Young and Profiting with Hala Taha - Nick Loper: The Art of Side Hustles | E10
Episode Date: November 12, 2018Thinking about starting a side hustle or looking to side hustle harder? You’re not alone! Side hustles are becoming more and more popular—in fact, according to bankrate.com, more than half of mill...ennials in the US report having a money-making side hustle. Technology has made it easier than ever to start your own business! In this episode, Hala explores the art of side hustles with Nick Loper, founder of the popular blog and podcast, Side Hustle Nation. Nick currently makes his living off 15 different income streams, and so he’s the perfect guy to give us practical advice on how to make some extra cash on top of our 9-to-5s. Stay tuned for tips on how to launch a side hustle, the most lucrative side hustles to start now and how to turn a side hustle into your main hustle. Young and Profiting podcast is brought to you by audible. Get your FREE audiobook here: www.audibletrial.com/YAP Want to connect with other YAP listeners? Join the YAP Society on Slack: http://bit.ly/yapsociety Follow YAP on IG @youngandprofiting and Twitter @YAP_Podcast Reach out to Hala directly at Hala@YoungandProfiting.com Follow Hala on Linkedin: www.linkedin.com/in/htaha/ Follow Hala on Instagram: www.instagram.com/yapwithhala Check out our website to meet the team, view show notes and transcripts: www.youngandprofiting.com Learn more about your ad choices. Visit megaphone.fm/adchoices
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You're listening to YAHP, young and profiting podcast,
a place where you can listen, learn, and grow.
I'm your host Halataha and today's episode
is all about the art of side hustles.
We've invited Nick Loper on the show
who is the chief side hustler at Side Hustle Nation,
a popular blog and podcast. Nick currently makes his living off of 15 different income streams,
and so he's the perfect guy to give us practical advice on how to make some extra cash on top of our 9-5s.
Stay tuned to find out what it takes to start a side hustle and how to turn a side hustle into your main hustle.
Hey, Nick, thanks for yapping with us.
You bet, thanks for having me.
So I thought that we could get started
with getting acquainted.
So an icebreaker, if you will.
I was on your website and I saw this list
of 25 facts about yourself, one of which I found really
interesting, you took a cold shower for
500 days in a row.
Can you tell me about that?
Why on earth did you do that?
I know, it sounds awful now.
So this was kind of in the 2014 to 2015 time frame, started actually with a guest of mine
on the side hustle show who he was talking about, you know, taking cold showers, starting
out as a fat burning hack, like to boost your metabolism
for the rest of the day, because you're going to expend calories like heating your body up
long after the shower is over. But then what he found was it was effective for that, but what he
also found it was effective for just like motivation. And he's like, this is the hardest thing
that I have to do today. And some days it's really hard, because it sucks. You feel like you're ready to tackle anything.
And I kind of found the same thing.
And I said on air, it's like, you know what?
That sounds awful, but let me give it a shot.
And some good things started happening.
It might have been totally placebo,
but at that time, starting to get more coaching clients,
like the traffic started to pick up.
I don't know, like for a reason, I was into it.
And so I did it for over a year.
I guess it was effective.
Maybe it was what I needed at that time.
Would you recommend it to others?
Absolutely.
Get out of your comfort zone a little bit,
do it for 30 days, or even maybe the baby steps way
to do it would be to end your shower's cold,
which is kind of what I tend to do today,
because that's for some reason less jarring
than just like jumping straight into the cold water.
That's funny, that sounds horrible.
So how did you become the chief side hustler
at Side Hustle Nation?
Tell us about yourself, your journey,
how you got started with it all.
My original side hustle was,
when I was working corporate,
it was a footwear comparison shopping site.
It was called ShuseNiper.com and it would aggregate the product catalogs from Zappos and Amazon
and all these other online footwear retailers until you were able to find the best price on your
next pair of shoes and it earned money as an affiliate. So, you know, if somebody went and bought
that pair of shoes to Amazon, the site would get a commission. And while I was running that, and the site had
a almost a 10-year run, we was always looking for stuff on the side. And it was kind of like
during one of these lower points of that business, doing some soul searching, we were like,
well, what do you want to be known for when people Google you? What do you get excited about
talking about? And it was that prospect of lower risk entrepreneurship.
