The Best Strategies To Make More Money

The Best Strategies To Earn More Money

It’s no secret that we all want more money.

Whether it be to give your family a better future or get out of student loan debt, more money always helps.

Understanding the best ways to make more money

As you know, there are many ways for you to make more money to fulfill your financial goals. But, knowing which way is best for your situation may seem overwhelming.

As a result, I’ve analyzed seven strategies people use to make money to help you understand which ones may be best for you to pursue.

The seven primary strategies on how to make more money are:

  1. Advancing your career
  2. Working a part-time or second job
  3. Freelancing
  4. Consulting
  5. Purchasing an existing business
  6. Starting a new business
  7. Becoming a blogger and/or influencer

Each of these methods are commonly recommended by bloggers, media outlets and likely your friends.

The problem with their advice is they tell everyone to start a blog or a new business without considering if it’s even a good option for them.

Therefore, due to all of the bad advice and misinformation I read online, I created this guide to help you properly evaluate which money-making strategies are right for you.

Strategies I excluded from the list

Before we move on, you should know that I left a few strategies to make money off of the list altogether because I personally believe they are not worthwhile pursuits.

They include things like taking online surveys, being a secret shopper, trading individual stocks, donating your plasma, being a research study participant, using Ebates or swagbucks, and so on.

You can make a few dollars here and there doing these things, but they’re not going to move the needle on your personal finances. Plus, they come at an opportunity cost. The opportunity cost is they consume a lot of your most precious asset (time) with little to no upside to your wealth or personal knowledge.

In addition, I left earnings from investments off the list because I consider them separate investment strategies to pursue by investing the money you make. These include 401K contributions and employer match, index fund investments, and more.

The Money-Making Strategy Quadrant

To properly evaluate each of the seven money-making strategies, I developed what I call the “Money-Making Strategy Quadrant”.

As you can see below, the Money-Making Strategy Quadrant provides a logical framework for you to properly evaluate the upside potential and risks of seven strategies to make more money.

Money Making Strategy Quadrant-The Best Strategies To Earn More Money

The quadrant provides three dimensions to evaluate each money making strategy: (1) Speed to Value on the y-axis, (2) Feasibility or Success Rate on the x-axis, and (3) Financial Impact represented by the size of each circle.

Speed to Value:

Speed to Value is defined as the speed in which you are able to earn a positive financial return.

This is important when choosing more income streams because it helps you understand how long it may take to see the fruits of your labor.

Feasibility or Success Rate:

Feasibility is defined as your probability of achieving success with the given strategy, also known as the success rate.

This is important to understand before investing your time and resources in income producing endeavors because it helps you weigh your risk of actually realizing a positive return.

Financial Impact:

Financial Impact is defined as the potential money you can earn relative to the effort required to realize such earnings.

It is important to evaluate the financial impact of ways to make money because it helps you realize how much you stand to gain based on how much work you’re going to have to put in.

Positioning Methodology

The positioning of each money making strategy on the quadrant was determined with a specific audience in mind. That audience is the typical, college-educated U.S. citizen in his or her 20s and 30s who currently has a full-time job.

There are many people who fit the criteria above where certain strategies would plot differently than listed, and that’s expected.

For example, for many, purchasing an existing business may be more or less feasible given their current life circumstances or business knowledge. Likewise, if you’re an extreme introvert, then Consulting is likely to be far less feasible for you.

Therefore, I recommend you take a shot at updating the framework based on your unique position. This is a framework after all.

Now that you understand my methodology, the quadrant, and the strategies I included and excluded, let’s move on to review each of the seven ways to make more money in depth.

Advance your career to make more money

Your current career, or full-time job, is one of the best ways to earn more money and increase your wealth.

If you’re a few years into your career, then it’s likely you have a platform for growth due to the experience capital you’ve gained and your professional network.

Description & Examples:

A career is defined as an occupation you undertake for a long period of time that provides opportunities for progress in your public, professional or business life.

There are three key ways you can advance your career to make more money. Oftentimes, these go overlooked or are not relentlessly pursued. However, if you choose to pursue these strategies, then you’ll accelerate the income you earn.

The three best ways to advance your career and obtain more money are outlined below.

