If you often visit personal finance websites, you’ve likely come across the concept of having a side hustle. What’s not always highlighted, however, is the importance of diversifying that side hustle. Initially, one gig might bring in good money, but circumstances can change. To protect your additional earnings during such times, diversifying your income streams is essential.
Let me share my own story. Three years ago, I started by submitting bloggers’ posts to carnivals for a small fee. At the same time, I began writing posts for other bloggers. Looking back, this was a wise move because the demand for carnival submissions declined after about a year.
In the beginning, my business was booming with client requests for carnival submissions, and I even had to limit the number of clients to keep my workload manageable. But within 12 to 18 months, I lost nearly all my clients. Some clients found submitting to carnivals no longer worthwhile, while others opted for cheaper alternatives.
Had carnival submissions been my only source of income, I would be out of business now. Fortunately, my freelance writing picked up, but I’m always looking for ways to further diversify to shield against any future downturns.
If you’re thinking about diversifying your side gig, here are a few tips to keep in mind:
1. Look for Related Job Opportunities
If you’re tutoring high school students in math, you could also offer services for ACT and SAT prep or help college graduates prepare for the GRE Math test.
2. Stay Updated on Current Trends
As a freelance writer, learning about platforms like Pinterest can be valuable. Offering services like promoting social media posts or creating Pinterest-optimized images can expand your client base and increase your income.
3. Expand into a Related Field
As a writer or blogger, consider branching out into other areas like print media. This way, if one platform stops providing business, you have a backup option.
4. Consider Local Clients
While remote work is very convenient, don’t forget about local businesses. As a social media manager, you may find opportunities with nearby companies that can benefit from your expertise and help broaden your business scope.
Fellow freelancers, how do you diversify your income streams? Do you have any tips to share?