Freelancing and side gigs offer endless possibilities for earning extra income, but many struggle to get started. The path to success isn’t always straightforward and often requires thinking creatively about your skills and experiences.
In this article, we’ll explore the principles behind successful side gigs, share inspiring examples, and help you take advantage of your own potential for freelance success.
Freelancing: The Easiest Way To Make More Money On The Side
There are a few things that we need to acknowledge up front:
- The easiest way to earn money on the side is to freelance. You can start earning money immediately, rapidly test your offerings, and cut through the unnecessary work of productizing and increasing your salary.
- 95% of jobs can translate into related side gigs. But 5% of jobs could not. For example, you don’t see any freelance cardiothoracic surgeons.
- Just like dating, it will probably take repeated failures to find a good match between your hobbies and what the market wants.
That last point is very important. Sometimes, people spend so much time building up a business with business cards, websites, and licenses that when they actually launch and find the market won’t pay for their offering, they give up, exhausted and frustrated. I’ll show you how to streamline the process so you can rapidly test ideas and refine them.
Two Examples: Turning Hobbies Into Side Gigs
Before we dive into how you can turn your own skills into a side gig, let me share a couple of personal examples. These stories illustrate how I applied these principles in my own life, transforming simple ideas into successful ventures.
Example #1: How I used these principles to launch this site
I originally started “I Will Teach You To Be Rich” as a 1-hour free course that I taught at Stanford. It was never designed to make money. It was just something cool that I wanted to do. When I’d hear friends complaining about money at the dining hall, I’d say, “Hey, you should come attend this class I put together. It’s free, and it takes about an hour, and I’ll show you all the basics of money, banking, budgeting, saving, and investing.” The response was VERY positive. People said, “Wow, that sounds awesome!”
And then they would never show up.
Over 1.5 years, I repeatedly struggled to have anyone show up. I would wonder to myself, “Why am I trying so hard to give people GOOD, FREE information about stuff they really need to know?” I felt like a career counselor, one of the most underappreciated (and hopeless) jobs.
After trying all kinds of strategies to get people to attend, including emailing THEM and trying to coordinate times, I switched approaches. Instead of in-person events, I launched iwillteachyoutoberich.com so people could read it out of the comfort of their own dorm rooms. Later, I learned why this was so successful: People don’t like attending events about money because (1) it makes them feel bad about themselves, (2) the events are usually boring and/or scammy, and (3) people have to publicly admit they don’t know about money.
It was a classic mistake of not understanding my users (substitute “customers” in your business).
Lesson learned: You MUST get into your clients’ heads.
- What are their fears?
- What are their hopes?
- What do they care about most (Hint: How much it costs is almost never the first priority).
Similarly, once you get in their heads, you learn that the medium in which you serve your clients matters. (Is it an in-person event or a blog or a weekly phone call?) The way you approach your client matters. And how you sell to prospects matters.
Example 2: How I consulted for venture capital firms
Like all of us, I know how to use YouTube, Facebook and Instagram. During college, I turned that into consulting gigs with multiple venture-capital firms who wanted to learn how young people were using consumer services on the web. This consisted of me giving them a course each week online, including music, videos, social networks, etc.
Would you ever think you could turn your daily routines into a side gig? I wouldn’t have before I landed those gigs. But people were willing to pay for it because they had concrete needs: They wanted to understand how young people were using new technologies so they could remain sharp investors. Money wasn’t an issue, but time was: They’d rather hire someone who lived it than try to learn themselves. Once I’d established that I was skilled at these services — and more importantly that I could create an effective structure for teaching the VCs — they hired me.
Lesson learned: It’s not enough to simply be good at something, whether it’s freelance writing, dog walking, or graphic design. You need to know why people want your skill.
Everyone Has Skills That Someone Else Would Pay For
Two points that are important here:
- Your job does NOT have to be the source of inspiration for freelancing. If you’re a project manager by day, you can be a creative writer on the side. Both share similar skills, anyway! You have to be organized, create structure out of chaos, and focus on delivering on time, every time. Now you see why turning your hobbies into income isn’t some cookie-cutter formula. Because if a project manager can earn $1,000 on the side of being a creative writer, what could you do? Suddenly, it’s overwhelming.
