In the world of side hustles and multiple income streams, Cody Berman's story is a cautionary tale that challenges the conventional wisdom. Berman, who once boasted of running 19 different income streams, has now realized that this approach was not only futile but also counterproductive. His journey highlights the importance of focusing on skill acquisition and the long-term value of transferable skills over short-term gains. This article delves into Berman's insights and provides a fresh perspective on side hustles, emphasizing the need to rethink the strategy for building a sustainable and profitable business.
The Downfall of Stream Counting
Berman's initial strategy of juggling multiple income streams, including Uber, Etsy, surveys, and affiliate links, seemed like a smart move to many. However, the reality was far from ideal. The cost of believing that multiple streams equal security was steep, as each stream demanded setup, customer service, taxes, and mental overhead. This led to underemployment, where the attention and time spent on these streams did not translate into significant income. The key takeaway here is that attention does not scale, and trying to manage multiple streams simultaneously can be a recipe for burnout and frustration.
The Power of Skill Transfer
The real asset that Berman discovered was the skills he picked up running these ventures. Copywriting, email marketing, podcast editing, and video editing are not just income streams but also valuable skills that can be transferred across different businesses. This is where the math starts to make sense. A side hustle that pays $2 an hour might seem like a loss, but if it teaches a transferable skill, the long-term benefits can be significant. For instance, editing a friend's podcast for $2 an hour can teach audio production, scripting, and client management, which can later be billed at $75 an hour or used to hire and guide others effectively.
The Macro Backdrop and the Need for Skill Transfer
The current economic climate makes the distinction between income streams and skill transfer even more urgent. With consumer sentiment in recessionary territory and the personal savings rate falling, people are reaching for second incomes precisely when they have the least margin for error. Picking the wrong hustle can cost more than just money; it can cost the year you could have spent building a skill that pays for the next decade. Berman's advice for corporate workers is blunt but insightful: a side hustle should "give you a new skill that you don't have and you never know when that skill might come in handy down the road."
How to Run the Experiment Without Running Yourself Broke
To avoid the pitfalls of stream counting and maximize the benefits of skill transfer, here are some practical tips:
- Set a learning budget instead of an income target: Decide upfront how many hours and dollars you are willing to spend on a hustle before judging it. Track the skill you are acquiring, not just the revenue.
- Audit every active stream against the wage floor: If a hustle pays less than your hourly wage and is not teaching a transferable skill, kill it this month. This ensures that you are not wasting time and resources on unproductive ventures.
- Cap concurrent ventures at three: Berman landed on three categories after trying 30. Treat that as the ceiling rather than the starting point. This helps to focus your efforts and avoid spreading yourself too thin.
- Schedule a 90-day prune: Every quarter, drop the lowest performer by combined dollars-plus-skill score. Reinvest those hours into the winner. This ensures that you are constantly evaluating and optimizing your side hustle portfolio.
Conclusion
In conclusion, the key to success in side hustles is not just about generating multiple income streams but also about acquiring valuable skills that can be transferred across different businesses. By focusing on skill transfer and implementing practical strategies, you can avoid the pitfalls of stream counting and build a sustainable and profitable business. Berman's story serves as a reminder that the path to success is not always straightforward, and sometimes it takes a few missteps to find the right direction. So, the next time you're considering a side hustle, remember to count skills, not streams, and let the income follow.
