The views expressed by the contributing Entrepreneurs are their own.
No longer just a weekend passion project, side hustles have become a way of life for many. In fact, as of early 2023, nearly 50% of Americans have a side hustle — even if they’re making $100K a year in their traditional 9-5 jobs.
So why has it become such a critical aspect of life for such a large population?
One of the big reasons people tend to gravitate towards side hustles is the freedom they offer. The opportunity to be our own boss and choose our own business path is too good to pass up. However, according to Bankrate, 41% of those who have a side hustle do it to make ends meet.
For most, what comes to mind when talking about “side gigs” is driving for Uber or Lyft, delivering for Door Dash, GrubHub and Instacart, or running errands for TaskRabbit. While these are all viable options, the truth is that there are actually a wide variety of different side business avenues you could pursue. Let’s take a look at four passive income streams that make great side businesses.
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1. Create an online course
The internet has profoundly affected our society over the past three decades. Few would argue that. But what many don’t consider is how much easier (and more affordable) it is to upgrade your skills, further your education, or switch to an entirely new career path thanks to the advent of online courses.
What began in 1989 as a new and exciting way to earn a college degree eventually branched out into a world of massive open online courses (MOOCs). MOOC providers like Coursera aggregate content from various universities and colleges, including Stanford University (creator of Coursera), Princeton, University of Michigan, University of London and Indian School of Business.
But MOOC providers are not limited to working with universities. One of the most popular online education sites is Udemy, which was founded in 2010 and, as of 2023, has 64 million students, over 210,000 courses, and over 75,000 instructors.
The site is primarily aimed at people who want to improve or develop skills related to their roles and jobs. For example, a writer who has primarily written blogs or articles might take a course on copywriting or writing a direct response. As an instructor, you can showcase your unique skill set or expertise by uploading videos, presentations, resource materials, or other relevant content to help the student understand and understand your position.
Skillshare, like Udemy, is an online education course for those who want to learn and share their knowledge. The difference is that Skillshare is more for those looking for a creative outlet or means of earning income.
For example, a casual singer might find it fascinating to explore a class on breathing exercises or perhaps even music theory. Similar to Udemy, teachers on Skillshare can earn a passive income by creating a course around their passion and letting the automated nature of the platform handle the rest of the transaction.
These are just two examples of online courses, but there are other sites you can use to showcase your expertise while earning a profit.
Related: 7 Passive Income Ideas to Make Money and Build Wealth in 2024
2. Electronic commerce
Did you know that online shopping has been around since the late 70s? Surprised? Obviously, it wasn’t what we know today, but it was certainly the first of a thousand cuts that would weaken the retail empire. It started with a phone line and a television. A particularly savvy English inventor discovered that he could connect the two and thus connect a consumer to a business… and overturn a kingdom.
Of course, this was just the basis of online retail. Soon after, the Boston Computer Exchange (BCE) capitalized on the idea and became the first e-commerce company to sell used computers.
Fast forward to today, and e-commerce is just a normal part of our daily lives. The global e-commerce market was expected to reach a total of $6.3 trillion by 2023, with nearly 21.2% of total retail sales occurring online. Sites like Amazon, Red Bubble and Etsy have made it easy to find unique items or gifts and have also provided a sales platform for those who enjoy showing off their artistic craft.
Using ecommerce stores is a great route to share your creativity and earn extra income while doing something you love. Etsy has become a popular hub for artists, designers, and other creatives (a total of approximately 7.5 million active sellers as of 2022) who use the domain to build their own businesses.
3. Mobile application development
I’ve talked about how the invention and development of the Internet changed the way we learn and shop. But its implications go even further.
While many of these programs started on desktop computers, the rise of the smartphone also meant the rise of the mobile app. Mobile apps are not just limited to education and shopping. I’ll bet you’re reading this very article on your smartphone browser, aren’t you?
Although applications are often created and programmed by large programming departments, this is not always the case. Quite often, mobile apps are created by independent developers, filling a need that larger manufacturers may have missed.
If you have a talent or interest in app design, programming, or coding and have identified a market need, app development can cultivate a steady stream of passive income through monetization (in-app purchases, direct sales, and ads).
Related: This grad student started a side hustle to help pay tuition. He earned more than $115,000 last year — more than his full-time job.
4. Create content
Exactly parallel to the transition of the physical market to the digital market is the shift away from the traditional one marketing in digital marketing. Today, digital marketing is a fast-growing industry – it already dominates the marketing world and looks poised to continue growing.
As a result, the demand for quality content – already high – is getting stronger every year. Writers, photographers, digital artists and other creatives looking for ways to earn income through content creation have countless opportunities with the power of digital marketing at their backs.
Depending on your skills and interests, you can combine them into a versatile income stream.
For example, if you are a writer who has also done design work, you could either offer services to a business organization or work for multiple businesses depending on the service they need. Content creation services can be extremely lucrative, although depending on the company you work with, their pay rate and the length of time they require your service may vary.
Related: This Retired UPS Worker Started a People-Oriented Side Hustle That’s Making More Than $500,000 a Year — and ‘Anyone With a Pulse Can Do It’
The world is open
Creating a passive income stream can start as something small, something you can do while working your traditional 9-5. However, for many of us, this side hustle can become the career we really want.
Personally, I was completely unhappy in my previous work environment. I wanted an opportunity that didn’t feel like it was taking years off my life, an opportunity that I might actually enjoy and that would allow me to truly live the life that I wanted. It may take time, effort and a lot of energy, but side hustles very often become real sources of passive income for people around the world. Whether you’re running alongside your current job or looking to make it in your full-time career, the opportunities to create an additional source of income are endless.
They are out there waiting for you.
