Yesterday afternoon I got an email from John Levisay, the CEO of Craftsy. He was positive and upbeat. He’s read the post and all of your comments and he’s written an open letter to us. I admire a company that listens and is willing to engage openly in conversation. Here’s John:
Recently, there have been some blog and social media discussions on Craftsy’s role in the industry. We are very committed to transparency, so I hope this letter can answer some questions and clarify a few important points. In particular, I’d like to talk about the interrelationship between inspiration, education, and physical products, as well as how the online and offline world can co-exist in harmony.
Education
When we founded Craftsy in 2011, our goal was to change the way passionate enthusiasts learned their craft. At the time, the existent modalities for online learning were frustrating and subpar. We wanted to democratize affordable access (no matter where you lived or how hectic your life was) to the best instructors in the world and as a result help reignite growth in hobbies which have been deep areas of passion in my family. We have invested heavily in creating the best online learning platform in the world. As a result, millions of people have been introduced to fantastic designers, amazing instructors and re-engaged in knitting, crocheting, sewing and quilting.
We also believed from the start that it was vital to compensate our instructors very well. Craftsy instructors are not only great artisans, but incredible educators. We wanted to give them a conduit to make a living doing what they loved while taking care of all of the heavy lifting on their behalf in digital marketing, video production, and technology. To date, we have paid instructors over $10,000,000 based on the success of their classes. The vast majority of our instructors have had a wonderful experience (as have we).
Education and increased engagement in a craft naturally creates demand for the physical supplies and materials required. I sincerely believe, and research proves out, that this rising water “lifts all boats” in the industry, whether you are a teacher, an online marketplace, a manufacturer, a designer, or a local shop. In other words, our goal is to grow the overall pie for everyone. We are thrilled when we hear the frequent stories from local shop owners of people walking into their shops with materials lists printed out from classes they are taking on Craftsy.
Physical Products
Local yarn and fabric stores are the grassroots hub of the hobby. The owners care deeply about their customers and are ardent advocates of the craft. I come from a small town in central Illinois, and have a lot of respect and admiration for local shops. Over the last 20 years, big box retailers have put a lot of pressure on local stores. No matter what the industry (See: Wal-Mart, Best Buy, Guitar Center), the phenomenon has been tough on local businesses. In my personal life, I relish spending time in local guitar shops. I love the smell, the sounds and the people. It’s always my first option versus a chain or the Internet.
But many people do not live near a local yarn or fabric store. Perhaps they are homebound. Sometimes the local store doesn’t happen to have exactly what they need to complete a project. This is why our community asked us during the first few years of the business to offer fabric and yarn for sale. This secondary progression beyond big box retailers towards Internet retailers has taken place in almost all industries (Gilt Group, Zappos, Zulily, etc.), and is now gaining traction in the craft space. It’s an inevitable migration for a portion of the industry as expanded access provides an important benefit for many in the enthusiast community, while growing the overall market for all constituencies.
Our entrance into the physical products realm also had a financial component. We are a for-profit business and have a lot of engaged customers in the knitting, crochet, sewing and quilting disciplines. We try to price products such that they are affordable to the average consumer. Depending on manufacturer stipulated MSRP, we sometimes offer discounts on products as doing so makes the products more accessible to a larger group of people. Keep in mind that one of the important differences for customers when they buy online vs. in a local shop is that they have to pay to have the product shipped to them. A product priced at $7 on Craftsy (with $4.99 shipping), costs more than a product priced at $10.00 at local store. Some online yarn and fabric retailers attempt to obfuscate these discounts to manufacturers and local shops by offering coupons or free shipping for their products, but ultimately customers are very savvy. They do the math.
We feel there is an important role for both online and offline retail for yarn and fabric. Most of our customers who are in proximity to a local store will always go there to buy a good portion of the supplies they need. People love seeing and feeling the product, as well as talking to likeminded folks in the store. They tell us this, we encourage it, and see it as an important and persistent part of the hobby.
As a compliment to the many brands of fabric and yarn currently in the market, our customers have told us that they would like to see additional high quality, affordably priced, options. Thus, we have decided to launch a limited line of fabric and yarn only available on Craftsy. We have no intention of becoming a “Branded House”, but rather a “House of Brands”, offering a full line of traditional branded products, as well as some exclusive lines.
Whether we like it or not, we are all competing with Amazon in this new world order, so from our perspective it would be wonderful if the rest of us, who all do truly care deeply about the industry, all get along. It is not a zero sum game, we all want the same thing, to grow enthusiasm and passion for wonderful hobbies.
Inspiration
Pattern designers are the equivalent of songwriters in our industry. They write beautiful music and lyrics, and other people interpret and play their songs. They are an absolutely critical part of the inspiration that drives people to “make”. Just like music, there are a lot of people who can play guitar, but not a lot who can write a great song. To complete the analogy, pattern designers can see a skein of yarn or a swatch of fabric and conceive of an end product, whereas most of us just see….well, yarn and fabric.
As I mention in the opening, our primary product is education. But most people don’t wake up and think, “Today is the day I am going to take a knitting class”. This is one reason why we created our pattern marketplace. Knitters, crocheters, sewists (sewers if you prefer), and quilters all need inspiration in order to drive the desire to seek education. We have always viewed the Craftsy pattern marketplace as a vehicle to inspire people to take a course or buy product, and not a direct revenue center for Craftsy. We believe deeply that pattern designers deserve to monetize their expertise. In just the last few years, independent pattern designers have earned over $8,000,000 by selling patterns on Craftsy, and we have not taken one penny from those transactions. In addition to the paid patterns for sale on the site, designers can also offer free patterns. Free patterns are not a new concept. Some designers see it as a great way to garner exposure to customers and subsequently monetize their paid patterns, other products, or they simply like the notion of encouraging inspiration.
