[Personal Experience] 3 Lessons to Keep in Mind Regarding Side Hustle Compensation

Hello. This is Tenkake.

With freelancing and side hustles becoming the norm these days, opportunities to work side jobs in your spare time, in addition to working as a full-time employee, have expanded.

Being able to challenge yourself with new work by utilizing your skills is a very stimulating experience that also leads to personal growth.

However, the reality is that there are quite a few troubles and frustrations regarding compensation.

In this article, based on my own actual failures regarding compensation in side hustles, I will share 3 things you must absolutely be careful about when doing a side hustle with you.

Personal Experience 1: No compensation until release. The pitfall of special contracts.

One day, while I was working as an IT engineer as a full-time employee, a friend asked me, "Could you help me launch a web service?"

I remember accepting it without thinking too deeply because it seemed like a new challenge and the conversation was exciting.

The format was a quasi-mandate contract, but in reality, it came with the condition that "compensation cannot be paid until the service is released."

In other words, whether or not compensation would be generated depended on the progress and success of the project.

Due to anxiety about whether I would receive sufficient return for my labor, the relationship became a bit strained, and in the end, I was allowed to leave the project without any compensation.

Personal Experience 2: The proposal of "working for free" for the first month.

Another case is a proposal I received from a company when I was looking for a side hustle.

They gently asked for unpaid cooperation, saying, "Since funds are limited in the initial phase, we want you to get involved as a trial for the first month."

No specific contract regarding compensation was presented, and the discussion seemed likely to proceed vaguely with "we can decide in future consultations."

At this time, I felt uncomfortable and declined. However, when you have just started a side hustle, it is easy to be swayed by such proposals thinking, "It's a precious opportunity...", so you need to be careful.

3 Lessons Learned from Personal Experience

Through these experiences, I have come to be strongly conscious of the following three things.

1. Always sign a contract.

Even if the request comes from an acquaintance or friend, it is essential to sign a written service agreement that clearly specifies compensation, scope of work, and where responsibility lies.

Proceeding with ambiguity often leads to misunderstandings and trouble later on.

② If development funds are limited and you are not satisfied with the compensation, decline the offer.

Do not be swayed by words like "rewarding" or "a great opportunity," and you should not accept work under conditions you are not satisfied with.

It could end up wearing you down, as you may find it difficult to maintain your motivation later.

③ Even if you are being paid, do not sell yourself short.

Even if you are receiving compensation, I want you to avoid lowering your own unit price by thinking, "This is probably fine."

Receiving compensation that matches your skills and experience is also a professional responsibility.

In conclusion

A side hustle can be a great weapon for your career, which is precisely why the mindset of "earning correctly" is so important.

To avoid struggling with unpaid labor or unclear compensation, first calmly assess the contract and payment terms.

I have also gone through many interviews with numerous companies, and while I have made mistakes at times, I have reached a point where I can accept side hustle projects with compensation I am satisfied with.
Please do not spend your valuable time on companies that do not properly evaluate you or need you.

Thank you for reading this far.
I hope this serves as a helpful reference for those thinking about taking on a side hustle.