idea. It’s going to suck. The client is going to hate it,” and really being able to rely on my own methodology, being able to explain to a client exactly what is going to happen from start to finish, really reassures them. It really keeps them from getting freaked out. They see my portfolio and they are inspired because they see beautiful work but they want reassurance that I will create that beautiful work for them too. That’s why I rely on my method almost as a sales tool to say, “Here’s how we’re going to get there.”

Tara: Yup, I do that exact same thing. That is perfect. How does Braid Creative generate revenue? What are all the different things you guys do that are bringing in money on that side of your business?

Kathleen: The bread and butter of how we make our money is with the Braid method. What that is is a two part deliverable that includes your business visioning. Really who you are, why you’re doing what you do, a dream customer profile and then we’re looking at your brand identity, what offerings you’re selling. Often times, that’s the part of your brand that will change the most especially as a creative entrepreneur, especially as you’re evolving and launching new things. We’re really trying to figure out a way to package that up in a way that feels cohesive. The word authentic gets used a lot but for the lack of a better word authentic and meaningful to who you are. We really specialize in personal branding so creative entrepreneurs who maybe are in business with themselves or one other partner who are relying on or seeing that who they are is an asset to what they are doing.
 
That’s really our bread and butter and our main source of revenue. Then, we work with about 12 to 15 clients per quarter doing the Braid method and then for a while I was doing one on one creative coaching. That’s really working with people who maybe are transitioning from working a day job, [inaudible 00:14:51] at their own job. Really people who just need clarity on what their business vision is and really just helping them get specific about what it is they actually want to be doing all day. I tend to see this in the coaching industry people saying, “I just want to empower women.” I’m like, “But what does that actually mean?” What kinds of conversations are you having? What are people hiring you to do?
 
Really, just coaching as really digging down and asking those questions since starting a podcast I don’t do as much of that and then we have a couple of other ways of making money which is the more digital product side. We have an ecourse which is probably the textbook philosophy behind our Braid method. It’s called the Braid method branding ecourse. It’s pretty much a DIY Braid method except that you’re not getting a logo and the visual aspect of what we do at the end of it but you are getting really the framework of how we gather information and you can do it yourself. That product is one that we poured our heart and soul into and really I’ve made it my primary job to push and promote that product and really get it out into the world because I feel like it deserves to shine out in the world.
 
Then I have a DIY coaching for creatives email subscription series which is four emails a week for four weeks and it’s really the kind of coaching process I take my clients through, the kinds of questions I’m asking them but again instead of one on one it’s a DIY product that you can do yourself. I think yeah, that’s it. We don’t have a whole lot of products. We really just wanted to focus on the one thing. We’ll sometimes try a couple of different things like for a while we’re dabbling in method making and really specifically helping people one on one make their methods. The Braid method itself where we’re branding other people tends to be the thing over and over again that gets us work.

Tara: Nice. Do you offer that at a flat fee? Do you make proposals? Is there value pricing? What does that look like?

Kathleen: It is a flat fee. Right now, it’s $6,000 for the full Braid method and sometimes for some people that seems like a lot of money. For other people it doesn’t seem like very much at all but we’re charging a photographer who is just launching their business $6,000 for the Braid method and we’re also charging Brené Brown who’s had over a 100 million hits on her TED Talk $6,000 for Braid method. It’s a flat fee and we’ve played around with changing the price on that but in order to just do our most efficient work, having that flat fee has been really useful for us. We found that staying in that range helps us really attract our dreamiest of dream clients.

Tara: Nice. Yeah, there certainly benefits to putting together proposals or doing value pricing or anything like that but there are a lot of benefits to flat fee pricing as well. I appreciate you pointing that out.

Kathleen: You know what I found is that with proposals, that’s where I started to get into dangerous territory of trying to reinvent the wheel or promising to do things that I don’t really want to be known for. What I want to be known for is branding and business visioning and coaching. I don’t want to be known for social media strategy and that’s like saying that I might start promising if I was doing an individual proposal.

