Creating and selling crochet patterns might seem like a quick scheme to make easy cash on the side, and it might be for some. However, that is not the case for most people who run their business authentically and correctly, whether full-time or just as a side income.
In this post, I discuss the costs of owning a digital marketing business as a crocheter. I’ve recently came across comments from people who couldn’t understand why someone would charge money for a digital product that isn’t physical.
Disclaimer: The costs and statements made in this post are based on my personal experience as a pattern designer and reflect the current expenses I have surrounding my crochet business. These costs and statements may not be the same for everyone. These costs are based on current currencies and living expenses in South Africa.
The Rand is now 18.25 to $1. (This will not always be the same amount)
This post is not targeting anyone specifically; it is purely written for awareness and for people who genuinely don’t know why others ask for money for a digital product.
Designing Patterns: Tools and Software
The Necessity of a Laptop or Computer
The first tool for designing crochet patterns is a reliable laptop or computer. This is where you will create, edit, and store your patterns. A good quality laptop can be expensive, ranging from R10 000 to over R25 000.
If buying one outright isn’t feasible, many opt for a payment plan, which typically involves a down payment followed by monthly installments ranging from R350 to R650 for 24 months.
Design Software: Free vs. Paid Options
Once you have your computer, you will need design software to write, design, and edit your patterns. Canva offers free and paid versions, with the free version having limited features. Other software options for designing patterns are Procreate and Adobe Illustrator.
Most of these programs have a “Pro” option with a monthly or annual fee, which can get pricey. I pay a monthly cost of R240 for Canva Pro.
While free software can be tempting, investing in a paid version can provide advanced features and tools that make your design process smoother and more professional.
Photography: Capturing Your Patterns
Quality Camera or Smartphone
High-quality photos are a must for your crochet patterns. When designing a pattern and including a photo or video tutorial, the person following your pattern must be able to see where to insert the hook and other details.
A decent DSLR camera can cost anywhere from R8,000 to R20,000, while high-end smartphones with excellent cameras can range from R9,000 to R16,000.
If purchasing upfront is not an option, consider monthly payment plans similar to those for laptops, this can cost from R350 to R550 per month for 24 months.
Lighting and Props
In addition to the camera, investing in good lighting is essential to enhance the quality of your photos. Ring lights, softboxes, and attractive backdrops can make your patterns stand out.
These can cost between R500 and R1,500, depending on quality and brand. You will often need to invest in more than one.
Internet Costs
Reliable Internet Connection
To be able to upload your crochet patterns, videos, and images, a reliable internet connection is a must. This is especially important as large files can use lots of data and take time to upload.
Monthly internet costs can range from R850 to R1500, depending on the speed and provider. Even though our entire household is on the internet I still have to pay for the internet to be used and our internet is around R700 per month.
Running a digital business you need access to the internet 24/7, this includes having a phone contract with a good data bundle package or you’ll need to purchase a data bundle when you’re not going to be home.
Website and Banking Fees
Hosting and Domain Costs
Having your own website is not essential, but if you are considering getting one to sell your patterns or start a blog, there are a few monthly costs involved. Platforms like WordPress and Shopify are popular choices.
For WordPress, you will need a hosting company. I use HostAfrica for my domain and website hosting. I currently have three websites, and the yearly cost to keep those domains active is about R600.
You also have to pay a monthly hosting fee, which can range from R240 to over R1,000, depending on how large your website is.
If you want full access to the theme of your website, this will also include a fee ranging from R150 per month to a one-time fee that can be R500 or more.
Within the website, you can install features called “plugins,” which are like apps for your site. Some plugins also require monthly or yearly fees. Of course, many plugins have free options, but they often work best if you select the “Pro” option, which can start at around R400 or more per month.
Shopify plans start at R560 per month. Additionally, you will need to purchase a domain name, which typically costs around R185 to R250 per year.
Selling Platforms
If you choose to sell on platforms like Etsy or Ravelry, be prepared for additional fees. Etsy charges $0.20 per listing and takes a 6.5% transaction fee, a 4.5% processing fee, plus an additional R8 per pattern on each sale, and 15% VAT on each sale. For example, if you sell your pattern for R85, you will receive about R57 for your pattern. If you don’t make more than R1 500 on Etsy, you will pay an additional R30 to receive your money. You will also have a fee on your bank account for the money transferred by Etsy.
