Need More Cash? How to Make Money From the Sharing Economy
- Sarah Hall
September 26, 2016
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Peer-to-peer. Shareconomy. Collaborative consumption. No matter what you call it, the “sharing economy” is big business these days.
Companies such as Uber and AirBnB are transforming the economic landscape, putting traditional businesses -- from taxi cabs to bed and breakfasts -- out of business. One report estimates that revenues for these businesses and others will grow to a whopping $335 billion globally in less than a decade.
And, thanks to this economic model that involves consumers borrowing or renting items, assets or services from others, it’s a new way for just about anybody to put a little money in their pocket.
Some sharing economy workers sign on to companies such as TaskRabbit or DogVacay, for instance, to simply supplement their income. Others turn it into full-time jobs.
Here are five of the top sharing economy businesses and how you can parlay them into new revenue streams for you.
- Uber: The popular ride-sharing service is a leading peer-to-peer business that allows consumers to hire a private driver instead of hail a traditional cab. Uber drivers drive their own car and set their own schedule. Prospective drivers must have specific licensing and insurance credentials and meet other requirements to be part of the network. The work to sign up can pay off. Uber drivers in 2016 were making an average of $19 an hour, which totals about $40,000 annual full-time salary after taxes and gas costs.
- TaskRabbit: Consider this a different take on the old “neighbor helping neighbor” model. People go to TaskRabbit to find help in their area for everything from cleaning to running errands to furniture assembly to home improvement. To be a “Tasker,” you must live in one of the company’s 18 metro areas in the United States or in London and complete a background check, among other requirements. About 10 percent to 15 percent of Taskers make as much as $7,000 a month.
- AirBnB: With more than 1.5 million listings in nearly 200 countries, AirBnB has quickly become a popular online service for consumers looking for a vacation rental. For homeowners and apartment dwellers, the service can be a money maker, especially for those in tourist destinations. To be an AirBnB host, you must meet certain requirements, including these hosting standards. Your total earning depends on your location and the number of rentals. The weekly average in Raleigh, N.C., for instance, is $313. It’s $774 in San Francisco and $509 in Houston, Texas.
- DogVacay: Instead of boarding their pets at a traditional kennel, dog owners can connect with local pet sitters through DogVacay. DogVacay hosts can choose the kinds of dogs they watch. They can set their own rates and service offerings and make their own schedule. Some DogVacay hosts have reported making $1,000 a month or more watching other people’s dogs.
- Etsy: More than a decade old, the online marketplace has been a top destination for consumers looking for homespun and vintage goods. For crafters showcasing their creations on the popular site, Etsy has turned the world into potential customers. Etsy sets restrictions on what can and can’t be sold on the site. Potential earnings are variable, depending on the product and sales numbers. About 30 percent of Etsy sellers say their creative business is their only occupation.
These sharing economy businesses provide new opportunities to anybody who needs to pay off debt, increase savings or just earn extra cash so they can get back on track and improve their overall financial health.
The CESI Team is committed to helping you reach your financial goals. If debt keeps you from living the life you dream of, contact us for a free debt analysis today and get started on the road to a brighter future!