Not only does Craftsy provide a venue for pattern designers to earn a living by marketing their patterns to millions of customers, but we also pay designers directly (both an upfront fee and/or a revenue share) to create custom kits and projects for Craftsy customers. We have paid designers hundreds of thousands of dollars in this manner over the last two years, and plan on scaling this program up over time. Occasionally, we also ask designers if they would like to create free patterns for a given high profile project. When we’ve done this, we definitely have not intended to offend anyone or to convey that we do not value their wonderful work… quite the contrary, we strive to create opportunities for the design community and the enthusiast community to come together and mutually benefit. Participation is always optional and understandably while some designers love this, others choose not to participate. We recognize that this is a sensitive subject and that this week we accidently touched a nerve… I offer a sincere apology to anyone we unintentionally offended.
Conclusion
Each day at Craftsy, we all show up excited to work as hard as we can to nurture, grow, and evolve what we consider to be a great and pure purpose. We want to help inspire, educate, and provide product to people around the world. We believe this helps the hobby overall. We are not always perfect. We run fast and sometimes make mistakes. We strive to be good citizens in the community, serve our customers (and I mean all of our customers), and work together with the manufacturers, designers, local shops and others in the industry to help make everyone successful.
I hope this letter answers some of the questions or misconceptions people may have about Craftsy. I tend to be a private person, and eschew “open letters” of this nature, but felt it was time to clear the air on some things.
If you have questions or thoughts, please feel free to email me at johnl@craftsy.com
Sincerely,
John Levisay
CEO, Craftsy
BeckyinVT says
“We recognize that this is a sensitive subject and that this week we accidently touched a nerve… I offer a sincere apology to anyone we unintentionally offended.”
Pretty words don’t pay the bills. Are you going to offer an apology and some payment for free patterns? Knitty magazine offers free patterns to the public but has ALWAYS recognized that the designer deserves to be paid. Recently they began crowdsourced funding to INCREASE how much they can pay designers.
Free content may amount to some publicity for designers, but it rarely translated to more sales of other patterns. All this free content will amount to a LOT more profit for Craftsy. Pay us for our work, don’t just patronize us by calling us “songwriters.” I can’t pay my tech editor in flattery and pretty words. (and, incidentally, aren’t songwriters also badly paid? how is that a good analogy here??)
Brigitta says
You’re right, Becky. It’s a very good analogy for what’s really going on here, and likely not in the way he intended. As someone who worked in the music industry for about a decade (during the iTunes-fueled label collapse, in fact!), I’m keenly aware of what happens to artists’ revenue streams when consumers are conditioned to expect “free songs”.
I would suggest that Craftsy at least offer the pattern designers something akin to songwriter royalties for the free-to-consumer patterns. Because that’s what songwriters get (when they aren’t flat-out ripped off) – ROYALTIES. Something like X cents on the dollar for every however-many-sales of tie-in classes and supplies. It’d be easily trackable using the buyers’ e-mails and purchase histories. That way, not only is Craftsy making themselves look less dicey by actually paying for the right to this creative content, but the designer now has a reason to promote it to their people, which could further expand Craftsy’s customer base. Everyone could benefit in a tangible, financial way. I just don’t understand why they wouldn’t want to set up a system that better respects and rewards their talented content providers.
And thank you, Abby, for being a voice of reason that speaks strongly enough to get CEOs to respond to community concerns!
Deb Grogan says
I am not sure how many of you checked lately but a 1/4 page add in a trade mag would cost me in upwards of $500 for a small add….a bit larger than a business card, that would run once……
If I were to do one free pattern for Craftsy I could easily make up for that in the numbers of people who would see my pattern and what else I had to offer. In fact you are not getting NOTHING in return for your pattern, you ARE getting a good deal of exposure….that may not be good for some people, for for those trying to get their name/brand out there, its a perfectly acceptable move…..
I would much rather look at it as part of my cost of doing business and part of my advertising budget. I would rather give up a pattern than the cash…..
Is it shrewd on their (Craftsy’s) part? Absolutely, but a designer always has the option to say NO……….
Abby says
Right. The designer always has the option to say no. That doesn’t mean that we shouldn’t put pressure on corporations to pay designers for their work in money rather than exposure.
Julie Creus says
In my experience, it’s not really good exposure for the hired designer.
I was hired to create some patterns for kits for a fabric company. Part of the pitch was that I was going to get gangbusters exposure to the 6 million subscribers to Craftsy. Small problem- my name was buried 2 links behind the project and description. Virtually unfindable unless you clicked on that exact kit ad.
I will add that even if you would have used the search box at that time to and entered my name or business, you would get nothing.
(Now that I sell my own patterns on Craftsy, you can find me by my name or business. 🙂 which I’m pleased about. Ironic too, since they earn nothing on the pattern sales… Go figure.
Kathie W says
Thanks again Abby for bringing this to the attention of those of us who may not be in the industry but love the crafting. I must say, John Levisay has a well written response.