Tara: Brilliant. Awesome. You also host the Being Boss podcast with Emily Thompson which is an awesome show. I know a lot of women, my clients, some team members that are absolutely obsessed with your podcast. What is it do you think about your podcast that engenders that kind of loyalty?

Kathleen: Wow, that means so much for you to say that and it’s so funny because whenever we first started recording the podcast I made a list called the Hot Shit 200 and it was 200 people that I would love to have on the podcast and you Tara were on that list. You were one of our earliest guest and I felt like it was such a huge accomplishment to have you on the show and then to hear you complimenting it and hear that your colleagues and peers are listening to it, I’m almost I’m speechless. I don’t know if you get this at all in your business because I feel like you just keep blowing up and I see you everywhere on Instagram and Facebook. It’s hard to perceive the loyalty that you’re sparking or the fan base that you’re creating but I think what really has attracted listeners to Being Boss is that it came from a really real place.
 
Going back to personal branding and going back to the pursuit it really is coming back to my roots of sharing the journey along the way. What happened is, Emily and I were getting together once a month anyway to talk business. I had a really hard time finding anyone who understood online business who is making the same amount of money that I was who knew how to scale in a way that I had a vision for and Emily soon became my business bestie, the person that I could confide in and ask for advice and be in it with. We were meeting once a month just casually having conversations and one day she was like, “You know what? I think we need to start a podcast. I think that basically we just need to record the conversations that we’ve been having about business.”
 
Those conversations often include chatter about our kids or talk about vacation and adventure and the things that we’re craving in life outside of work. We really just started recording the conversations that we were already having and I think that that kind of authenticity and truth behind what we were talking and vulnerability, really, really shines through in a way that people can connect with. At least I hope that they can connect with it.

Tara: Yeah, I mean sometimes the best strategy I think is almost to, this is going to sound terrible from someone who prides themselves on strategy but I think sometimes the best strategy is almost having no strategy. It’s not that you didn’t have a strategy because making the choice to say, “We’re just going to record what we’re already doing and we’re just going to be ourselves,” is absolutely a strategy but I think people when they are trying to come up with a strategy they think they have to invent something, to create something artificial. You guys created something that was totally real and you did so intentionally and by choice.

Kathleen: Yeah, I would be so curious to hear your thoughts on this, Tara, if you don’t mind me picking your brain for a second.

Tara: Sure.

Kathleen: What’s fun is we really did start it from a genuine passionate place, right? That’s real fluffy and good. I never expected for it to turn into a full on business. We’ve been doing operating agreements now. We have bank accounts. We have LLCs. We pulled in more money than I ever expected too so it’s become a full-fledged business and now we are getting very strategic and very intentional about it. In fact, tomorrow we’re launching our new website that will come with a blog, we have events. The website is now beingboss.club. We’re launching a clubhouse. I mean, we’re ready for this to be the thing. It’s funny though because starting it from a really organic let’s just record our conversations and see where it goes to something very strategic, I’m so almost fearful of it losing the original flare to it. I’m afraid that what’s worked for us so far has been flying off the cuff and just being organic about it. If we get strategic about it, is that bad luck? It’s almost like superstitious how I’m feeling right now.

Tara: Yeah, I totally understand where you’re coming from on that. I’ve had a lot of clients that have dealt with that as well is that early success often feels like almost like a fluke because you’re not expecting it, you’re not planning for it. Then, how do you go on building on success that feels like a fluke. I think first of all you have to recognize it wasn’t a fluke like I just said I think you guys made really intentional choices about what you were doing even if on the surface level they didn’t feel strategic. Then, the next step of things is I think that you have to have a real strategic framework and that just simply means making a simple set of choices that define what you’re willing to do and what you’re not willing to do.
 