  • Ask for a raise: The quickest way to make more money in your career is to simply ask for a pay increase. If you’ve proven your value to your manager already, then she or he will not need much convincing. But, before you meet with your manager you’ll need to summarize the value you add to your team and why you deserve a pay increase. Also, you should know your worth by researching salaries for the same roles and experience in your geographic are. By using this approach, I’ve been able to obtain 5%+ salary increases in my career, not including promotions.
  • Obtain a promotion: Another obvious way to earn more money in your career is to obtain a promotion. Often, a promotion in responsibility comes with a 10% or higher pay increase. And, there’s really no ceiling on how much you can obtain during a promotion. The max I’ve seen so far is a 20% pay increase for a next level promotion. Companies have internal guidelines to follow where they have to obtain certain approvals for higher pay increases. But, if you pursue a promotion relentlessly and know your worth, then you’ll be able to negotiate a healthy bump in your paycheck. It’s also important to have leverage during the negotiation. For example, if you have another offer from another company that is higher, then you’re in a great position.
    • Switch companies: The best way, hands down, to obtain the largest salary and overall compensation increase is to switch companies. When the economy is expanding and unemployment is low, the opportunities in the job market are hot. This means that employers are willing to pay more for talent. If you’ve been at your current company for a few years and been subject to measly 2% and 3% annual pay increases, then you have a lot to gain by switching employers. It is very common to earn a 20% or higher base pay increase by switching employers with or without a promotion. So, if you’re ready to put in the work by applying to job postings, interviewing and negotiating, then get started today!

    All of the above strategies to make more money in your career are important by themselves. But, the timing and combination of each is crucial for your long term career success.

    For example, you don’t want to switch companies every 12 to 24 months. And, you don’t want to keep asking for raises every 12 months either. Now, if you’re offered promotions from your current employer every 12 to 18 months, then take them and express your gratitude.

    I recommend aiming for a promotion every 18 to 24 months. If you don’t get a promotion in that time frame, then ask for and negotiate a raise. I also recommend switching companies in 3 to 4 year increments. You don’t want to give any potential employer the reason to think you’re not loyal.

    The only time I recommend switching companies sooner than 3 years if it’s your first job after college. In that case, consider switching after 18 to 24 months for a nice salary increase.

    Financial Impact:

    The financial impact of advancing your career is very high because you can earn 5%, 10%, 20% or more with not a lot of effort other than interviewing and negotiating.

    Your career, specifically your experience capital and network, are a platform for growth that you’ve already spent years investing in. It’s time to get your return.

    Speed to Value:

    The speed to value for increasing your income by advancing your career is very fast because your current or new employer can flip a switch and pay increases start soon after.

    It may take a couple of months to obtain your pay increase due to policies or applying and interviewing, but it can happen quickly compared to other money making strategies.

    Feasibility & Success Rate:

    The feasibility or success rate of obtain a pay increase by advancing your career is very high. People get raises, promotions and pay increases by switching employers every day.

    Supporting Evidence:

    The three examples I’ve outlined above for advancing your career and the percentage pay increases are all from my personal experiences between 2010 and 2019.

    But, if you want other examples, then check out this article by Forbes about why employees who stay at a company longer than two years get paid 50% less than others.

    Misleading Advice to Beware of:

    The advice I read or hear from others that can limit your career are not to switch companies every few years and not to accept a counter offer from your employer if you have an offer from another employer.

    First, I agree that you shouldn’t switch companies every other year indefinitely. But, you should not worry about seeming disloyal by switching companies every 3 to 4 years.

    Companies have proven that they are not loyal to their employees through countless layoffs of people who’ve dedicated years with them. Therefore, you shouldn’t feel a need to be loyal for life to your employer.

    Stay long enough to prove loyalty, but switch companies often enough to obtain your worth.

    Second, there are times when it’s okay to accept your current employer’s counter-offer. If you’ve obtained an offer with a raise from another company and you would truly want to stay at your current company if they offered the same package, then see what your employer will offer you.

    This works well only if you have a great relationship with your manager and team. And, if you express why you’re considering the other company and what you need from your manager and employer to be happy, then you may be in a good position to stay.

    Sometimes, you’ll get an even better offer from your current employer. You don’t know unless you ask.

    May Be Right For You If:

    Advancing your career isn’t always right for everyone and that’s okay. Some people prefer to spend more time with their loved ones and not have to take work home with them.

    You also may be happy with your current income level and not want a 10% pay increase if it comes with a 50% increase in responsibility and stress.

    However, advancing your career to make more money and increase your wealth may be the best option for you if you’re okay with an increase in responsibility, manageable stress, increased time commitment and get a sense of joy in your work.