As an interested consumer of Craftsy and one who has taken their online classes since they were Sympoz, I appreciate knowing the background of a company.
Though I respect all that John’s letter espouses, there is one difference I’d read in an article a few years ago about why they chose crafting videos. I apologize for not referencing where I read said article but in it Craftsy discussed their beginnings. In it they explained that they started off with offering several different types of courses in order to research which area would be the best to market (basic business practice for a successful company startup). To their surprise, it was the crafting (sewing, quilting, etc.) videos that were by large the highest percentage of sales. Thus “Craftsy” had its target market.
Coming from a business background, I found this interesting at the time. I mention this just as additional information to the above article.
Hopefully as Craftsy continues to grow, they will be respectful of the independent designers and crafters who are also running a business.
Susan says
I think this is a great letter. Thanks for posting it on the heels of your other Craftsy post! I think it says a lot about YOUR place in this community, Abby, that a post from you can generate such a thoughtful response in such a relatively short time.
I hope he eventually answers my question about “ethical sourcing”, though…I’m not saying it’s the role of Craftsy to lead the way in responsibly and sustainably made products, but if they claim they’re going to be ethical, I hope they back that up.
Jesse Lu says
The bottom line is this: if you don’t pay people a fair amount for their labor, you’re not paying people a fair amount for their labor. Period.
Competition, blah blah blah, exposure, blah blah blah. If we want to live in a culture where we are fairly compensated, we have to compensate others fairly. If you are contributing to the problem, you are contributing to the problem. As a consumer, a distributor, a manufacturer, an investor, whatever your role. No amount of sweet apologies or pointed blog comments is going to change that. Individually, each of us has to make a choice about what we support with our $$$. Cheap is an ogre of temptation, in any market.
You don’t want LYSs to go under. Buy your yarn there.
You think it’s such a shame that you have to compete in an Amazon-business culture. Find another way to compete.
Just saying.
Amy Shelton says
If Craftsy were truly concerned about the designers in this situation, they would be offering the free yarn support with no strings attached: Let the designer choose whether to offer a free or a paid pattern.
Instead, Craftsy is really only looking out for their own bottom line. They know that it is much more likely their customers will purchase a brand-new yarn without seeing it in person first if there are FREE patterns for the yarn. They want to use these free patterns to drive sales of their yarn. So Craftsy gets the yarn sale profits. What does the free pattern designer get? Nothing of value. We all know it’s not very likely that the customers attracted by the free patterns are going to suddenly start purchasing a high volume of paid patterns from these designers.
Yes, it’s wonderful that Craftsy has compensated designers fairly in their other product offerings. So why not keep up that same tradition and not expect the launch of this new yarn line to be funded partially on the backs of the designers, with the designers getting no compensation at all? Craftsy, do the right thing: Change your offer and leave it up to the designer whether they want to offer a free or paid pattern. And then be sure to offer equal promotion for ALL patterns using your yarn.
It is Crochetville’s firm belief that this industry does best when we find win-win-win solutions for everyone involved in the process. It is not right at all for a company with millions of dollars in funding to expect designers to help them make MORE money without any compensation.
Jennie says
First and foremost his job is to be profitable. If you look at this as an advertisement proposition only then you are probably right. One single free pattern is probably not going to win over many customers to your pay for patterns. Of course you have time, tools and the actual drafting of the pattern plus writing the instructions for that product. They are giving you the materials to create the product. So, perhaps from a simple point of view of advertisement the customer returning to buy product from you could be as high as 25 free patterns to 1 return customer, or as low as 1000 free patterns and one return customer. No one really knows. I know when I buy a pattern and the instructions are, wrong, misspelled, or confusing I’m not coming back and unfortunately I find that more often on indie patterns than on mass produced patterns. Simply because there aren’t as many checks and balances on indie patterns, but I’d really much rather buy those than mass produced patterns.
Let’s look at this from something other than advertising yourself, your talents and your patterns. Let’s look at this as a payment for allowing you to post your paid patterns for free. No listing fees, no bank fees, no percentage of sales. Sort of a you scratch my back and we’ll scratch yours. Is that worth your time?
There is alway 3 sides of any story. In this case it’s how he’s trying to build a company, how you are feeling undervalued and put down. The 3rd side is always what’s really happening. You want and need to sell your patterns and make the most money you can for your families, but Craftsey actually owes you nothing. You haven’t been paying for sales space. He wants you to help him be profitable for 2 reasons. He wants to be profitable and he feels he’s helping the indie pattern makers along the way.
He also feels that it isn’t his job or moral obligation to help every brick and mortar whether a chain or a mom and pop store stay open. He does not even see them as competition because he is selling in the world of e-commerce. Those that shop locally do it because of the customer service that they receive, if the staff is kind, will help them by answering questions, getting you out of the what did I do wrong, I followed the instructions to the pattern. Just a thought but how many brick and mortars allow you to sell your patterns without any benefit of profit to them?
I appreciate you taking the time to read my opinion. Please keep in mind that my opinion it’s not for or against either side or personal in any way. It’s simply business 302.
Abby says
Just to clarify, this call was for knitwear designers to create an exclusive free pattern for Craftsy to use as pattern support to sell their new yarn line. The pattern would be distributed to customers who purchase the Craftsy-branded Cloudborn Fibers yarn. It’s a way to sell more yarn. This isn’t about the Craftsy pattern marketplace.
