Passive Income Digital Design Bootcamp - How to Price your Digital Artwork
Welcome back everyone! Today we are going to discuss how to price your digital artwork. This can be a tough subject for some with such a competitive market out there, but it's SUPER important not to sell yourself short. You want to ensure people know you are providing QUALITY files and not something that has been poorly traced or other poor quality issues.
If you've been following along, this is the 7th Lesson in the Bootcamp Series. So far we have covered:
- Choosing Your Market - This will get you honed in on a specific niche to work with
- Branding - Generating your brand so you can get recognized
- Goal Setting - What you’re working towards.
- Time Management - How to manage your time to ensure you stay on track
- Trademark and Copyright - Making sure your designs do not violate what someone else has already protected.
- Understanding License Types - The difference between commercial and personal and how you can incorporate these into your items.
So let's get started!
Importance of Properly Charging for your Files
A lot of people ask WHY it is so important to properly charge for files. You probably see a lot of seller shops selling single files for a dollar or less, which makes you wonder, "Should I be charging the same amount?"
The answer is simply NO. We all put a lot of time and effort into our design work and it is critical to communicate to your audience that you provide great work for a competitive price. The most important thing I can communicate is
Don't sell yourself short and don't worry about what other people are doing
I got caught up in that for awhile. When I first started I was charging $2-$3 a file and not gaining a lot of income from it, now my base minimum price is $3.50 on Etsy and my website and $4.00 on Design Bundles (the default).
The lower prices on an item the lower quality people think your files are worth.
How to Know What to Charge
So now that we know why price point is important, how do you know what to charge for a file? This can get a little subjective based off of how much time and effort you are putting into something. I'm going to charge a lower price for a few fonts manipulated on a file versus something with graphics and color and flourishes. In the same instance, for the same pattern colored differently, I will charge less than a pack of 12 individual patterns created.
Time is money, remember that! While we continue to make money off of one file, you want to charge what someone would be comfortable paying.
When I price files I often think "What would I pay for this file?" and then price from there. I'm always adjusting prices and providing discounts so keep that in the back of your mind as well.
You also need to take into account any fees that may come along with where you are selling.
For example on Etsy
- Etsy charges $0.20 to list an item
- If you have the item on Auto-Renew you will be charged $0.20 when the item re-news after its sale
- They then charge 5% transaction fee
- They also charge a 3% PAYMENT transaction fee + $0.25 in the United States
So let's break that down for the following
Profit on a $1.00 Listing
- Listing of the item $0.20 ($0.80)
- 5% transaction fee $0.05 ($0.75)
- $0.25+%3 Transaction Fee $0.28 ($0.47)
So for a $1.00 listing you literally have earned $0.47 cents because more than HALF is taken in fees. Consider the fact that it will be relisted for $0.20 if you have auto-renew on and you're looking at $0.27 profit. Going to take awhile to add up right?
Profit on a $3.50 Listing
- Listing of the item $0.20 ($3.30)
- 5% transaction fee $0.18 ($3.12)
- $0.25+%3 Transaction Fee $0.36 ($2.76)
So for a $3.50 listing you have earned $2.76 a HUGE difference between the above. If you take into account you relist for $0.20 then you will have a total profit of $2.56. These profits will add up MUCH more quickly.
Charging for Single Files
A lot of people will charge a certain price for single files and then bundle them up. Here is what I normally charge for single files:
- Text only no images/designs - $3.50-$4.25
- Text with limited images - $4.00-$4.25
- Images, all black, some text - $4.00-$4.75
- Images with color and text - $4.25-$5.00
You don't normally see single digital paper or clipart files in one listing so I will cover those below in bundle charges. If you're working with sublimation designs you're always going to have color and patterns and what not, so I always charge a minimum of $4.00 and work my way up from there depending on size and complexity.
Charging for Bundles
Bundles are multiple files together to make some form of theme. They can range from 3 files to over $100. It really depends on what you're comfortable pricing at. There are some people who charge $5.00 for 100 designs and that just isn't my cup of tea. It may be for you though.
Again, this is subjective, however I tend to take however many files I have and charge $0.50 to $1.00 a file. I never drop the price below $0.50 a file in bundle format.
For example a bundle of 100 files I wouldn't charge any less than $50 UNLESS they are very basic quote text files then I may drop it down to $20 (or 80% off)
If you need some help pricing a bundle feel free to shoot me a message.
I base this off of multiple designs in one pack or one design with multiple color combinations. Generally a safe pricepoint for papers is $4.00-$8.00 not to exceed $8.00 unless it is some crazy intricate work!
- For a single paper pattern I charge $5.00 (multiple colors of one design)
- For a paper pack of 3-6 different designs I charge $6.00.
- For a paper pack of 6-12 different designs I charge $8.00.
Clipart is a tough one to gauge. It's subjective depending on how many elements/graphics you are supplying. If they are very intricate and well done you want to price accordingly. I always recommend browsing around and getting a feel for what everyone else is pricing at and start there.
The next lesson will cover where to sell your files, so stay tuned for that. If you have any questions PLEASE let me know.