How do I build a business on the side?
How do I make extra money that really never gets old?
And still doesn't get old, because there's a million and one creative ways that people
are doing it.
And that's where the side hustle show and the side hustle nation blog were born from.
So right now, are you a side hustler? How many side hustles do you have?
A lot of them overlap. And so my days of experimenting with a lot of the stuff are kind of limited.
So used to do some freelancing, used to do some e-commerce experiments with Amazon and eBay.
And still do a little bit of that, but that's going to take in the back burner.
The side hustle blog has kind of become in the podcast,
it kind of become the main focus,
but there still are a dozen income streams related to that
and not related to that through self-publishing,
through affiliate marketing on the site,
and on a couple other sites that I still run.
Sadly, the shoe site no longer exists,
but some other sites that were started during that time
are still around starting some experiments
in the investing world.
And it all adds up versus trying to rely on one source
of income, having a single point of failure.
Yeah, so to that point, why do you prefer
or recommend having side hustles over a 9 to 5 job?
Well, not necessarily a preference one over the other, but the ultimate freedom, right,
is control over your calendar.
How do you spend your time?
How do you spend your days?
And if you can piece together an income on your own terms, rather than on somebody else's
terms, you're more likely to have that freedom.
So that's going to where it came from for me.
And I would definitely advocate focus first, simplify first, and then diversify second. So try and get one thing, one business,
one income stream off the ground before going crazy and trying six things with an unfocused
effort. Because I think that's a harder to see results from.
Why don't you give some context to our listeners about side hustle nation? So like, what is side hustle nation?
Basically just a blog and podcast for people trying
to make extra money outside of traditional employment
at the very low end of that.
It could be like babysitting, walking dogs,
delivering pizzas, like I think all of those count
as side hustles, there's a connotation
that a side hustle has a little bit more
of an entrepreneurial upside,
where maybe you're not directly trading hours for dollars
or maybe there's this vision, this hope,
this dream that it could become something bigger
as it definitely did for me with a shoe business.
I have a little trouble distinguishing a side hustle
from a part-time job or a second job.
How do you personally define what a side hustle is?
Probably the textbook definition would be
that upside potential like that.
It's something that you have ownership over.
Maybe it's an asset that you own versus,
okay, I drive for Uber or I'm delivering pizzas
or I'm doing Instacart deliveries or something like that.
Right, that absolutely counts as a side hustle in my mind,
but at the same time, like you're limited on how much
you can do by, you know, your hours in the day
versus with you starting the podcast,
it's all of a sudden from a single mic
and two people having a conversation,
you could reach thousands and thousands of people,
and that is really powerful.
It becomes a little bit more leveraged
and I think there's a lot more upside,
even just like starting a freelancing business.
Like, I'm gonna do freelance writing,
I'm gonna do freelance podcast editing, whatever it is.
So I was doing a bit of research on the show,
and I found out that more Americans are working
a side hustle than ever before,
and to be exact, there are 44 million Americans
with a side hustle today.
Why do you think the motivations to start a side hustle
are so much stronger than they were in the past?
That's a weird time, right?
It's a weird statistic because on the surface,
the economy is great.
Unemployment is at record lows.
You know, why are 44 million people feeling the need
or the desire to go out and make extra money?
So I think part of it is reactive, right?
Housing, education, insurance, or healthcare, like all of those costs have grown way faster
than real wages.
So that's a driving factor, like just the straight up cost of living and people feeling
the crunch to make ends meet and pay down student debt.
That's maybe the negative way to look at it.
And the more positive way to look at it is,
I have the ability and the desire to start something
that scratches a creative itch,
that is something that I have control over,
that I'm interested in, that I'm passionate about.
That's probably driving some of that as well.
And those are kind of the people that are more interesting to talk to than the people
like, well, I need to make rent next month.
That's your, you're approaching it from a completely different standpoint.
Yeah, and from my perspective, I really think it's all about the digital innovation that's
going on.