Jennie says
Abby,
Are the designers they requested a pattern from for this project from the list of designers who sell their patterns at Craftsy Pattern Market Place?
Abby says
I don’t know where the list of designers came from. To a certain degree Craftsy’s mistake was in contacting knitwear designers who have very well-established careers and profitable businesses already. This call would likely have been more appreciated by designers who are just now making the move from hobby to business. It rubbed many of the established industry designers the wrong way for sure.
Jane Hazen says
Jennie, your analysis of three sides thoughtful. After reading other responses, clear that Abby is correct that Craftsy may have miss directed their invitation. I’m sure many of us brilliant and talented wannabes would have loved an invitation to give away one of our huge stash of never-seen designs for an opportunity to have our name on Craftsy website! Even if only to direct anyone besides family to our new blogs!
Interesting to know that as we wannabe makers gain fame and fortune we appear to get increasingly more sensitive of our “professional” status. . . too bad no voice or respect entitled to so many of us working minimum wage uncreative jobs at local b&m indies or local big boxes? What few b&m indies in my neck of the wools use online sales a bread and butter with face-to-face as icing on cake. How’s that for mixing metaphors?
Maybe more sensitive well-paid designers could forward their invitations from Craftsy to a wannabe?
MuseFood says
Corporate responsiveness is always a very good thing. And impressive that Abby’s fine work commands swift attention.
It’s a thoughtful letter. And certainly we can all appreciate Mr. Levisay taking the time to respond at such considered length, expressing both concern for his customer base and clear love of crafting.
But nothing seems to be changing. Craftsy will be launching Craftsy brand patterns to encourage sales of Craftsy classes and Craftsy sold supplies without paying the designers. And that practice will be baked into the future business model.
They could, instead, become known as the best paying creative outlet for designers on the internet – patterns, classes, every possible area. Would require very, very little dollar investment as there are few well-paying creative outlets. And would be extremely smart business for Craftsy and their backers. The amount of blogging, tweeting, and loyal support they would get in free PR – now and for years to come – would be enormous.
It would also offer cover and help mitigate their intended leading of the inevitable undercutting of prices of commodity yarn, fabric, and whatever else offered in their “House of Brands”. Mr. Levisay is, of course, right about the reality of cheaper and more convenient access to product on the internet being unstoppable in any profitable category.
As much as he may hope LYS’s and charming fabric boutiques continue to prosper from Craftsy classes, it seems unlikely Craftsy will fail to link their own well-priced products to class material lists. Not linking would be poor biz. Cross-pollination is always wise.
Mr. Levisay mentions they don’t take a cut from downloading patterns now – and, yay, for 8 mil to designers. How wonderful. (Though who could object if they did take a fee for non-free patterns. To do so would be expected and fair. Likely more trouble and require more staff than it’s worth, as that would mean processing the sales. Current structure means free content for little trouble. And a lovely service for everyone.)
But now there will be Craftsy brand patterns for Craftsy sold materials. Will the future business model assume that Craftsy is not going to pay for Craftsy brand designs in any category to which they expand?
It is wonderful that talented teachers are enjoying good income teaching on Craftsy. And that people enjoy learning. And people can so freely post their pdfs for sale. But a business built on celebrating creativity would be well served by an ironclad mantra of “We always honor creative talent.” Which means: no spec work and always pay the “songwriters.”
Andi says
Thanks for posting this open letter, Abby.
It’s incredibly disappointing to read what is basically a faux-pology. The initial request for free patterns was a bad choice, but what a company does after a misstep says more to me, and this letter that doubles down on the bad choice doesn’t say anything good to me. There’s an apology for causing offense, but there’s nothing that says there will be any change.
I don’t see any sign that Craftsy cares about the issues raised in your previous post and the comments. They’re just trying to brush everything under the rug.
Alli says
I think it’s great that he responded to your blog post; that was a very nicely written (and looong) letter.
However, nothing he said makes Craftsy’s practices seem better to me. He says that he loves going to local shops… but Craftsy is still going to continue on the track to becoming like the big box retailers that put local shops out of business by undercutting prices.
Also, it irritated me the way he dodged the pattern kerfluffle by saying that participation is optional. No one was upset about the optional part; they were upset about the asking for actual design work in exchange for “exposure” part.
Ehhhh, this whole thing has really tarnished Craftsy’s image for me. But thank you for doing such excellent writing about these topics, Abby! 🙂
Jess says
If they are supportive of independent quilting and sewing shops, then why advertise and offer the affiliate program to Joann Fabrics? Especially in areas where they are within a couple miles of each other. :-/
Abby says
It’s not only advertising or having an affiliate program with Joann’s. Craftsy is literally in Joann’s. Here’s how the Joann’s looks in Denver, complete with the Craftsy classroom: http://blogs.denverpost.com/tech/2015/03/05/craftsy-expands-classes-offline-sort-inside-local-jo-ann-stores/16080/
Jess says
This makes me very sad.
Jennie says
Not in the past few months here in the Phoenix area, since they are now on board with Create and Craft TV, who is owned by Craft Retail Group, which is part of a company from the UK. They have their own shows and have it playing in a few places around the store touting their products with Buy Me Project kits, tools and Materials. I understand from a manager from my local store that they also have a new corporate buyer just for this TV venture. I’m wondering if they are trying different things in different areas?
Abby says
Interesting! Thanks for this.
diann mize says
Hmmmmm……this seems to change the the ENTIRE picture for me……somewhat nullifies his ‘nice’ letter.