    Advice To Consider:

    My final advice on advancing your career is to know your worth, prove your value, learn to negotiate, continuously perfect your technical and leadership skills, grow your network and always go above and beyond.

    Cheers to a fulfilling and prosperous career!

    Work a part-time or second job to increase your income

    If you have a full-time job and want to make more money on the side, then a second or part-time job may be a great option for you. Many people earn $1,000 per month or more by working side jobs.

    Description & Examples:

    A part-time job is any work you perform for someone else that is considered fewer hours than a full-time job. Full-time employee status is determined by each employer and can differ. The hours of a part-time job can be a few hours per week or 30 hours per week.

    A second job can be a part-time job or it could be a second full-time job altogether, although that is very rare. Not many people can work 80 hours a week for two different employers. And, I do not recommend trying to do that.

    Part-time and second jobs come in many different flavors. Trying to list out every possibility may prove impossible. But, there are a few popular and proven part-time or second jobs I want you to know about, which are outlined below.

    • Real Estate Agent: Part-time Real Estate Agents working less than 20 hours per week earn between $8,930 and $31,159 annually according to The Street and Real Estate Express. As with anything, you’ll have to study, get licensed in your state and learn the trade. But, you’ll be able to set your hours to work evenings and weekends and work as much or little as you want. If you want to learn more about being a part-time realtor, then start with this article and this one.
    • Other Services: Other Services is a catch-all for anything that doesn’t fit into the other five segments listed here. They include things like being a part-time Personal Trainer, Babysitter and Tutor. These can be great part-time gigs for anyone looking to earn extra money. Part-time personal trainers earn $25 per hour on average. Babysitters earn between $11 and $16 per hour. And, Tutors earn between $14 and $22 per hour by teaching English with VIPKID or tutoring with Chegg. By working 16 hours per week for 50 weeks, you could earn between $9,000 and $20,000 annually.
    • Rideshare Driver: Thousands of people earn a part-time income by driving people around with Lyft and Uber. On average, Lyft and Uber drivers earn between $15 and $18 per hour. If you have a decent vehicle and don’t mind driving, then rideshare driving on the side can help you earn between $10,000 and $15,000 annually.
    • Temp/Contractor: A temp/contractor job is any role that an employer needs to fill temporarily and cannot fill with a full-time person. For example, an employer may need to fill a gap in talent if their full-time employee takes a two week vacation or takes maternity leave for 3 months. Now, if you have extra bandwidth, you can sign up with a local temp staffing agency who will place you with part-time work as available. You can set your hours and specify the hourly rate you want. I’ve known people who were able to get $15 to $25 per hour temp jobs working 20 hours per week. If this works for you, then you could earn around $10,000 per year part-time.
    • Retail & Foodservice: Retail and foodservice jobs are an obvious part-time job that anyone can work. But, they’re not all created equal. If you’re going to look into a retail or foodservice part-time job, then aim high. For example, you could earn $15 to $35 per hour by being a high-end waiter at a fine dining restaurant. There’s even people earning $100K per year waiting tables full-time. Or, if you’re a cocktail aficionado, then you could earn $200 to $300 on busy nights by crafting cocktails as a mixologist or bartender at a nice cocktail lounge. In general, you could earn between $10,000 and $25,000 annually by being a part-time waiter or mixologist.
    • Maintenance & Construction: There are millions of people who work in maintenance and construction jobs including painting, remodeling, welding, landscaping, pool cleaning, window installation and more. And, when the economy is doing well and expanding there are plenty of people looking to hire reliable people part-time. If you’re up for being a little more active in your part-time work, then you could earn between $10 and $20 per hour doing maintenance and construction work.

    The above list of part-time or second jobs is not meant to be an exhaustive list. Rather, they are mentioned because they can provide the greatest upside for you.

    Financial Impact:

    The financial impact of working a part-time or second job is quite good, but does require a good amount of effort. These are jobs where you trade active time for money. The upside is you could earn between $8,000 and $30,000 per year in extra income depending on the hours you work and which side job you choose.

    Speed to Value:

    The speed to value for part-time and second jobs is very high. You could start working these jobs within one month after searching and applying. This is because there are thousands of these jobs where good people are in high demand.

    Feasibility & Success Rate:

    The feasibility or success rate of getting a part-time or second job is very high. These are proven jobs that have been around since our country started.

