A TIKTOK user and entrepreneur showed off a side hustle that generated $100,000 in revenue in three months.
Heather, who runs the itsheatherstudio account, said one of the biggest keys to her success was print-on-demand through Etsy.
In a recent video, Heather explained the benefits of using print on demand.
The process allows sellers on sites like Etsy to sell products without printing, packaging, or shipping items.
Sellers can create and advertise custom designs on things like shirts, hats, or mugs, but don’t need to own or create physical inventory.
Once the order is placed, the product is printed and shipped by a third-party supplier.
As Heather explained, the strategy allows her to earn thousands of dollars in a month without leaving home or physically working to fulfill orders.
Sellers using a print-on-demand model can also spend more time promoting their brand on social media and refining their designs.
The strategy has become a key aspect of e-commerce, as the print-on-demand market was valued at $4.9 billion in 2021, according to Grand View Research.
Print on demand is also available for sellers on other platforms such as Amazon and Shopify.
In addition to removing a lot of the hands-on work of selling on Etsy, print-on-demand also removes a lot of the financial risk of setting up an Etsy shop.
Since a seller using print-on-demand does not need to purchase and maintain inventory, start-up costs are significantly lower than if they were not using print-on-demand.
Of course, outsourcing shipping and order fulfillment to third parties will reduce your earning potential.
Heather said her profit margin was about 30%, meaning she made about $30,000 of the $100,000 in revenue in three months.
The tax implications of a side hustle
Whether you’re working side-by-side in addition to a full-time job or performing several part-time gigs, your income is taxable.
Not only that, but you should report your income from a side hustle or self-employment differently than you would report standard income.
A Form 1040 is required for those with multiple sources of income, as you must list all of your income on one form.
Additionally, you will need to file a Schedule C and Form SE to file your self-employment taxes.
If you have multiple sources of income, talking to a tax professional can help you sort out what forms you need to submit and how to fill them out correctly.
The extra income can also move your household into a different tax bracket, which will impact how much you’ll have to pay the IRS.
However, working on the side allows you to claim more tax exemptions, as you can declare your expenses for possible tax deductions.
You’ll need to have proof of the money you spent on your scramble, so be sure to save all relevant receipts for tax season.
The Sun has compiled a list of the top 10 money-making side businesses for 2022.
The Sun also spoke to an Instacart shopper who earns an extra $600 per month from her stampede.