Gig Economy: Rules for Success

The American economy has been built by entrepreneurs that run small and medium-size businesses. As an entrepreneur myself, I have been passionate about writing and teaching about this subject especially after what I witnessed during the Great Recession in 2008.

I believe the greatest insurance any person or family can have in this new global economy is multiple streams of income. (Don’t be dependent on one job or single source of income! Diversify now!) In the years following the GFC (Great Financial Crisis) a perfect environment was created where a whole new economy sprang to life. As companies downsized and outsourced labor a “freelancer” environment was being created. At the same time, with the continued proliferation of internet connectivity and tech advances a new gig economy formed. (Think about the opportunities of Uber, Upwork, Etsy, etc.) Both ecosystems converged to radically change the global landscape of work.

Here are a few statistics that I find interesting.

1. 36% of US workers participate in the gig economy.
2. 40% of US workers make at least 40% of their total income from their freelance work.
3. 75% of workers in the gig economy would not leave their freelance job even if they didn’t need the income.
4. 90% of US workers are open to the idea of being a freelancer or participating in the gig economy if given the right opportunity.
5. The two most common reasons people give for being a freelancer and working in the gig economy is for the extra income and the freedom/flexibility it provides.

In light of this growing movement and many people looking to diversify their income streams to work in the gig economy, it is important to understand the opportunity you are pursuing. Not all opportunities are created equal as we just recently found out with Advocare radically changing their business model which hurt many entrepreneurs who had built their life around that company. Whether you are an Uber driver, Etsy creator, a freelancer on Upwork, purchasing a franchise, or starting a business with direct sales/network marketing I believe entrepreneurs need to look for the right environment where they can thrive. I wrote After Advocare…Lessons Learned for Medium that highlights key questions I believe all entrepreneurs should ask as they are looking for an opportunity in the gig economy. I hope this helps you on your journey.