- Your job skills CAN be transferred, no matter how unique you think you are. So you’re a dolphin trainer at SeaWorld. Wow, unique job! Not really. You have skills in working with animals, which would suggest training pets. But you also have expertise in behavioral change, which many academic labs and companies would love to tap into. You can tutor children. You can help people stop biting their nails. There are a hundred different routes.
Don’t simply say, “I’m a process engineer! Nobody hires freelance process engineers. I give up!”
Instead, ask yourself: What do I enjoy? What am I good at?
Here are just a few of my students who have made money with their side gigs:
A circus performer to a dance instructor
Just like many of you, Ben started his journey with a unique job and no idea how to make extra money on the side. As a circus performer earning minimum wage, he might have thought his skills were too niche for a profitable side gig. However, Ben’s story proves that anyone can turn their unique talents into a lucrative opportunity with the right approach.
Ben identified his distinctive skillset and found an unexpected yet profitable niche: teaching men how to approach women on the dance floor. This creative idea allowed Ben to take control of his income and earning potential and led to national media exposure on platforms like Good Morning America and Fox News.
Ben’s success reinforces key principles:
- Even the most unique jobs, like circus performing, have transferable skills that can be turned into side gigs.
- Ben found a market willing to pay for his expertise, demonstrating the importance of identifying what people want.
- By focusing on his unique skills rather than getting bogged down in business setup, Ben was able to quickly test and refine his offering.
- As Ben puts it, “I don’t have to rely on someone else to provide income. I can create it myself!”
Ben’s journey from circus performer to side gig success story illustrates that with creativity, persistence, and the right approach, you can turn your skills into a profitable side business, regardless of your current job or perceived limitations.
Cellist and full-time career centered around music
Kirin, one of my students, shows how creative professionals can build successful side gigs. As a talented cellist, Kirin dreamed of a full-time music career. However, like many artists, she initially grappled with imposter syndrome and self-doubt about monetizing her art.
Through our work together, Kirin overcame these mental barriers and the intimidation of competing in a field full of talented musicians. Her perseverance paid off, resulting in an impressive monthly income of $3,000-4,000. This additional revenue allows Kirin to focus on her passion without resorting to unrelated jobs.
Her success story proves that freelancers can turn their artistic talents into profitable ventures, even in crowded markets, by pushing through self-doubt and consistently applying their skills.
A full-time dad who sets his own rates
Bill, another of my students, transformed a challenging situation into a freelance success story. As a full-time dad with a mortgage and two kids, Bill found himself at a crossroads after losing out on a “shoe-in” job offer. Faced with financial pressure and uncertainty, he realized he needed to take action.
Through our work together, Bill learned to value his own skills and set his rates confidently. He adopted a selective approach, only accepting clients who recognized his worth.
This strategy paid off dramatically – Bill earned $40,000 in just 90 days and anticipates doubling his business in the next 6 months. His journey shows how, even in tough circumstances, focusing on your value and being selective with clients can lead to rapid financial growth and stability in freelancing.
Matching Your Hobbies And Skills To A Side Gig
It’s overwhelming to consider that you could have 500 potential ways of earning money. Here are a few tips that will help you in the long term.
Take it one step at a time
What industry are you in?
Oh, finance? Ok, you probably don’t want to be a freelance investment banker. But…hmm…you spend all day doing analyses. How can you use that?
- Option 1: Excel is a breeze for you. Maybe there are people (like me) who HATE Excel yet need detailed analyses for their business. Could you build models for other people?
- Option 2: You’re really good at doing valuations of industries. Are there pre-launch founders who need that skill? (Alert: Observant readers will have noticed a BIG RED FLAG when it comes to pre-launch founders: They can’t pay you. So if your goal is generating revenue, you want to re-think your target market to make sure they can afford to pay you.)
