Some side hustles seem like good money making opportunities. But in reality, many require a heavy investment of time, money or both, and deliver limited returns without serious commitment. Here are some red flags to look out for when considering side hustle opportunities and gig work.
Hustles That Require Licensing or Certification
Salon services, real estate sales and certified accounting and tax preparation services are often cited as top hustle ideas. Although these fields can be very lucrative, you must have the necessary education and licensing or certification. To get it, it will cost you anywhere from $500 to $10,000, or more, to complete your initial education, plus paying the initial and annual licensing fees in most states.
If you are hoping to build a career in these fields, this investment can be worthwhile. However, this is a huge time and expense commitment with no guarantees if you just want to make some extra money.
Multilevel Marketing (MLM) Scheme
MLM companies are skilled at convincing you of easy money and huge earning potential, and there are certainly many who excel at this model. However, you should carefully research any required product costs and investments of any MLM opportunity—which can be substantial—and evaluate their sales and revenue model. In most cases, you will only make money if you build a large team of downstream salespeople, and that requires constant time and effort.
If high-pressure sales are your thing, an MLM side hustle might work for you. But otherwise, you could end up with a stack of unsold items that you can’t return, and no profit to speak of.
Side Hustle Coaching Programs
As you explore different side hustle ideas, you are sure to come across coaching programs that generate untold income and promise to help you succeed quickly. This is another group of skilled marketers who know how to convince you to pay $100s or $1000s for their “foolproof” system. While some coaching programs offer great strategies and great advice, there is no ticket to get rich quick.
Before paying for any coaching program, explore YouTube, Google and Kindle Unlimited to find free videos, how-to articles and e-books for side hustles ideas that interest you. In most cases, you can find a lot of free information to help launch and grow your side hustle.
Bottom Line
Side hustles are a great way to earn extra income, pursue a passion or launch a new business in your spare time. With so many side hustle opportunities, it’s wise to explore the options to determine which hustles fit your skills, goals, budget and available time. There is no guaranteed success side hustle or get-rich-quick scheme, despite what some smart marketers and coaches say. Like any business, a side hustle requires attention, commitment and follow-through. But done right, they offer great income and growth potential, and can even become a full-time gig.