I don’t think that being organic and creating things off the cuff is a bad thing. I think you just need to create a framework for it, a container for it. The four questions that I use to get people started on a strategic framework are, what do you want to create? How do you want to connect with people? Who do you want to create for and how do you want them to respond? What’s that value that you want to put out into the world with the change that you want to see? How do you want to help people become? Then, what are the ways that you guys connect best with people?
 
What are your natural strengths and advantages? Who are the people that you actually want to connect with and create for? That’s an easy one. You guys have that one down. Then the last one is more about, what action do you want them to take? I think if you answer those four questions really specifically, you create a space where you can be spontaneous and innovative and creative and off the cuff without it interfering with the strategic play that you’re making because it is the strategic play that you’re making. Does that make sense?

Kathleen: Totally. That reassures me. I feel like we’re on the right track because we have gotten very serious about doing this but then keeping those values in place that really come from those questions that you ask. A very specific example of this is part of Being Boss we created a Facebook group for our listeners and it quickly grew right now it’s at about 9,000 people in this Facebook group. It has exploded into something that I can’t keep control of. It’s gotten really spam-my but the original vibe of it and the reason why it’s grown so much is because it had that same kind of vibe that listening to our podcast does where this is a place where we’re in it together.
 
We can ask each other for help, very mastermind-y, very transparent, very open but at 9,000 people it’s almost impossible to manage that same vibe. Being willing to let go of the number is something that we’ve done and so that’s part of opening this more exclusive clubhouse that people often pay to join. I think that that’s us reconnecting to what is it that we want people to do and how do we want them to feel.

Tara: Yeah, absolutely. I love that. The Facebook group is definitely something that I know people are also obsessed with in addition to the podcast. I mean, seriously people tell me about the conversations that they have had in there. Like you said, these things can grow out of control very, very quickly and creating a space and putting a price tag on it where you can set expectations and you can say these are the rules and this is what you can expect from this group is something insanely valuable. I think you guys are going to be a smashing success with that.

Kathleen: Thank you. We’re really excited about it and really getting those good conversations about what are you reading, what are you learning about email marketing or content marketing. All the different things that we love and heard about. We’re excited to be having those conversations in a place that feels a little more not safe but just I mean, maybe a little bit more private.

Tara: For sure. I want to get a little bit more into the nitty-gritty of Being Boss in just a minute. You mentioned meeting with Emily on a monthly basis before you guys even started the podcast. You mentioned the Facebook group feeling sometimes a little bit like a mastermind. Is masterminding either in the traditional sense or in a more creative sense? Is that a part of the way you work, that way you think about your business?

Kathleen: No, actually it’s not. I’ve been invited to join a few masterminds and none of them felt quite right especially locally in person where I live because I run an online business and the needs of an online business are so different than the needs from a local retail store. I’ve always had a hard time finding a mastermind and in fact, Tara, I’ve stalked a lot of your different products that you’ve had and I’m like, “Okay, maybe this is going to be the year that I really invest in this higher learning and higher connection.” I’m still super interested in joining a mastermind. If anyone has any recommendations let me know.
 
For me, it just feels really risky. A lot of them are really expensive. Probably more so than creating a mastermind I want to create a community. Maybe if I join a mastermind or couple of masterminds and really see how it works, it’s something that Emily and I could create down the road but for now it’s really just traveling to hang out with people at conferences, traveling to hang out with people just as friends. For example, last week I was in Mexico with Sara VonBargen and a few other online buddies and we’re just talking strategy, we’re talking business but we were really enjoying it. The kind of impromptu masterminds and impromptu business buddy relationships have really worked well for me.

Tara: Yeah, that had worked really well for me originally as well and then the end of last year I realized how my network had stagnated. Part of that was my fault. A big part of that was my fault. I’ve named 2016 the year of the mastermind for me. We’ll chat after the show then because I can give you some recommendations.

Kathleen: Yes, thank you.

Tara: Yeah, awesome. Sweet, maybe we’ll tell people what happens later afterwards.

