7 Ways to Make Extra Money in 2011

by Kimberly Palmer

Job security might be out, but freelance, contract, and temporary work is in, which makes it easier than ever to moonlight as a graphic designer while you spend your days as a public relations rep. Slimmer staffs mean companies often need the extra help, and new websites offer free tools that match potential employers with workers. And earning extra money beyond your steady paycheck, if you're lucky enough to have one, can provide a big boost to your financial security.

Here are seven ways to make extra money off the new economy in 2011:

Launch a Brand
When Kimberly Seals-Allers, former senior editor at Essence magazine, was expecting her first child, she discovered that black women face higher risks during childbirth and pregnancy. "I realized we were a special group, and I wanted to write a book about everything in black women's lives. Not just pregnancy, but money, men, and myths in our community. [I wanted] to create a new way forward."

Her first book, "The Mocha Manual to a Fabulous Pregnancy," turned into a series as well as an online magazine, maternity line, and consultancy. Seals-Allers also licensed use of the Mocha Manual name to create an instructional DVD sold at Walmart and supermarkets.

Start a Blog

The anonymous blogger behind Lazy Man and Money defies his site's name. He works about 14 hours a day on weekdays and then puts in nine hours on Saturday and Sunday. But his hard work is paying off -- his blog earns him enough to support his lifestyle; back in 2008, he estimated his annual earnings at around $30,000. But it's tough for part-time bloggers with full-time jobs to keep up with all the demands of a lucrative blog. "There's simply a lot more [to do] than what the average reader sees," he says.

Even if the blog itself doesn't generate a six-figure salary, it can lead to other money-making opportunities, such as consulting or speaking gigs. Silicon Valley Blogger at The Digerati Life has carved out a successful niche as the expert on personal finance and technology in Silicon Valley. While she says she didn't earn much during the first six months of her blog's life, she received her first $100 check from Google AdSense shortly after that point, when she was getting around 600 unique visitors a day. She now earns money from her blog-related consulting, as well.

Sell Your Skills
Whether your expertise lies in social networking, editing, or web development, several new websites can help you find potential clients willing to pay you for your work. Elance.com, Odesk.com, and Guru.com make it easy to advertise your skills and find work, which you can do from the comfort of your home at all hours of the night. To get started, explore the websites to see what might be a good fit. You can also stick with a more traditional approach and use Craigslist.org, which allows users to post advertising for their services, ranging from household labor to music lessons.

Sell a Wacky Service
For those interested in a more unusual approach, the innovative website fiverr.com allows users to sell (and buy) services for $5. Current offerings include sketching a stylized portrait, writing a name on a grain of rice, and digitally restoring a photograph. It's one of the trendiest ways to make a quick buck for the internet-savvy; dozens of videos, websites, and blogs offer advice on how best to earn money off the site. The best advice? Since you're only going to make $5 a pop, sell a service that you can do easily and quickly.

Talk and Teach
Colleges, organizations, and companies are constantly on the lookout for new experts that can inspire an audience. If you've built up an expertise on a subject, perhaps through your blog, then consider branching out with some speaking gigs. Offer to talk for free at first to build up your reputation, and then a speakers' bureau can help connect you to paying gigs (for a cut of your fee).

Design T-Shirts

Companies such as CafePress.com allow people to design and sell their T-shirts for a cut of the profits. According to the company's website, some users earn over $100,000 a year. But it's not always easy: Jen Goode, who earns enough through CafePress to pay her mortgage each month, found success after a year and a half of long, sometimes 16-hour days. Her time is spent creating designs and then uploading them. She has uploaded about 2,500 designs, many of which are cartoon oriented, including the popular penguin series. For her, she says, the secret has been to make many different images that are steady sellers, as opposed to creating one or two megahits. Now, she says she doesn't need to put as much time into her shop because she has such a large inventory of designs.

Sell Other People's Products
Make-up companies such as Avon and Mary Kay are always looking for new sales representatives, as are other companies such as kitchen products seller Pampered Chef. "If you don't have to make a big investment to get into it, it's probably not a bad idea," says Marcia Brixey, author of "The Money Therapist." But she warns people to stay away from businesses that require sellers to make significant up-front purchases that they might not be able to unload.

