In recent years, side hustles have become an increasingly common way for professionals to earn extra income. A recent survey by Omnisend of 1,000 Americans, along with participants from the U.K., Canada, and Australia, found that nearly half of American professionals currently have a side hustle. The side hustle culture is not unique to the United States; it is prevalent across the globe. This rise in side hustles is largely attributed to the flexibility they offer and the ability to supplement primary income sources. However, despite their growing popularity, there are substantial challenges associated with turning a side hustle into a profitable venture.
The Omnisend survey revealed that 56% of Americans with a side hustle make less than $500 per month, while 26% earn between $500 and $1,000 monthly, and only a small fraction—3.6%—make between $1,000 and $5,000 per month. These statistics beg the question: what factors contribute to such a large portion of side hustlers making less than $500, and what strategies can individuals employ to boost their earnings?
The study provides insight into the most popular side hustles in 2024: e-commerce, freelancing, and the gig economy. Each of these categories offers different opportunities and challenges, and understanding the nuances of each can help aspiring side hustlers decide which path may suit their skills and financial goals.
1. E-commerce
E-commerce, or the practice of selling goods online, has seen a dramatic rise in popularity over the last decade. From individual sellers on platforms like Etsy, Amazon, and eBay to those who build their own online stores using platforms such as Shopify, e-commerce has emerged as a leading side hustle for Americans. According to the Omnisend survey, 51.9% of respondents engage in e-commerce as their side hustle.
The appeal of e-commerce is clear: it offers the convenience of selling from anywhere, the ability to reach a global audience, and the potential to earn significant profits. Consumers prefer the convenience of shopping online rather than visiting physical stores, and the growth of this trend shows no signs of slowing down. Furthermore, many e-commerce stores offer competitive pricing, which attracts budget-conscious consumers looking for deals.
However, while e-commerce offers immense potential, the market has become heavily saturated. Competition is fierce, with sellers across the globe vying for the same customers. In countries like the U.K., Canada, and Australia, e-commerce participation is even higher than in the U.S., with 72%, 53%, and 59% of side hustlers in these countries engaged in online selling, respectively. As more people turn to e-commerce as a side hustle, it becomes increasingly difficult to stand out.
To succeed in the crowded e-commerce space, sellers must find ways to differentiate themselves. This could involve offering unique products, improving the customer experience, or implementing effective marketing strategies. Additionally, building a strong brand presence through social media and other online channels is crucial. Many e-commerce businesses have found success by creating a loyal customer base and providing exceptional value that goes beyond just selling products.
Another challenge for e-commerce sellers is managing logistics, such as inventory management, shipping, and customer service. For those who want to scale their business, it is essential to streamline these processes. Automating aspects of the business, such as order fulfillment and customer communication, can save time and reduce the risk of burnout, which is a common reason many side hustlers quit.
Despite the challenges, e-commerce remains one of the most lucrative side hustles for those willing to put in the effort. With the right strategies and a commitment to standing out in a crowded market, sellers can potentially make significant income, with some reaching $5,000 or more per month.
2. Freelancing
Freelancing is another popular side hustle, especially among professionals with specialized skills. The Omnisend survey revealed that 21.3% of Americans who have a side hustle are freelancers. Freelancing typically involves providing services on a contract basis in fields such as writing, graphic design, marketing, consulting, and software development.
Freelancers enjoy the flexibility of choosing their projects and setting their rates, which makes freelancing an attractive option for those who already have a full-time job and are looking to earn extra income in their free time. Popular freelancing platforms like Upwork, Fiverr, and Freelancer.com have made it easier for professionals to connect with clients from all over the world.
However, like e-commerce, freelancing has become highly competitive. The growing number of freelancers on these platforms means that professionals need to find ways to differentiate themselves. Freelancers who don’t set themselves apart through specialization or creative marketing strategies risk getting lost in the sea of competition. This has led many freelancers to focus on building a unique selling proposition (USP), which clearly communicates why they are the best choice for a particular project.
