In today’s fast-paced world, finding ways to earn extra income is more popular than ever. Whether you’re saving for something special or looking to diversify your income streams, side hustles are a great way to make additional money. But with so many options out there, it can be overwhelming to figure out where to start, especially if you’re a beginner. That’s why I’ve created a detailed side hustle tier list to help you navigate some of the best (and worst) side hustles out there, based on potential earnings, ease of entry, and scalability.
In this post, we’ll break down the top side hustles for beginners and rank them from S-tier (the best of the best) to F-tier (better to avoid), so you can choose the right side hustle to match your skills, goals, and interests.
1. Selling Digital Products (A-tier)
What is it? Selling digital products involves creating and distributing non-physical goods such as eBooks, templates, printables, or online courses. These are products that can be bought and downloaded immediately, which means no inventory or shipping hassles.
Example: Take Thomas Frank, for example, who sells Notion templates and earns over $100,000 a month from it. There are also countless other people selling resume templates, meal planners, and fitness guides, earning significant income with digital products.
Why it’s great for beginners: Selling digital products is an ideal side hustle because once you create the product, it can be sold multiple times with little extra work, making it a great source of passive income. It’s also relatively easy to start with platforms like Etsy, Gumroad, and Shopify where you can list your products. The scalability is great for beginners as you can start small and grow with time.
Challenges: While it’s easy to hit that $10,000/month mark with a successful product, scaling beyond that can be tricky. You need consistent marketing and expanding your product range to grow further.
2. Real Estate / Rental Property / Airbnb (A-tier)
What is it? This side hustle involves renting out properties or rooms for either short-term stays (Airbnb) or long-term tenants. You could rent out a spare room in your home, purchase a rental property, or turn properties into short-term vacation rentals on Airbnb.
Why it’s great for beginners: Real estate has always been one of the most reliable ways to generate passive income. With Airbnb, you can start small by renting out a room or a vacation home. Even if you’re not ready to purchase an investment property, Airbnb gives you flexibility. Plus, rental income tends to be consistent, making this side hustle a great choice for long-term passive earnings.
Challenges: Entering real estate can be risky, especially if you’re buying property. Mistakes in property management or the real estate market can be costly. Additionally, the market is saturated with people selling real estate coaching programs, so it’s important to do your own research and avoid scams.
3. ATM Business (B-tier)
What is it? In an ATM business, you place ATM machines in high-traffic locations and earn money from transaction fees. This includes both traditional ATMs and Bitcoin ATMs.
Why it’s great for beginners: ATM businesses are appealing because they offer semi-passive income. Once you’ve set up your ATM in a busy location, you collect a small fee for each transaction, which can add up to $10,000 per month depending on foot traffic.
Challenges: You’ll need an initial investment to purchase ATMs (usually $2,000–$3,000 per machine) and you’ll need to restock cash or hire someone to do it for you. It also requires managing trust, as you’ll need employees to handle money safely. Bitcoin ATMs are a newer trend, but still involve risk and learning curves.
4. Laundromat Business (B-tier)
What is it? A laundromat business provides customers with access to washing machines and dryers for a fee. Customers typically pay per use, and the business collects the proceeds.
Why it’s great for beginners: Laundromats generate steady, reliable income. In neighborhoods without in-unit laundry, these services are essential. Once you set up the business, it requires minimal daily management aside from machine maintenance and cash collection.
Challenges: Starting a laundromat requires significant investment in equipment and real estate. It can be hard to scale unless you open multiple locations, and handling large amounts of coins can be time-consuming. Additionally, finding the right location can be tricky, as foot traffic is critical for success.
5. YouTube Channel / Content Creation (S-tier)
What is it? Creating content on YouTube or social media platforms like TikTok or Instagram allows you to earn money through ad revenue, sponsorships, affiliate marketing, and selling products.
Why it’s great for beginners: YouTube is the heavyweight champion when it comes to making money from content creation. Unlike other platforms, YouTube creators have the highest earning potential, thanks to consistent ad revenue. Once your channel grows, the possibilities are endless – from brand partnerships to selling your own products.
Challenges: Growing a YouTube channel takes time, effort, and consistency. Most YouTubers aren’t profitable for the first year or so. You’ll need good video editing skills, a solid content strategy, and most importantly, patience.
6. Dropshipping / eCommerce (B-tier)
What is it? Dropshipping is a business model where you sell products without holding inventory. When a customer makes a purchase, the product is shipped directly from a supplier to the customer, and you keep the profit margin.
Why it’s great for beginners: Dropshipping allows you to start an online business without the need for upfront inventory. You don’t need to handle shipping, logistics, or warehousing, which makes it easier to start.