Patricia Belyea says
Thank you Abby for being an advocate of crafters, makers and artists. Craftsy can’t help itself—it’s in a perfect position to be big and grow bigger. But if Craftsy becomes too big, so much will be lost. You have created a platform and a community that appreciate the opportunity to have a voice and be heard. The best part about this is that Craftsy listened and responded.
Leah Kabaker says
Sorry, I have to laugh. I remember the days when Amazon was this amazing young upstart that was going to show the big box stores that there is room for the little guy. So at what point does a company go from being a ‘good’ little guy to becoming the bad big guy.
I wish Craftsy all the success in the world, and I as a consumer am grateful for all the competition out there. Of course I’m a big believer in capitalism and the free market, protectionism only benefits a few of the bigs guy at the top.
Elise says
This sounds like the Taylor Swift-ITunes rift. Her point, and she won this fight was…musicians don’t ask for free iPhones to promote their music. Why did iTunes refuse to pay musicians for their work to promote their new music service? You may appreciate the race to the bottom so you can get low prices, but in this case, the people who work hard to create these patterns are giving days, weeks, and months of their hard work hoping to get some sort of payback down the line. Since craftsy will be making lots of money from the sale of related products, why don’t they pay the creators and give the patterns for free? They would still make their money, and they would be allowing the artist to eat and pay rent.
Melanie Ware says
I am right there with you on this one.
Joan says
I publish patterns on Craftsy. It is the only place where I can get international exposure while I am trying to develop product. I offer one free pattern that has been downloaded nearly 1,400 times, and I have those 1,400 email addresses at my fingertips, thanks to that sales model. There is no other outlet that I am aware of for offering my patterns for sale online at no charge while I am saving pennies (literally) to pay for printing, packaging, supplies and other costs of doing business. Craftsy grew fast, grew right, and never forced anybody to do anything. I will do business through them for as long as I need them, or until they eliminate their .pdf sales service.
As an avid quilter, sewer and designer who finds herself in suddenly reduced circumstances, and who must use her sewing skills to pay the bills, I have no choice but to comparison shop, and often the big stores, online or brick-and-mortar, win the price war. I have no local quilt shop, no local yarn shop, and drive 500 miles a month to teach classes out of state. Every penny counts. And I work 25 hours a week at JoAnn, cutting fabric, dispensing expertise and advice, and ruining my knees.
Villify me if you must, but I am doing what I have to do to put groceries on the table and break into a tough market. I challenge local shop owners to stock patterns by new designers and support their designs by offering classes based on their patterns.
And now I am off to pack products for shipping, print class materials, and test a new idea I had this morning. Have an excellent evening.
Rebecca says
This is a great oerspective. Thanks for adding it to the conversation.
Milda says
Thanks for your thoughtful opinion. I was a bit confused with the tremendous amount of people upset over this issue. While I do understand the need to be compensated, it seemed also to be to be a basic business tactic. If you read most any decent business book ex. Cialdini’s “Power of Persuasion”), the rule of reciprocity is always mentioned- honestly and transparently giving away a product or service for free. The thinking is that it will come back to you- sort of like business karma. Business Coach guru Marie Forleo talks about it all the time. ….which is why I thought it was odd that people were upset they were asked (not told) to give away patterns for free. Can’t you just say no if the arrangement doesn’t work for you? Isn’t this kind of like when companies ask you to record a video of yourself or give a testimonial in exchange of being entered in a contest to win prizes and cash?
I’m a designer, building an online pattern company. Once I launch, I will offer patterns for free on my website, and hopefully, on Craftsy. There is no way I can get better SEO than Craftsy already has- and by offering a free pattern on their website, will increase my visibility in the online world regardless. They are essentially, offering me free advertising. Will it translate to sales? There is never a guarantee with advertising in any platform, and it’s an experiment like putting an ad in a local paper, or on Facebook. SEO is a detailed and ever-evolving process with moving parts. You have to stay on top of it. But it will most likely help, and all I have involved at this point is my own sweat equity.
Unless there is something I’m not understanding about the Craftsy “ask”, it seems legit to me. And this is coming from a designer that has worked in the fashion industry for 16+ years. My pet peeve, in fact, is clients asking for freebies and absurd discounts. With established clients that will most likely repeat business, I will always offer discounts or even sometimes, work on trade. Because I know I will most likely get residual work, or a referral. To new or unestablished clients, I rarely offer this. I would see Craftsy as a “established client” in this regard-they are a growing lion in the DIY world, and it makes sense to work with them to help myself. If I become the next Pattern/ Sewing Guru of the Internets, then maybe not. Maybe I will offer it only on my website. But that will be my decision on my own intellectual property, and I won’t get insulted if Craftsy asks me for a free pattern.
Lucy says
Thanks for posting this, Abby! Excellent and graceful letter. He is right about everything. This is the way customers and markets work, and the internet has accelerated these changes. Do the people who are upset by this forgo the internet and power pricing on everything or just the craft market? Do they only buy books at local independent book sellers? I bet Dillard’s is unhappy now that I buy my shoes online from DSW! Better selection, better prices, and more convenient. The paper delivery person could be upset that I get all my news online. Some company and its employees lost out when I gave up my landline. The old typewriter companies were probably upset that I only use computers! I have a feeling that most people who are upset by this make similar personal purchasing decisions that hurt businesses, but are simply more focused on this one industry – just as the Craftsy CEO happens to like guitar shops.
