Can People Earn a Real Living off of “Gig Economy” jobs?

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Did you know that by some estimates, more than 50 million Americans are already making money in the gig economy? This means a third of the nation’s workforce is now freelancing, contracting, or otherwise relying on ‘gigs’ they find online to pay their bills, at least in part.

From Uber drivers to software developers it can be a great way to make a bit of extra spending money or an attractive alternative to getting tied to the same desk for 20 years.

With these facts in mind, let us see whether you can truly earn a living from gig economy like some are already doing, and how you can go about it.

What is Gig Economy?
How do People Make a Living in the gig Economy?
Which gig job Pays the Most?
What Types of Skills are Necessary for the gig Economy?
What are Some of the Downsides of Being a Worker in the gig Economy?

What is Gig Economy?

Musicians often refer to performing at a place as taking on a “gig.” The gig economy works much the same way (without the need to carry a tune). Instead of a traditional, in-office, full-time job with a single company, gig workers work as short-term, temporary, or independent contractors for one or a variety of employers (though they are not employers in the traditional sense).

Though the term “gig economy” is relatively new, these nontraditional work arrangements have been around a long time. A study by the American Staffing Association found that the majority of Americans (78%) see the gig economy as a new way to describe the participation of this longstanding independent workforce.

No matter what industry a gig worker is in, the gig economy consists of small tasks that the worker completes. These tasks can be anything from getting groceries to writing code.

A gig worker can opt to work for a set amount of hours (like choosing a shift) or work by the project. Once the task or shift is complete, the worker moves on to the next gig. That might be another task with the same company, or something entirely different from another company.

In most cases, shifts or projects are flexible. A gig worker might have a day job where they work a traditional 9-to-5 job, and then a second “gig job” from 5-to-9 at night. Or, a gig worker might work multiple “gigs” to create a full-time job, but on a flexible or alternative schedule. Gig workers can also choose to work from 9-to-5.

While many people think that the “company” is an employer, in the gig economy, that is not the case. Many companies that utilize gig workers—Uber, Instacart, TaskRabbit, MechanicalTurk—do not employ the gig worker. The company is merely the “connector,” bringing contractors and clients together.

How do People Make a Living in the gig Economy?

The gig economy’s independent contractors and online platform laborers work freelance jobs or for on-demand companies like Uber, Fiverr, or DoorDash.

The Internet powers the gig economy, making it possible for people to connect without having to go through traditional offline means, allowing buyers and sellers to exchange services and money much more rapidly.

However, with gig work becoming a more substantial part of the economy, if you have a good work ethic and the right skills, you can earn a living working gigs. And if you develop a good relationship with a particular client, it could even lead to a full-time position with benefits.

There are many gig economy jobs you’re likely already qualified for and that you can start doing right now.

Ridesharing

One of the most popular gig economy jobs is working for a ridesharing service, which allows users to turn their cars into taxis. Ridesharing services like Uber, Lyft, and Bolt have become popular among users because they’re cheaper and more convenient than traditional taxis.

Ridesharing services require you to own a car and a smartphone, and they involve a background check and application process during which you become acquainted with the service’s rules and regulations. This process is quick and allows you to start earning money almost immediately.

Working for a ridesharing service offers flexible work hours and doesn’t require any additional tools or skills. With the growing popularity of ridesharing, it’s usually easy to find passengers to ferry around your area.

In addition to fares, rideshare drivers can make tips. A 2020 Gridwise report indicates that Uber and Lyft drivers earn a median hourly wage of approximately $12.50 to $22, depending on the city.

Note that ridesharing services are not available in all areas. If you don’t live in or near a medium to large city, you may not be able to work for a ridesharing platform. Check what services are available in your area.

Delivery

On-demand delivery services make it possible to have almost anything delivered to your door. While only a handful of restaurants have traditionally offered home delivery, the gig economy has opened up this process via food delivery apps such as DoorDash and Uber Eats.

There’s also Postmates, a delivery service that delivers more than food, including alcohol, groceries, and personal items. These platforms, much like ridesharing services, pay you to deliver food to customers.

Delivery gigs require you to own a smartphone, but unlike ridesharing, you don’t need to own a car. If you have a bicycle or motorcycle, you can work for many food delivery companies. And you can start making money almost immediately with food delivery.

With the growing popularity of delivery services, there are considerable opportunities in this field. These services also allow you to collect tips in addition to delivery fees. According to USA Today, the typical delivery gig pays $11 to $18 per hour.