Challenges: While the startup cost is low, the skills required are high. You’ll need to master digital marketing, paid ads, and managing customer service. Plus, competition is fierce, and it’s harder than it looks to reach $10,000/month due to razor-thin margins.
7. Lawn Mowing Business (C-tier)
What is it? Mowing lawns for residential and commercial properties is a simple, manual service business where you offer lawn care in exchange for a fee.
Why it’s great for beginners: This is one of the easiest businesses to start, requiring very little upfront investment aside from lawn care equipment. It’s great for someone who enjoys working outdoors and wants to make a few thousand dollars a month.
Challenges: It’s difficult to scale beyond a few clients unless you hire employees or purchase more equipment. Reaching $10,000/month is unlikely unless you build a large client base. Additionally, it’s seasonal and physically demanding.
8. Vending Machine Business (C-tier)
What is it? Running vending machines that offer snacks, beverages, or even specialized products like healthy snacks or beauty items in high-traffic locations.
Why it’s great for beginners: A vending machine business can generate passive income with relatively little involvement once it’s set up. You simply need to restock the machines and collect the cash.
Challenges: The initial cost of purchasing machines and securing good locations can be high. Additionally, the effort of restocking and trust issues with employees who handle money are potential risks.
9. Power Washing / Cleaning Business (A-tier)
What is it? Offering cleaning services like power washing, window cleaning, or gutter cleaning for residential and commercial properties.
Why it’s great for beginners: Cleaning services are always in demand, and power washing can be very profitable with the right equipment. You can easily make up to $10,000/month by securing contracts or serving multiple clients.
Challenges: The business is labor-intensive and difficult to scale without hiring staff. Additionally, you’ll need to invest in equipment and learn the technical aspects of cleaning specific surfaces without causing damage.
10. Online Courses / Coaching (S-tier)
What is it? Selling online courses, coaching, or consulting services in a specific area of expertise. This includes creating instructional materials that help others achieve specific outcomes.
Why it’s great for beginners: If you have expertise in a certain area, teaching others through online courses or coaching can be highly lucrative. This is a flexible, scalable business model with very little overhead.
Challenges: It can be tough to stand out in a crowded market, and you’ll need to be good at marketing to succeed. Coaching and consulting require more of your time but can yield better results for clients, making it more fulfilling and lucrative.
11. Pet Care (B-tier)
What is it? Providing pet care services like dog walking, pet sitting, or even taking care of exotic pets when owners are away.
Why it’s great for beginners: Pet care services are in high demand, and they require minimal upfront investment. If you love animals, this side hustle offers flexibility and can earn you consistent income.
Challenges: While easy to start, scaling a pet care business to earn $10,000/month is tough unless you build a larger client base or offer premium services. It’s also labor-intensive and may require odd hours.
12. Print on Demand (A-tier)
What is it? Print-on-demand allows you to create and sell custom-designed merchandise (like T-shirts, mugs, posters) without holding inventory. Designs are printed and shipped when an order is placed.
Why it’s great for beginners: Print on demand is attractive because there’s no need to deal with inventory or logistics. You create designs, and the platform handles the rest. It’s perfect for those with creativity who want to sell artwork or custom apparel.
Challenges: Competition is fierce, and it can be hard to stand out. You’ll need to be good at marketing your designs, and the margins can be low unless you sell in high volumes or premium markets.
13. Amazon FBA (B-tier)
What is it? Amazon FBA (Fulfilled by Amazon) allows you to sell products on Amazon, and they handle the logistics like warehousing, packing, and shipping.
Why it’s great for beginners: Amazon has a massive customer base, which means there’s a huge opportunity to reach customers without worrying about logistics. You can focus on sourcing products and marketing them.
Challenges: Amazon charges fees for FBA, and the competition is high. You also need a significant investment to purchase products upfront. Plus, Amazon can compete directly with you by promoting their own products over yours.
14. SaaS (B-tier)
What is it? SaaS (Software as a Service) businesses provide software that customers pay for on a subscription basis. Popular examples include CRMs, email marketing tools, or project management software.
Why it’s great for beginners: SaaS is incredibly scalable, with massive earning potential. Once developed, software can be sold to many customers with minimal extra cost. It’s one of the easiest ways to become a millionaire if you succeed.
Challenges: For beginners, the barrier to entry is high, as developing software requires significant technical skills or capital to hire developers. No-code tools are emerging, but they are still too simple for large-scale SaaS businesses.
15. Flipping (A-tier)
What is it? Flipping involves buying products at a low price and selling them at a higher price for profit. This could include anything from cars, vintage items, sneakers, or even real estate.
