Although the abundance of gigs makes it easy to start side hustles, not every opportunity yields results. You’ll also come across shady, high-risk ventures. To ensure that you don’t fall victim to them, we’ll explain seven overhyped side hustles that will likely waste your time and money.
1. Paid Freelancing Platforms and Gigs
Newbies tend to struggle with prospecting. Most find themselves lost on where to find clients or stuck with low-paying gigs. And the longer they’re unemployed, the more desperate they get. Unfortunately, scammers lurking around freelancing websites use seemingly profitable offers to trick them into doing unpaid work or divulging personal information.
Although you might feel compelled to jump at the first offer that comes your way, please exercise caution. Stay away from anything unusual. Legitimate job offers will never require upfront investments, several days of unpaid sample work, or confidential data.
As a general rule, stick to legit freelancing sites. There are thousands of freelance opportunities online. Searching for the keyword “blog” on Upwork will already show 7,700+ gigs. You’ll likely find millions of other listings on similar well-known freelancing websites and platforms.
2. Dropshipping
Anyone who has shown even the slightest interest in e-commerce has likely heard of dropshipping. The concept became a trend in the past decade. It’s a retail fulfillment method wherein your supplier ships items to your customers directly, thus eliminating the need for product inventory. In theory, sellers could list thousands without ever keeping stock.
Although dropshipping is a legit business model, many newbies underestimate its complexity. Starting a successful store takes years. Contrary to what fake “gurus” claim, a generic Shopify store with random items from Aliexpress won’t make you thousands a month.
Think about dropshipping from your customers’ point of view. If you saw an e-commerce site aggressively marketing random generic products that take weeks to deliver, would you feel inclined to buy? The answer: probably not.
You need several skills to succeed in e-commerce, including copywriting, marketing, graphic designing, and accounting. Product sourcing alone won’t create a profitable store.
3. Paid Surveys
Answering paid surveys is widely recommended as a side hustle. It has low barriers to entry. As long as you have a mobile phone and internet access, you can start earning on most survey sites like Swagbucks, Survey Junkie, and Branded Surveys.
Yes, legit Get-Paid-To apps pay users for answering surveys, but the earnings won’t amount to much. Try signing up for them. Even the most widely known sites only pay around $0.50 to $1.00 per 15- to 30-minute survey.
Also, you can only answer a limited number of surveys. If you max out your account and answer everything available, you’ll average around $1 to $5 a day. Spend your time on another more lucrative, worthwhile side hustle.
4. Crypto Trading or Investing
The cryptocurrency market has significantly grown. Statista records show that sector revenues might hit $43.5 billion in 2023, further advancing the mass adoption of crypto. Now’s a great time to position yourself in the market.
With that said, buying crypto without proper research yields negligible results. The industry is brimming with scammers and cybercriminals. You’d do well to educate yourself on trading and investing strategies, or else you’ll fall victim to various crypto scams.
5. Becoming an Instacart Shopper
At a glance, becoming an Instacart shopper might seem like a good deal. Instacart has a less rigid application process compared to Uber Eats, plus it pays its shoppers via direct deposit weekly.
Despite these advantages, we don’t think you should blindly sign up for the app. Its shoppers likely don’t make much. Although Instacart has a growing user base, food delivery apps like Uber Eats, DoorDash, and Postmates receive significantly more orders. There’s more work to go around their drivers.
And even if Instacart suddenly triples in size, shoppers can only fulfill a handful of orders in one workday. It takes much more time to deliver groceries than food. Some requests will even require you to do the shopping yourself, which could take at least 30 to 40 minutes. We suggest exploring other options. See if you qualify for any of the top-paying food delivery apps on the market.
6. Forex Trading
Most foreign exchange (Forex) markets are deregulated. Although central banks monitor their countries’ respective markets, no centralized institution controls global transactions. Securities and exchange commissions worldwide have limited jurisdiction.
The lack of regulation makes it more accessible and lucrative for traders, especially since transactions only involve broker fees. However, making a profit isn’t as easy as most “gurus” claim. The forex market displays volatile prices that show exponential fluctuations daily. Just one bad trade could drain your entire investment.
As a profession, forex trading isn’t illicit. You can still look into the forex markets, but beware of unscrupulous individuals that take advantage of newbies. Only trust verified brokers. Legit companies will never sell you baseless forex signals, offer to make your trades, or guarantee profits.
7. Airbnb Rental Arbitrage
Airbnb rental arbitrage involves listing subleased units on Airbnb. The idea is to make money as an Airbnb host without actually owning any properties, thus minimizing your startup capital. You could probably start with just a few hundred bucks.
Although the barriers to entry are low, Airbnb rental arbitrage has several dangerous risks. Most “gurus” oversimplify the process. Even if you don’t have to purchase the property, you’ll still have to pay rent—which often comes with a lengthy contract.
Let’s say you have a two-year sublease agreement. Your credit rating will plummet if your venture fails, and you default on your monthly dues. In the worst case, you can’t rent properties for a while.
Moreover, Airbnb rental arbitrage isn’t widely accepted yet. Renting out your apartment on Airbnb has several pros and cons; so expect many hesitant landlords to reject your subleasing proposal.
Find Legit, Proven Freelancing Gigs and Business Ventures
Again, these side hustles aren’t necessarily fraudulent. But considering the prevalence of scams within their industries, low barriers to entry, and tight competition, you might not see positive results. You can still explore them if you want. Just manage your expectations and prepare multiple exit strategies in case things go south.
If you want a more stable monthly income, we suggest building a freelance career around your skill set. Focus on your strengths. Once you know which services you’ll offer, look into different prospecting methods to land clients within your niche. Maintain at least a month’s worth of gigs in your pipeline.