Kathleen: Perfect.

Tara: All right. How are you and Emily generated revenue with Being Boss right now?

Kathleen: Right now we’re generating revenue from sponsorships. FreshBooks, Cloud Accounting and Acuity Scheduling are our premier sponsors and they have been very generous with us. It’s so funny because I had never had sponsors before. I’ve been blogging for a long time and I always felt like that was selling out or that it was deluding my own brand but really engaging in those sponsorships have done nothing but give our own brand credibility and really the funds to make it happen the way that it has. I’m so grateful for them. What’s really cool about our sponsorships with them is that it actually converts. Our listeners are really using FreshBooks and they are really using Acuity Scheduling to be better bosses.
 
Earlier as part of your four questions, one of the frameworks we’ve given ourselves for taking on sponsors is will it help someone be a better boss. We’ve had a lot of people approach us and the answer was no. We said no to them. That’s the way that we generate revenue it’s with sponsors. Another way that we generate revenue is we bundled up my DIY coaching product with one of Emily’s email products called, “Get Your Shit Together.” We sell that on our website. We’re going to be launching our clubhouse which is a year long membership to basically a slack group. That also comes with things like secret episodes and custom worksheets just for our clubhouse members. Then other than that we’re working on a product with Paul Jarvis and Jason Zook right now.
 
We’re interested in building products but I recently talked to a friend of mine, Meg Keene who runs A Practical Wedding which is one of the biggest wedding websites in the world. She told me the sun is shining on you as sponsorships. She goes, “You need to really just focus on building that a little bit more and really building your brand and then you guys can make products in your sleep, right?” She said, “Maybe wait a year to make more products,” I thought that was just such genius advice because for me it was really scary relying on sponsor money whenever I could create something myself. It’s allowed us to create now a new website and launch that.
 
Launch the clubhouse. The main way is with our sponsorships. We also do yearly events so we’ve been to New Orleans and invited 75 bosses to come with us. That was last October. In April we’re going to Miami and another 75 bosses are coming. We decided to rent a yacht and ask FreshBooks if they’ll pay for it. They generously said yes. Basecamp is also supporting us there as well as Acuity Scheduling. Again, a lot of that is sponsorship driven but our guest do pay a little bit of money to help just pay for the logistics of all of it.

Tara: That is awesome. That is so cool. I love that you said about focusing on what’s really working right now. You’ve got it in your mind what the potential downfalls are of what is happening to be working right now but so many people worry for no good reason or let that worry make them unfocused or scattered. I love that while you’re keeping that in mind you’re also charging ahead with what’s really working and making the most out of it. I think that’s hugely important.

Kathleen: Exactly. I should also mention that Being Boss still goes hand in hand with Braid Creative and Emily’s company, Indieshopography. Honestly, it’s funny because now Braid Creative almost feels like my day job and Being Boss has felt like a side hustle a little bit. Braid Creative is now very much funding me personally like I still get paid a salary from Braid Creative even though all my intention and focus is going to Being Boss. On the back end of things it’s a little confusing and it’s included a lot of conversations with lawyers and accountants and business partners but my sister and I still split everything. I still split all my Being Boss income with her and she’s still splits everything in Braid with me for now. That’s another benefit of being sisters in business is that at no point am I like, “Is this unfair?” Because we’re sisters.

Tara: We talked about moving from a freelancer role to an entrepreneur role or a business owner role but included in that business owner role most of the time that we’re talking about that, we’re really saying in a CEO role but it sounds like you’re moving from a CEO or COO or CCO role into an owner role where you’re a little bit more hands off on the Braid side. Am I hearing that correctly?