Why it’s great for beginners: Flipping is simple to start and can be done with almost any budget. You don’t need specialized skills—just a good eye for valuable items and the ability to research prices.
Challenges: While easy to start, scaling beyond a few thousand dollars per month is difficult. Flipping also requires constant searching for new products and dealing with buyers.
16. SMMA (A-tier)
What is it? SMMA (Social Media Marketing Agency) is a business model where you manage social media accounts for businesses, running ads, creating content, and growing their online presence.
Why it’s great for beginners: SMMA is in high demand, and businesses are willing to pay well for professionals who can handle their social media marketing. It’s a service-based business, so you don’t need inventory or physical products.
Challenges: The field is very competitive, and delivering results for clients can be stressful. You’ll also need to learn multiple skills, including digital marketing, content creation, and client management.
17. B2B Service-Based Business (B-tier)
What is it? Providing specialized services like IT support, cybersecurity, or staffing solutions to other businesses.
Why it’s great for beginners: For professionals with high-level expertise, this can be an extremely lucrative business. B2B service businesses often secure long-term contracts and offer consistent revenue streams.
Challenges: Beginners without a specialized skillset will find it difficult to break into this industry. It requires technical knowledge, certifications, and a network of business connections.
18. YouTube Automation (A-tier)
What is it? YouTube automation involves running a faceless YouTube channel where the content (scripts, editing, voiceovers) is outsourced to freelancers. You focus on building the channel and monetizing it through ads, sponsorships, or affiliate marketing.
Why it’s great for beginners: YouTube automation allows for passive income once the team is in place. This is especially appealing if you don’t want to appear on camera but still want to take advantage of YouTube’s high earning potential.
Challenges: It requires a solid understanding of YouTube SEO and managing a team of freelancers, which can be difficult. Additionally, the niche is getting more saturated, making it harder to stand out.
19. Trading (F-tier)
What is it? Trading involves buying and selling stocks, cryptocurrencies, or other financial assets to make a profit based on market movements.
Why it’s great for beginners: In reality, trading is not ideal for most beginners. While some people are drawn to the idea of quick profits, the majority of traders lose money, especially if they don’t have advanced knowledge of financial markets.
Challenges: The risks are extremely high, and it’s easy to lose your entire investment if the market turns against you. Plus, it’s a zero-sum game—if you win, someone else is losing. Competing against Wall Street professionals with better resources and knowledge makes this a tough space to break into.
20. Twitter Ghostwriting (B-tier)
What is it? Twitter ghostwriting involves writing tweets and managing Twitter accounts for thought leaders, CEOs, and influencers. You help them build their brand and engage with their audience.
Why it’s great for beginners: This is a highly lucrative side hustle if you’re a skilled writer and familiar with Twitter. You can charge clients on a retainer or make money from commissions based on sales generated through their Twitter.
Challenges: The barrier to entry is high, as it requires top-notch writing skills and the ability to capture someone else’s voice. There’s also a lot of pressure to deliver results, as Twitter’s fast-paced nature requires frequent content updates.
21. SEO / Blogging (A-tier)
What is it? Building a blog and earning income through ads, affiliate marketing, or selling your own products/services. This is a long-term strategy that requires consistent content creation.
Why it’s great for beginners: Blogging has been around for a long time, and it’s a proven way to generate passive income. Once you’ve built an audience, a blog can bring in steady income for years through ads or affiliate sales.
Challenges: The biggest challenge is patience. It often takes a year or more before you start seeing significant earnings from a blog. Consistency and a strong grasp of SEO are key to ranking your content and attracting traffic.
22. Affiliate Marketing (S-tier)
What is it? Affiliate marketing is a business model where you earn commissions by promoting other people’s products or services. You don’t need to create the product—just drive traffic to the seller’s website and earn a percentage of each sale.
Why it’s great for beginners: Affiliate marketing is great for beginners because it doesn’t require you to have your own product. You can start earning by promoting established products and focusing solely on marketing. It’s also incredibly scalable if you have a blog, YouTube channel, or social media following.
Challenges: The biggest challenge is generating traffic. If you don’t have a following or aren’t good at driving traffic through paid ads, it can be tough to make substantial money from affiliate marketing.
Conclusion
If you’re just starting, picking the right side hustle can feel overwhelming. But the key is to choose one that matches your skills, interests, and commitment level. For maximum scalability and earning potential, YouTube, affiliate marketing, and selling digital products are some of the top choices for beginners. On the other hand, side hustles like trading should be avoided due to the high risks involved.
Take a step today, start small, and build gradually. With the right effort and patience, your side hustle could grow into something much bigger than you ever imagined.
Leave a Reply