How to Make PASSIVE INCOME Selling AI Puzzles in 2024

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16 Jan 2024

My journey from side hustle to full-time entrepreneur

I never imagined that a small side hustle selling jigsaw puzzles online could turn into a million dollar business. But with some grit, creativity, and a bit of luck, that’s exactly what happened.
It all started about a year ago when I was browsing Etsy looking for gift ideas. I stumbled upon a shop that was selling custom jigsaw puzzles and they seemed to be doing incredibly well. They had hundreds of reviews and most of their products were tagged as bestsellers.
That discovery sparked an idea — could I start my own puzzle business on Etsy? I didn’t have any experience running an online business. But I figured for a relatively small upfront investment, it was worth giving it a try.
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Learning from the competition

The first thing I did was dive deep into researching the market. I spent hours combing through Etsy searching for top sellers in the puzzle niche. I made note of which puzzle designs and themes were tagged as bestsellers. I also looked at the reviews on popular products to see which ones had consistent recent sales.
This market research gave me an invaluable glimpse into what types of designs perform well and are in high demand. Nature scenes, mandalas, motivational quotes, and scenic landscapes seemed especially popular.

Leveraging AI to create unique designs

Armed with this knowledge, I was ready to start creating designs. But I didn’t have much graphic design experience.
That’s when I discovered AI image generation tools like MidJourney. These sites can instantly generate custom images simply by entering a text prompt. All I had to do was describe the type of design I wanted and MidJourney would output multiple high quality options.
I tested different prompt phrasing until I figured out how to create stunning designs in any niche. The AI would even take inspiration from specific artists or styles if I included it in the prompt.
In no time I had built up a portfolio of 100 beautiful puzzle designs spanning various niches from motivational quotes to cute animals to serene nature scenes.

Streamlining production with Printify

The next step was figuring out how to physically manufacture and ship the puzzles once I received orders.
That’s where Printify came in clutch. Printify is a print-on-demand service that integrates directly with Etsy. They produce and ship products so sellers don’t have to worry about inventory, printing, or shipping.
Their puzzle selection allowed me to order high quality custom puzzles in just about any size and style I could imagine. All I had to do was upload my artwork and set my pricing. Printify handles the rest!
This was a game changer. I could upload limitless designs without having to invest thousands in puzzle inventory that might not sell.

Optimizing listings for sales

With my designs and production sorted out, it was time to set up my Etsy shop. This was where a lot of my initial sales strategy came into play.
I researched top performing puzzle listings and paid close attention to what made them convert. The best titles were short, clear descriptions of the design. For example, “Fox in Forest — Botanical William Morris Puzzle.”
ChatGPT helped me craft persuasive descriptions that highlighted dimensions, quality, and customer satisfaction. I also used relevant keywords throughout.
Images are critical. Most listings had at least 8 high quality photos showing the full design, packaging, and product details. I invested in professional lifestyle photos that showcased my products and brand.

Launching and learning from my failures

Finally, after weeks of preparation, I was ready to open my Etsy shop to the public. Those first few weeks were a rollercoaster of failures and lessons learned.
My titles were too vague and didn’t generate traffic. My prices were set too high so I wasn’t getting conversions. Worst of all, my puzzle quality wasn’t up to par. Some had improper print alignment or pixelation.
I had to quickly make changes if I wanted this to work. I re-did all my photos and descriptions. I also tweaked my Printify puzzle templates until I found options that printed crisply.
Most importantly, I took a deep dive into SEO strategies. I refreshed all my listings with targeted keywords and optimized my shop content. These improvements took time but ended up paying off.

Gaining traction

After about 2 months, sales started trickling in. My designs were resonating with people and I was getting more 5 star reviews.
I reinvested every dollar I made back into the business. I expanded my design portfolio and marketing efforts. I also tested out Facebook ads which helped grow my shop’s visibility.
Within 6 months, I was getting regular weekly sales. My profit margins averaged between $5–15 per puzzle sold depending on the size. Dozens of my designs ended up becoming bestsellers.

Quitting my job and focusing full-time

One year after launching, I now easily pull in over $10k in revenue each month. My shop has over 500 reviews and has made well over 500 sales.
The business has grown to a point where I was able to quit my full-time job and focus solely on the Etsy shop and expanding the brand.
I’m currently working on creating my own stand-alone website and developing a custom app. My goal is to bring in over $1 million in annual revenue within the next 2 years.

Tips for starting your own puzzle business

If the idea of running a puzzle business appeals to you, here are some tips I’ve learned along my journey that can help you succeed:

Research winning designs and niches before getting started. Puzzles with nature scenes, motivational quotes and positive affirmations tend to be in demand.
Take advantage of AI tools like MidJourney to create custom artwork and designs at scale. The image possibilities are truly endless.
Integrate Printify early on. Having them fulfill orders is a requirement if you want to grow and scale.
Optimize your Etsy listings, titles, tags, descriptions, and photos. These elements are what will drive traffic and conversions.
Be prepared to pivot and improve based on customer feedback and reviews. My first few months required constant adjustments to improve processes and quality.
Reinvest earnings back into your shop. Consider paid advertising and professional branding to stand out.

Final thoughts

Starting and growing a profitable Etsy puzzle shop is doable for just about anyone willing to put in the effort and perseverance. You don’t need any prior experience or artistic skills.
With the right research, tools, and strategies you can design, produce, and sell custom puzzles from anywhere with just an internet connection and a small upfront investment.
I never expected this side hustle to transform into a thriving full-time business. But it just goes to show that with the right idea executed well, the income potential is almost unlimited.
So if you have an itch for entrepreneurship like I did, there’s never been a better time to get started! I hope my story has provided some inspiration and guidance for your own Etsy business journey. Let me know if you have any other questions!
We strongly recommend that you check out our guide on how to take advantage of AI in today’s passive income economy.

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