Kathleen: That’s correct. My role in Braid Creative was the high end creative direction and coaching aspect of things. I do really great job of facilitating our conversations and getting information out of people. Then I do a really great job designing their brands and that’s something I don’t want to … It’s sad leaving your craft behind, leaving your roots behind but there are still tools in my tool box that will help me grow Being Boss in a huge way but yeah, I’ve definitely shifted from being one of the doers in Braid Creative to being an owner and now I’m doing more over in Being Boss now. Really learning how to delegate to a team so you’re asking about my team with Braid Creative, I definitely have a team of people at Being Boss too that help us get everything done.

Tara: Awesome. Let’s ask about that now. Really the question that I had about this is if you could walk us through, how an episode gets created? Not necessarily obviously not the how to but the step by step. How do you go from idea to reaching out to a guest, to editing, to final release? Maybe you can tell us who the different team members are you have that touch each episode as you go.

Kathleen: Yeah, sure. It might be easiest to start this chronologically when Emily and I first started Being Boss. Then talking about how we hired on to get help in some of the areas that we need help in. It started with Emily and I sitting down and it still works this way. Brainstorming a list of topics that we want to talk about and we maybe do quarterly planning like his. We’re about to move it to weekly but quarterly planning where we talk about basically our editorial content. We have a bucket list of things that we want to talk about. Then, about a week maybe three to five days before we record an episode I’ll shoot her a slack note and I’ll say, “Hey, what are you feeling this week? I’m thinking about either talking about partnerships or money.” I’ll give her a couple of options of things that we could talk about and we really see what we’re feeling.
 
I think that’s an important note is that we’re still talking about things that we want to be talking about. We’re not forcing ourselves to talk about things that we’re not interested in. Then we sit down. I put together an agenda so I outline the day that we’re recording. I outline when the launch date is. I outline what sponsors we need to have ads for and then really just a bucket list of topics and questions. If there are a few things I really want to make sure to hit on like maybe starting tweetables or ideas. I’ll type those out in full sentences just so that I can stay articulate. Otherwise, it’s just us having a conversation.
 
We started getting a lot of the guess that we got by we’re just naturally mentioning people that we admire and look up to. What we started doing is we had Emily’s assistant start emailing the people that we mentioned and just telling them, “Hey, we mentioned you in an episode of Being Boss. Would you like to come on the show?” We’ve gotten so many amazing guest including yourself, Tara, by doing that method. What’s cool about that too is that it eliminates the fear of rejection because someone else is making the ask for us which is pretty cool. Don’t get me wrong, I’ve certainly asked some people myself to come on the show based on personal relationships or whatever. We’ve gotten amazing guests in that way then after we record this show we hand off our audio to our sound engineer who is also our web development and his name is Cory and he’s on Emily’s team over at Indie Shopography.
 
He edits everything together. Then my assistant Caitlin who is an SEO specialist and overall just genius. She writes out the show notes. She pulls out some of the tweetables. From there I design Instagram graphics and Facebook graphics really social media sharing graphics. I’ve recently started handing that off to our designer Jessica. Now she’s handing all the graphic components of that. The day that we launch we have to upload the files to iTunes, Sound Cloud, and Stitcher. We make sure to do all of that. One of our assistants does that for us now. The episode goes live.
 
We send out an email to our newsletter list and I recently took that over so it was one of our assistants writing it but I really want to cultivate and grow our newsletter list. I’ve started writing the emails myself and really talking about the key take aways I got from the episode and really why people should listen to it. Then we plug everything into our Edgar accounts which is like a social media library for Twitter so that those episodes never really die. That they are always being recycled out into the universe so that people can listen to them.

Tara: Nice. I just want to say we had Laura Roeder on I don’t remember what episode number but it was one of the first ones.

Kathleen: She is so great. I had her on Being Boss and right after we hung up with her, I said, “I need Edgar in my life.”

Tara: Yeah, Edgar totally changed my social media habits, my life, my traffic, everything. Elizabeth has just told me it was episode 14. If anyone wants to find out more about Edgar and Laura Roeder and how Edgar works and all of that good stuff you can listen to episode 14 of Profit. Power. Pursuit. I will link up to whatever episode of Being Boss it was.

