Canadians start side hustles for a number of reasons, and one of the most common is to dig themselves out of debt. When many people are struggling to get by, they may go deeper into debt and then have a more difficult time finding the money to pay it off. Add interest on top of that and it’s easy to see why people are drowning in debt.
Thanks to the internet, most people can easily and affordably start a business ‘on the side’, more commonly known as a side hustle. As more and more Canadians discover this option to supplement their income, they’re jumping on the opportunity.
FreshBooks reports, “An astonishing 7 million Canadians are expecting to exit their traditional jobs in the next two years for self-employment. Add to this, nearly 2 million others are already supplementing full-time employment with side gigs.”
These side businesses are usually started from home and should be carefully selected to work within your limitations, such as available time, budget, and skill set.
When considering side hustles to pay off your debt, factor in the following:
- Quick path to profitability
- Low investment
- Largely passive
- Flexible schedule
- No (or few) products that require you to ship them
- Limitations or considerations that apply to your personal situation (make a list).
If your goal is to make money online to pay off debt, you may not have much to invest in a new venture. The good news is businesses launched online from home are often the least expensive to start as well. These home-based, online businesses usually only require equipment and services you already have. Namely, an internet connection and a computer of some sort. Some could even be started with your smart phone if you don’t have a computer.
The Best Online Side Hustles For Paying Off Debt
With all of the above considered, following are a few online business models that are most suitable for side hustlers who want to reduce their debt load. If none of them will work for you, keep looking for other options. There is no shortage of legitimate online business opportunities, but do keep your eyes open for scams and avoid going deeper into debt pursuing offers to “get rich quick.”
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Flipping Websites
Today, it is easier than ever to publish websites and monetize them. This has allowed many entrepreneurs from Canada and around the world to buy (or create) successful websites, fix them up, and then sell them for a profit.
Reputable website marketplaces like Flippa and EmpireFlippers are excellent platforms for buying and selling established websites. These marketplaces often provide tutorials to help you learn the best ways to flip websites and how to grow. Make sure you thoroughly investigate any site before purchasing it.
Flipping websites is a perfect side hustle to help you escape the clutches of debt. You can work on your website(s) whenever you have a spare moment and the profit can be substantial. Check out the success stories on website marketplaces for examples.
Every time you sell a site, use some of the money to buy another one to work on and put the rest towards your debt. The biggest issue with this option is you’ll need money for your first purchase. Alternatively, you can start from scratch and build your own website for the purpose of selling it at a future date. It’s a longer play, but you can be in business for a couple of hundred dollars.
Read How Much is Your Online Business Worth? to get started.
Digital Info Products
Online learning has become the norm for most internet users from all walks of life. You can create & sell information products such as courses, white papers, reports, or ebooks whenever you have time and with minimal upfront cost. Once they’re created, you can sell them over & over again with little more than the occasional update and some customer service. While the income is less predictable than some other options, you can pay off your debt as the sales come in.
Learn How to Develop Your Own Online Learning Products
Freelance Writing & Other Digital Content
There is an insatiable demand for online content and it’s only going to grow. Virtually every company has a perpetual need for unique content & copy for their website and products. You can offer content creation services, such as blog posts, tutorials, copywriting, infographics, and videos, or provide corporate ghostwriting.
Talented, specialized freelance writers can earn serious money, depending on the demand and level of competition in their chosen niche, all with a highly flexible schedule. It’s a manageable way to hammer at your debt and can lead to much bigger opportunities. The same goes for other digital content, ranging from video to social media graphics.
Learn How to Start a Freelance Digital Content Business in Canada
Auctions and Online Marketplaces
One way you can save time is by controlling growth. If you decide to sell products through online marketplaces, it’s up to you how many products you list. While I always recommend having a website, even that isn’t absolutely necessary if you sell through these platforms.
Tools and courses have been launched specifically for Amazon sellers, designed by their colleagues to streamline the marketplace learning process and legwork. Jungle Scout has a highly-rated FBA (Fulfillment by Amazon) course, along with a suite of popular Amazon tools for product & keyword research, competitive intelligence and product sourcing.
