Side hustle

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Ridesharing services have grown in popularity, especially among career-orientated Aussies looking for a quick and easy side hustle. 

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While working as a full-time driver may not be sustainable due to the fairly low average hourly rate, people looking to boost their earnings as independent contractors have a shot at success if they grasp the ins and outs of the trade. 

Here are some tips and tricks to help you increase your profitability while driving for Uber.  

Take advantage of surge pricing

In order to take full advantage of Uber’s surge pricing, it is important to understand how the ridesharing app system works. 

Uber has developed a “surge pricing” system that is based on the “equilibrium price” concept, in which consumer demand must match the supply. If the supply is high, prices should be lower, but if there is an increase in demand, prices should rise. 

Surge pricing happens when there is high demand or high number of passengers but low number of riders in an area at any given time. During these surge periods, drivers can earn more as fares will be higher. 

While the scheme promises higher rates, it can be disadvantageous for drivers’ earnings. Uber drivers are notified that the fares will be higher. Because of the lure of higher earnings, new drivers may enter the area with the surge price. With the increase of the number of drivers, Uber prices tend to drop as demand becomes equal with the availability of service.  

One workaround for this issue is to be aware of when and where the surge pricing occurs. Attempt to create a route that will allow you to be in areas where you know there will be a peak in demand to increase the chance of catching a surge in prices. It may be certain night-out spots or business district areas with certain time slots that are surge periods. 

Some drivers have also recommended driving up fares by logging out of the app ahead of the anticipated surge price. This will reduce the number of drivers and the app will determine it still needs to boost fares. After some time (but still within the anticipated surge period), you can log in and accept ride requests that still have surge prices.  

Lessen your driving

Rideshare drivers earn their money by driving passengers to their destinations.  
However, they do not earn anything when they are driving alone. Do not drive around in circles while waiting for the next ride request to avoid losing money by wasting gas. 
Experienced drivers recommend staying in a busy central area, preferably within the city limits. Meanwhile, the suburbs should be avoided due to the low volume of ride requests in these kinds of areas. This will ensure that you can fully utilise Uber’s Back to Back rides feature – which allows you to accept a new ride that is near the end of your current ride request.  
Be efficient with your driving time. Plan your driving route and schedule. List down locations in which you can park and wait for ride requests without losing fuel. 

Driving around in an area heavily congested to use the bathroom can also eat away at your time. Locating nearby restrooms in your driving route can lower your gas usage and boost your profit.  

Driving to a surge fare area that is far away from your current location may also hurt your profit.  

Invite drivers and riders  

If you have friends or acquaintances that are looking to earn extra money, you can invite them to be a rideshare driver. 

Each Uber partner driver receives their own driver invite code. You will receive a referral bonus each time your code is used while helping others earn extra cash. 

Aside from a driver invite code, Uber partners can also share a rider invite code. When a rider uses the code, the owner of the code will also get a referral bonus.  

Switch rideshare services, if possible 

One way of maximising income is by toggling between ridesharing systems. Some drivers choose to use both Uber and Lyft; it will depend on what kind of ridesharing apps are available in your area. 

You can choose to apply to be a driver for two ridesharing services. When you begin your driving period, log in to both applications. If you have received a rider request from one system, log out of the other. Upon completion of the ride, there are chances that you will have back-to-back rides.

However, if you find yourself waiting in one app, sign back into the other system as well. Keep repeating this cycle to make sure you can maximise your driving time. This will also prevent you from having a lot of vacant time, which can eat away at our profit. 

Take note that this strategy will require you to use a lot of mobile data. It will also use a lot of your battery, so make sure that you have a phone charger at hand at all times. 

Improve your chances of getting tips

Uber passengers are allowed to tip their drivers. The amount of the tip is at the discretion of the passenger. 

Directly asking passengers for tips can make them feel uncomfortable and may have an adverse effect, such as them leaving you a negative rating on the app. Uber passengers can rate a driver on a scale of 1 to 5 (5 being the highest). 

A negative rating will also affect your driving rating average, which will impact how Uber will match you with passengers. Drivers with low average ratings from riders also risk deactivation from the app and losing access to Uber.  

