How to Research, Analyze, and Compare them.
How is the starting pay?
What’s the efficiency curve?
Is there growth potential?
The objective here is to prove the promising income opportunity will produce the income before we plunge headlong into it !
Our last post in the Side Hustles series we featured ProDelivery Services. This post features Student or Adult Tutoring for extra income, whether your gifts are in English (ESOL), Math, Physics, or Coding, which is hot at the moment.
You don’t want to miss our following post featuring Consultancy income in whatever passion or expertise an operator brings.
An apples-to-oranges analytics comparison of income and growth for two side hustles or gigs may be accomplished using appropriate multipliers or factors for 2, 3 or 4 separate metrics.
Compare before Turning
The trouble is many of us wouldn’t know how to draw an apples-to-apples comparison if our life depended on it, especially when the two things are apples to oranges. So, why attempt it? Let’s just dive in and hope the income winds up enough. No. No…. No! We can derive a way. Analytics is about finding a way to make that apples-to-oranges comparison. We do that here.
Sources
Our review of side hustles for best value and growth potential demanded more analysis than we thought. Ultimately, we researched and derived factors, and compared them using those factors. Using ZipRecruiter, Glassdoor, Indeed, and AI fact research, we derived starting incomes, efficiency ramp-up factors, and 1-year growth potentials. Please do your own due diligence. This was ours. The idea here is to lay out a few examples of one method.
Our research focused on starting income. Ramp-up or Efficiency factors were derived to reach the average-high income levels. Business growth rates and potentials were accessed using AI fact research, Glassdoor, Indeed, and various direct sources.
Consultancy
We will devote a bit more attention in this Side Hustles series to a discussion on Writing for a Living because the process of growing a writing business mirrors the process of other professional start-ups or service gigs.
A well-designed blog in many respects is consultancy – a mechanism to impart, instruct, consult, cogently argue, report, invent, or create for a client. Therefore, writing answers a lot of questions in terms of how a person might employ their knowledge or expertise to help a reader or guide a client. – Charlie Whooph
Whooph Metrics
Starting Income (SI) – Starting income is based on the low end of reported hourly.
Efficiency Factor (EF) captures the learning or ramp-up curve. Earnings for a business should naturally increase as a business operator learns company systems, strategies, and bonus structures, and efficiency increases. Likewise, productivity improves as an operator develops marketing skills and business savvy, practices customer service, and improves time management. As an example, a tutoring business’s efficiency increases by 50 percent within the first year from day one. So, an Efficiency Factor, EF factor is 1.5 is applied to help determine a ramp-up potential.
Growth Potential (GP) is based on the long learning curve for some endeavors such as building a product or service affiliate business, building a tutoring business, or developing a Blog site. Growth Potential kicks in for a tutor as student parents see marked improvement, word gets around, and demand for tutor services increases. The Year GP is further set for 1 year.
Starting Income (SI), $/mo
Efficiency Factor (EF)
Year Growth Potential (GP)
Whooph Formula:
SI * EF * GP
Whooph’s Side Hustles:
The objective here is to prove the promising income opportunity will produce the income before we plunge headlong into it ! An operator may want to compare one gig to another.
Again, the trouble is many folks don’t know how to draw an apples-to-apples comparison, especially when the two things are apples to oranges. The following featured side hustle analysis is just one example in our attempt to show how. We will demonstrate one method of analytics that a business operator may apply to other gigs using slightly different factors.
1 – Food & Grocery Delivery
SI: $600/mo, 60 hrs
EF = 30%, EF factor = 1.3
GP = 0%, GP factor = 1.0
$600 * 1.3 * 1.0 = $780/mo
2 – Tutoring
SI: $500/mo
EF = 40%, EF factor = 1.4
GP = 20%, GP factor = 1.2
$500 * 1.4 * 1.2 = $840/mo
Average $10 – 20/hr
Certified $20/hr
Students tutoring in high school rates vary by location $10 – 20/hr. Certified teachers can charge more. Based on $20/hr and 25 hours per week.
The ultimate driver of productivity in any new business is Efficiency. As a new tutor develops marketing skills and business savvy, hones customer service, and improves time management, the business begins to take shape, and efficiency increases. Productivity and earnings ultimately revolve around efficiency in the first year of a tutoring business.
Yes, there are a few tutors raking in $1,400 per week, paying the bills, and still improving the golf handicap. But these are the outliers with the help of peak seasonal factors.
We’re citing current stats, factors, and incomes you are likely to hit.
Growth Potential kicks in as student parents see marked improvement, word gets around, and demand for tutor services increases. Once you get to this point, you’ll know it! The point is, let’s give ourselves a chance. Persevere.
Nevertheless, the opportunity and growth potential are substantial. Math, chemistry, and physics tutoring are always in demand. English as a second language online to children overseas is hot and growing. Overall demand for teaching and tutoring is increasing at a rate of SAGR 14% to 23% by 2027 depending on the study.
Conclusion
An apples-to-oranges analytics comparison of income and growth for two side hustles or gigs may be accomplished using appropriate multipliers or factors for 2, 3 or 4 separate metrics. We used Efficiency and Growth Potential and explained their scope for this particular gig, Delivery Service. Our next featured side hustle in this series titled Side Hustles involves tutoring and consulting. We should be issuing Side Hustles – Tutoring within the next couple of days.