    Supporting Evidence:

    The supporting evidence for the part-time and second jobs are included as links in the examples above. In those articles, you will see the pay ranges and other relevant information. Also, I’ve included information from my personal experience, such as how quickly you can obtain a part-time job to start earning more money quickly.

    Misleading Advice to Beware of:

    The only misleading advice you should beware of when pursuing a part-time or second job is the naysayers who think it’s not worth your time or effort to work these jobs. You now know there’s opportunity to earn a healthy return in some of these jobs and it’s been proven by others.

    So, if you want to make more money to pay off student loans or credit card debt faster, then this is a good option.

    May Be Right For You If:

    A part-time job may be right for you if you have available hours to work after you get off work from your full-time job and on the weekends. Now, if you have a spouse and kids, then this could prove very challenging and put a strain on your family relationships.

    But, if you don’t have a ton of responsibilities besides your full-time job and don’t mind working another job, then this may be right for you.

    Advice To Consider:

    My final advice for you when searching for a part-time or second job is to be highly selective. If you have a full-time job and don’t need the extra money immediately, then you have time. Search and apply for the part-time jobs that allow you to earn the most money on your own schedule.

    Provide freelancing services to make more money

    Freelancing has grown in popularity over the last few years primarily due to the creation of freelancing marketplaces, such as Upwork, Toptal and Freelancer.

    Freelancers are defined as individuals who engage in supplemental, temporary, project- or contract-based work at the specific direction of the party paying for services.

    Description & Examples:

    There are many different types of freelance jobs and no one-size-fits-all freelancer. Where companies or individuals need specific talent to help them complete work, a freelance opportunity may exist.

    Below is a list of the most common freelance roles where you could earn a healthy return.

    • Information Technology & Development
    • Marketing & Design
    • Content Creation / Writing
    • Bookkeeping & Taxes / Finance
    • Tutor & Language Translation
    • Photography & Videography
    • Legal Services

    To learn the average hourly rates and more information for the above freelancing categories, check out this article from The Balance.

    Financial Impact:

    Freelancing has the potential to make you a lot of money depending on your skill set and networking abilities. According to the 2018 Freelancers Union Survey, 4% of freelancers earn over $150K per year, 10% earn $100K-$150K per year, 18% earn $75K-$100K, and 69% earn less than $75K per year. This includes full-time and part-time freelancers.

    According to the 2018 Payoneer Freelancer Income Survey, American freelancers earned $31 per hour, on average. But, your hourly rate could be much higher if you specialize in specific areas. According to The Balance, you could earn between $29 and $60 per hour based on your focus.

    So, assuming you work 20 hours per week for 40 weeks you could earn between $23,000 and $48,000 in extra income each year.

    Speed to Value:

    The speed to value for obtaining freelance work isn’t as fast as getting a part-time job or asking for a raise, but it is faster than other strategies, such as consulting or starting a business.

    Thanks to platforms, such as Upwork and Freelancer, you can create a freelance profile and start applying to jobs. But, it may take a few months for you to get your first gig.

    Feasibility & Success Rate:

    Freelancing is a highly successful and proven strategy to make more money on the side. There are over 300,000 American freelancers and thousands of companies hiring freelancers every day. As such, the feasibility and success of earning more money by freelancing is high.

    Supporting Evidence:

    For the income related metrics and all other freelancing information, please refer to the 2018 Freelancers Union Survey, the 2018 Payoneer Income Report and this article from The Balance.

    Misleading Advice to Beware of:

    The advice to watch out for is when people say you can sign up on a freelancing platform, easily earn enough money to replace your full-time job and be a digital nomad.

    Yes, there are very successful freelancers that do this full-time, but they’ve invested years of hard work, networking and building their client portfolios. You’ll have to work hard if you want to be in the top 10% of freelancers.

    May Be Right For You If:

    Part-time freelancing may be right for you if you have specialized skills that are in-demand, are self-motivated to manage your work output and can balance this with your full-time job.

    Advice To Consider:

    My final advice for you before jumping into the freelancing world is to understand the value you provide, what skills you have to offer, how you’ll obtain clients and price your services. Essentially, freelancing is your personal business. Learn to market and grow it.

    Provide consulting services to earn additional income

    Consulting services in the U.S. are a big business. It isn’t just one of those vague titles that unemployed people put on their LinkedIn profile. In fact, the market size of consulting in the U.S. exceeds $58 billion.

    By definition, a consultant is someone engaged in the business of giving expert advice to people, or companies, in a professional or technical field.