I always try to get the best deal – sometimes that means scouring everywhere for the best price so my dollars stretch further; sometimes that means paying more at a small machine dealer because they offer all kinds of value in return for those premium prices. But I don’t know of anyone who would buy everything – sewing or otherwise – at a premium price when other options are so convenient and appealing.
If you have a local shop nearby and like it, shop there and keep it in business. But don’t get mad at and tear down a company that recognizes an opportunity to serve many customers very well. You don’t have to buy from that company. There is room enough for everyone who offers value at a price customers are willing to pay. If you cannot compete on price, beat the deal on value!!
Karen Lukac says
I have been in the quilting industry for almost 15 years, first as the owner of a large store, which I was able to sell successfully, to the owner of a retail outlet/e-commerce store and a quilt show vendor. I was forced to change with the times since I couldn’t depend solely on local walk-in trade.
I also design patterns and kits for my own sales. I have heard customers in my booth, within my earshot, discuss with their friends how they only need to buy one of my patterns since they can make copies for their buddies. There goes copyright integrity. That’s another issue.
When the JoAnn’s opened 5 miles away from my original store, I saw my sales plummet. As the internet became a growing force, I saw my sales plummet. I started to quickly put the inventory online so I could compete in that arena. Today, selling online is like spitting in the ocean no matter how much SEO I do. Craftsy doesn’t help, no matter how pretty a package Mr. L. wraps it in.
To make matters worse, the larger quilting organizations AQS (no, it is NOT a non-profit organization), Quilts Inc., Original Sewing (now owned by some large non-craft related organization), have added so many shows around the country that none of the shows are producing well for the show vendors. AND they have killed many local and regional shows who depend on their annual and semi-annual shows to pay for their members’ programs. The pie is being sliced into too many pieces and we are all chasing too few dollars.
How this shakes out I don’t know. I do know that the quilting industry at least is aging and the older people, by and large, will still seek out “cheap.” They won’t pay $12/yard for fabric when they can buy it for $5/yard and less. Quality no matter seems to matter (thank you, Walmart). Every time you see your LQS or LYS go out of business and you can no longer access its expertise and bond with like-minded crafters, consider where you spend your crafting dollars.
Vanessa says
I take craftsy lessons in Costa Rica and before I start a project i always visit my local fabric or yarn store. But there is not much variety as you can imagine and then I go ahead and buy at Amazon. I think that if local stores provide the added value of excelent service and friendship they will never loose their costumers. Most of the time these local store owners are so involved in their other creative businesses that they forget about this very important element of a small store. I love the fact that now I can buy from Craftsy. Guys, remember this is a globalized economy and a large portion of the market is outside US borders
Lisa says
Yes, Craftsy has an international reach, and I’ve found the few patterns and classes I’ve accessed to be worthwhile, but the international shipping rates make purchasing goods prohibitive. It seems not all of their policies have embraced the global economy.
Mary says
Thanks for another thoughtful discussion, Abby. I am the fabric lead at a big box craft retailer (hint…that is closed on Sunday). I am frequently surprised at the lack of sophistication of shoppers who only value low price, but are then critical of the low quality that comes along such a price point. Yes, you can buy fabric for less than $5/yd., but much of it feels like cardboard. In addition, I don’t have the time to help you pick out 15 coordinating fabrics for your project.
Higher quality fabrics, and personalized attention were available at the LQS that was forced to close last year. Box box retailers have their place, and I love my job (and the benefits that come with it), but consumers need to realize that life is filled with tradeoffs, and the way they choose to spend their dollars matters.
Cherie Killilea says
I hope when Craftsy is ready to launch an exclusive line of fabric, they contact me to design something with it. I think the reality is that there is so much free content available online that all of us designers need to be prepared to produce a few free patterns every year for the purposes of marketing. If you have a giant like Craftsy offering to promote you in any way shape or form, jump on it. If you have good patterns that sell well, they will promote those too, and that will be directly for your great profit and not directly for them. Craftsy is not the kind of company that is looking to use people and not compensate them. I think the numbers that John shared should make that obvious. I don’t think Craftsy’s letter to knit designers was out of line. They are not asking for the copyright. They are not going to package your pattern and sell it. The kit program includes compensation to the designer and is always run with permission and signed contracts. I think some of you are jumping to conclusions without knowing the details of what it is like to work with this company. I just wanted to add my voice to this discussion because I do know Craftsy and it has been very good to me.
Nita says
Well said. 🙂
Abby says
To clarify, Craftsy would package the pattern that knitwear designers create for free along with skeins of their new yarn line. This would be a free pattern that customers receive when they buy the yarn so they are indeed going to package the pattern and sell it.
Nita says
I just read an interesting post about indy authors who offer their kindle books for free for a set period of time. While it’s painful to give for free an entire manuscript that has taken months (or years) to write, they find that offering the book free for a period of time often actually spurs sales of that book after the giveaway is over, and also increases sales of their other books. They come out somewhat ahead in the long run. Regarding pattern designers, it can be difficult to seperate emotion from marketing. High emotion aside, I would be interested to read actual statistics on whether or not offering a free pattern generates sales. Marketing is such an interesting field.