Kathleen: Awesome.

Tara: Perfect. Sweet. Let me figure out where I was again. That was perfect. It sounds like there’s a lot of overlap then between Emily’s team and Braid’s team and the Being Boss team.

Kathleen: There is so much overlap and in fact we had to recently hire the same accountant and the same lawyer just so that they can have a full picture of all of our businesses and how it all works together. Really we think of Emily and I own Being Boss but we think of it as Indie Shopography and Braid doing all the work. Being Boss cuts Braid a check and Being Boss cuts Indie Shopography a check. That’s how it works so we had to explain to our accountant like yes this has its own LLC but it’s like a big Brain and Indie Shopography project. It’s really interesting but recently Emily and I had a big conversation with our team about our roles because we’re starting to find that we’re feeling a little chaotic and we didn’t really know who should be doing what.
 
Using systems like Edgar, Asana, we live and die by our Asana account in Being Boss. Using things like convert kit and Acuity Scheduling and really automating a lot of stuff and one thing I was really worried about is losing the human touch and losing the power of doing it all myself or the control of doing it all myself. I think that’s part of going from freelancer to business owner to CEO mindset is just really being willing to rely on the system that you put in place and being able to rely on your team.

Tara: Yeah, amen. I’m hearing you say a lot about systems and a lot about communication. The way that you manage all of these different ventures and the way you manage your time is largely influenced, motivated, driven by systems and communication.

Kathleen: A 100%.

Tara: Perfect. Awesome. All right I’ve got a couple more questions for you before we wrap up. One, was there any one decision that you’ve made that’s had a disproportionate influence on your success?

Kathleen: Yeah, starting the podcast. I had no idea what kind of influence that would have in the world so that’s been huge. Another really small thing that happened it’s like Sliding Doors right whenever that movie …

Tara: I love that movie.

Kathleen: Whenever you think about how that one small thing. You start to even rewind it all the way back to the very starting point so one of the thing they did that felt very risky in my life at the time was I was invited to go out to Mighty Summit out in California with a few other women. It’s so funny because I was just concern about, the thing is totally paid for by Mighty Summit and I was concern about how much the plane ticket cost. Now, I wouldn’t even bat an eye at the plane ticket to have that kind of opportunity, right? It felt very risky at the time to last minute spend $700 on a plane ticket to get out to California but I went and in my swag bag was a book called Daring Greatly by Brené Brown.
 
I read it. It changed my life. I did a book review on it. I tweeted up Brené Brown saying, “I did a book review, your book changed my life like many others.” She ended up hiring me to do all of her branding. I still work with her all the time on all of her stuff that she does. Making that book review, putting myself out there having a blog has been huge for my success. Particularly that relationship with her has changed my life just even from a mentor relationship because she’s very knowledgeable and wise and had supported my business in amazing tremendous ways.

Tara: That’s incredible. I love your Sliding Doors reference because seriously it’s one of my favorite movies which I don’t know what that says about me but whatever. Because not only was there that moment that you decided to go to Mighty Summit but even smaller than that, a smaller choice that you made was not just writing the book review but actually choosing to tag her and to say, “Hey, I did this. Hey I want to share this with you.” I know so many people who they do write the book reviews or they quote their favorite people or they write responses to their favorite people’s work and they fail to make that tag, they fail to make that mention because they are nervous that the other person is actually going to see them. They don’t think it will matter. I’m so glad that you shared that that small decision has been a huge part of your success as well because that really can make all the difference in the end.

Kathleen: Really I mean just relationships in general and I feel like if 2016 is the year of the mastermind, as a year of really recognizing and acknowledging the impact that your relationships have on your business, personally and professionally. All the relationships that I’ve had it’s just so funny thinking about how I met these creatives seven or eight years ago and how the tide has really reasoned together and watching all of us do these crazy amazing successful things is so, so cool. Even getting the invitation to Mighty Summit had spurred from choosing to go to another conference where I made a friend. You know, even having read your books, Tara and becoming such a fan of them and writing about those on my blog and even just hitting reply to some of your tweets, I mean I wouldn’t be here now if we hadn’t started a little bit of an online relationship, right?

