Why Selling AI Art Is a BAD Idea in 2024 💻 (Tips for AI Etsy Shops)

Summary

Dylan Jarus, a successful Etsy seller, warns against the pitfalls of selling AI wall art on Etsy. He cites market saturation, low customer lifetime value due to low repeat purchases, and a focus on product over customer as reasons for poor sales. Jarus suggests diversifying AI art onto more utilitarian products and emphasizes the importance of targeting customers with higher discretionary income for a more reliable and profitable business. He offers a free 7-Day game plan for Etsy growth and encourages sellers to adapt their AI art strategies for better customer appeal and financial success.

Takeaways

• 🚀 Selling AI wall art on Etsy can be challenging due to market saturation with low-quality listings.
• 🔍 The barrier to entry for AI wall art is low, making it difficult to distinguish one's work from the competition.
• 🎨 There's a significant difference in quality between AI-generated art with minimal post-production and those with hours of refinement, which is often unnoticed by the average buyer.
• 📈 Quantity of listings does not compensate for quality issues and won't necessarily increase sales traction.
• 💰 AI wall art has a low lifetime value (LTV) for customers, as it's typically a one-time purchase with little repeat business.
• 🏠 AI wall art is often a personal purchase and not commonly gifted, missing out on the gift-giving market on platforms like Etsy.
• 🛋️ Wall art is considered a long-term investment similar to furniture, with infrequent replacement and less seasonal demand.
• 🔑 SEO and site merchandising are crucial for visibility and sales, which many AI art listings lack.
• 🎁 Suggests repurposing AI art on more utilitarian and giftable products to increase sales potential.
• 🤖 Recommends focusing on customer needs rather than just the product, to attract higher-spending customers.
• 📈 Emphasizes the importance of understanding and targeting customers with higher discretionary income for a more reliable income stream.

Q & A

Why is it challenging to sell AI wall art on Etsy according to Dylan Jarus?

Dylan Jarus suggests that selling AI wall art on Etsy is challenging due to the saturation of low-quality listings, making it nearly impossible to stand out. The barrier to entry is low, requiring minimal skill, and the average person can't easily distinguish between high-quality and low-quality AI-generated art.

What is the role of quantity in improving the sales of AI wall art on Etsy?

According to the transcript, focusing on the quantity of listings won't fix the quality issue. Simply having a large number of listings doesn't create traction; instead, it contributes to the over-saturation of low-quality AI wall art on the platform.

How does AI wall art impact the Lifetime Value (LTV) of a customer for an Etsy seller?

AI wall art tends to have a low LTV because it's usually a one-time purchase with little utility and not typically a gift item. It's a low repeat purchase item, leading to fewer repeat customers and a lower overall customer lifetime value.

What is the typical customer behavior when it comes to purchasing AI wall art?

The transcript indicates that AI wall art is often bought for personal use rather than as a gift. This limits the potential for repeat purchases and reduces the likelihood of attracting customers with a high discretionary income who are more likely to make repeat purchases.

What alternative product suggestions does Dylan Jarus give for AI art to improve Etsy sales?

Dylan Jarus recommends considering other types of products that have more utility and are more giftable, such as items that can be tucked away in a drawer. This approach can make the AI art more appealing to a broader customer base and improve sales.

Why is focusing on the product rather than the customer a potential pitfall for Etsy sellers of AI wall art?

Focusing on the product or the image rather than the customer can lead to creating art that appeals to a very niche market, which may not have mass appeal. This approach can result in a shop full of listings that don't attract high-spending customers, leading to unpredictable and potentially disappointing financial results.

What is the '7-Day game plan' mentioned by Dylan Jarus and how can one get it?

The '7-Day game plan' is a guide to grow an Etsy shop with action steps for each day. To get this free guide, one needs to comment 'game plan' below the video as mentioned by Dylan Jarus.

What is the significance of the customer's discretionary income in the context of selling AI wall art on Etsy?

In the context of selling AI wall art, focusing on customers with higher discretionary income is crucial because these customers are more likely to make repeat and higher-value purchases. This leads to a more reliable and higher income for the Etsy seller.

How does the personal taste of the Etsy seller influence the appeal of AI wall art to potential customers?

The personal taste of the Etsy seller can significantly influence the appeal of AI wall art if the seller creates art based on what they think looks cool rather than what the target customer might prefer. This can lead to a mismatch between the art produced and the preferences of high-spending customers.

What is the advice for Etsy sellers who are committed to using AI images in their shop?

For Etsy sellers committed to using AI images, the advice is to not solely focus on wall art but to consider other product types that might have broader appeal and utility. Additionally, it's important to ensure that the AI art is of high quality and aligns with the tastes of customers with higher discretionary income.