    Whereas freelancers work at the specific direction of the employer, consultants advise, or direct, the employer on the best approach to do something.

    Description & Examples:

    Consulting is similar to freelancing in that it covers a lot of service segments. Some of the consulting services are high level and broad while others are very narrow and deep.

    Below are the most common consulting service segments with examples.

    • Finance & Accounting: Financial management and accounting consulting services include things like financial budgeting, merger & acquisition (M&A) deal analysis, accounting controls management and valuations.
    • Strategy: Strategy includes running the strategy development process, business and financial modeling, market analysis, competitive analysis and more.
    • Marketing & Branding: Marketing and branding services include, but are not limited to, developing a new brand or re-branding an existing offering, improving a brand’s perception in the market, developing brand positioning and identity, developing a go-to-market strategy and customer acquisition strategies.
    • Operations: Operational consulting includes things like lean process improvement, facilities management, supply chain management, M&A integration management and more.
    • Technology: Technology consulting includes digital transformation strategies, hardware & software selection, web and internet consulting, software implementation and so on.
    • Legal, Risk & Regulatory: Legal, Risk & Regulatory consulting services include things like contract negotiation, M&A transaction management, cybersecurity consulting, regulatory risk consulting among other services.

    As you can see, there are a lot of consulting services in the U.S. that span a variety of business functions.

    Financial Impact:

    Consultants have the ability to earn a lot of money depending on their field of expertise. But, many consultants end up earning a smaller amount per hour or project due to their experience and negotiation skills.

    The range I’ve seen for independent, part-time consultants is $50 to $300 per hour. The higher range was a fractional CFO providing financial management consulting. The smaller amount was for a financial planning and valuation project.

    Assuming you work 20 hours per week for 20 weeks per year, you could earn between $20,000 and $40,000 in extra income annually. I used 20 weeks per year in this example because it’s difficult to close consulting deals and stay consistent with work.

    Speed to Value:

    The speed to value for consulting services is relatively low. This is because it takes time to find clients, understand their needs and close a consulting deal. If you have a developed professional network and in-demand expertise, then you’ll have an easier time finding consulting work.

    But, if you’re starting from scratch, then be prepared to spend months closing your first few deals.

    Feasibility & Success Rate:

    The feasibility or success rate of part-time consultants is also relatively low compared to other money-making strategies. For one, if you’re new to consulting, then you don’t have client testimonials, brand recognition or maybe a strong reputation. Second, finding clients and selling your services is not for the faint of heart.

    For these reasons, the success rate of succeeding as a part-time consultant ranks lower on the matrix.

    Supporting Evidence:

    The income rates used above, speed to value and feasibility are all based on my personal experiences being a part-time consultant and hiring other part-time consultants.

    Misleading Advice to Beware of:

    Some bad advice you should watch out for is that you can easily quit your full-time job and be a consultant making more than you do now. It’s true consultants can earn a higher annual income than if they were employed full-time, but it takes years of building your reputation, network and ability to sell.

    Also, don’t let others deter you from providing consulting services because they think it’s a crowded market. There are tons of consulting opportunities in the U.S. because there are a lot of small to medium size business owners who lack specific skill sets and need help.

    May Be Right For You If:

    Part-time consulting may be right for you if you have specialized expertise in a given field, are self-motivated, articulate and can sell your value to business owners.

    If you don’t have each of the above, then you’ll need to develop them quickly or you will struggle as a part-time consultant.

    Advice To Consider:

    My final advice for you if you want to be a part-time consultant is to understand which business areas you’re considered an industry expert and how you’ll create value for your clients.

    Being a consultant allows you to charge higher rates than freelancers because clients are willing to pay for your years of expertise and knowledge. They need your expert advice. Figure out what this is and be able to clearly articulate it. Even better, get your first client or two to write testimonials for you stating your value. Then, market it on your website and in your marketing collateral.

    Purchase an existing business to increase your earnings

    Purchasing an existing business is an often overlooked income generating strategy. This can include purchasing a local, brick and mortar business, online business or real estate type business.

    If you want to do this part-time, then there are specific business types you should consider. Most businesses for purchase though will require your full-time attention.

    Description & Examples:

    Purchasing a business means that you are buying the underlying assets, tangible and intangible, with the intent to continue operating and growing the business.

    You can purchase a business by getting a bank loan, using your own money or working out a deal with the previous owner for owner-financing.

    Below are examples of businesses you can consider for part-time ownership opportunities.