Like, there's so many different digital platforms where people can do freelance work, whether
it's fiber, upwork, and mobility, you, and mobility. You can just make money off your phone now while you're on the train.
I used to do that years ago, but I just feel like it's easier. There's so much more space to play
because we've got the internet now and there's just so much more that you can do with your free time
to monetize it. So I think it's also like digital impact, too.
Yeah, that word play that you just use is really key in approaching it that way, saying,
look, this is going to be a fun experiment.
I'm going to see what happens.
I'm going to put some content out there and approaching it that way, you know, lessens
the sting of failure and kind of puts you more into a scientist role where it's like,
okay, this is my hypothesis. I'm going to test something out.
If it works great, if it doesn't, okay, onto the next thing.
I also read that half of millennials report having a side hustle, so this is really big for the younger millennial generation.
Why do you think it's so attractive to younger millennials specifically?
Most of my listeners are younger millennials.
Yeah, I think it's that, you know, cash strapped nature, you know, look, we're dealing with a debt load,
we're dealing with a higher cost of living in most cases, and it's just, okay, how do I make ends
meet? And the way I approached it was like, I was just looking for a way to use my free time
more productively. When I was first starting the shoe business, like, I moved across the country
for my day job. Didn't have have any friends outside of the office really,
and so I had a lot of free times nights and weekends. I was like, well, I could play Xbox
with my buddies back home or just sit there and watch TV, but so I was, you know, how can
I be more intentional, be more effective with these hours that I've been given and try
and make something worthwhile out of it?
Yeah. You mentioned that you have a blog. It's a very cool blog. That's actually how I found you.
I was looking for ways to monetize my podcast and came across one of your blogs.
Oh nice.
And one blog that I saw that I thought might be interesting to kind of recap for our listeners is
this three laws of side hustle physics. Do you mind explaining what those three laws are?
Sure. Well, these will parallel Newton. So somebody wants to get nerdy and talk about physics.
So law number one is like this inertia and momentum law where you might remember from physics,
right? An object at rest is going to stay at rest and an object in motion is going to stay in
motion until acted upon by an external force. And we see this over and over again with people who are on the sidelines looking to get into the game.
Like there has to be some motivating factor to get you to move, to take action,
to register that domain name, to put up your profile and up work,
to try and get that first client to put yourself your profile and up work, to try and get that first client, to put yourself out there.
And maybe that's a meeting with your boss
that doesn't go as well as you planned.
Like one of my favorite moments on the show
was a photographer, a journalist I had on the show.
He, I just won international sports photographer of the year.
Or something like, he's highest award in his industry,
goes into his boss for his annual review
and his boss is like, man, I fought for 4%,
but I could only get you a 3% raise.
And he's like, he got to be kidding me.
He's making like 30 grand a year doing this.
And he's like, this is not gonna work.
And so that was the motivating factor
to kind of get him off the sidelines
and start thinking seriously about starting his side hustle.
So that's kind of the first flaw. And it goes both ways. Like once you're in motion, we see this
over and over again. Ideas start to pop up that you never would have had just based on conversations
that you have or things that you come across during your research. And that it's really powerful.
Like this inertia and momentum long.
Law number two is this law of force and impact.
And so this is Newton's law of acceleration.
Acceleration of an object occurs based on the force
that was applied to it.
So the smack of that 3% raise after winning the highest award
in your industry, that was a pretty hard smack.
And so it motivated Vincent to take
off in a hurry. He told me he would have been happy with 10%. And so, like, that wouldn't
have been a big enough impact to really change his life.
I just want to pause here for a second, because I love that. For me, rejection is such great
motivation, you know? And it's like, every time I've ever been rejected, it's been when
I've like pivoted to something that is like a life achievement for myself.
So I think that if you get rejected,
if you feel like you've been let down,
it's the best time to put that negative energy
into something positive and do something different
and impactful for yourself.
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Yeah, this was kind of like hit home. We were at this like beach vacation this summer and
you're at the pool all the time and you're like, man, I really should hit the gym more because
I see all these people who are super fit. And so like maybe that's a motivating factor.
You could see it in health, you could see it in business, you could see it in relationships.
