Hi Shane- firstly...great to see you back and posting again! We've missed you!
I've not got a Folksy shop and have never gotten past looking around those sites- some of the stuff is stunning! From what I gather, some people do really well out of Etsy and the likes and others don't! I've never really looked into why this might be but I would imagine it's the same old problem with too many sellers of the same types of things etc. If you can make something really unique or something which requires a lot of skill (like Pete does), you seem to fair better than those that sell the usual run of the mill stuff etc but that goes in all segments of the business world I guess!
Funnily enough, I bought a necklace from someone on Etsy a couple of months ago- lovely very talented lady! I was her first customer and she had no reviews/ feedback when I bought from her! My mum loved the necklace too and kept asking me to order her one so I looked for her on Etsy again and she now has 53 ratings which means she's also had that amount of sales! I guess it doesn't sound a lot but given the competition on there, I'd say that's not bad going for a couple of months! You can view 'my' necklace here
http://www.etsy.com/view_listing.php?li ... 71359...as you can see it's dichroic glass- nothing unique there but I've never seen it put together in this way before and that's what appealed to me about it- sometimes it's not about the material it's the way it's put together which pulls in the sales and Holly is defo proof of that! I guess the only way to know is to test your products out with a realistic budget and time frame!