Subletting

If you have a spare room in your apartment or house or own another property you aren’t using, you can sublet it on a vacation rental site.

Subletting services allow you to rent out your property to tourists, travelers, and short-term residents. Everyone knows about Airbnb, but the service has multiple competitors, including HomeAway, Vrbo, and FlipKey.

Subletting services have become popular among travelers in recent years because they offer a more authentic traveling experience than hotels. They’re often cheaper as well. Renting on Airbnb can be especially lucrative if you live in or near a major tourist destination.

Depending on your location, you can also purchase apartments or homes and lease them out on Airbnb. According to a 2017 survey from Earnest, Airbnb hosts earn more than anyone else in the gig economy, taking in an average of $924 a month.

Note that some cities and countries have banned or severely restricted hosting services. For example, many property firms in the United States forbid tenants or owners from subletting their units. Others may require you to seek permission.

Check your local laws and regulations or your rental agreement to see if you’re allowed to rent your properties on Airbnb and other sites.

Walking Dogs

Dog-walking services like are popular in large cities and are usually used by busy professionals who can’t take care of their dogs during the day. If you love dogs, walking them could be a rewarding way to make some extra cash.

Apps like Rover allow you to sign up to walk or look after other peoples’ dogs. According to a salary review from Glassdoor, Rover dog walkers earn $16 per hour on average.

Cleaning Jobs

Another popular gig economy job is cleaning homes or businesses via apps such as Handy or Care.com. Clean spaces on the side while working a full-time job, or line up enough cleaning work to fill the entire week.

While you sometimes have to provide your own supplies, according to Payscale, the average Handy cleaner makes $17 per hour.

If you have a skill or talent that lets you earn a living at a conventional job, you can begin selling your expertise online. These are some examples of fields that you can work in from the comfort of your home.

Freelance Writing, Editing, or Translating

One of the most popular ways to make money in the gig economy is freelance writing and editing or proofreading. According to Copyblogger, skilled freelance writers can make as much as $100 to $250 per hour, depending on the type of writing they specialize in and their background. But the average pay for established freelance writers on Upwork is closer to $30 to $50 per hour.

Freelance writing runs the gamut from blog posts and informational content to more specialized types of writing, such as legal writing, academic writing, technical writing, and medical writing. Specialists can typically charge higher rates than those who engage in more general types of writing.

And writers who start successful blogs of their own enjoy even greater financial upside if they monetize their content effectively. If that sounds appealing to you, use this step-by-step guide from Blogging.com to get started.

One great thing about freelance writing and editing is that it requires nothing other than a computer and an Internet connection. You can make money as a freelance writer anywhere in the world as long as you can set up your computer and get online.

If you’re fluent in multiple languages, you can also make a living online through freelance translating. Because the number of multilingual people in the job market is small, freelance translators are typically able to find steady gigs.

If you’re fluent in difficult-to-learn, in-demand languages like Mandarin Chinese or Japanese, opportunities abound. According to data from Zip Recruiter, as of March 2020, the average hourly pay for a U.S. freelance translator was $29 per hour. But it can go as high as $74 per hour.

Programming

Computer programming — more commonly known as coding — has increasingly moved into the digital realm thanks to improved Internet speeds and telecommuting. Working from home is now very common in this industry.

Popular programming languages include Python, SQL, and Java, and given the relative difficulty of learning programming, you can command a high rate working as a freelance programmer. Career Karma puts the average hourly wage for a programmer at about $60.

If you don’t know how to code but would like to learn, numerous resources online can help you. Websites such as Udemy offer full online courses taught by credentialed programming professionals in addition to classes on many other subjects. If you just need to refresh your skills, you may be able to find free or inexpensive courses online.

Accounting

Many businesses and individuals hire accountants and CPAs to help them keep track of their finances. With the gig economy, you can now move your accounting business online and work from home. According to Forbes, freelance accountants can earn as much as $215 an hour, depending on their credentials.

Legal Advice

If you have worked in law, you can put your expertise to use in the gig economy. According to CNBC, services like legal entity structuring, trade law, and trademark consulting can command up to $85 per hour on sites like Upwork.

Information Technology

Information technology (IT) specialists are always in high demand due to the ever-evolving nature of computer technology and the need for businesses to keep their systems running. IT specialists can now work many jobs remotely, with IT strategy gigs commanding up to $165 per hour online, according to Upwork.

Which gig job Pays the Most?