Consider selling used items online for practice, or keep it as your business model. The demand is certainly there, especially under the current economic conditions. If you begin with items you already have to sell, you won’t have to make a big investment for inventory. If you do well, you can go on to checking yard sales and other sources of used items if you think you can resell them at a profit.
According to PayPal’s Resale Renaissance Report:
- A third of Canadians purchase second-hand goods more than once a month (31%) – with nearly three in four (73%) doing so to make their money go further.
- Almost half (42%) of Gen Z Canadians report buying pre-owned goods more than once a month.
- Half of Canadians (50%) say they’ve found reselling their unwanted items is a good supplement to their primary income.
Note: There are laws involved with selling clothing, whether it’s used or new.
Check out our list of Online Marketplaces for Canadian Sellers for more sales platforms.
Drop Shipping
Without a doubt, drop shipping is the easiest, fastest and least expensive way to sell products online. You don’t stock inventory and you don’t have to ship anything. Basically, you connect with a wholesale supplier or manufacturer to sell their products direct online. The customer price minus the wholesale cost equals your profit.
There are several one-stop solutions with millions of products from a huge selection of wholesalers. They make it easy with their options to sell on your own site, through their website packages, or even direct to online auctions and marketplaces. The same goes for major ecommerce platforms, such as Shopify, except you use apps to connect with dropshippers. You can be up & running with little more effort than searching & clicking.
You will have to provide customer service, so consider your time constraints. Profit margins can be tight in any retail situation and dropshipping can make it even more difficult to come out ahead. Put a lot of research and thought into choosing your products, so you can remain both competitive and profitable until your debt is repaid.
Learn more about Drop Shipping / Wholesale for Canadian Sellers
Affiliate Marketing
Affiliate marketing is one of the rare businesses that don’t require customer service. It’s probably the most hands-off way to make money online if you can get the offers in front of enough people, but that doesn’t mean you don’t have to make a consistent effort.
Affiliate programs allow you to advertise for a company and earn a percentage of the sales you generate for them. It works best with a website and steady traffic to it. This will be your home base for everything from building a mailing list to social media promotion. Once you’ve established a following, both on your website and in newsletter subscribers, your income will grow. That said, you can also try affiliate marketing without a website if you prefer.
You can combine affiliate marketing with other online business opportunities to increase the amount of money you make to help pay off your debt. For example, affiliate partners are perfect for blogs and virtually any other kind of website, becoming one of multiple streams of online income.
Learn How to Start Affiliate Marketing in Canada
Getting Started
Most online businesses start with a website and social media accounts. Go over our Checklist: How to Start a Profitable Online Business in Canada and follow the steps to launching your new online side hustle, and get rid of debt forever.
It Works!
Canadians are getting debt under control by starting an online side hustle, or even launching a fulltime business. For example, CNBC tells of Canadian entrepreneur, Kristen Heaton, who paid off $70,000 in student debt with her new brand called Crave Naturals. In 2021, she sold the company for seven figures. The future looks bright (and debt-free) for Canadian side hustlers and you can join them.
Have you ever started a side hustle to help you pay off debt? Please share your experience or questions in the comments below, or join us in the Online Business Canada Facebook group.
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Melody McKinnon is an internet entrepreneur with 25 years of experience in a wide range of online business models, backed by a formal business education and enhanced by training and mentorship. She has owned or managed both educational and ecommerce websites. Her book, 7 Recession Proof Online Businesses to Start From Home, is available from all major ebook retailers.
Melody has worked with many businesses & brands in a multitude of capacities. She can often be found on CanadianDigitalMedia.com, CanadiansInternet.com, CanadianFamily.net, and AllNaturalPetCare.com, as well as other quality digital publications. Her content has earned reference links from highly-respected websites, magazines and university textbooks.
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That’s exactly what I’m looking for!! Something I can do on my own on the side without adding another commute. I’m not sure if any of these ideas will work for me but now I know the answer is probably an online business. THANK YOU!!
My problem is finding money to use on paid advertising without going further into debt. 🙁 I’m using profits for now but it’s taking its time increasing because I can’t afford advertising. It’s true you need to have money to make money but at least it’s possible with internet businesses that don’t cost much to start up.