    • Online Businesses: The best types of online businesses for part-timers looking to make more money are Content-based websites and e-Commerce websites.

    Specifically, the Content websites are those that provide valuable content via articles and therefore have a lot of traffic that can be monetized via affiliate marketing and/or selling digital products, such as online courses.

    The e-Commerce businesses that are best for part-timers are drop-shipping or Fulfillment by Amazon (FBA) businesses that have an established customer base and do not require you to store and ship your own inventory.

    • Real Estate Businesses: There are many forms of real estate businesses that are great income generating opportunities for people with a full-time job. Popular examples include purchasing a RV Park, Mobile Home Park, duplex, triplex, or single-family homes to rent out. With RV Parks and Mobile Home Parks, you’ll want an onsite manager who can run the day to day for you. For the other residential assets, you can manage them yourself or hire a property manager to run the operations for you.
    • Brick-and-Mortar Business: Brick-and-Mortar business are a tough business to purchase and run if you have a full-time job because they often require your full attention and presence. But, there are some that can work out well if there are staff or a manager to work in the business while you work on the business. Examples include home good stores, coffee shops, co-working spaces, a cocktail lounge or sports bar, sno-cone stands and local hardware stores.

    Financial Impact:

    The financial impact of purchasing and running an existing business can be very large. However, your specific financial opportunity depends on your ability to finance the business purchase.

    To ensure the best return, you’ll have to conduct proper due-diligence to make sure the business has increasing revenue and profit, as well as, an established and loyal customer base.

    Speed to Value:

    The speed to value for purchasing an existing business to obtain your return is quite fast. The reason is because once the acquisition transaction is complete, which may take 3 to 6 months, you have a proven income-generating business.

    Feasibility & Success Rate:

    The feasibility for purchasing an existing business and obtaining a successful return is about 50/50. The reasons can be many, but from my perspective the risk is if you purchase a business you don’t know much about and if you don’t do proper due-diligence.

    The good thing about existing businesses is that they are already proven and earning income.

    Supporting Evidence:

    The above information is partly based on my own experience with relatives who’ve purchased real estate businesses and an online business that I built and sold.

    To learn more about opportunities in purchasing an online business refer to this article. To learn more about opportunities in real estate refer to this one. And, to learn more about purchasing an existing brick-and-mortar business read this article.

    Misleading Advice to Beware of:

    The misleading advice I hear most from people is that you cannot buy an existing business unless you have hundreds of thousands saved already. That’s false.

    If you have enough down payment and good credit, then you can obtain a business loan to purchase an existing business. And, many times the current business owner will finance the acquisition for you if you provide a decent down payment. You never know if you don’t try and ask.

    May Be Right For You If:

    Purchasing a business may be right for you is you’re more risk averse and don’t want to start your own business from scratch. Also, it could be a good option for you if you enjoy running your own show, have self-motivation and accountability.

    Advice To Consider:

    My advice for you if you’re considering purchasing an existing business is to first narrow in on what type of business you’re interested in. Then, take your time; don’t rush.

    Start by searching for businesses online using BizBuySell, BizQuest, Mobile Home Park Store, RV Park Store, Empire Flippers or Flippa. Then, start reaching out and actively evaluate deals. You don’t have to purchase anything. But, you’ll start to learn the process and what to look for in a business.

    Start a new business to make more money

    Founding and growing a new business is a great way to increase your income. In fact, it’s the number one way to become ultra-rich.

    Description & Examples:

    Starting a new business means that you are building an entity that will have a self-sustaining business model by delivering value to customers.

    There are literally thousands of types of businesses you can start. But, you should choose your playing field wisely. The examples are the same as the ones outlined in the purchasing a business section above.

    But, you’ll have more options within each domain given you can create whatever you want. For example, you can build a new social media platform, which falls under the online business domain. Or, you could build a new fast casual restaurant concept that would fall under the brick-and-mortar domain.

    As you can see, the possibilities are endless when starting a new business.

    Financial Impact:

    The financial impact of starting a new business is very high. But, it comes with a lot more effort and risk of failure than any other money making strategy.

    Therefore, the financial impact is not as large as purchasing a new business or advancing your career.

    Speed to Value:

    The speed to value of starting a new business and earning a healthy return is very low. Often, it can take a year or more before you start earning enough revenue to draw an income.