Professionals with the right skills have lucrative freelance options, according to a FitSmallBusiness.com study. Their research revealed the 10 disciplines with the highest hourly wage in 2018—and the job growth to match:

1. Deep Learning/Artificial Intelligence: $115.06 Per Hour

Job Description: Deep learning is a fast-growing industry used to create self-teaching systems. Google, for instance, uses deep learning in their voice and image recognition algorithms, and streaming sites like Netflix use it to predict which titles you’re likely to watch. At its core, deep learning involves feeding computer systems massive amounts of data, and then “teaching” them to assess the data’s meaning in the same way a human brain breaks down information. When successful, the system will use the data to make future decisions.
Background and Training: Most employers require a bachelor’s or master’s degree in computer science, but you shouldn’t discount relevant work experience, including Java and C++ proficiencies.
Where to Find Gigs: There currently are over 8,000 deep learning jobs posted on LinkedIn, so you’ll have no shortage of opportunity in this field. For telecommuting gigs, check out FlexJobs’s extensive list of opportunities.

2. Blockchain Architecture: $87.05 Per Hour

Job Description: The internet was once run on servers, also known as cloud computing, in which users share data on third-party servers via Google and Microsoft. Blockchain architecture allows users to connect directly using a peer-to-peer system, which increases security and eliminates the need for a middle-man. Blockchain infrastructures are becoming increasingly popular in banking and cryptocurrency transactions, e.g., Bitcoin, and the possibilities are endless for other consumer businesses.
Background and Training: Blockchain freelancers need a strong background in programming, including knowledge of C++, Solidarity, and Python, Ethereum, and Java to qualify for the average position. It’s also helpful to have previous experience helping clients set up cryptocurrency payments for their businesses.
Where to Find Gigs: You’ll find long-term blockchain opportunities within FlexJobs’s database, and you’ll find one-time gigs on Upwork’s job board, many of which list their budgets at $1,000 or more.

3. Robotics: $77.46 Per Hour

Job Description: Robotics engineers are responsible for conceptualizing, designing, and modeling the mechanical elements of robotic mechanisms. Robotics disciplines include mechanical and electrical engineering—and companies are expanding to develop devices in the medical and surgical fields as well.
Background and training: Securing a robotics position usually requires a bachelor’s degree in mechanical engineering, but a proven proficiency in 3D modeling using computer-aided design (CAD) might be considered. You’ll also need experience using eDrawing, Simplify 3D, SolidWorks Pro, and Photoview 360.
Where to Find Gigs: FlexJobs and Upwork list a few robotics positions with the option to telecommute, and you may have additional success searching for “mechanical design engineer” or “robotics engineer.” A LinkedIn job search also found nearly 800 robotics engineering jobs with big names like Apple and Toyota in the mix.

4. Ethical Hacking: $66.63 Per Hour

Job Description: Hacking is synonymous with data breaches and identity theft—unless you’re on the ethical side. Ethical hackers are paid to spot vulnerabilities in online systems before malicious hackers can take advantage. This usually involves reviewing installation processes, bypassing firewalls, cracking encryptions, and exploiting web servers to gain access to sensitive information.
Background and Training: The best freelancers in this area are information systems security professionals or certified ethical hackers (CEH), who complete training and certification exams to qualify for top positions.
Where to Find Gigs: The phrases, “ethical hacker” and “penetration tester” return one-time gig results in Upwork, and you’ll find hundreds of ongoing positions using the same terms in FlexJobs’s database.

5. Cryptocurrency: $65.37 Per Hour

Job Description: Bitcoin has changed global commerce and fostered the growing need for blockchain technology. Freelance developers with the ability to build automated payment tools using altcoins are sought after, including those who understand how to integrate bitcoin payment technology into existing websites and apps.
Background and Training: Blockchain architecture and cryptocurrency development go hand-in-hand, which means that most positions require similar experience, including C++, Solidarity, and Python, Ethereum, and Java proficiency. You’ll also get bonus points if you’ve set up cryptocurrency payment systems in the past.
Where to Find Gigs: Guru has dozens of freelance listings for cryptocurrency developers, with a few that offer more than $100 per hour. FlexJobs and Upwork are also reliable sources for your gig search, and you can also apply to Toptal, a staffing service that connects freelancers to businesses in search of skilled professionals.

