Financial Projections
What Side Hustles Pay the Most? A Comprehensive Guide
In today’s economy, side hustles have become a popular way to earn extra income. Whether you’re looking to pay off debt, save for a special purchase, or simply make the most of your time outside of a full-time job, the right side hustle can significantly boost your earnings. However, with so many options available, figuring out what side hustles pay the most and are worth your time and effort can be challenging.
We’ll explore the earning potential and how using a financial model template can help you plan, manage, and scale your side hustle effectively. By the end, you’ll clearly understand which side hustle might be the best fit for your skills, interests, and financial goals. Let’s dive in!
Why Side Hustles Matter
Before we get into the specifics, let’s discuss why side hustles are so important. According to a 2023 survey by Bankrate, 39% of U.S. adults have a side hustle, and the average side hustler earns 1,122 monthly.
Side hustles also offer flexibility. Unlike traditional 9-to-5 jobs, many side hustles allow you to set your hours, work from home, or even turn a passion into profit. Plus, they can serve as a safety net during economic uncertainty, providing an additional income stream if your primary job is affected.
Top 5 Side Hustles
Now, let’s explore five high-paying side hustles from the list provided and how a financial model template can help you succeed in each one.
1. Real Estate
Real estate has long been regarded as one of the most lucrative industries, and it offers several side hustle opportunities that can pay exceptionally well. Whether you’re buying, selling, renting, or managing properties, real estate is a versatile field with a high-income potential.
A. Real Estate Agent
Becoming a licensed real estate agent is one of the most common side hustles. Although this requires upfront costs for training and certification, once you’re certified, you can start making substantial commissions. A successful real estate agent can earn tens of thousands of dollars in commission for each home they sell.
While commission structures vary, most real estate agents make 2-6% of the property’s sale price. This can equate to significant paychecks in lucrative markets like major metropolitan areas. For example, selling a $500,000 home at a 3% commission would earn you $15,000.
Financial Model Template: Commission-Based Earnings
A commission-based financial model is often the best approach for a real estate agent. In this model, you would estimate the average sale price of homes, the expected commission percentage, and the number of deals you anticipate closing each month.
This financial model helps determine how much you need to invest in marketing, property tours, and client acquisition. It also allows you to forecast your income and track your progress in scaling your business. A clear financial template can provide insights into whether you need to adjust your business strategies or increase efforts to reach your target income.
B. Vacation Rental Business (Airbnb)
If you have extra space or a vacation property, turning it into a short-term rental on platforms like Airbnb can be a highly profitable side hustle. Many people are willing to pay premium rates for unique and well-located properties.
The average annual income for an Airbnb host can vary widely depending on the property’s location, size, and amenities, but it is not uncommon for top hosts to earn over $30,000 a year with just one listing.
By managing multiple properties, you could scale your income significantly, potentially turning your side hustle into a full-time business.
Financial Model Template: Short-Term Rental Profitability Analysis
The financial model for a vacation rental business revolves around rental income, operational costs, and occupancy rates. Key factors include pricing strategies, maintenance costs, platform fees, and cleaning fees.
A simple profitability model would calculate revenue based on the average nightly rate, occupancy percentage, and monthly nights rented. Subtracting operating costs like utilities, cleaning, and platform commissions will give a clearer picture of monthly or annual profitability.
For those with multiple properties, the model can help you determine which locations or properties offer the best return on investment, allowing for better business decisions on scaling the operation or reinvesting profits.
2. Online Courses & Test Preparation Centers
If you have expertise in a specific subject area, one of the most rewarding side hustles could be creating and selling online courses or offering test preparation services. The growing demand for online learning means a massive market for those who can create high-quality educational content.
A. Online Course Creator
Creating and selling an online course can be a lucrative side hustle, especially if you have specialized knowledge. Whether you’re teaching business strategies, software development, marketing, or even art, there is a market for nearly every subject imaginable.
Platforms like Udemy, Teachable, and Skillshare make creating and selling courses more effortless than ever. Once you’ve built your course, it can generate passive income as people purchase and enroll in it. The income potential depends on the quality of the course, your marketing efforts, and the demand for your content, but successful course creators can earn thousands of dollars per month.
Financial Model Template: Course Sales and Subscription Model
When creating a financial model for an online course, you must consider factors such as the cost of the course (including video production, editing, and platform fees), pricing strategy (one-time or subscription-based), and the expected number of course enrollments. A standard model is a tiered pricing structure based on the course’s complexity and niche.
For a subscription-based model, you’d track the number of monthly subscribers and analyze lifetime value (LTV) for each customer. This helps forecast income over time and adjust your marketing and sales strategies accordingly.
B. Test Preparation Center
Starting a test preparation center could be a highly profitable side hustle if you’re knowledgeable in standardized tests like the SAT, GRE, GMAT, or LSAT.
