Yahoo Finance 8 Key Signs Your Side Gig Could Make You Rich
The gig economy is booming, and has been for years now. In fact, an estimated 45% of Americans have a side hustle — that’s millions of working adults.
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But not every side gig can make you rich. Many people only earn a few hundred dollars a month from theirs, while others easily pass the $1,000 threshold. Some people, celebrities and non-celebrities alike, have the potential to turn their side job into something truly lucrative.
If you have a side hustle and are wondering whether it’ll make you rich, here are some signs that it could.
Your Hourly Rate Is High (And Your Investment Is Low)
“From my experience as co-founder of GreenPal and someone who has mowed lawns for many years, a strong indicator that your side gig could turn into a significant income source is its ability to yield a high hourly rate with minimal initial investment,” said Gene Caballero of GreenPal.
“For instance, lawn mowing is a prime example where individuals can earn between $40-$50 per hour with just the cost of a lawn mower and basic tools to start which is less than $1,000,” Caballero continued. “This side gig taps into a consistent demand for lawn care, offering a robust opportunity for growth.”
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Your Earnings Keep Going Up
“If you’re pulling in money from your side gig every week and notice more folks are getting interested in what you’re doing as the months roll by, that’s a really good sign,” said Jeff Rose, CFP and founder of Good Financial Cents.
Rose gave the following example to illustrate his point.
“Let’s say you kicked things off making about $200 a month, but then that number jumps to $500, and before you know it, you’re at $800 a few months later. This means people are really digging what you’re offering, and it’s not just a one-time thing. Seeing this kind of growth shows your side hustle could seriously turn into something big.”
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What You’re Doing Is Scalable
Similarly, if your side hustle is scalable, you’re probably on the right track.
“If a side job is scalable, you should find that as your sales volume increases, the cost per unit or per customer remains relatively stable or decreases,” said Nathan Brunner, CEO at Salarship. “A typical example of a scalable side hustle could be selling e-books or online courses because, once created, they can be sold an unlimited number of times without requiring additional time or resources for each sale.”
Keep in mind that many side gigs aren’t scalable — and are therefore unlikely to make you rich.
Brunner gave the example of Uber driving as an unscalable side hustle that he wouldn’t recommend for building wealth. “It requires trading time directly for money, limiting the amount you can earn to the hours you can physically drive.”
You’re Already Earning a Significant Amount Monthly
If you’ve hit the ground running and are already starting to make $1,000, $2,000, or even more each month, this is a good sign for your side gig’s earnings potential. But you’ll need to make sure what you’re doing is sustainable at that rate of growth.
If it’s not, it might not last for long. If it is, then you could be onto a real money-maker.
There’s Regular Demand
“I am an entrepreneur who has started several businesses as side hustles. Some were successful and some were not,” said Jonathan Geserick, managing attorney at DWI Guys Texas.
One of the key signs that your side gig has the potential to make you rich, according to Geserick, is that there’s consistent demand for whatever you’re offering.
“My most successful businesses rely on repeat customers. If people need your product or service and you provide good service at a reasonable price, people will not only continue to purchase from you but also tell their friends.”
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You Keep Getting Positive Feedback
Positive feedback, whether that’s in the form of testimonials or reviews, is a key indicator that your side gig is doing well and will continue to earn you money.
“It doesn’t matter if the feedback comes from current customers, potential customers, or just random people,” said Geserick. “If a few people think you have a good idea for a business, others likely will also.”
You’re Starting To Automate Processes
There’s simply not enough time in the day to do everything yourself, which is where automation comes in. If you’re able to automate parts or all of your side gig, you could be onto a real money-maker.
This is what Malika McCalla, a real estate agent at MM Real Estate who also has a side hustle in house hacking and rental properties, said she does to continue generating income.
“Using automation tools … to manage all my units helps me easily collect rent and review applications, which streamlines the entire rental process for both me and my tenants,” she said.
You’re Passionate About What You’re Doing
If you’re passionate about your side venture, chances are you’ll stick with it as it continues to grow into something truly lucrative.
“When you’re passionate about what you’re doing, it doesn’t feel like a chore,” said Rose. “This energy and love for your work will push you to go the extra mile, whether that’s staying up late to finish a project or spending your weekends learning new skills.”
As an added bonus, other people will be able to tell when you’re truly enthusiastic about what you’re doing. This can attract customers to your business so that it continues to grow as well.
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This article originally appeared on GOBankingRates.com: 8 Key Signs Your Side Gig Could Make You Rich
