🎙️ Listen to Episode 7 Here
If you’re an avid crocheter, chances are you’ve built up quite the collection of scarves, hats, blankets, and adorable stuffed animals. At first, you love the joy of gifting them to friends or piling them in your home—but eventually, you might start asking yourself: what do I do with all of these finished pieces?
If that question has crossed your mind, it might be time to turn your crochet hobby into a side hustle. With the right approach, you can sell your handmade creations, bring in extra income, and still enjoy the craft you love.
Starting a crochet side hustle doesn’t have to be complicated or overwhelming. With a few simple steps, you’ll be on your way to earning money while creating beautiful, one-of-a-kind pieces. This guide will walk you through exactly how to get started the right way.
1. 📑 Get the Legal and Financial Basics in Order
Before you sell your first crochet item, it’s important to take care of the business side. It might not be as fun as picking yarn colors, but setting things up properly will save you stress in the long run.
● Understand your tax obligations. If you earn more than $400 a year from your side hustle, the IRS requires you to report your income and pay self-employment taxes. Most crochet side hustles are considered sole proprietorships. You don’t need special paperwork, but you do need to include your profits on your tax return.
● Register for a sales tax ID (if selling in-person). Many craft markets require vendors to have a state-issued sales tax ID. Check your county’s Register of Deeds website for details. While platforms like Etsy and Amazon typically collect and remit sales tax on your behalf, in-person sales mean you’ll need to collect it yourself.
● Open a separate checking account. It doesn’t need to be an official business account. Even a simple second checking account helps you track crochet-related expenses and income separately from your personal finances.
● Plan for estimated taxes. If you’ll owe more than $1,000 in taxes at the end of the year, the IRS requires you to pay quarterly estimates. A good rule of thumb is to set aside 20% of your profits for federal taxes and about 5% for state taxes. Doing this as you go is much easier than facing a large tax bill in April.
2. 🌐 Choose Where to Sell Your Crochet Creations
Once your basics are in place, the fun begins: deciding where to sell. Different platforms and venues attract different buyers, so it’s worth testing a few to see what works best for you.
● Etsy: The ideal online marketplace. Etsy is the go-to platform for handmade goods. It connects you with buyers worldwide who are actively searching for crochet items. One way to kickstart sales is to set up a listing for friends or family who want custom orders. When they purchase through Etsy and leave reviews, it boosts your shop’s credibility in search results.
● Craft markets: Best for immediate sales. Craft markets are packed with shoppers who value handmade items. The key is choosing the right kind of market. A “craft market” will attract customers who expect to spend money on handmade goods, while a farmers’ market crowd is often more focused on produce and food. Holiday markets in December are usually an exception—crochet gifts do really well there.
● Local Facebook groups: A hidden gem. Don’t underestimate the power of your local community online. Posting in neighborhood or city Facebook groups often leads to custom orders, class opportunities, or even partnerships with local shops. A single photo of your crochet plushies with a quick intro can spark lots of interest.
3. 🧾 Make Selling Easy and Professional
Shoppers love supporting makers, but professionalism goes a long way in earning their trust. Make it easy for customers to buy from you and they’ll be more likely to come back.
● Accept credit cards. Around 80% of customers prefer to pay by card, so having a Square reader or similar payment option is essential. Add Venmo or PayPal QR codes as additional ways to pay.
● Have business cards ready. Design a simple card on Canva and order at least 250 through a printer like Vistaprint. Be sure to include a QR code linking to your Etsy shop or website. Hand these out at every craft fair or slip them into each package you ship.
● Price your items for profit. Don’t just cover yarn and supplies—factor in your time. When selling online, roll shipping costs into your total price and advertise “Free Shipping.” At markets, decide whether to include sales tax in your price or add it at checkout. Transparency is key.
4. 🚀 Tips for Growing Your Crochet Side Hustle
Once you’ve made your first few sales, it’s time to build momentum. Here are strategies that help transform a small side hustle into consistent extra income:
● Save every receipt. Yarn, hooks, shipping supplies, booth fees, and even mileage to markets are all potential deductions that reduce your taxable income.
● Take high-quality photos. Natural lighting works wonders. Photograph your pieces on a shaded porch, near a window, or outside on a cloudy day. Lifestyle shots (like a blanket on a couch or a plushie in a child’s hands) make products even more appealing.
● Post consistently on social media. Choose one or two platforms you enjoy and commit to showing up regularly. Share behind-the-scenes content, works in progress, and customer testimonials to drive traffic to your Etsy shop or market booth.
● Start small and grow steadily. You don’t have to have a massive inventory before you begin selling. Start with a handful of items, learn what customers love, and adjust as you go.
❓ Frequently Asked Questions
● How much money can you make with a crochet side hustle? Income varies depending on pricing, products, and how often you sell. Many crocheters make $100–$500 per month, while others build it into a part-time or full-time income.
● What crochet items sell best? Small, giftable items usually sell best, such as amigurumi plushies, keychains, mug cozies, and seasonal items like pumpkins or ornaments.
● Do I need a business license to sell crochet? It depends on your location. Most areas require only a sales tax ID for markets, while online platforms like Etsy handle sales tax for you.
● Is Etsy worth it for crochet? Yes. While it can be competitive, Etsy brings built-in traffic. With strong photos, keywords, and reviews, you can stand out.
● What if I don’t want to sell online? That’s fine—many crocheters do great at local craft fairs, holiday markets, or through Facebook community groups.
📥 Final Thoughts: Take the First Step Today
Turning your crochet hobby into a side hustle doesn’t have to be overwhelming. By setting up your legal and financial basics, choosing the right places to sell, presenting your business professionally, and using smart growth strategies, you’ll be well on your way to earning extra income from something you love.
Remember, you don’t have to have everything figured out before you start. Take the first step today—list that first Etsy item, apply for your first craft fair, or share your work in a local group. Every small action builds momentum.
If you want to hear more about how I built my crochet business, don’t forget to 🎙️ listen to Episode 7 of my podcast, where I dive deeper into my journey and share more tips for new sellers. 🎙️