Here are ways to boost your driver rating and encourage your riders to leave you a five-star rating, along with a hefty tip:

• Provide complimentary water bottles – Offering passengers a free bottle of water can help them be more at ease during the ride. Aside from being tax deductible, it can lead to an increase in tipping and rating averages for drivers.You can also offer other essential items such as complimentary tissue, candies or other items that can help passengers feel more comfortable. 
• Make sure your car is clean – A vehicle with a bad odour or one that is filled with dirt can make a bad impression on passengers. Make sure to check your vehicle’s cleanliness on a regular basis. Always check the feedback regarding your car’s condition as well. 
• Be a responsible driver – Reckless driving can lead to very negative passenger reviews. Observe proper traffic rules and occasionally check in with passengers if they are comfortable with your driving speed.  
• Be polite and prompt – Be professional. Dress appropriately when driving and always arrive as early as possible for a rider request. Be polite when talking to passengers. This will improve their overall experience and may result in higher tips and better ratings. 

Want to know what other side hustles you can do in your spare time? Explore nestegg now to learn about other money-making opportunities. 

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Ridesharing services have grown in popularity, especially among career-orientated Aussies looking for a quick and easy side hustle. 

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With tens of thousands of Aussies turning to side gig and contracting work to generate an income, an expert has warned that many could fall foul with the ATO for failing to operate their activities as a proper business.

Write comment (0 Comments) " ["fulltext"]=> string(2004) "

Coco Hou, the managing director of Platinum Accounting Australia and Platinum Professional Training, has explained that people taking up side gig and contracting work must ensure they follow the rules of business. 

“A lot of people have lost their jobs over the last 12 months or have been forced to cut back on the number of hours they work due to COVID.

“As a result, we are seeing a significant surge in the number of people taking up side gig and contracting work. Effectively, these people are starting up their own businesses and therefore should be managing their activities as legitimate businesses,” Ms Hou said.

Understandably, for many Aussies this is a completely new way of earning money and they have little to no understanding of their accounting and taxation obligations and the requirements associated with setting up and running a business.

“Like any other business, they need to apply for an ABN. 

“In addition, they also need to register for GST when their business reaches turnover of $75,000 or more. 

“If you start a new business and expect your turnover to reach $75,000 or more in the first year of operation, then you need to register for GST straightaway.”

Ms Hou believes many people are at risk of failing to set themselves up properly from the outset.

“Bookkeepers are in huge demand at the moment. While people are busily trying to build up their client base and deliver services as a side-gigger or contractor, they don’t have time to be focusing on the bookkeeping and accounting side of things.

“They are going to get themselves into trouble with the ATO. 

“This is why it is important for anyone who is now working in a side gig or contractor capacity to find themselves a good bookkeeper to ensure they are meeting their obligations and importantly capturing and recording all of their expenses so they can claim them come tax time,” Ms Hou concluded.

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With tens of thousands of Aussies turning to side gig and contracting work to generate an income, an expert has warned that many could fall foul with the ATO for failing to operate their activities as a proper business.

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Many home owners have joined the Airbnb community as host to earn money. How much profit can you make from this business venture?

Write comment (3 Comments) " ["fulltext"]=> string(12189) "

Since its launch in 2008, Airbnb has changed the hospitality industry game. It has set the standard for the new wave of short-term rental services, giving travellers and tourists the option to rent a unit, a room or an entire property rather than staying in a hotel.

For real estate owners and home owners, the digital marketplace platform presented an opportunity to make extra money by renting out their homes or rooms to guests. For the second quarter of 2019, Reuters reported that Airbnb took in more than US$1 billion in revenue. 

Hosts are also cashing in on the Airbnb hype. The home-sharing service company says hosts that have chosen to list their property on Airbnb have earned over US$80 billion. 

Currently, Airbnb has listings in 220 countries and in over 100,000 cities around the world. These figures are seen to continue rising. Data company AirDNA’s latest report showed that Australia’s short-term rental supply has seen a bump of almost 47 percent or almost 30,000 homes in the market last year. Across the country, these types of holiday rental accommodations generated around $3 billion in revenue. 

