I'm a Gig Economy Veteran: 3 Popular Side Hustles I'd Never Recommend
While it’s tempting to pursue new income streams, it’s important that you avoid wasting your time on side hustles that aren’t worth it.
According to the most recent side hustle survey from The Penny Hoarder, the average monthly side hustle income is $1,275. It’s evident that there are many options for earning extra money. The catch is that some will sink your time without paying you what it's worth.
Learn More: How To Escape 3 Beginner Side Gig Surprises That Shrink Profit
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What are three popular side hustles that experienced people don’t recommend?
1. Writing for Content Mills
Steve Case, a financial services consultant with extensive experience in the gig economy, said that freelance writing for content mills isn’t worth the effort.
“If you have not heard of them, these are the sites that advertise 'write from home, set your own hours,' and then pay you $10 or $20 per article,” he said.
He acknowledged that it looks promising, but if you do the math, it’s totally not worth it. For example, a 1,000-word article takes about two hours to complete if you’re a proficient writer, given the research, drafting, and revisions. That's only $5 to $10 an hour.
Steve Jafari, a managing partner at Restoration Doctors, said that one should be cautious about freelance work that requires a significant amount of unpaid time to find and communicate with clients. He has extensive experience in business development and shared that the costs, time and effort should be justified by the earnings. As a writer for a content mill or low-quality publication, you could spend hours of unpaid time dealing with the client and making revisions.
How Lucrative Is This Side Hustle?
While ZipRecruiter puts the average hourly rate for freelance writing at $23.27, the harsh reality is that you’ll earn much less for content mills. Case found that he was earning between $5 and $10 before taxes, due to revisions and edits. He worked for one of these sites for four months, and his best week the earnings were under $100 for 22 hours of work. The clients expected unlimited edits, and he couldn't complain because competition was high among writers seeking pay.
2. Stock Photography
“If you see all the influencers promoting it online, they say to just upload your photos, sit back and collect royalties forever, " Case said. “What they do not tell you is that the market is flooded. Shutterstock alone has over 500 million images, and the average royalty per download is around $0.10 to $0.38.”
Case admitted that he regrets this side hustle, especially since he bought a new Nikon DSLR just for this venture. He discovered that a photo you spend an hour shooting and editing might earn you 20 cents. You’ll need to hit thousands of downloads just to cover the costs for your camera gear. To make matters worse, the platforms keep changing the payout structure to benefit themselves.
How Lucrative Is This Side Hustle?
Even though the average hourly rate is listed at just under $30 on ZipRecruiter, Case uploaded 60 photos over the course of a year and earned less than $20 for his effort. He believes that if anyone tells you stock photography is passive income, they’re either very lucky or they’re selling a course.
3. Rideshare Driver
Being a rideshare driver who transports passengers or delivers food was once a popular side gig, but it isn’t as lucrative as it may appear when you factor in your expenses. Jafari warned that drivers are responsible for the cost of fuel, vehicle maintenance and repairs, insurance and vehicle depreciation.
How Lucrative Is This Side Hustle?
Jafari shared the following numbers:
“Grossing $25 per hour does not mean the driver takes home $25. It costs about $7 per hour to operate the vehicle and $4 per hour in taxes. So, that $25 leaves the driver with $14 after costs and taxes.”
The average hourly pay is listed at around $21 on ZipRecruiter, but stories like this one from ClickOrlando's News6 frequently arise about how rising fuel prices are constantly cutting into profits and forcing drivers to rethink their options. This gig also isn’t worth the effort due to the risk of damage and depreciation to your vehicle, which would mean you'd have to spend money to replace it sooner.
This is the perfect example that illustrates the importance of always factoring in the expenses required to earn an income to find out how much you’re really earning at the end of the day.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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