6. Amazon Web Services, Lambda Coding: $51 Per Hour

Job Description: Amazon Web Services’ Lambda technology enables trigger-based code execution. In layman’s terms, it allows you to minimize server space by running code only when a pre-set trigger event exists. For example, if a user completes an order form, the Lambda system might trigger the information to be loaded into another database as a one-time action, rather than taking up space when no actions are in progress.
Background and Training: In addition to a degree in computer science, lambda freelancers are generally skilled users of Node.js, Java, C#, and Python. They also understand how to design triggers and load code onto Lambda.
Where to Find Gigs: Amazon’s Jobs page lists hundreds of Lambda-related positions all over the country, but only a few are work-from-home. If you’d rather stick to freelancing, check out Upwork’s job listings using the search phrase, “AWS Lambda.”

7. Virtual Reality: $50.18 Per Hour

Job Description: If you’ve ever entered the worlds of Pokemon Go or Geocaching, you’ve experienced virtual reality. App designers create digital content that combines visual and audio to create an interactive world in a user’s environment.
Background and Training: Freelancers looking for gig jobs in this area must have expertise in developing augmented reality algorithms and fluency in C#, C, and C++. Most also have a background in 3D modeling and 3D scanning.
Where to Find Gigs: Industry leaders like Microsoft, Facebook (Oculus), and Google are looking for virtual reality developers right now via Indeed.com, and many of them offer telecommuting and flexible schedule options. If you prefer freelance work, you’ll find temporary and telecommuting gigs through FlexJobs, Upwork, and Guru.

8. ReactJS Developers: $40.75 Per Hour

Job Description: Created by a Facebook software engineer in 2011, React is a Javascript library that allows developers to build user interfaces with existing templates, eliminating the need to start from scratch. Companies like Yahoo, Airbnb, and American Express rely on React to allow consumers to make multiple selections on a page (the number of bedrooms in a rental, for example) without needing to reload it.
Background and Training: While some positions may require a bachelor’s degree in computer science, work experience is heavily valued in this field, including proficiency in React, JavaScript, Redux, Webpack, EcmaScript, RESTful APIs, and API debugging.
Where to Find Gigs: FlexJobs has hundred of active listings seeking React developers for freelance and full-time telecommuting jobs.

9. Final Cut Pro Editor: $37.12 Per Hour

Job Description: Visual communication is crucial in our culture, and the ability to edit material with Apple’s software is a marketable skill. This professional-grade software allows you to cut video clips, alter pace, integrate music, edit scenes, insert transitions, and more. As an editing freelancer, you can find work in almost every professional field.
Background and Training: Software proficiency is key in this job description. While some employers might require a bachelor’s degree, you’re likely to stand out with a convincing portfolio of past work.
Where to Find Gigs: You’ll find one-time gigs through Upwork by searching for “Final Cut Pro,” and “video editor,” many of which advertise rates of $350 or more. FlexJobs also lists more than 750 telecommuting opportunities ranging from freelance to full-time.

10. Instagram Marketing: $31.23 Per Hour

Job Description: Instagram is home to 800 million monthly active users, many of which sell products through their personal feeds. As a marketer and influencer, you’ll connect with brands and advertise their products through your photos for an agreed-upon fee.
Background and Training: Little professional training is needed to qualify as an Instagram marketer; your followers are credential enough. That said, brands are more likely to work with influencers with a larger following, and it’s a good idea to use the tools at your disposal. Entrepreneur Magazine suggests using the platform’s built-in analytics to track and improve your promotion strategies. It’s also wise to cross-promote your posts across multiple social media platforms, including Facebook and Twitter.
Where to Find Gigs: While some brands seek out Instagrammers, be prepared to pursue them yourself if you don’t yet have a large following. You can join influencer networks like Influencer Bay and Tribe to connect with brands, submit campaigns, and begin earning cash.

With gigs like these, it’s clear that freelancing isn’t a small-time pursuit. Use your tech skills to take advantage of the changing landscape of remote employment. You might find a future that involves working less—and earning much more.

What Types of Skills are Necessary for the gig Economy?

While courses on the service you provide or the niche you fill help you develop your expertise, gig workers need to proactively seek classes on these four topics to succeed:

1. Critical thinking and logic

In order to keep up with a changing marketplace, gig workers need to learn how to ask better questions, says McGovern. “Our current education system is traditionally all about getting the right answer, rather than the process of experimentation and what that teaches you,” she says. “You need to become comfortable with uncertainty.”

A class on critical thinking or logic will provide the basis for thinking about problems in a different way. “Gig workers need to be able to ask the right questions, and develop different ways to view data, issues, and solutions,” says McGovern.

2. Human Resources

While gig workers are independent contractors, they need to understand what a company needs from someone they hire, and few students come out of school with an understanding of what it takes to be a good employee, says McGovern.