The bottom line: The new economy offers plenty of creative ways to earn extra money; to find the best fit for you, consider your skills, lifestyle, and ambitions.

Reasons to Start a Business This Year

by Rosalind Resnick

But if there's one New Year's resolution you should try to keep this year, it's this one: To start your own business and be your own boss.

Here are good reasons to take the plunge this January instead of procrastinating until 2012.

1. You'll never get laid off again.

Tired of being a number on somebody else's spreadsheet? That won't happen once you start working for yourself. "Jobs used to be for life, and leaving a company to start your own could put your entire career in jeopardy," says David Ronin, co-founder of UpStartBootcamp.com, a New York company that provides coaching, classes and information to first-time entrepreneurs. "Now the average job lasts about four years—if you can get one." On the flip side, most start-ups don't succeed and, while you won't get fired from your own business, you might end up shutting it down and losing the money you invested. "You'll probably take home a smaller salary, work harder and face higher stress levels, too," Mr. Ronin says.

2. You can stop asking your boss for a raise and give yourself one.

When you run your own business, there's no limit to how much money you can make if your company takes off. Because you're taking all the risk, you're entitled to all the upside. "A 'real' job does not have your best interests at heart—ever," says Scott Gerber, a New York entrepreneur and author of "Never Get a 'Real' Job." "Most jobs offer employees nothing more than a false sense of security, a workload that far exceeds their pay grades and a benefits package that they are most likely paying for themselves." While getting a business off the ground is never easy, every dollar that you put in and every hour that you work is an investment that returns profit back to you. "Find me any job that offers that level of financial incentive, and perhaps I'll think of getting a 'real' job," Mr. Gerber says. (Mr. Gerber is also head of Young Entrepreneur Council, which writes a guest column for WSJ.com.)

3. You can write off that new laptop, Blackberry, iPad or printer.

One of the fringe benefits of running your own business is the opportunity to write off or depreciate legitimate business expenses. Recent changes in the tax laws make these deductions even sweeter. Under expanded bonus depreciation rules, qualified investments in fixed assets purchased between Sept. 9, 2010, and Dec. 31, 2011, can be fully written off for federal tax purposes, according to Michael J. Goldberg of New York's Ganer, Grossbach & Ganer LP. (Check with your accountant to make sure your state accepts bonus depreciation for tax purposes.) A new business also can use the Section 179 deduction to write off the price of certain equipment or software, up to $500,000 in 2011. The disadvantage is that the current year Section 179 deduction cannot exceed the net income of the business. Start-up costs of up to $10,000 are deductible once the business begins, Mr. Goldberg adds.

4. You can unplug and work anywhere there's WIFI reception.

Forget the daily grind of commuting to the office. Today's mobile start-ups have unplugged from their digital tether. Small business and social-media marketing consultant Richard Wooley, co-founder of New York's Bond/Wooley Inc., says the key to working virtually is picking your spots—ideally, locations that offer comfy chairs and free WiFi. "When I'm spending an afternoon working through a call list, the best place for me is an independent coffee shop," Mr. Wooley says. "Starbucks can get too noisy to have a real conversation on a cell phone." By contrast, Mr. Wooley finds a quiet bar the perfect setting for crunching complex formulas in the Excel spreadsheets he prepares for clients' business plans. Says Mr. Wooley, "The key is to take off the shackles of a cubicle, charge your laptop battery and get out in the world."

5. There's never been a cheaper time to start a business.

Ten years ago, a typical Internet start-up needed $1 million to launch a product and millions more to prove its business model and scale it to profitability or an IPO. Today's start-ups run lean and mean thanks to the plunging cost of technology and a surplus of real estate and talent. "The popular 'lean start-ups' approach favors developing a product and getting it into the hands of customers as quickly and inexpensively as possible," says Mr. Ronin of UpStartBootcamp.com. "Plus, the stigma of freelancing has lifted for both companies and individuals so start-ups can hire top talent on an as-needed, virtual basis. This lets founders hire better talent with more flexibility, reduced office space needs, and lower benefits costs." And thanks to the power of social networking, it's no longer necessary to hire an expensive PR firm to generate press. You can target niche publishers and bloggers instead.