People are always willing to pay for quality tutoring to help them score well on these exams, and tutoring can be done in the evenings or weekends, allowing you to maintain a full-time job.
A test preparation business can be run physically or as an online tutoring service, further expanding your potential reach. Tutors can charge anywhere from $50 to $200 per hour, depending on their level of expertise and the subject.
Financial Model Template: Hourly Fees and Class Packages
For a test preparation center, your financial model would focus on pricing for individual sessions and class packages. Key components include the cost of running the business, such as renting space or online platform fees, marketing costs, and instructor salaries. By estimating the hours or classes you expect to teach each month, you can forecast income and evaluate whether the pricing structure is competitive.
By regularly tracking performance through this financial model, you can make adjustments based on demand, improve profitability, and ensure your business is sustainable long term.
3. Gym Fitness Center or Specialized Fitness Studios
The fitness industry is booming, and many fitness enthusiasts are capitalizing on this growth by starting their fitness-related businesses. Whether you want to open a traditional gym or a specialized fitness studio, this sector offers high earning potential.
A. Gym Fitness Center
Opening a gym fitness center may require significant startup costs, including equipment, facility rental, and hiring staff, but once established, it can be a highly profitable business.
Many gym owners charge monthly membership fees, and these recurring revenues can provide a steady income stream. Depending on the size and location of the gym, owners can earn anywhere from $5,000 to $50,000 per month or more.
Fitness centers can also increase revenue through classes, personal training sessions, and selling supplements or gear. This business is particularly profitable in areas with high fitness service demand and minimal local competition.
Financial Model Template: Recurring Revenue from Memberships
A gym’s financial model revolves around recurring monthly memberships, personal training fees, class packages, and ancillary sales like supplements or gear. Key components include fixed costs like rent and equipment and variable costs such as utilities and wages.
By forecasting monthly memberships and additional revenue streams, this financial model helps you plan for cash flow and assess whether scaling up the business is feasible.
B. Pilates Studio, Yoga Studio, or CrossFit Gym
If you prefer a smaller-scale operation, opening a niche fitness studio such as a Pilates studio, yoga studio, or CrossFit gym could be a highly rewarding side hustle. These studios often require lower startup costs than traditional gyms and can attract dedicated clients willing to pay for specialized fitness classes.
Many instructors charge $30-$100 per session, and with multiple classes each day, you can generate a solid income. If you offer memberships or class packages, this will provide additional predictable revenue streams. Additionally, these fitness businesses often attract clients who pay premium rates for personalized instruction.
Financial Model Template: Class-Based Revenue
For smaller studios, your financial model might rely more heavily on class-based revenue than membership fees. You would track average attendance rates, pricing for individual sessions, and class packages.
By factoring in the number of weekly classes, you can assess potential income and expenses, including staff compensation, equipment maintenance, and marketing.
4. Plumbing Business
Plumbing is one of the most stable and profitable side hustles you can start, especially if you have the necessary skills and training. While becoming a licensed plumber requires time and effort, it can be a gratifying career.
Plumbers can charge hourly or flat fees for pipe repairs, drain cleaning, and installations. Depending on the job’s complexity, they can charge $50-$200 per hour in many areas. For emergency services, like fixing a burst pipe, plumbers can often charge significantly more, making this a highly lucrative side hustle.
Financial Model Template: Hourly Rate and Service Packages
For a plumbing business, you can structure your financial model around hourly rates and fixed-service packages for common plumbing issues.
By estimating how many clients you expect to serve per week and tracking the average cost per job, this model will help you understand potential income and expenses. You can also plan for seasonal fluctuations in demand, ensuring you’re prepared for busy periods.
How to Choose the Right Side Hustle for You
With so many options, how do you decide which side hustle is right for you? Here are a few factors to consider:
- Your Skills and Experience: Choose a side hustle that aligns with your strengths. For example, home renovation or handyman services might be a good fit if you’re handy with tools.
- Startup Costs: Some side hustles require significant upfront investment, while others can be started with minimal capital.
- Time Commitment: Consider how much time you can dedicate to your side hustle.
- Market Demand: Research the demand for your chosen side hustle in your area or online.
- Scalability: Consider whether your side hustle can grow into a full-time business or generate passive income.
Final Thoughts
Side hustles are more than just a trend—they’re a powerful tool for achieving financial independence and pursuing your passions. Whether you choose home renovation, electrician services, an Airbnb business, an IT training center, or pest control, the key to success lies in planning, persistence, and a commitment to delivering value.
Using a financial model template can be a game-changer for your side hustle. It helps you:
- Plan Effectively: Understand your costs, revenue streams, and profitability.
- Avoid Mistakes: Identify potential financial pitfalls before they become problems.
- Scale with Confidence: Make informed decisions about reinvestment and growth.
Remember, the best side hustle is one that not only pays well but also aligns with your skills, interests, and lifestyle. So take the time to explore your options, do some research, and take the first step toward building a side hustle that works for you.
