Not All Side Gigs Will Make You Rich: 5 Side Hustles Experts Say They’d Never Start
Along with an enormously changed workplace landscape since the COVID-19 pandemic, side gigs are here to stay, and they have become — just like remote work — very common occurrences.
Indeed, an estimated 64 million U.S. professionals performed freelance work in 2023, and given the demand for remote work and job flexibility, the trend shows few signs of slowing down, according to a FlexJobs report.
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But not all side gigs are created equal, and while many of them are touted on social media as being able to make you rich quickly, some don’t live up to the hype.
“Side gigs that aren’t worth your time are any that just aren’t scalable or require low skill, such as dog walking, babysitting or online survey completion,” said Kyle Scott, president of Serhant Ventures.
Instead, Scott said that if you’re going to invest your time into a side gig to make extra income, invest it to test the waters in something that could become a long-term, scalable income replacement for yourself.
“The best side hustles are businesses built around you and your unique, differentiable skillset,” added Scott.
So which ones don’t live up to their hype, according to experts?
Ridesharing
Bryan Clayton, CEO of GreenPal, said that running his company has given him a front-row seat to the side gig economy.
“At GreenPal, our lawn care providers pull in $75-$100 an hour, ranking it among the more lucrative side gigs out there. But it wasn’t always smooth sailing,” he said.
Clayton explained that when he was getting GreenPal off the ground, he dabbled “in just about every gig economy app out there — Postmates, DoorDash, Instacart, Airbnb, you name it,” to help him figure out how to build GreenPal successfully.
“Here’s the scoop: gigs that simply involve trading time for money, like delivery or ridesharing, usually net around $15 an hour after you’ve covered all your costs, such as vehicle expenses and fuel. It’s pretty much a given,” he said. “You’re putting in the hours, but once all is said and done, the return isn’t as grand as it might seem at first glance.”
Clayton added that, while many side hustles are hyped up to be the golden ticket to wealth, the reality can be quite different — and that those that don’t live up to their hype are often those that don’t scale well with your time or assets.
Think critically about where you’re investing your hustle — the best gigs are those that allow you to leverage more than just your hours in the day.
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Delivery
Clayton said he also did “a bunch of deliveries on DoorDash just to figure out how the application worked and how they handled certain things.”
“And I found that after I pay for gas, insurance and tires and everything else I was making about $14 an hour,” he said, adding that Instacart “was even worse.”
Erika Kullberg, attorney, personal finance expert and founder of Erika.com, also noted that while driving for delivery services can provide immediate cash flow, many individuals find that the wear and tear on their vehicles, combined with fluctuating demand and competition, results in lower-than-expected earnings.
“Additionally, the lack of benefits and job security can make these gigs financially precarious in the long run,” she added.
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Paid Surveys
Nathan Brunner, CEO at Salarship, said he used to promote survey jobs from survey platforms and similar platforms on his website. He said that he received “so many complaints” that he decided to stop promoting these.
“Job seekers complain that they spend 10 to 20 minutes answering survey questions only to find out that they are not qualified to get the rewards,” said Brunner. “Unless you are in a very special demographic, answering surveys is a complete waste of time.”
According to him, the pay depends on your demographics, but it is typically between $0.25 and $1.50 per survey.
“It isn’t that bad on paper,” he said. “The problem is that before taking a survey, preliminary questions are asked to determine whether you are eligible to take the full survey. So, if you are not in a desirable demographic, you will most likely spend most of your time answering these preliminary questions without getting paid.”
Blogging and YouTube
Todd Stearn, founder of The Money Manual, said that if you’re really into a certain topic, you might love starting a blog or YouTube channel about it.
“But if you’re looking to make money, you should know that both of these spaces can be very challenging and competitive,” he added. “Unless yours would be one of the few resources in a growing niche or you bring something truly unique to the table, it’s best to keep this type of project as a hobby.”
Dropshipping
As Amazon explains on its website, dropshipping is an order fulfillment option that allows e-commerce businesses to outsource the processes of procuring, storing and shipping products to a third party — typically a supplier.
“This fulfillment model commonly appeals to entrepreneurs seeking efficiency and low overhead, but it can come at a cost — especially when it comes to customer experience,” according to Amazon.
Lawrence Ng, from SideHustles.com, agreed, arguing that while many people are posting short videos claiming it’s simple to earn fast money, many others criticize it for its overcrowded market.
According to him, it’s easy to start, because the initial costs are low, but earning significant profits can be challenging due to competition and dependence on suppliers.
He added that success hinges on choosing the right products, partnering with reliable suppliers and effectively driving traffic to your store. In other words, earnings are low unless you find a unique niche or implement an effective marketing strategy to attract visitors and offer excellent customer service, he added.
“While the most successful dropshipping stores might earn between $1,000 to $5,000 in revenue per month, achieving this level of income is not guaranteed,” he said. “In fact, our studies indicate that 80% to 90% of dropshippers struggle, with some earning minimal to no revenue at all, highlighting the importance of unique marketing strategies or exceptional luck in finding success with dropshipping.”
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This article originally appeared on GOBankingRates.com: Not All Side Gigs Will Make You Rich: 5 Side Hustles Experts Say They’d Never Start