“I ask my students, ‘What does it take to be a good manager?’” says McGovern, who taught HR and business communications at the University of San Francisco. “When I suggest ‘Being on time,’ they often say, ‘You don’t have to be on time when you’re the manager.’ In the gig economy, you need to know what a good employee looks like, and be able to emulate those traits to be successful in your career.”

Classes in human resources, team building, and hiring will offer exposure to the insights that can help you become a preferred contractor.

3. Finance

Gig workers need to understand finance and taxes. They also need to create financial flexibility, and be able to look at monthly capital and revenue statements to determine if they’re profitable or not, says Diane Mulcahy, author of The Gig Economy: The Complete Guide to Getting Better Work, Taking More Time Off, and Financing the Life you Want.

“You need to understand your personal burn rate, which is about cash flow management,” she says. “I tell students, ‘Imagine you had no revenue whatsoever. What would your expenses look like in that month?’ Then prepare by saving and considering expenses.”

4. Marketing and Communication

No matter what their core skill set or area of expertise might be, freelancers need to be able to understand the needs of the customers and communicate with them in a compelling way, says Pickard.

“You can’t just focus on being good at delivering your core product or service,” she says. “You also have to be in charge of sales, branding, marketing, and new product development.”

Classes in marketing or communication will help you convey your value, and build relationships with your clients.

What are Some of the Downsides of Being a Worker in the gig Economy?

For employers, the gig economy is mostly a win-win proposition. Businesses are able to quickly contract with experts for individual projects without the overhead costs like office space, training, and benefits. For freelancing gig workers, however, it can be a mixed bag of pros and cons.

Advantages of Gig Work

Flexibility: Unlike traditional employees, gig workers are free to choose what types of jobs they do and when and where they do them. The ability to work from home helps in balancing work and family schedules and demands.
Independence: For people who like to be left alone while they complete an assignment, gig work is ideal. Not hindered by traditional office interruptions like staff meetings, progress reviews, and water cooler gossip sessions, gig economy workers are typically given almost unlimited independence to do their work when and how they think it should be done.
Variety: The old office bug-a-boo of monotony is rare in gig work. A wide variety of tasks and clients every day keeps the work interesting, helping gig workers be more enthusiastic and creative in their work. Never a dull day in gig work—unless you want one.

Disadvantages of Gig Work

Modest Pay: While they can make as much as $15,000 a year, a study by online lender Earnest found that about 85% of gig workers make less than $500 a month from a single side-job. The solution, of course, is to take on multiple gigs.
No Benefits: Very few gig jobs come with any sort of health or retirement benefits. While some long-term contracts may come with limited benefit packages, even this is rare.
Taxes and Expenses: Since contract gig workers are not legally classified as “employees,” their employers do not withhold income tax or Social Security taxes from their paychecks. As a result, gig workers must make quarterly estimated tax payments to the IRS based on what they have earned. Most freelance and gig workers find the need to pay from 25% to 30% of each of their paychecks in order to avoid owing taxes at filing time. In addition, most gig workers are responsible for buying their own work-related equipment like cars, computers, and smartphones. While some of these expenses can be deducted from taxes, not all can be. Many gig workers find they must also factor in the cost of accountants or tax preparation services or software.
Stress: All of the above, along with the need to constantly be looking for their next gig and dealing with changes in their current contract can make for increased stress—an undesirable tradeoff to the greater flexibility of gig work.

Bottom Line

If you’re a self-employed independent contractor or a freelancer, you’re part of the “gig economy”. Rapid growth of the gig economy is showing us that the independent workforce is the future. Nearly 40% of the U.S. workforce – over 55 million people – are currently “gig workers”.

A recent study by Upwork predicts that within the next decade, freelancers will become the U.S. workforce majority, and freelancers in America already over $1 trillion to the U.S. economy.

The gig economy lifestyle offers more freedom, more flexibility, more control, more opportunity, and more possibilities.

According to global freelance platform Upwork, the top 5 reasons individuals are motivated to start freelancing are the desire to: 1) to be their own boss, 2) to choose when they work, 3) to choose their own projects, 4) to choose where they work and 5) to earn extra money.

To survive and succeed in the gig economy, you have to be a self-starter, you have to be self-disciplined, and you also need to have a high income skill.

As a gig economy worker, you must constantly level-up your skills. The gig economy is competitive because potential clients are typically looking to hire one independent contractor or freelancer to complete a project for them – and they have plenty of options.