The majority (57.3 per cent) of Australian side-hustlers earn less than $500 a month, according to research by marketing platform Omnisend.
Only 20.5 per cent of the side-hustlers that the company surveyed earned more than $1,000 per month, while just a small fraction (5.6 per cent) earned more than $5,000.
Both growing competition and limited time present challenges for side-hustlers, according to Greg Zakowicz, Senior eCommerce Expert at Omnisend. Scaling operations to reach beyond $1,000 per month usually requires quitting one’s day job, an understandably scary step.
Despite this, 44 per cent of respondents said they were considering turning their side-hustle into their main job.
Are you ready to quit your day job?
Zakowicz warned side-hustlers not to get ahead of themselves.
“Quitting prematurely can lead to financial strain,” he said. “Make sure your side job consistently generates a stable income before taking the leap.”
Zakowicz recommends focussing on niche markets when starting a side-hustle.
“Find a niche market where your skills or products stand out, instead of competing in oversaturated spaces,” he said.
On the topic of oversaturation: Of the 44.7 per cent of respondents with active side-hustles, the most popular pursuit was eCommerce; over half (59.3 per cent) were selling items online. Freelancers made up 20.2 per cent of side-hustlers, while 12.7 per cent were teaching or tutoring.
Why eCommerce is the most popular side-hustle
Zakowicz said that eCommerce’s popularity lies in its scalability.
“Unlike freelancing or gig work, which maxes out when you run out of time, eCommerce can scale with fewer limitations, so it isn’t a surprise so many people are doing it,” he said.
But this popularity doesn’t come without its limitations.
“The popularity of eCommerce also shows that the field is increasingly more saturated,” Zakowicz explained. “So while it does offer much more scalability compared to other side jobs, it also comes with more risk and requires a lot of careful planning, consistent effort in marketing, and the right tools for automation and logistics.”
Despite the drawbacks, side-hustling is still booming. Recent research by Small Business Loans Australia found that 55 per cent of Australians are considering starting a small business in the next five years – the majority say they would do so to augment their income.
