How to Profit From the Sharing Economy

Have you heard of Airbnb? How about Zipcar? Chances are you’re very familiar with eBay. All three of these businesses are prime examples of the ever-growing sharing economy. According to Wall Street Daily, the trend of economic sharing is steadily rising — and it’s not just having a significant effect on the way we travel and the things we purchase, but it’s also becoming one of the most lucrative and versatile business models in the world.  An estimated 25% of companies in North America and the UK count themselves among this expanding method of commerce. That could translate into big profit for you and your long-term financial outlook towards retirement.

Defining a Sharing Economy

The term is based upon the concept of collaborative consumption which basically means that an item or product, even a service, is shared by a number of people instead of being owned by any one of them. That’s the theory of it, although some companies rely on items or services that are owned by certain individuals who are willing to share that item or service for a profit.

Need a Ride?

A sharing economy can incorporate almost any type of business and the current market boasts quite a few of them. All of them present opportunities where you can make a pretty sizable profit along a variety of ways.

You’ve no doubt heard the term “ride-sharing” by now, with the white-hot popularity of services like Uber and Lyft. There’s even a good chance you have one or both apps on your phone. Their business model is reliant upon everyday people who own a car to give rides to others in exchange for payment.

The ride-sharing concept goes one step further with Zipcar in which the company owns a vehicle and customers reserve and pay for it by an hourly or daily rate. This has changed the car rental game by allowing users to rent a vehicle for short periods of time with that hourly cost includes gas and insurance.

These models represent two very different ways to profit from the sharing economy; the first puts money in your pocket by providing a service for others, the other keeps money in your pocket that you would have spent on filling the tank and staying covered in the event of an accident. In either case, you can begin to look towards the future and putting away those extra bucks into a high interest savings account.

Mi Casa es Su Casa

Many folks are renting out rooms in their homes to people looking for a place to stay on Airbnb. It’s beneficial to both parties because the owner can make a profit through this arrangement and the renter can usually save money in contrast to booking a hotel. This way everyone wins. But before you decide to advertise, refer to your lease agreement if you rent an apartment. Make sure this type of situation is permitted by your landlord or you can be subject to penalties or eviction.

Share and Share Alike

There is a myriad of other businesses that are Internet-based, allowing you to share anything from power tools to kitchenware to clothing and accessories. The great thing about the sharing economy is that there doesn’t appear to be any ceiling to it. The possibilities for sharing are endless, as people like you are opening their homes and offering their belongings to others for monetary gain. Getting involved is a good way to earn more than just some extra cash, whether your part of the supply or the demand. With the right arrangement, you could be raking in thousands every year and, before you know it, you can retire early. Now that’s the kind of economy we can all get behind.