Ravelry, on the other hand, charges 3.5% per sale. These fees can add up, especially as your sales volume increases. Ravelry uses PayPal, which also takes a cut from the money deposited into your account when you withdraw it. Your bank will also charge fees when the money is deposited into your account. These fees apply to all payment gateways like PayFast and Zapper.
Banking Fees
Handling transactions also involves banking fees. PayPal, a common payment processor, charges 2.9% + $0.30 per transaction. Other payment gateways like Etsy, PayFast and other payment gateways mentioned above also have similar fees.
Materials for Designing Patterns
Yarn and Supplies
To create your crochet patterns, you will need various coloured, textures,s and weight yarn. The cost of yarn can vary significantly based on quality and brand. As a designer, you might need to purchase more yarn than you think you’ll need, especially when experimenting with different weights, textures, and colors.
Additional Tools
Beyond yarn, you will need crochet hooks, stitch markers, scissors, and measuring tapes. These tools are generally inexpensive, but the costs can add up.
Taxes and Accounting
Paying Taxes
Once your crochet patterns start generating a steady income, you will need to pay taxes on your earnings. The tax rate depends on your location and income level.
Hiring a Bookkeeper
If managing taxes and bookkeeping isn’t your forte, hiring a bookkeeper might become necessary. A bookkeeper can help you track expenses, manage invoices, and prepare for tax season.
Their services can cost anywhere from R600 to R1,000 or more per quarter or once a year, depending on the complexity of your finances and who you choose to keep track of your books. I was very lucky to find a bookkeeper who works with small handmade businesses and adjusts her fees based on your income, but not everyone is that fortunate. Having a bookkeeper can become a significant expense.
Additionally, once you fall into the tax-paying bracket, you will need to set aside a certain amount each month to pay your taxes, usually around 15% of your monthly profit.
Marketing and Promotion
Social Media Advertising
Promoting your crochet patterns on social media platforms like Instagram, Facebook, and Pinterest can help increase visibility and drive sales. While organic reach is valuable, investing in paid advertising can amplify your reach, especially at the beginning of your business. In the beginning, I ran monthly social media ads on Facebook, spending about R250 to R450 per month. This is optional but a cost to keep in mind when starting or running your crochet business.
Email Marketing
Building an email list and sending regular newsletters can help you engage with your audience and promote new patterns. This is also not a must at the beginning of your business, but many who take their crochet business seriously will recommend you start one. Many of these email providers do have a free starting offer, but as your subscriber list grows, you will have to pay for this service. Popular providers include Mailerlite, Mailchimp, and ConvertKit.
Plans can start as cheap as R250 a month but can grow up to R6,000 a month, depending on how many subscribers you have and which provider you are using. I’m currently paying R800 a month for my email list of about 2,000 subscribers.
Additional Considerations
Education and Skill Development
Continuing to develop your crochet skills and staying updated with industry trends can give you a competitive edge. Investing in online courses, workshops, or tutorials can range from R300 to more than R1000, depending on the course. I have done a couple of courses and they have cost me anywhere between R250 to R650 per month or once off.
Tech editor and testing patterns:
Depending on the pattern you design, most designers who create wearable items need a tech editor to grade the sizes and ensure that the stitch count for each size of the garment is correct. This service can cost anywhere from R450 per hour or more, depending on the fees of the tech editor.
Conclusion to pattern designers and the cost surrounding designing and selling patterns.
Starting a crochet pattern business involves many costs that many don’t take into consideration or even realize.
While some might think that a crochet designer simply types out a pattern, takes a couple of pictures, and starts making money, I hope those people will now realize it’s not that straightforward. Hoping this post sheds light on some of the costs that designers face when designing and publishing a pattern
. There are cheaper options to design and sell patterns, and some of the costs mentioned above aren’t always necessary, but that will depend on how serious the person is about their business. Knowing that a designer who has taken all of these measures mentioned above will ensure that you are paying for quality patterns. Each pattern you pay for is worth it because the designer takes the time and money to provide you with a high-quality product and a great experience, whether it’s your first or hundredth pattern.
I hope that this post will inspire people not to judge a designer so quickly for charging for their patterns. And that after reading this would educate others on this topic.