One of the keys to success in freelancing is diversification. Freelancers who rely on a single platform or a small number of clients are vulnerable to fluctuations in demand or changes in platform policies. By diversifying across multiple platforms and marketing their services through social media and personal websites, freelancers can increase their visibility and secure a steady stream of clients.
Time management is another challenge for freelancers, especially for those balancing a full-time job with freelance projects. The flexibility of freelancing can quickly turn into a double-edged sword if not managed properly. Freelancers often struggle to find a balance between their side hustle and their primary job, which can lead to burnout. To avoid this, freelancers need to focus on the most profitable and time-efficient tasks, automating repetitive tasks when possible, and setting boundaries with clients to protect their time.
For those who can overcome these challenges, freelancing can be a highly rewarding side hustle. Some freelancers are able to turn their side hustle into a full-time career, earning significantly more than they would in a traditional job. The freedom and flexibility of freelancing, combined with the potential for high earnings, make it an appealing option for many professionals.
3. The Gig Economy
The gig economy, which refers to temporary, on-demand jobs, is the third most popular side hustle in 2024. This includes roles such as driving for rideshare apps like Uber and Lyft, delivering food via services like DoorDash and Deliveroo, and performing tasks through platforms like TaskRabbit or dog walking through Rover.
Gig economy jobs are appealing because they typically require minimal qualifications or skills, making them accessible to a wide range of people, including students, part-time workers, and busy professionals. These jobs offer flexibility, allowing workers to choose when and how often they want to work. For those looking to earn quick cash without a long-term commitment, the gig economy provides a convenient solution.
However, the gig economy also presents several challenges. One of the biggest issues is the saturation of the market. As more workers turn to gig platforms for supplementary income, competition for jobs increases, and the earning potential decreases. This is particularly evident in densely populated urban areas, where a high concentration of gig workers can drive down wages.
Furthermore, the pricing structures of many gig platforms are not always favorable to workers. For example, rideshare drivers and food delivery couriers often find that after accounting for expenses like fuel and vehicle maintenance, their earnings are significantly lower than anticipated. The unpredictable nature of gig work, combined with low pay, makes it difficult for gig workers to rely on these jobs as a consistent source of income.
To make gig work more sustainable, workers need to be strategic about how they manage their time and expenses. This may involve using multiple gig platforms to increase their earning potential, optimizing their routes to save on fuel, or choosing gigs that offer higher pay rates. Additionally, some gig workers choose to use their earnings to invest in other side hustles or entrepreneurial ventures, allowing them to transition away from gig work in the long term.
Why Many Side Hustlers Struggle to Earn More
While e-commerce, freelancing, and the gig economy offer various opportunities for earning extra income, many side hustlers struggle to make more than $500 per month. The Omnisend survey revealed that 31% of those who quit their side hustle did so because of time constraints, while 20% cited burnout as the reason, and 19% said they didn’t make as much money as expected.
Time management is a common obstacle for side hustlers, particularly those who are also working full-time jobs. Balancing a side hustle with other responsibilities can be challenging, and many people find that they simply don’t have enough hours in the day to devote to their side business. As a result, they may not be able to grow their side hustle to the point where it generates significant income.
Burnout is another major issue. Side hustles often require a significant amount of time and energy, and without proper time management, side hustlers can quickly become overwhelmed. Burnout not only affects the individual’s ability to manage their side hustle, but it can also spill over into other areas of their life, leading to decreased productivity at their full-time job or strained personal relationships.
To combat these challenges, side hustlers need to adopt efficient systems and processes that allow them to work smarter, not harder. This might involve automating certain aspects of their business, outsourcing tasks to others, or focusing on the 20% of tasks that generate 80% of the results. By streamlining their operations and concentrating on the most profitable activities, side hustlers can maximize their earnings without sacrificing their work-life balance.
The Importance of Scaling
For many side hustlers, the goal is to eventually turn their side hustle into a full-time business. However, scaling a side hustle to this level requires careful planning and risk-taking. According to Greg Zakowicz, an e-commerce expert at Omnisend, scaling operations beyond the $1,000 per month mark often requires making the side hustle the primary focus—a step that 58% of side hustlers are considering, but few actually follow through with.
Scaling a side hustle involves investing more time, money, and resources.