It happens all over the place.
And then the third law is this action and reaction.
So for every action, there's an equal and opposite reaction.
And so we're recording this on election day
and somebody just posted, like whether you vote or not,
that's a vote.
And so that may not be thinking about this,
there's an equal and opposite reaction. And even if nobody theoretically reacts to your stuff, because I wrote a personal
blog for years and years and years that nobody really read outside of my friends and family,
well, that was a reaction. It was, you know, a reaction that told me that, hey, you better
write about stuff that people care about. And it wasn't all for waste because it was practicing skills of writing online and learning
WordPress and learning all this other stuff.
But it can be depressing when on the surface, it's like, yeah, there was no reaction.
What kind of side hustles do you write about on your blog?
The big three for the site right now are freelancing.
Like we talked about e-commerce and kind of like a blogging and podcasting, content marketing
types of businesses where you're like, okay, I'm going to set up an online presence to
talk about this subject matter that maybe I'm an expert in, maybe I'm not, maybe I'm
learning this subject matter, and monetizing through ads, through affiliate relationships,
through digital products.
And do you think that there are certain personality types that thrive in this side hustle role?
I've seen it work across, you know, introverts, extroverts, young old. It's really a matter of
figuring out, okay, what's my offer going to be and how can I get that in front of my target
customers? Let's say I'm a millennial and I have this idea for a side hustle.
How can I test the idea and make sure it's a good one before I either quit my day job
or spend a vast amount of time on it?
This is good. Let's dive into this a little bit more.
So what's the hypothetical business that you're thinking about testing?
Let's say selling something on Etsy.
Okay, perfect. So if we're looking at Etsy, where I would start, is the existing listings
on Etsy and the existing listings on eBay, Amazon, Redbubble, some of these other similar
marketplaces where people buy me buying this stuff. If there are other people making
sales, that's a fantastic sign, right? There's money in that market. The second thing that I would probably do
is Etsy costs like, I think, 20 cents
to put up a listing.
It's almost free.
So you create your listing very affordably.
And so if it's a handmade product,
I would just create one of those
so you can take nice pictures
and put that listing for 20 cents.
Etsy has on-platform advertising
that you can use to drive traffic
on top of their listing
optimization tools and keyword tags and stuff like that. But one thing that you
probably want to do before paying for traffic is to land some social proof on
your Etsy page, which is like the number of likes on this page, the number of
sales that you've made. So you can see that with some initial reviews from friends
and family.
You might even just give these away and say, I'd really prefer if you ordered this through
Etsy to help my appearance on that platform. And you find that kind of a similar strategy,
not just on Etsy, but on iTunes. Hey, can you review this podcast on You to Me? Hey,
could you review my course on Amazon? Hey, could you review my book? Like just to kind of
seed the platform with a little bit of social
proof. So the algorithms start to work in your favor. And so people, when they do land on that page,
they say, okay, this isn't a ghost town. There's actually, you know, something, there's something
to this. Isn't that so funny how you could have thousands of listeners and the best personal
feedback, but if you have no reviews, like you ain't shit. Yeah, and maybe that's feedback too.
Like if nobody wants your thing,
like if you can't get your friends or family to buy it,
that's probably a sign that it's not the best business
to go into.
And I know a lot of people are thinking about these days
starting a podcast, starting a blog.
Do you have any advice for those folks?
Yeah, I'm still really high on podcasting specifically
because I forget the latest stats.
It was probably something like 40% of the population even knows what a podcast is.
And so that leaves a huge chunk of the pie like left to go out and grow over the next 5,
10, 15 years, like as people discover on-demand audio and they're probably going to react like
I did.
Like this is amazing.
How did I waste so many years listening to nonsense on the radio,
when I could listen to stuff that is gonna help me grow
personally and professionally.
I'm really excited about that.
The key then is, okay, how can I reach those people
and the 40% that already do know about podcasts?
How can I reach those people?
You know way that is either helpful or entertaining.
In front of my income, gave me,
this was five or six years ago at a conference
gave me the rule of the internet,
which I quote all the time.