    Feasibility & Success Rate:

    It’s no secret that the feasibility of starting and growing a profitable business is extremely difficult. As such, it ranks very low on feasibility or success rate.

    Supporting Evidence:

    The above information for starting a new business is based primarily on my personal experiences. I personally founded and grew an e-commerce business and a new PBM in the B2B healthcare market.

    In addition, my family has built, grown and sold the following businesses that I’ve helped with in some capacity. They include donut shops, restaurants, mobile home parks, RV parks and a construction company.

    Misleading Advice to Beware of:

    There is a lot of misleading advice on the internet to watch out for when determining if you should start a new business.

    First, ignore anyone that says you can start earning a million dollars by easily doing X, Y or Z. They either (1) don’t know what they’re talking about, (2) have an incentive to get you to “try” something, or (3) have no skin in whether or not you succeed or fail.

    Second, don’t listen to people who advise you to stay at your full-time job for the rest of your life rather than taking a risk to start a business.

    If you have experience in the field you want to start a business around, have the right grit and determination, have a support system around you, and have a mentor to guide you, then you may be in a good position to succeed.

    May Be Right For You If:

    Starting a business may be right for you if you get joy out of creating and building things and are extremely self-motivated. Also, you must be able to focus within an ambiguous and volatile environment. Otherwise, you’ll be stressed out 24/7.

    And, if you are tired of working for someone else and want to work for yourself, then starting a business of your own may be a good fit for you.

    If you’re interested in learning more if this is a good fit, then read this article on the ten traits of successful business founders and entrepreneurs.

    Advice To Consider:

    My advice for you to consider if you think you want to start a business of your own is to first understand why you want to start the business.

    For example, is it for purely financial reasons? Are you wanting to make a specific impact in the world? Do you just want to manage your own time? Is there a problem you have a desire to solve for others? You get it. Know your why.

    Also, my advice is to start a business around something you either have expertise in and/or have transferrable skills for. Going into a business you know nothing about will drastically increase your risk of failure and decrease your speed to value.

    Finally, find a mentor that has done what you’re trying to do and listen to them. You don’t have to start a business all by yourself.

    Start a blog or become an influencer to make more money

    If you’ve searched Google for how to make more money or spent an hour on Pinterest, then odds are you’ve read at least three articles telling you to start a blog or become a social media influencer.

    Often, the articles you read are vague and provide little substance.

    So, what are these money making blogging and influencing strategies?

    Description & Examples:

    Before diving in, we need to define what an influencer is.

    An Influencer is someone who has group of followers and can influence them to take a specific action. Influencers create original content and distribute it online to a target audience with the intent to make money.

    I’ve found that the channel in which influencers distribute their content is a key way to delineate them. As such, a Blogger is really an Influencer who chooses to distribute their content via a personal blog.

    With that said, below are the most common examples to earn more money by being an online Influencer.

    • Blogging/Affiliate Website: As mentioned above, bloggers are Influencers who distribute content to their audience thru a blog. There are many niche markets bloggers can target and create content for. The most common blog niches are travel, lifestyle & fashion, personal finance, food & drinks, and entrepreneurship. The way most bloggers earn money is through affiliate links, advertising and selling online courses.
    • YouTube Influencer: A YouTube Influencer creates and distributes their content primarily through the YouTube video platform. As with blogs, they may target a variety of niches. The most common YouTube influencers are “vloggers”, product & service review channels, and “How To” Influencers. The way they make money is primarily through YouTube ad revenue, affiliate links and sponsored content.
    • Social Media Influencer: A social media Influencers creates and distributes their content on various social media platforms, including Instagram, Facebook, Twitter, Snapchat and Pinterest. The common ways they make money is through sponsored posts, brand collaborations, affiliate links channeling traffic to their blogs.

    If you think about it, an Influencer is someone who has the ability to control online traffic. They can point their traffic, or audience, towards the direction they want them to go.

    As a result, brands who need traffic to convert into paying customers are willing to pay marketing dollars in hopes of earning a positive ROI.

    Financial Impact:

    The financial impact of being an Influencer or starting a blog is relatively low. The reason is that it takes a long time and a lot of effort to build a large audience that will listen to you.

    Yes, there are influencers with blogs, social media profiles and YouTube channels that earn six figures, but what you don’t see is how many years and how much effort it took to achieve success.

    Therefore, the overall financial impact of blogging and becoming an influencer is quite low.

    Speed to Value:

    The speed to value is pretty low for influencers and bloggers. As I mentioned above, it can take years to build a following that is large enough to monetize.

