5 reasons why E-Design is NOT an easy way to make money
E-design is not a good way to scale your design business online and certainly not an easy way to make money. In fact, it's really hard to build a profitable e-design business.
Here are 5 reasons why...
1. Lots of people do it
Lots of people can do e-design because all you need is a computer and a bit of design knowledge to get started (some don't even have that!). But because it's so easy to start there are lots of e-designers out there. That means you have to work really hard to show people why they should pick you and not someone else.
2. You need a lot of clients to make money
Clients don't normally value e-design as much as 1:1 interior design services so you may have to lower your prices to get clients.
You might think that offering cheaper prices will help you get more clients, but the problem is each design still takes a lot of time to create. So you will need a lot of clients (to make money) but you will be unlikely to be able to fulfil a lot of orders without hiring a large team (which then costs you money).
3. Making each design takes a lot of time
E-design sounds like it is scalable and will be less work, but in reality you are still making a unique design for each client.
To get your client a good result you still have to understand their individual scope, make the design, make changes after feedback and then guide them through the purchasing process to bring the design to life. So although e-design sounds like a less intensive process than in person design, it really is the same amount of work (but for less money!)
4. Price pressure from DIY solutions and online platforms
Online platforms that offer automated, algorithm-based designs at a fraction of your fees will put pressure on you to lower your prices.
It's also hard to compete with designers overseas who are willing to do the same work as you for a fraction of the cost (due to cost of living in their country being so much lower). This creates a market that is hard to compete in.
5. Poor outcomes = hard to find new clients
Once your e-design is in the client's hands, it's largely up to them to implement it.
Clients may not execute the plan as envisioned due to budget constraints, lack of access to recommended products or simply because they misunderstood what to do. This can result in a final product that doesn't meet the your design standards and can't be photographed.
This then makes it hard to build your portfolio and create marketing materials that help you stand out (making it harder to find new clients).
Creating a profitable business using e-design services
If you are keen to pursue e-design as a service you'll likely need a combination of the following elements in order to make money...
1: Pricing strategy
Understanding how to price your services to cover your costs and generate a profit is crucial. This might involve offering different tiers of services at varying price points.
2: Excellent marketing skills
E-design is about scale so you need to learn how to stand out in a crowded market, which means investing time and money in social media, SEO and paid advertising.
3: Streamlined processes
To handle the custom, time intensive nature of the work you'll need streamlined processes for consultations, design, revisions and execution. The faster you can deliver the work, the more money you will make.
4: Cross-sell opportunities
Finding ways to offer additional services or products can help boost your overall earnings.
For example: shopping lists with affiliate links.
5: Team
If the demand for your services grows beyond what you can handle alone you will need to hire additional designers, customer service staff or admin support.
Thanks for reading and catch you in my next post :)
Clare x
Dr Clare Le Roy
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