Tara: Absolutely.

Kathleen: Relationship is everything.

Tara: Yes, don’t you miss the days of Twitter when an @ reply make those things happen? I missed it so much but you can do it on Instagram now so I guess it’s okay.

Kathleen: Exactly.

Tara: Last question. This is a question that I’ve asked so many guests and that I get so many different answers. I can’t wait to hear your response. How do you Kathleen Shannon balance the roles of creative and entrepreneur or creative and executive?

Kathleen: Good question. I don’t really think of them as separate things at all. I guess that for me you know what’s interesting, in the business partnerships that I’ve developed, I’ve really been able to shine on the creative side whereas my business partners are really good at handing the management and executive side. I’ve never had to fire anyone. I don’t really determine when someone’s getting a raise. My business partners are really great at handling the more administrative and executive side of things. Not to say that I couldn’t, I can definitely get in on that stuff but I would say where my executive skills come in is implementing a lot of the creative ideas that I come up with.
 
For example I want an ecourse. All right, we need to execute that. Here’s the plan that we need to get in place but I definitely rely on my business partners for a lot of that execution. I almost feel bad saying that because I don’t think that business partnerships are always the answer and I feel like a lot of people are looking for a silver bullet of a business partner to figure it out for them which is dangerous. That silver bullet does not exist. Yeah, I guess I balance it by relying on other people to balance it for me.

Tara: No, I think it’s fantastic because frankly we’ve talked to some other people like Sue Bryce who’s an amazing photographer and she said, “I don’t” I think that’s a really either answer is a really powerful answer. You’ve built infrastructure and you’ve built relationships that allow you to shine your light on your strengths and your creative advantages so that you don’t have to balance those two roles. It does sound though like you have amazing executive skills at the same time.

Kathleen: Thank you. I’d like to think so but as I’ve grown in my business I’ve been able to rely more and more on other people for those things.

Tara: That’s fantastic. What’s coming up next for you?

Kathleen: I mean, the big launch. It’s launching tomorrow so by the time this goes live it will be available so Being Boss, the website is now beingboss.club. We’ve got Miami coming up so we still have a few spots open for people to attend Miami which should be a blast. Other than that just keeping my head down and grinding away. I’m also looking into really amplifying the Braid method ecourse and really figuring out a way to push that into the world. Just really thinking and focusing on reaching and impacting as many people as possible.

Tara: That is awesome, Kathleen Shannon, thank you so much for joining me on Profit. Power. Pursuit.

Kathleen: Thank you for having me. It’s been so much fun. Such an honor.

Tara: You can learn more about Kathleen Shannon and Being Boss at beingboss.club or on iTunes. Next week we’ll talk with the founder of Plum Deluxe, Andy Hayes about the windy road he took and finally find the business idea that would work. What he’s learned about growing a business with a physical product and the unusual way he’s finding new subscribers.

What can boost your credibility, woo new clients and bring in more cash for your business? Publishing a book. Luckily, you don’t have to wait for a big name publisher to tap you on the shoulder. In my brand new Creative Live class, I’ll guide you through writing and publishing your book faster than you thought possible. Find it at creativelive.com/ebook.
 
That’s it for this week’s episode of Profit. Power. Pursuit. You can download other episodes of this podcast and subscribe in the iTunes store. If you enjoy what you heard, we appreciate your reviews and recommendations because they help us reach as many emerging entrepreneurs as possible. Our theme song was written by Daniel Peterson who also edited this episode. Our audio engineer was Jamie Blake. This episode was produced by Elizabeth Madariaga. You can catch up on older episodes in the iTunes store where new episodes are added every week. You can learn more by going to CreativeLive.com.