Design Revenue Streams – Can You Think of Ways to Create More Revenue?

OK, all you lovely, loved, and faithful TD Fall’ers, it’s time to talk about creating revenue: finding alternatives to your regular design revenue streams. This notion came to us thanks to a recent article from the Business of Home website titled, “4 designers share how they landed their side hustle”.

BTW, while the phrase “side hustle” is massively popular these days, it seems to be a bit tacky to us and undervalues the importance of generating alternative streams of revenue. (But hey, maybe that’s just us?)

As the article’s author Marina Felix writes, “Creating an additional revenue stream in your business may come with a clear financial incentive, but that doesn’t mean it has to lack passion.”

Pump Up The Revenue (examples)

The following examples will be largely taken from the article highlighted above:

• Go ahead, get artsy

“The [painted] art walls [I make] called ‘Wow Walls’ came about in 2018 as a desire to have my interiors be a little bit more creative. I also wanted my clients to feel like they were the muse. Of course, they are the muse, but this gives them a larger-than-life mural that is inspired by them as part of the space. A lot of times the walls are part of my projects, and I have had some clients reach out to me for extra walls later on. I also have some people [who] call me … to have a mural commissioned like a piece of art [which] adds another layer of income for me. – Alicia Bailey, Bailey Li Interiors, Glen Ridge, New Jersey

• Memberships are All the Rage Today

“I always envisioned Jenni Kayne as a lifestyle brand encompassing apparel, home, and all the details of everyday living, and the apparel side of the business existed for many years before we decided to venture into home decor and furniture. I’ve always been passionate about interior design, and as we started to pursue brand projects … it felt like a natural next step to launch Jenni Kayne Interiors. While product design plays a major role in my work in interiors, in April 2022, we launched our membership program, The JKH Membership. For $150 annually, our members receive 20 percent off every furniture and home decor purchase—they also have access to exclusive perks from partner brands … JKH Membership is also open to designers through our trade program, so in addition to all of the perks that regular members receive, trade members get an exclusive 25 percent off all furniture and décor … [A stunning]70 percent of all furniture purchases are made by members. … and we have seen high renewal rates.” – Jenni Kayne, Jenni Kayne Interiors, Santa Ynez, California

• Preach It… Teach It… Workshop It!

“I worked at [hospitality brand] Sonder for a couple [of] years as a senior designer. I had people coming to me all the time – on LinkedIn, or friends of friends – asking, ‘How do I get into interior design? I really want to do it, and my job is not fulfilling.’ This happened so much that I thought there was really a need for something there that helps people with the business side of [setting up an interior design business] … When I created The E-design Workshop in 2019, there were a lot of up-and-coming websites like Havenly and Decorist that were hiring freelance designers consistently to serve their clients. It seemed like a good opening to create something useful that people want. It’s [become] kind of an evergreen thing.” —Rachael Simon, Rachael Simon Studio, Chicago

• Get to the Root of Your Creative Side

“I’m a fourth-generation artist. My family is full of women artists, painters, and musicians. I’ve always loved painting; I’ve just done it more as a hobby and a meditation. It was something that was part of my heritage, but I never knew how much of it. I worked for [the] textile company Holland & Sherry for a few years, assisting with product development and designing the showrooms … there, I learned a lot of resources and about color and texture. During Covid, when everything shut down, I pulled out my paintings and was like, ‘Oh, my goodness, I need to start putting this together in the textile form.’ So I started researching. I found a great local printer, and they use eco-friendly inks, which I really loved. Designing wallpaper was something that I just felt very moved to do, and I’m doing it slowly.” – Kathryn Hunt, Kathryn Hunt Studio, Mattituck, New York

What’s Up With That?

Existing as we do in such a creative industry, we find it surprising that so few of us figure out new ways to generate new revenue streams outside our comfort zones. These talented “industry pros” however, do not seem to have that problem.

Have you found ways to generate more income? Have you even thought about trying to? If you were to accept such a challenge, where inside yourself would it come from?

Remember, our hero Ted Fall remains available for business consulting to the luxury furnishings and design trades. Maybe he could help you brainstorm ideas to generate new revenue streams. Couldn’t hurt, right? So, go ahead and…   Contact TD Fall today.

Designer Business Tip – Refusing Work & Bad Advice

Today’s designer business tip is a response to a recent column from Design consultant Sean Low published at BusinessOfHome.com. In it, he answers a reader’s question about refusing work because a project might be too small. This, despite having worked with the clients before.

By now, you should know our stance on client retention, that existing and previous clients are your most valuable business assets. First, they already know and appreciate you and you know them. Second, they are much more likely to accept your project estimate and any additional, unforeseen costs that may come up. And finally, they are your best advertising for new client acquisition.

So, what is our problem with the advice given by Mr. Low?

Sean Low’s Answer Stunned Us

Before we go there, we need to get a grip on the question and who posed it. Apparently, the question was submitted by a reader with quite a high opinion of himself and the projects he does. Basically, after redoing the “whole house” in the past, he is hesitant to go small, claiming that “One even asked me to redo a powder room ... which is not really what I do.”

Unsurprisingly (to us at least), Consultant Low quickly proceeds to feed the designer’s ego by telling him that such small projects, even for repeat clients, might damage his reputation as someone who offers “transformational change” in his work. In other words, as he says, “You risk blurring the very business you are in.”

Further, he writes, “Third, and most important: You do not care about these small projects. And even if you did, you do not care the way some other designer will.” That is, newer, perhaps younger designers who are still trying to build their reputation.

“If you undertake large projects that offer a scale of change and impact worthy of your talent, wisdom, and experience, doing a project that does not offer that to you or your client simply cannot work. Other designers who are built for this smaller project—whether they are up and coming or if this is the work they most love (or both)—deserve this project.”

“Let your best clients pay the most and get the most from you and your firm, not the other way around.”

Our Answer is Different

As far as we’re concerned, while it may be true that your heart won’t be in it for a very small project versus a huge one, it should be for a familiar, well-paying, and valuable client.

We would also hesitate to say that accommodating such a client simply cannot negatively impact your reputation as a true change agent as an interior designer. On the contrary, it should enhance your rep as someone who absolutely believes in serving their clients and puts their needs first. All of their needs.

Additionally, small jobs like these can create opportunities to up-sell additional work or new furniture for example, or, to at least schedule a review for “freshening” other areas of your client’s home. And, for those designers who have assistant designers or juniors, it's an opportunity to pass the work off to them to create an additional income stream.

Needless to say, such a largely passive (for you as the primary) source of income could prove beneficial when we're in leaner economic conditions which is something that Sean Low completely overlooks.

Ultimately, for our designer business tip this week, the value of existing and repeat clients is far greater than Mr. Low’s “go-to” advice. Returning clients are 60-70% more likely to agree to work with you again than new clients. They are far less expensive to market to since they know and like you. And, they tell others about the great job you did for them, making them the cheapest form of advertising you will ever find!

For more deep insights and design business consulting, or for the latest and greatest luxury furnishings from Kravet and others, simply…   Contact TD Fall today.