How to start a lucrative side hustle in 3 steps: You don't need to trade 'your time for money' (2024)

Some people run lucrative six-figure side hustles from their backyards. Others, off their cell phones.

Launching one of your own can be that easy if you know where to start. That's according to Kathy Kristof, whose blog has reviewed over 500 different side gigs, and Cody Berman, who co-runs an online course called Gold City Ventures that teaches people how to start online businesses.

Both experts say anyone can start a side hustle and determine if it'll be successful in three straightforward steps:

Any side hustle starts with a single question, says Kristof: How can you monetize "interests and skills [and] resources" you already have? Most side hustles need to check at least one of those three boxes to succeed, she notes.

If your interests include guinea pigs, you might design and sell a new kind of pet enclosure. If you were good at school, you could earn extra money by tutoring. Some people earn cash off their their houses, pools and backyards by listing them on platforms like Sniffspot, Swimply or Neighbor.

Once you've decided what to monetize, figure out your probable time commitments. If you want to be an Uber or delivery driver, your earnings will be directly tied to the number of hours you work. Airbnb-style side hustles are more passive, but require resources — like owning a house you're not living in, for example — and both time and money for upkeep and maintenance.

Fully "passive income" side hustles usually take a lot of time to get off the ground, but can earn you cash even when you're offline — often through ad revenue, or people purchasing some kind of content you've created.

"There are other ways to [earn] that aren't just trading your time directly for money," says Berman. "If you build a digital product that does really well, like a killer blog post or YouTube video or podcast episode ... you can put the work in once [and get] paid in perpetuity."

Your next question, Kristof says: "How much of your business do you want to do alone?"

Building an audience from scratch is certainly doable, and likely your most profitable option. It can also be challenging and time-intensive, which is why plenty of people choose to outsource some of that work — like paying for websites or listing their side hustles on extant platforms.

Dog-walking app Rover, for instance, is free to join and connects you to customers who are already looking for your services, but keeps a 20% cut of each dog walk. Airbnb and Etsy also take 3% and 6.5% from each sale, respectively.

Beyond the transaction fees, such marketplaces present another challenge: They probably already have established, popular sellers, and you'll have to figure out how to compete. Kristof says she spoke to one dog-walker who made a name for himself on Rover by specifically seeking out flight attendants who'd need regular care for their pets.

The platforms' search algorithms may shift to prioritize different skills, availability or audiences — potentially causing your earnings to rise or fall without warning, some side hustlers have reported. But without their access to customers or built-in legitimacy, you'll have to build your own brand without a road map to earn any money at all.

The most important part of starting a side hustle is actually starting it, says Berman.

"I have so many friends who have been talking about starting a side hustle for two years, and they're still in the planning phase," he says. "You have to create that first product, even if it sucks ... Go out and test it."

Your tests can start by enlisting friends and family to use your services, provide you with honest feedback and leave positive reviews online to boost your account, Kristof says. At the same time, you can use those early days as a test for yourself: Do you have the disposition and level of determination to see your side hustle through?

"Being customer service-oriented, wanting to dazzle your customers, is giant. That's the sort of person people go back to time after time," says Kristof.

Berman adds: "It comes down to the side hustler. I think you can be successful with more side hustles than you think ... I honestly think people [who succeed] don't give up."

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