Got an entrepreneur kid? Teens are cashing in with online businesses

It seems more and more people these days have a side hustle — even teenagers. Especially teens, perhaps.

New data has found that 2 in 5 teenagers are actively earning money online in the US.

What’s more, an increasing number of 12- to 18-year-olds are earning more money through digital channels than they are through traditional employment in 2024.

So are the days of babysitting, ice cream shop swirlers and lemonade stands gone? No, but making money online is easier than ever, inspiring many youngsters to launch their first business initiatives in the digital realm instead of IRL.

“In the past, you had to find somewhere to sell a product, set up a payment platform, network and build up a community of potential customers before you could even think about launching your own business,” said Cameron Zoub, co-founder and chief growth officer at Whop in Brooklyn, an online business platform which has conducted research on the demographic. “Now, all you need is a phone and an Internet connection.”

According to the Whop survey, the most popular ways teens are making money online include selling clothes, footwear or apparel accessories, streaming video games to earn in-game currency and video game tournament prizes, product reviews, brand sponsorship through social media accounts and drop-shipping (buying and selling products).

Zoub isn’t surprised that these are popular ways for teenagers to earn money.

“They’ve had the advantage of growing up with the Internet and seeing those fields take off,” he said. “These teens see other successful young entrepreneurs make money online and want to be a part of that too.”

Tinus Klauser, an 18-year-old TikTok creator based in Germany, recently expanded his operations.

“I started selling on Whop around November 2023 because, in addition to the TikTok pages I run, I wanted to build myself another reliable source of income,” he said.

Klauser now makes $25,000 to $50,000 per month just from teaching others about how to make money and go viral on TikTok. “It’s a great way for me to build a stable income by doing what I’m passionate about: helping people,” he said. “We live in a world where everyone can be an online entrepreneur.”

Lily Bond, founder of Spyce Girlz in Ottawa, Ontario, Canada, concurred. She started a spice company at 13, going on to make in the low six figures annually during her teenage years.

“I founded my business because I was trying to buy a laptop for high school,” said Bond, now 21. “I could now buy it on my own instead of having to ask my parents to help me out and I was able to raise the funds myself out of an idea that I came up with in my head.”

Learning how to be financially literate and responsible at 13 was a very empowering experience, said Bond. “Making my own money at such a young age was one of the most incredible lessons I’ve ever learned,” she said.

Here’s how other budding young hustlers can blaze their virtual paths and make a buck in the digital era.

Do what makes you happy

Whatever route you pursue online should be something that lights you up inside.

“Find something you love, check out what others are doing and learn a practical skill related to that field,” said Dr. Rebecca Mannis, Ph.D., founder of Ivy Prep Learning Center.

Zoub notes that it’s easy to fall into the trap of trying to copy what other people are doing or thinking you need the next great big idea, but you can’t fake passion.

Become financially literate

“While earning income is exciting, teens need to learn how to develop good financial habits early on, including budgeting, saving and even basic investing principles,” said Lauren Mastroni, career expert and content writer at Resume Genius. (If earnings are substantial, you may have to get an accountant involved.)

Keep track

Being in the online space means there are tons of details to track, “which really places a load on our working memory,” so Mannis recommended finding a system to track key info and tasks, whether that’s using the Evernote app, Post-its or even voice memos.

“Just like financial success comes from great prioritizing and budgeting, the same goes for staying on top of the details with strong executive functions,” she said.

Consider tutoring

Whether you play cello or chess, there’s probably an online marketplace for your talents. Ditto for math whizzes and bilingual gurus.

“Start by signing up on platforms like VIPKid for teaching English, or Chegg Tutors for a wide variety of other subjects,” said Mastroni. “These platforms allow you to create a profile where you can highlight your academic achievements and any teaching or volunteer experience you have.”

Invest in a good headset and webcam, and learn how to use interactive tools such as Zoom’s whiteboard feature or Miro for collaborative learning. “Don’t forget to ask your students for reviews to build your reputation,” she added.

Have a strategy

Zoub stressed the importance of getting involved in as many online communities as possible and receiving guidance from people already active in that space.

“You will learn so much more from those who are operating in a particular world than you would from any textbook,” he said.

Get followers

Mastroni shared that another path you can pursue is to develop a niche Instagram account and set your sights on reaching 10,000 followers, which opens up opportunities for brand partnerships and sponsored content.

“Start by choosing a specific focus that aligns with your interests and expertise, such as vegan recipes, minimalist lifestyle or urban photography,” she said.

Engage with your audience and similar accounts to grow your following and use relevant hashtags “to increase your content’s visibility and reach a wider audience,” she said.

The bottom line: “When you’re creating your business, build in public. Get viewers excited about what you’re doing and make them feel that they’re a part of what you’re building,” he said.