With thousands of Airbnb hosts taking a slice of the booming home-sharing service industry, you might be asking, how profitable is running an Airbnb?

How do you make money from being an Airbnb host?

Before becoming a host, you must have an understanding of the financial aspect of Airbnb.

Signing up and listing your property on Airbnb is free. Upon completing your listing, guests will be able to make a reservation request and book your accommodation. 

When someone books your space, Airbnb charges a standard host service fee of 3 per cent of your set price. For example, if you have set a nightly rate of $150  for a room and a guest stays for one night, you will get $145.50 and Airbnb will receive $4.50. This rate can rise up to 5 per cent, depending on the cancellation policy that you have established for your listing. 

Additionally, Airbnb will charge a guest service fee to the person who will rent the property. This fee can range between 5 per cent and 15 per cent, depending on the length of the stay, the type of the Airbnb listing, the final subtotal, and including other undisclosed factors. However, this fee will impact guests only, but not the host’s profit. 

When do you get payments from Airbnb?

Hosts receive payment from the booking through the payment option selected and in 24 hours after guests’ check-in time. 

But for new hosts, there is a longer waiting period. If you received a booking request on the first day your listing went live on Airbnb (which is very unlikely) it will be 30 days before you will receive your money. However, if you get your first booking after 31 days of registering, you only need for the payment to be received after the standard 24 hours. 

There are several factors that can affect your payout. There may be processing delays that may prevent you from receiving payment within the set timeline. Your profits may also be lower if your weekly or monthly discount has been applied to the booking. It can also be affected by weekend pricing or custom pricing. If applicable, value-added tax (VAT) may be added on top of the Airbnb service fee charge. 

How much money can you make on Airbnb?

Former Airbnb Australian manager Sam McDough said that hosts earn an average of $3,700 a year. However, that figure may vary drastically depending on a variety of factors, such as how frequently you rent out your place and how much your nightly rate is.

It might be surprising to hear, but having a fully booked month doesn’t always equate to higher profit. Let us compare the earnings of two hosts:

Host 1: Fully booked, lower nightly rate 

Nightly rental price: $70

Monthly occupancy: 100 per cent

Monthly Airbnb income: (30 x 100 per cent) x $70 = $2,100

Host 2: Partially booked, higher nightly rate

Nightly rental price: $100

Monthly occupancy: 75 per cent

Monthly Airbnb income: (30 x 75 per cent) x $100 = $2,250                                                                                                                                                                                                                                                                                                                                                                                            We can see the second Airbnb host still earned $150 more than the first host despite being partially booked. However, if the price point of the two hosts is the same, the first host will be ahead in profits. Therefore, it is important to be strategic in setting your nightly rates and your bookings when you are an Airbnb host. 

The amount of money you can earn from your Airbnb rental can also vary on the type of listing, the location and how well you list your property. 

For example, listing a property located in one of the capital cities will allow you to set your nightly rate higher due to the high demand for home-sharing services in these high-traffic areas. It may also impact how often your listing will be reserved.

According to OpenAgent, Airbnb rentals in Sydney and Melbourne take in higher average monthly revenues and have occupancy rates compared to other cities despite having a high number of active rentals. On average, Sydney hosts receive a $2, 965 monthly revenue with a 65 per cent occupancy rate and Melbourne hosts receive a $2,939 monthly revenue with a 67 per cent occupancy rate.

Renting out a property near a tourist destination or areas of interest can also make your listing profitable as tourists search out accommodations near these travel hotspots. You must also be aware of the off-season and peak seasons in the area of your listing. 

How much should I charge for my listing?

The nightly rate of your listing can make or break your success as an Airbnb host. You may opt to use the app’s Smart Pricing Tool that automatically changes the price of your listing based on several factors, such as demand, seasonality, availability and others. But if you are looking to maximise your profits, you must have the initiative to strategise on your pricing. 

Compare your prices with other listings

One way to have a competitive price is to use the map function on Airbnb or its price comparison tool. It allows you to look at what other people are offering in your area. Make sure that the properties you are comparing with are similar in terms of cost, location and amenities. 

