This effect works well with any type
of text. It basically is the shadow effect using the outline
size to add color and pizzazz.
1.
Start by choosing your artwork and creating your text. Then copy
and paste your text in so you have two sets to work with.

2.
I start by creating the bottom layer of the lettering. I choose
two of the darker colors in the artwork to be the base. The artwork
I chose above have some blues and purples, so I choose to start
with these colors. In this example I expanded the outline size
as thick as it would go.

3.
Next you want to choose your colors for the top layer. I usually
go with two of the accent colors, in the example I choose the
colors that were in the flowers the bear was holding. TIP -
I do not expand the outline super thick on the top layer, it
looks best with a thinner outline.

4.
Now move the darker text underneath the light shade for a shadow
effect.
This effect can be done with
several layers to give a rainbow effect if you wish. Use your
imagination and experiment with different fonts, colors and outline
sizes to create a unique combination.