If you’re a regular reader of personal finance sites, you’re probably familiar with the idea of having a side job or hustle. However, one thing that’s often overlooked is the importance of diversifying your side hustle. While it may start off profitable, situations can change, so it’s smart to diversify your income streams to protect your additional earnings.
Take my experience, for example. Three years ago, I began by submitting bloggers’ posts to carnivals for a small fee, and at the same time, I started writing posts for other bloggers. Looking back, diversifying was a wise move because the demand for carnival submissions dropped within a year.
In the beginning, I had lots of clients requesting carnival submissions, to the point where I even had to turn some away to keep things manageable. But within 12 to 18 months, almost all my clients were gone—either because they didn’t find carnival submissions profitable anymore or they found cheaper alternatives.
If I had relied solely on carnival submissions, my business would be non-existent now. Thankfully, my freelance writing took off. But I’m still looking for ways to further diversify to avoid potential setbacks.
If you’re thinking about diversifying your side gig, here are some tips:
1. Look for Related Job Opportunities
For example, if you’re a high school math tutor, you could also offer ACT and SAT prep, or help college graduates prepare for GRE Math.
2. Stay Updated on Current Trends
If you’re a freelance writer, it can be helpful to learn about social media platforms like Pinterest. Offering services like social media post promotion or creating Pinterest-friendly images can attract more clients and increase your income.
3. Expand Into Related Fields
As a writer or blogger, always look for opportunities to expand your skills beyond blogging. You might explore areas like print media, so if one platform slows down, you have other options.
4. Consider Local Clients
While remote work is convenient, don’t forget about local businesses. As a social media manager, you can find remote clients, but local businesses might also need your help and can contribute to your business growth.
Freelancers, do you diversify your income streams? If so, what tips can you share?