For example, if you are renting out an entire house, filter your search to accommodations that offer the whole place or house. If you are renting your property that is nearer to transport links than competing listings, then you can boost the price of your accommodation. If your property has amenities such as a hot tub and similar accommodations in the area don’t have them, you may be able to increase your price. 

Alter the prices throughout the year 

After estimating the average nightly rate, make sure that the price listed by other hosts for their properties is true to what they listed. Some hosts will put some dates at a low rate for a few dates during the year. These days are usually during the off-peak seasons. By doing this, Airbnb will choose to list it at the lower price. But if you check closely, they will have higher rates for the majority of the year. 

Manage the pricing for on and off-peak seasons. If there are festivals or anticipated mass gatherings in your area, you can increase prices due to the high demand. 

How can you maximise your profit?

Now that you are informed on how you can profit from Airbnb, here are ways to maximise your profit from your listing:

Have a strategic listing 

Most first-time hosts disregard the importance of optimising their property’s listing, considering the step only as a formality. Without having first-hand experience in your space, potential guests can only make their choices based on listings. That’s why making a good impression is important to get guests. 

Become a superhost 

One of the best ways to increase your profit is to become a superhost. A superhost is a host that has a high rating on the Airbnb app, with an average of 4.8 plus out of 5. The high rating indicates that they have provided “extraordinary experiences” for their guests.

Airbnb rewards superhosts generously. As a superhost, your listing will have higher visibility on the platform. Superhost listings get featured in search results, emails and more. You will also be given a separate filter and a special badge on your profiles so your listing would stand out and attract potential guests. 

Due to your increased visibility as a superhost, you will have higher guest acquisition and thus more earning potential. Exclusive rewards are also offered to superhosts. When you refer a new host, you will receive an additional 20 per cent to the standard bonus rate. You are also entitled to a $100 travel coupon for each year that you maintain your status as a superhost.

The path to becoming a superhost is not easy. You must achieve and maintain a 4.8 or higher average rating based on reviews. The listing must have a minimum of at least 10 stays in a year. You must be responsive to guests and maintain a 90 per cent response rate or higher. A cancellation rate of 1 per cent or lower is also a qualification to be a superhost. 

Becoming a superhost will take patience, but the benefits are promising. Putting in the needed time and effort to reach the superhost status can help you gain a higher occupancy rate and more revenue. 

Be aware of costs associated with hosting

Like any other business, there are investments you need to put into your space if you want it to succeed. Make sure the cost you put into your property will not outweigh the average income you will get from being a host. 

Keep track of your upfront cost. This includes expenses for redecorating and refurbishing your space. You may also invest in amenities including basic equipment such as Wi-Fi, security cameras, kitchen appliances and others. 

Additionally, keep in mind that you will also have upkeep costs. A percentage of every booking is going to be used on some type of repair or ongoing maintenance, including carpet cleaning and replacing lost or broken items. 

We have all read the Airbnb horror stories about unruly guests and other unfortunate incidents, so make sure your investment is covered before you start hosting. While Airbnb offers a Host Guarantee (property damage protection of up to US$1 million), you should consider getting additional insurance for your accommodation.

You should also check your local laws about hosting and complete any requirements needed to operate legally. 

This would mean researching how occupancy tax collection works in your area. In some jurisdictions, Airbnb automatically collects and pays taxes on behalf of guests whenever a guest pays for a booking. By operating on the right side of the law and knowing all the regulations, you will avoid incurring penalties from the local government. 

Experts say that hosts should budget for their overall operating expenses to range from 25 per cent to as much as 75 per cent of their total income. But this percentage will also depend on the volume of bookings and how much of the bookings will be outsourced, such as managing the listing and cleaning services.

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Many home owners have joined the Airbnb community as host to earn money. How much profit can you make from this business venture?

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Mother-daughter duo Maria and Anastasia Papazoglou saw a gap in the market five years ago for affordable, finer sterling silver jewellery. Five years on, the brand they co-own, The Silver Collective, launched its first store in Sydney’s Westfield Miranda.

