Back in my day….
Not the best way to start a blog post…
Well, it’s true. “Side hustle” is a fancy way of saying what we old-timers used to call “a second job.” I suppose it is a clever way of repackaging the experience, isn’t it?
Endless articles online or adverts on TV or social media make it seem as if side hustles yield boat loads of money for very little work. It is so easy – why isn’t everyone doing it??
Yeah, if you believe that, I have prime real estate in the Florida Everglades that I would love to sell.
It is best to have realistic expectations when approaching side hustles. Otherwise, you may question why you aren’t earning buckets of money as promised, or worse, losing money in the process.
I have tried a few side hustles to bring in cash. Here are three top things to consider.
Don’t quit your day job. Yeah, it is hypocritical for me to say it. For most people, side hustles provide a little bit of extra cash. We’re talking, at best, a few hundred dollars each month, not the THOUSANDS of dollars purveyors of side hustle ventures would have you believe.
Side hustles are a great way to use your existing skills or test ideas for future endeavors. They can provide an outlet for something you love. News flash – most people aren’t working at dream jobs.
Algorithms can be a blessing…and a curse. If you use the services of an online seller, keep in mind that this vendor also wants to make money. They make tweaks to algorithms so that a particular product appears immediately when the customer opens the site or searches for similar items. They are constantly looking for the best way to reach customers, so those customers will always return to that site.
Do they warn you? No. One month, money rains from the sky, and the birds sing. The next month, sales dry up, and your offerings are buried on the last page of the site. What did you do wrong?!
Nothing! You are at the mercy of the vendor. Just keep telling yourself that your product is awesome, because what happened has absolutely nothing to do with quality.
Shipping costs take a deep cut into your profit. If you sell anything that requires shipping, thoughts and prayers. Shipping costs are brutal when you do not have the power to negotiate with the USPS, Federal Express, et cetera, for favorable rates. That power resides with large corporations, not you.
Side hustles are usually one person or small family operations. You won’t have the bargaining power to get an advantageous shipping contract. Some sites like Etsy and eBay offer discounted shipping labels which helps. Still, the costs remain high and will drive up the price of your product. As a result, it is hard to competitively price your product. You cannot compete with someone who can ship for insanely low amounts.
Side hustles are a good way to pick up a few dollars here and there. However, don’t believe the hype, and don’t expect the windfall to continue indefinitely. Odds are high that you will not make enough money to replace income from a traditional job. You also might find that any income you do make is not sustainable without constant care (i.e. new products and services).
It is not a reflection of your work. You are awesome.
Repeat that to yourself when you get discouraged (because you will, frequently). You are awesome.
If you want to take a deep dive into data, two recent articles provided interesting insight about side hustles. Here are the links:
From Bankrate.com: https://www.bankrate.com/personal-finance/side-hustle-survey/
From NPR: https://www.npr.org/2023/10/11/1204264632/amazon-sellers-prices-monopoly-lawsuit
