HOW TO MAKE A SOLID LIVING WITH YOUR CREATIVE WORK
HOW TO MAKE A SOLID LIVING WITH YOUR CREATIVE WORK
I am excited for this next part. We’re going to do MATH!!
No no, wait! Don’t run away! I’m sorry I used the M-word!
I promise I’ll keep it super simple and straightforward, and honestly…?
The one simple calculation I’m going to share here can mark the pivot point between years of painful Cyclical Burnout and having the power to break free.
They were for me, and they can be for you.
If you want, I’ll even give you a calculator to do the math for you! Just hang tight and we’ll get there.
It’s a straightforward but multi-step process, so let’s dive in.
Set your goals based on your needs
First, you need to figure out the average price of your offer
📌 Jargon translation: Offer.
An offer is one thing of value you exchange for money. That “thing” could be anything you make or do: It might be a piece of original art, a printed book, a digital course, a theater ticket, your time and expertise creating a website, or your advice on how to get a better job, or really anything that you create that has value, that other people can buy.
An offer can be something like “commissioned portraits” that may include different dimensions and content each time, but it can’t be “any art I make” that includes murals, paintings, and digital prints. Those three offers are entail entirely separate modes of production, different types of delivery, and very likely different customers as well.
OK, now that we know what we’re talking about here, on average, how much do you sell your offer—your product or service—for?
I know figuring this out might be easier said than done! We’ve already established that you’re probably doing way too many things, and they probably all have their own price-points.
- Start by picking your best seller. Whatever you sell most often.
- You can also run numbers on each thing you sell and compare.
- Because everything I’ll be doing here is strictly “napkin math”—round numbers to give you parameters and indications for which path to choose going forward—it’s not crucial that you pinpoint these numbers exactly, so don’t get too attached to perfection!
OK! Ready to take your first step into investigating the Mysterious Mechanisms? Don’t worry, hold my hand, and I’ll help you through it.
Determine your sales goals
This number is the basis for Step 2 of designing your business to meet your needs: Establish your parameters: Time and money.
Your sales goal is extremely simple. How many of your thing do you need to sell in order to hit your Enough number?
- First, take an educated guess at what you net on a sale of your offer. If you sell a service, it’ll be close to 100% net revenue. If you sell a physical product, you should subtract materials, packaging and shipping, that kind of thing.
- You’ve already built your creative business overhead into your Enough number in a rough way—I instructed you to include studio rent, equipment, and app subscriptions. So that’s baked in here.
- Divide your Enough number by the net revenue on your offer.
That’s your sales goal.
Simple, right? That's 3rd grade math. Yet knowing this number is incredibly powerful. You'll see how in just a while.
Your sales goal is a lever that gives you control over the Mysterious Mechanisms
Your sales goal is not a fixed point. You can change it by changing what offers you're making, your enough number, or your pricing. But whatever it is right now gives you insight into what's going on with your business, and how to improve your situation. Only, not exactly how you think it does.
Here are three examples:
Let’s assume this person’s Enough number is $6000 a month.
Offer: Digital prints for $25
Offer: A self-led course for $300
Offer: A branding design package for $3000
Try yours!
What is your Enough number? | These are your sales goals based on your Enough number:
Want to try again with different numbers? Just update your fields and hit that calculate button again! |