Lindy says
I have found that when these ventures combine, the quality of products diminishes and availability of quality products lessens. I will travel an hour and a half to support the closest mom and pop sewing shop because they offer quality silks, cottons and linens. I’m also willing to pay more because Heaven forbid, if these small shops close, the only thing I’ll find is the low quality, off-grain, Made in China items that waste my sewing talents.
Ariane K from Textillia says
I was very interested to read this response, and well… To put it nicely, as Andi did above, it’s a “faux-pology” meant to smooth customer relations and Craftsy’s image. I could spend a month writing a well-researched retort to each paragraph of his letter – there are so many holes to poke that the swiss cheese would cease to exist.
But at the end of the day, they’re a business, and now we know where they stand: they want to make profit at all costs, even if it means taking over industries that previously laid the ground work for their company to exist. I’ve never used Craftsy, so I’m not losing anything by my newly garnered distaste for their choices and strategies. But it does make me sad because I know it WILL have an impact on the independent and small businesses that have built the crafty world up to what it is today.
Jennie says
It isn’t corporate America’s job or moral obligation to help brick and mortar mom and pop store stay open. Those that shop locally do it because of the customer service that they receive, if the staff is kind, will help them by answering questions, getting you out of the “what did I do wrong, I followed the instructions to the pattern.” Those customers want to feel the fabric or yarn in their hands. That is not the Craftsy customer at all.
I get frustrated at the blame placed by these small shops at the foot of every box store, and similar corporation. Small mom and pop quilt and yarn stores cannot wonder why all of their customers are old friends. Why they never see a new customer that comes in to buy, or why they can’t fill a class.
Could it be because you close at 5 or 6 pm, most of your customers work till then. You ask, “why can’t I fill a class at 2 o’clock in the afternoon on a Wednesday?” Well it’s because you’ve been teaching the same 10 or 15 classes for 50 years, and 60 and 70 year olds who are retired and available at that time of the day and week already took the class in the 1970s or 1980s. Don’t say, “We never have a new customer.” when the at home mother of 3 comes in the first time and you treat them poorly because of “little hands and sticky faces” or you don’t think they have money because they dress in jeans flip flops and a sleeveless t-shirt.
Stop blaming the Internet, video games, movies, corporate America and working women until you can say I did everything to include everyone. Open an online presence even if it’s just a Facebook page. But think seriously of opening an online store, yes that would require a computer inventory system, ask yourself why Youre still spending all that time doing daily or weekly inventory by hand? Be open Tuesday and Fridays until 8pm, make sure you have at least 1 class each of those evenings. You want to draw children who have mother’s with money? have a children’s class in the evening or Saturday morning, with tea and crumpets for the mom’s chat group. Make that 2 pm class a 4 pm class and have it be a mom and me class after school. Have available daycare for the moms of little people to pay for while they take a morning class during the week. It is 2015 not 1970 or 80, we are not the same world we were then. That in ways is a good thing and in others a bad thing, but it is what it is. There are a million answers, they have to stop wondering why, blaming everything but themselves and get with the program, or unfortunately watch themselves go out of business.
Ariane K from Textillia says
Jennie –
We will have to agree to disagree.
As much as these businesses have no real responsibility towards small and independent businesses in the craft world, I feel that *we* as a community of crafters do. We have a choice about whose livelihoods we care about contributing towards, and about who we help build lasting sustainable businesses that then are able to give back to us in other ways.
You are arguing for the “free market” and that is fine – some people believe in that very strongly. When I look at the greater picture of where my money goes when I spent it at a big box store or online giant, vs. where it goes when I spent it at a local shop or smaller online shop, there is a vast difference.
My money going into the pockets of a huge company vs. a local business owner or say a small shop run by someone who’s very active in the crafting community *is* something that is important to me. It does matter. It does make a difference. It is something I care about.
Nobody has an obligation to shop anywhere, you are right. But not all small/indie shops are inconvenient to shop at, just as much as sure all large companies aren’t all bad/evil either. It’s not that black and white. But what I am sure of is that Craftsy wants a bigger piece of their already delicious pie, and it’s going to hurt smaller businesses. Businesses that are the backbone of the crafting world, and very valuable in terms other than money.
To me, that matters.
Jennie says
I don’t think we disagree as much as you seem to.
The mom and pop brick and mortar are not vying for the same customer as Craftsy.
And I do care where my money is spent, I do shop locally where ever possible, if I go out to dinner I don’t go to chain restaurants, my husband and I try to shop in our small town as much as possible, when it would be easy to drive into Phoenix.. I go to quilt shops, but they don’t always have what I want or need to make a project, and anyone that sews knows that Joanns fabric is sub par, except for their premium quilt fabric which is a small area of about 75 to 100 bolts and so yes sometimes I have to buy from the Internet.
Ariane K from Textillia says
I don’t know where we’re not disagreeing, I hear you saying:
A) Craftsy is not in direct competition with smaller/indie companies.
B) Big box stores and big companies shouldn’t be blamed for smaller/indie companies going out of business.
C) Customer service and hours of operation (and childcare during classes?) isn’t as good at the smaller/indie stores.
D) Smaller/indie stores are failing because they don’t have a significant online presence or online shopping.
E) Buying in person is better than buying online when it comes to ethics.
F) Small/indie shops are antiquated and don’t cater to modern customers.
C through F are pretty hard to discuss since they vary so much from city to city and business to business.
But, A + B, which are the meat and potatoes of this discussion, are in my opinion completely untrue. I don’t know how anyone could say that Craftsy and big box stores aren’t in direct competition with small and independent businesses, or that their growth doesn’t significantly impact smaller/indie businesses in a significant and negative way.