Write comment (0 Comments) " ["fulltext"]=> string(1930) "

Maria and Anastasia were inspired to build a brand that was accessible and affordable for all.

In its first year of operation, the collection was made up of six different pieces, and sales landed at 50 pieces by the end of the year.

However, this quickly shifted in the second and third year. From the pair packing jewellery in their spare room and leaning on friends and family to box jewellery, the brand sold more than 9,000 pieces in it’s the third year of operation.

Then able to afford financial investment in a website and content for social channels, the brand experienced astronomical growth, growing by 200 per cent from 2017 to 2018 and selling 18,000 pieces throughout the year.

Following this boom, Maria and Anastasia decided to extend their work ‘family’ and hire three staff with expertise that would allow them to invest in areas that were fueling business growth, including graphic design and customer service.

Currently, there are 740 different styles in the collection, and on an average day, 100 pieces of jewellery are sold.

The brand saw a record peak during their 5th birthday 20 per cent off sale last month, when they sold more than 1,200 units in just 48 hours.

“Choosing to start a business when most people start thinking about retirement wasn’t an easy decision,” Maria said.

“I already had the fashion experience but didn’t know anything about digital marketing. This is where Anastasia came in.”

While Anastasia said “we all turn to our Mum a lot in life”, she never thought it would be to start a business.

“Everything we do is not only around style and trends, but love and family, too,” Anastasia said.

“We express this through our campaigns by sharing our personal stories, as we want our customers to feel that they too are a part of The Silver Collective family.”

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Mother-daughter duo Maria and Anastasia Papazoglou saw a gap in the market five years ago for affordable, finer sterling silver jewellery. Five years on, the brand they co-own, The Silver Collective, launched its first store in Sydney’s Westfield Miranda.

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After seeing his regular work decline when COVID-19 hit Australia in March, one Sydneysider decided to try his hand at starting a new business largely based on his favourite childhood pastime – jigsaw puzzles.

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In March this year, it was Scott Morrison himself who declared jigsaw puzzles essential supplies. Quizzed on what he meant by leaving the home for “essential supplies”, PM Morrison said at the height of Australia’s lockdown: “I will give you an example. Our kids are at home now, as are most kids, and Jenny went out yesterday and bought them a whole bunch of jigsaw puzzles.

“I can assure you over the next few months we will consider those jigsaw puzzles absolutely essential.”

Twenty-nine-year-old Aussie artist Dan Wakehurst took the PM’s words quite literally and turned his childhood hobby into a side hustle.

He channelled his background in film, media, advertising and technology to setup People Who Puzzle, which is now celebrated as Australia’s newest puzzle brand.

Paying homage to the crisis that essentially set Dan on this path, his latest mega-detailed 1,000-piece puzzle is called “Lockdown” and depicts 60 characters scattered throughout a comically illustrated urban scene and a further 20 appearing in “the cloud”, capturing a broad range of experiences that Aussies can relate to.

People are depicted engaging in activities that became synonymous with staying at home during lockdown: working and studying from home, baking, binge-watching TV, gardening, receiving home deliveries, walking the dog, hand sanitising, dancing on TikTok and, of course, jigsaw puzzles.

Other playful highlights include: a grounded fleet of aircraft (satirically called “Emu Air”), people on video calls (including a man in only a business shirt and underpants), and a startled man being issued a fine by police while eating a kebab alone on a park bench (referring to the bizarre headline that sprung up in April during Sydney’s lockdown).

There’s even a panic buyer in a hazmat suit, gas mask and rubber gloves, surrounded by stacks of canned food, rolls of toilet paper and N95 face masks.

It was important to Mr Wakehurst that the artwork exhibited both humour and empathy.

“2020 has been a strange and difficult year for everyone, and I think we’ve all experienced degrees of anxiety or frustration. I wanted the artwork to reflect the absurdities that we’ve all been through together, in a humorous way,” he said.

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After seeing his regular work decline when COVID-19 hit Australia in March, one Sydneysider decided to try his hand at starting a new business largely based on his favourite childhood pastime – jigsaw puzzles.

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Promoting your product on social media can seem like a difficult undertaking. Here are the ways you can effectively use these digital platforms for marketing.