Identify your hobbies and skills, then think more broadly.
The most common thing I hear is, “I’m a really good communicator, but I don’t know how to turn that into a side income.” That’s because you can’t.
Nobody hires a “good communicator.” They hire people to solve their problems. What does a good communicator mean, anyway? That’s just a lazy way of saying you haven’t spent time researching the available options to channel your skills into something worth money.
Get specific
Are you great at writing press releases? (I’d pay for that.) Are you great at training public speakers? (You might be able to find a specific segment of people who’d pay for that. This one is tricky, though. Can you identify why?) Are you a good communicator because you can speak Chinese? Boom, I’d instantly be a tutor for Chinese kids since their parents will love/trust someone who speaks Chinese even when tutoring their kids for any subject.
If you don’t have any marketable skills, there are still options.
Etsy is a perfect example of people making great side income and many of them don’t have any skills that would commonly be considered “valuable.” Yet they do well selling niche products to a niche audience.
If you aren’t some professional with software-engineering skills or online-marketing experience, that’s okay. Can you hammer something into a wall? (I’d pay for that.) Can you cook? (I’d also pay for that…in fact I am.) Can you walk dogs? Tutor kids in 4th-grade math? Help moms with routine tasks?
You can make money on all these things without having some hard technical skills as long as you find a market that will pay for them.
People pay for solutions, not skills
People are very bad at identifying their own skills. They’ll say things like, “I dunno.” I guess I’m good at writing, communication, and general organizational skills?? AMAZING!! HERE’S a $4,000/MONTH RETAINER!!! (Sorry, it won’t happen.)
Repeat this over and over: People pay for solutions, not your skills.
For example, I was on a webcast suggesting ways for people to earn money on the side, and I mentioned that I hate cooking, am not good at it, and would love it if someone cooked for me. I got an email later that night from someone who said, “Ramit, I can help. I can teach you everything you need to know over one weekend, and you’ll know 3-5 great dishes to cook.” I appreciated the offer but wrote back, “Thanks for the offer! But you don’t understand. I don’t want to learn. I want someone to do it for me.”
Again, People have problems. They want solutions.
They don’t care what you’re “interested” in. Are they too busy to organize their closet? Do they need someone to help them redesign their website? Maybe they want someone to teach their kid how to play flute.
When you make your offer, you’ll have to deeply understand what the market your prospective clients want. And then you’ll be able to turn your service offering into something so compelling…that they’ll actually pay you for it.
Turn Your Ideas Into Income
Now that you’ve identified your skills and potential offerings, it’s time to transform those ideas into actual income. The key is to start quickly and learn as you go. Choose a platform that aligns with your services – a general freelancing site like Upwork, a professional network like LinkedIn, or an industry-specific platform.
To create a portfolio, start with a few samples of your best work, a brief bio highlighting your relevant skills, and any client testimonials you can gather. If you’re just starting, consider doing a small project for free in exchange for a testimonial. Remember to tailor your portfolio to the type of work you want.
When setting your rates, research the market, but don’t undervalue yourself. Consider your experience level and factor in your costs, including taxes and necessary subscriptions or tools. Start at a competitive rate, deliver quality work, and adjust your prices as you gain experience and positive reviews. Remember Bill’s story: success came from valuing his skills appropriately and being selective with clients.
The most crucial step is to start now and refine your approach as you learn. Your perfect side gig is out there – it’s time to find it!
For more in-depth tips on managing your finances while freelancing, check out my article How To Freelance (7 steps to get started).
Finding Profitable Business Ideas
While it seems like finding a profitable business idea would be the easiest part of making money on the side, this simply isn’t the case. It’s often the HARDEST part of earning more.
After working with thousands of students, the two most common problems people have are:
- “I don’t have an idea!”
- “I have too many ideas. How do I decide?”
And once you have an idea, how do you KNOW if it’s any good?
I want to help you with these questions, so I’ve put together the Ultimate Guide To Finding Profitable Business Ideas which you can use right now, just tell me where to send it!