Beth says
Jennie, you are absolutely right! Craftsy and other online resources are doing a great job of reaching markets that local stores refuse to consider and/or cannot serve. If a business cannot or will not serve a certain customer, why are they blaming the unserved customer and a business that serves them so well?!?!?!
I would love lessons and purchases in a good local shop, but the ones closet to me have the same limited business plan you describe, as well as the need to charge higher prices because of the chosen business model. I am definitely not their target market in most ways and that is ok with me and Craftsy. They shouldn’t be mad at unserved customers or competition that serves us so well.
Being in business and how to run it is a choice. And a customer chooses the business that serves them best. What is wrong with that freedom? Live and let live!
Holly says
Very well said. I commented on the original post that my nearest “independent” fabric store is an hour away. They offer classes, but, like you said, they’re in the middle of a workday. Craftsy found a need and filled it.
Gemma says
Jennie, you’re spot on. Well said.
Cherie Killilea says
Reading the original letter again, I see no mention of a kit being sold. Craftsy simply would not package someone else’s product without compensating them. The promotion they are creating is no different from this one we frequently see in the sewing world:
http://www.sewmamasew.com/2015/09/oakshott-scandinavia-challenge-with-casey-york-from-the-studiolo/
Furthermore, when someone downloads a free pattern on Craftsy, they do it from the designers page where they can read about the designer and see the other patterns they have available. In this way, it is even better than these challenges which offer being a guest on a popular blog in exchange for your work. That is very different from receiving yarn in the mail along with a free pattern which is how you all are making it sound. I am not an argumentative person, but I think you are jacking people up over nothing here. There is an abundance of free patterns for download that showcase specific fabrics – it is not a new idea. The product purchase and the pattern download are 2 separate transactions. Somebody needs to untwist their knickers.
Abby says
This pattern wouldn’t be something that goes on the Craftsy pattern marketplace. This pattern would be packaged and sold with the yarn. In the knitting and crochet world when designers create a pattern for a yarn company it’s called “yarn support.” Customers are much more likely to buy a skein or more of a new yarn if they have a pattern showing exactly what to do with it. Yarn companies often distribute knitting and crochet patterns for free as a way to sell yarn and that is what Craftsy is doing here. It’s not going to be on the designer’s page.
Ariane K from Textillia says
In case anyone missed it, a related post by Sarai from Colette: https://blog.colettehq.com/essays/why-indies-matter
Mary says
I buy fabric for my quilts at quilt shops not Joann’s. I may pay more but I can ask questions and know that the employee has actually learned the craft and will share their expeience. If I visit later to ask a question and not purchase, it’s ok. Try that at Joann’s. I thought Crafty was independent. If they want to co-exist or share retail space, then approach my LQS not Joann’s. What I make represents me and I want to give a quilt made with quality fabric.
Abby says
There was a time when Craftsy was partnering with local quilt shops. I remember a push at one point for kiosks? But then they began working with Joann’s which has a much larger distribution.
Laura says
Number one, I have never had anyone walk into the shop I work for and bring a list for a Craftsy class. Not one single time.
Number two, most independently owned quilt stores have their own websites and webstores these days, and a huge number of them offer free shipping over a certain amount, so most of the time when someone buys a kit, they’re not paying shipping anyway.
Number three, you CANNOT discount your fabrics 30-50% off retail prices without undercutting every single independently owned quilt shop in the country.
Craftsy doesn’t give a flying flip about small businesses, all they care about is their bottom line. This entire letter reads like an attempt to justify a horrible business practice in which Craftsy is trying to become the Amazon of the crafting industry without catching any heat for it. This absolutely disgusts me. Bookstores are mostly gone. Music stores are mostly gone. Independent Mom & Pop shoe stores are gone. Pretty soon yarn and quilt stores will be gone, too, and it will be because of people like John Levisay, who don’t care how much they destroy small businesses and rip off designers, and only care about how much money is in their own pockets.
susan says
im with laura. i work in a small quilt store and craftsy only hurts our business. i cant tell you one time anyone has come in and said oh im taking a class on craftsy, let me buy most of my supplies here! no they tell us about how cheap everything is on there and all the classes they are taking. well them and missouri star quilt company. we are hurting and it will only be a matter of time before they put us all out of business. and good luck asking them to help you pick out your borders!
GLENNIS DOLCE says
And in further Craftsy news…
http://www.denverpost.com/2016/08/30/craftsy-cuts-24-content-jobs/
Abby says
Thank you for this.
Michele says
I know this is an old post, but it is the only thing I came across in trying to figure out what I believe to be a problem on my Craftsy pattern sales…….I have WAY more downloads than sales, and that makes me wonder what is going on? I get that many people will download more than once, but as a for instance right now (January 2018) I have 108 downloads of a pattern, and zero sales…..makes me wonder if someone is “giving it away.” Especially when I look back over the last year of purchase history and only 1 shows downloaded in 2018.
Wondering if anybody else is experiencing this.
Abby says
Let me take a look. Do you have any free patterns listed?
Christina Grivetti says
omg YES this. I just checked my desinger dashboard and was shocked and gutted! Loads of downloads & only 1 little pattern purchase QTD, and no I have NEVER offered free patterns on Craftsy. What is going on…I’m seriously considering deleting all of my patterns.
Bluestockinette.