It's, you know, people are only ever online
for one of two reasons, you know, number one,
to be entertained and number two, to solve a problem.
And you can think of it, that's Facebook and that's Google.
You know, to be entertained or solve a problem.
And the podcast may bridge the gap there.
Some friends have called it infotainment,
where you're providing educational content,
hopefully in an entertaining way,
but putting the listener first,
and it's a practice, it's a craft,
like the first 50 episodes of The Side House will show awful.
I mean, embarrassed to go back and listen to those,
but it just took a while to hit my stride as a host.
And I don't know, you're like a radio professional. So you're doing great right out of the gate,
but it's a practice. Yeah, yeah. I read that the average side hustle only makes $200 a month,
and $600 a month if you're really knocking it out of the park. But to me, that doesn't really
sound like a young and profiting type of stuff. That sounds like we could do better.
Yeah, I definitely wouldn't leave your job if you're at that two to six hundred dollar a month
level. What I would like to see is a track record of earnings history, you know, six to twelve months,
and other people will be more aggressive than this, of replacing not necessarily your day jobs howlery, but at least your monthly expenses. So you know you're not going to be
dipping into your emergency fund, your savings, to try and get to that ramp up
period. The exception to that has been from folks where the day job really is the
bottleneck. And you say, hey, if I had an extra 40, 50, 60 hours a week in some
cases, I know I could get this thing
to the next level where it could support me,
where it could support my family.
That's when it might make sense to make the leap
where it looks on paper prematurely.
It has to align with your goals, too, right?
Some people have no intention of leaving their day jobs.
Hey, I love my work, but I just do this stuff on the side because it's fun,
because it's interesting, because it provides play money,
what, you know, for whatever reason,
you know, it's building my skills,
it's exercising, you know, a different side of my brain.
So not everybody who's out to quit their day job.
I personally feel like side hustles have
a negative appeal to some people,
especially like the older generation
that you should be more
traditional, you should have a regular job. Have you faced any of that negative judgment?
That's an interesting one. So the negativity comes from a couple of places. The first is that you
kind of economic macro positioning that we talked about where it's like, you know, what a sad state
of affairs that 44 million people feel the need to side hustle. Like, why can't it's like, you know, what a sad state of affairs that
44 million people feel the need to side hustle. Like, why can't it be like the old days, right?
That's maybe one angle. The other angle is just like maybe the word hustle
like as the connotation of like, I'm gonna scam people or something like that, not
recognizing that just means your effort. Like control, which you can control work as hard as you can when you can and be smart about it.
So actually, side hustle nation comes from a quote from an old baseball coach of mine.
He's like, look, you're going to have bad days at the plate, you're going to have bad days
in the field, the hustle never slumps.
And I was like, okay, I really like that.
That's stuck with me.
Yeah, it is catching up.
And what side hustles today, like this very moment in time, would you recommend to our
listeners?
Oh my gosh.
So we talked about the freelancing consulting stuff.
If you have a skill that's in demand, absolutely understand that your boss, your company,
is probably taking a large percentage of your value.
A friend of mine was a tutor for Kaplan, or one of these big tutoring companies.
He was making 18 bucks an hour, which was awesome for him, like in his early 20s.
The company was turning around and charging the parents like a hundred bucks an hour and he was like, wait a minute,
I have this skill I could go out and sell that directly to my customers. So I like that
freelancing marketplace. Perfect first side hustle as a way to get your feet wet, understand
that you have value outside of your business card, outside of your paycheck. My wife and
her business partner on the side from her job started a photography business,
completely unrelated to her engineering job.
So it doesn't have to be, I'm an accountant by day, so I'll do accounting at night.
We talked about the podcasting stuff.
We talked about the online, authority, business, blogging, content, marketing businesses.
I continue to see and I continue to be impressed by some of the numbers that these guys are posting.
I just talked to a guy this afternoon who was selling $45,000 a month worth of an online course
that teaches you how to start a microgreens farming business and grow the stuff in your garage
and sell it to the farmer's market and to local restaurants. And it just blew my mind that there
was that much demand in a niche I had never even heard of.
And I'm really excited by stuff like that.