Write comment (0 Comments) " ["fulltext"]=> string(6363) "

Most businesses use social media for marketing these days. Social media marketing allows businesses to reach their target audience and promote their products or services on various social media platforms.  

However, setting up an account on social networks and creating content is not enough. Marketing on social media is highly competitive and constantly changing. If you are a business looking to market your products, you must implement creative strategies for social media marketing to be effective. 

 Here are a number of ways you can promote and sell products on social media networks. 

Fill out all the details on your social media profile 

You should include the complete details about your business or product when signing up for social media accounts. 

For example, your Facebook page must include all contact details, store addresses or relevant links to your product’s website. This strategy should be applied to all social media accounts that your brand is on. 

Having complete details on your social media account will give consumers who are interested in your product access to more information about the brand and how it can add value to their lives. 

It is also important to practice cross-promotion on your accounts. On your Facebook page, link your social media accounts on other platforms such as Twitter and Instagram. On Facebook, you can add your social media handles in other accounts on your banner picture. 

If you have a physical store, make sure that customers are informed that you are active on social media. Get your employees involved. Ask them to promote your social media accounts to walk-in customers and to discuss the benefits of following your account. 

Run social media ads

By creating social media profiles, it is easier for customers that are initially interested in your product to find you on social networks.

However, the competitive nature of social media marketing has made it difficult for businesses to sustain their online reach. Changes in algorithms in social media networks such as Facebook, Instagram and Twitter have also affected marketing in these digital platforms. 

In 2018, Facebook announced that it changed the algorithm in the social media network on what content will be shown in users’ news feeds. The company expressed its desire to focus more on “connecting people and less about consuming media in isolation”. This meant that businesses have to implement strategies in order for marketing content to become more visible for target consumers. 

An effective strategy to improve your business’s organic reach (how many people you can reach by posting in your account for free) is to pay for social media ads. For example, paid Facebook ads can help you boost views on a post. This will increase the engagement on your page and bring your product more leads, which can be converted to sales. 

It is also important to ensure that the social media ads run by your page are shown to your target audience. You can take advantage of the analytic tools provided by social media sites that will help you reach users that may exhibit a pattern of online behaviour, interests or likes that may be in line with your target audience.  

Host contests on social media 

Conducting contests on social media networks is a good way to generate interest in your product. It will also allow you to promote a certain product without having to pay for advertisement.

Contests on social media platforms should be engaging. Make sure that the contest will be accessible to all interested individuals. It can be as simple as a giveaway contest. Giving free products or services usually catch the attention of your current followers or any new customers and will encourage them to join.

Here are some examples of effective Facebook and Instagram contests you can run: 

• “Follow us”/ “Like us” and share contests
• Photo or user-generated content contests
• "Tag a friend in a post" contest
• Generate a hashtag contest 

Establish confidence through product reviews

Recent studies show that product reviews have a big impact on how potential buyers view a product. According to the Spiegel Research Center, almost 95 percent of consumers read online reviews before purchasing a product. 

 Positive reviews and testimonials from existing customers are the best way for interested buyers to be more informed about what you are selling. They also serve as social proof that can build up confidence in your product. 

You can establish consumer trust in your brand by posting photos of your customers using your product. Some brands post user-generated stories and videos on how their product positively affected a buyer or user. 

Give deals and promo codes 

Sharing deals and promo codes to your social media followers can help drum up interest in your product. 

Provide deals that are exclusive to your social media followers to build up brand loyalty and strengthen your bond with them. 

You can also run flash deals that are time-limited or will only be available on certain platforms, such as in links in Instagram stories or in a Facebook post. Some brands offer personalised discounts on birthdays or create special promos for specific holidays. 

These special deals for social-only followers can help keep them engaged and interested in the content you provide. It also allows you to target a part of your followers depending on what kind of deal or discount you are offering. 

New customers attracted by your discounts may also repurchase your product and help promote it with their positive feedback. 

To learn more about digital marketing, explore nestegg today!

  

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Promoting your product on social media can seem like a difficult undertaking. Here are the ways you can effectively use these digital platforms for marketing.

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