How to Pick an Online Side Hustle Business Model

Before diving into the world of side hustles, it’s crucial to understand a key distinction: there’s a real difference between a personal project and an actual business. A personal project is something you do for yourself, driven by your own enjoyment and interests, without needing outside approval. When you start building a , the focus shifts from you to them—your audience. It becomes about serving a market and filling a need they have.

Of course, you should still enjoy the work. But for a business, personal satisfaction isn't the only goal. The primary job of any business is to serve its customers. So, is your travel blog a business? Not necessarily. A blog can start as a personal project, but the moment you start monetizing it with ads or by selling products, you're officially .

Four Ways to Structure an Online Business

When it comes to making money online, there are four general approaches:

1. on your own website or platform.
2. on your platform for a commission (affiliate marketing).
3. for you, giving them a commission.
4. on a third-party platform like Amazon or eBay.

For long-term stability and control, building your own platform and audience is the safest bet. The most profitable of these is typically selling your own products or services. On the flip side, reselling other people's products on a third-party site gives you the least control over your income. However, these models aren't mutually exclusive; it’s smart to use a combination to create multiple revenue streams.

Ramit Sethi, author of , breaks down by their cost and potential profitability:

• Advertising, Affiliate Marketing
• Software, Physical Products
• Consulting, Online Courses

He strongly recommends focusing on the low-cost, high-profitability options. Among these, online courses stand out. Why? Consulting is a direct trade of your time for money. You have to keep working to keep earning. Online courses, however, can be created once and sold over and over again to countless people with minimal extra work. This is the essence of . Creating digital products like courses is one of the clearest ways and is often considered one of the .

That said, it’s always a good idea to diversify. You could mix your own digital products with affiliate recommendations, or offer coaching sessions alongside your online courses.

A Look at Different Types of Side Hustles

Here’s a breakdown of some of the most common online business models you can choose from.

1. Freelancing

If you have a skill like writing, graphic design, or video editing, you can offer your services on platforms like Upwork or directly through your own website. This is a popular , but the downside is that you’re still trading hours for dollars. It might not give you the lifestyle freedom you want unless you can command very high rates.

2. Online Consulting

Similar to freelancing, you can sell your expertise as a coach or consultant via phone or Skype. While this is also a time-for-money exchange, consulting often pays very well, so you might not need a large number of clients to make a good living. These kinds of can be quite lucrative.

3. Selling Your Own Digital Products

As mentioned, this model often generates the highest revenue. Products like eBooks, audio guides, and online courses are common. These are because you can sell them from your own site, through partner networks, or on platforms like Gumroad.

4. Affiliate Marketing

This involves partnering with a business to promote their product for a commission. You can do this in two ways: recommend products to your audience, or let other people promote your product for a cut of the sales. For digital products, commissions are often high (40-75%) because there's no cost to reproduce them.

5. Donations

If you provide immense value and have a loyal following, you can ask for voluntary donations. Bloggers like Maria Popova of BrainPickings.org have used this method successfully by simply adding a donation button to their site.

6. Sponsored Articles

If another business shares your target audience but isn't a direct competitor, they might pay you to publish an article on your blog that subtly introduces their brand or product to your readers.

7. Membership Websites

With a membership model, users pay a recurring fee (monthly or annually) for access to exclusive content, products, or services. This can be a great , but it requires a constant flow of new content to keep members subscribed.

8. Forums

While most online forums are free, some private communities charge a fee for access. This model is built on the value of community, but it can take a lot of time and effort to build a forum large enough to be profitable.

9. Live Online Events

Webinars and multi-day virtual events can be very profitable. They're cheaper to organize than in-person events and can attract a global audience. Often, a free webinar is used to teach something valuable and then introduce a paid product or service for those who want to learn more.

10. Brokerage

Brokers act as middlemen, connecting buyers and sellers and taking a fee for facilitating the transaction. Think of companies like eBay, Airbnb, and Fiverr. Your would be the platform itself.

11. Sponsorship

This is a form of advertising where a company pays for exposure. Popular podcasters, for instance, generate revenue by mentioning sponsors during their shows. This model is also common for live events.

12. Advertising

Placing ads on your website is another way to generate income. The easiest way to start is with a platform like Google AdSense, which serves as an intermediary. Once your site has significant traffic, you can sell ad space directly to businesses for higher revenue. Advertising is rarely enough on its own, but it can be a nice supplement to your main .