You know, people having this new ability
to kind of monetize these little skills, hobbies,
interests that, you know, they might be able to put out there.
Yeah, I feel like courses are getting more and more popular
and so in demand because I,
people just want to learn.
And if it's unique content that they can't find anywhere else,
you can package that up and monetize it, you know?
So.
Yeah, make it easy for me, make it step by step, absolutely.
And how about blogs?
Like, is there a way to really monetize blogs these days?
Because it seems so oversaturated.
Yeah, bam.
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Yeah, that was my initial reaction, too, but I keep getting proven wrong.
People starting relatively new sites.
Again, another guy I talked to today started a mattress review blog in the UK. So like just even a tiny little island
where apparently 15,000 people are finding his site every month
and clicking on his affiliate links to go by these mattresses.
But because the price point is high enough
and the commission is high enough, he's able to make a full-time living doing that.
So on the blogging front, the trap I want people to avoid is like,
okay, I'm going to start a personal blog and expect that that makes money.
You know, the ones that I see doing well are the blogs that have content that solve specific problems.
As you're creating every piece of content, think, okay, how is somebody going to discover this?
Usually it's going to be Google, usually it's going to be Pinterest,
but like thinking
of these user-to-content platforms, that's a term from Rosemary Groner who runs the Busy
Budgeter.com. It's like a personal finance budgeting site where that's gone crazy. How
are people going to discover this? And if you know, if it has some nonsensical clever
title that only makes sense to you, you know, probably nobody's going to click on that.
Probably nobody's going to come and read that.
And it's like, you're going to pour your, your hard out, you're going to pour hours into
creating this stuff, like make sure that you're setting yourself up for success.
It's something that somebody is looking for, and you know, you're giving them the best
chance to find it.
Okay.
So we're going to close out with one last question.
Tell us about the day that you quit your 9-5 job and what made you
officially decide to start your side hustle career. The day that I quit, I was out to dinner with my
boss and this has been kind of on my mind for months, really, because I was building the shoe
business on the side from this corporate gig. So I went to dinner with my boss and I'm like, okay, this is the day. I'm like, I'm going
to break up the news. I'm out of here. I'm going to give my notice. It still took me
like a couple beers deep into this dinner to build up the nerve to do it because it's
like, is that allowed? Can I cut my own paycheck? I went to school. I have these obligations.
Is this actually going to work? And I had several months of earning history at that point,
so it wasn't completely, you might have heard
the definition of an entrepreneur or somebody who jumps off
a cliff and it's gonna figure out how to build
their parachute on the way down.
Like that was not me and it was still super scary.
But after I told them, it was like this huge weight
off my shoulders and it's just like, okay, this is real.
Like, let's go, let's go do this.
And for millennials who are working a side hustle,
when should they decide to make that move?
I would say once you have at least six months
of earnings history to cover your expenses
from the side business, so you're not jumping without a parachute.
You've got something that you know is working,
and you think you can get to the next level
if you're going to free up some time.
Awesome.
Well, I really enjoyed this.
Before we go, can you let our listeners know
where they can learn more about you and side hustle nation?
Absolutely.
Hit up sidehustlelenation.com slash ideas
for a constantly updated laundry list
of part-time business ideas that you can start today
and no opt-in required.
And of course, we'd love to have you tune in
to the SideHustle show available in iTunes
and pretty much every other podcast player app as well.
Perfect.
Thanks, Nick.
You bet.
Thanks for having me.
Thanks for listening to Young and
Propiting Podcast.
Follow Yapp on Instagram at Young and
Propiting and check us out at Young and
Propiting.com.
And now you can chat live with us every
single day on our new Slack channel.
Check out our show notes or Young and
Propiting.com for the registration link.
You can find me on Instagram at Yapp with
Hala or LinkedIn where I spend most of my social media time. Just search for my name, Halla Taha. Big thanks to the folks
who helped put on the show. Timothy Tan, Daniel McFatter, Stephanie Steeves, Chris
Jen, John Sparks, Kayla, and Ryan. I couldn't have asked for a better team. Until next time,
this is Halla signing off.
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