    Feasibility & Success Rate:

    The feasibility or success rate of starting a profitable blog that earns a meaningful amount of money is very low. There are millions of blogs and wannabe influencers in the world, but all we seem to hear about are the very few that earn more than $100,000 annually.

    Supporting Evidence:

    If you’re interested in learning more about the downsides of being an influencer, I recommend you read this article. Likewise, refer to this article if you want to learn how to be a successful influencer. Heads up, the last one is a more academic research article.

    Obviously, I also have direct experience as a blogger with an inside view that I’m willing to transparently share with you.

    Misleading Advice to Beware of:

    Unfortunately, there is too much bad advice online being given out by bloggers or other influencers. I believe the root cause of this is due to misaligned incentives.

    By misaligned incentives, I mean that the person giving the advice is the one benefitting by you taking a risk regardless of you succeeding or not.

    The analog I equate this to in the blogging world is to a multi-level marketing scheme.

    Here’s what happens…

    A person, let’s call her Kate, reads another blogger’s post about how they earn $10,000 per month working 20 hours per week. The blogger talks about how great their life is ever since they left their soul-sucking corporate job to start a blog.

    Then, after relating to Kate’s dissatisfaction at her job, the blogger talks about how Kate can live her best life with tons of freedom by starting her own blog.

    After selling the solution (blogging) to Kate, the blogger then tells Kate to click a link to create a blog in less than 30 minutes.

    What Kate didn’t know was that link she clicked was actually an affiliate link that earns the blogger $65 when someone clicks it and signs up for the service on the other end of the link.

    Convinced she found her solution, Kate clicks the link, signs up for a web hosting service and starts creating her blog on WordPress.

    Then, she stumbles along as she struggles to design the layout of her blog because the blogger didn’t actually show her how. Once Kate decides on her blog niche, she struggles for months, if not years, trying to gain traffic and an audience.

    With no success she decides to quit blogging and focus on her full time job and family. Kate is out hundreds of dollars and months, or years, of her time.

    But, the blogger walked away with $65 long ago. Then, repeated for every other reader they could hook.

    Looking back, Kate then realizes that the blogger telling her to start a blog to make more money was actually a personal finance blogger.

    Kate always followed the blogger for advice on how to save money and get out of debt. To save more money and pay off debt quicker, the blogger recommended starting a side hustle as a blog.

    It’s that moment when Kate realizes the blogger earns most of his/her income by telling others how to start a blog, not through his/her actual blogging niche (personal finance in this example).

    As you can imagine, Kate felt tricked.

    This, my friends, is a classic sales technique that I want you all to be very aware of!

    There’s a Hero (that’s you) who has a Problem (drowning in debt) and comes across a Guide (the blogger/influencer). The Guide understands your Fear (never getting out of debt), then gives you a Solution (start a side hustle/blog), which ends in Success (earn $100K and have the freedom to work when you want).

    Unfortunately, it very rarely ends in success or a better ROI than alternative income generating strategies.

    May Be Right For You If:

    Trying to become an influencer or blogger may be right for you if you have years to dedicate to it and if you have a niche that you are passionate about marketing.

    To be successful, you will need to learn more than just your niche topic. You will need to be good at search engine optimization (SEO), digital marketing, writing, website page speed optimization and so much more.

    This is not a way to get rich quick or replace your income in a matter of one year just because you’re a subject matter expert.

    Advice To Consider:

    My final advice to consider if you think you want to be an influencer or blogger is to truly understand why you want it in the first place.

    If it’s for the money, my advice is to look elsewhere. It’s more probable that you’ll earn a higher ROI with another strategy.

    If it’s because you’re passionate about your niche and helping people, then consider pursuing it. But, do so with an informed decision and realistic expectations.

    Start making more money now!

    In summary, the seven ways to make more money are:

    1. Advancing your career
    2. Working a part-time or second job
    3. Freelancing
    4. Consulting
    5. Purchasing an existing business
    6. Starting a new business, and
    7. Becoming a blogger and/or influencer

    By now, you should have all information needed to make a decision on which path is right for you.

    Take a moment to review the Money-Making Strategy Quadrant and update the positioning of each strategy based on your personal situation.

    Which one is best for you? Answer that question, then start pursuing your strategy!

    Did this article resonate with you? Do you have experience with any of the seven ways to earn more money?

    If so, please share with others by leaving a comment below. Thank you!

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