You don’t always need a lot of capital to get a business up and running. In fact, sometimes you can get started with little to no funding. (Yes!) Starting a business with no money might initially seem like a far-fetched idea, but it’s not impossible.
Jun 16, 2021 The truth is there are real ways to make money online – millions of people are doing it each day. From freelance digital nomads to savvy marketers to rising entrepreneurs, there are plenty of business ideas you can try at home using your laptop, a solid internet connection, and hard work.
It’s true that to start and scale any business, you’re going to need more than just extra cash flow. You’ll likely need partners, investors and a solid plan for how you’re going to use your new business funds to grow. But, when you’re just starting out, you start out small. Even better: you can start out as small as you like.
If your plan is to open up a storefront where you sell your hand-crafted wares, you can always start by selling them to friends and family. You can build up a reputation and get initial feedback. Then, you can sell them on a third-party website online. After that, you can move on to hosting your own site and store. You get the idea.
If you’re worried about how you can start a business with zero funds, here are a few ideas on where you can start.
Ask yourself what you can do and get for free
It’s easy to come up with a list of obstacles standing in the way of you and launching your business. It’s often harder to come up with a list of opportunities that are right in front of you. If the thought of starting a business with no money scares you, stop and reflect on what you can do without right now.
What’s essential to your business? Do you need the slick, custom-designed website when you’ve only perfected three items for your new store? Could you do with creating a Facebook page to promote your business locally, instead? Or, would it make more sense for you to post your products for sale on a site like Etsy? Would it make more sense for you to design your own marketing materials on Canva? Could you barter and trade your skills/products/resources with someone else in lieu of payment?
To say there are a lot of free resources on the web is an understatement. Make a list of what you need for your business and then research free alternatives on the web. It might take time, and perhaps even require you to pick up some extra digital skills, but you’ll save funds when you need them most.
Build up six months’ worth of savings for expenses
Admittedly, tapping into your savings account isn’t the ideal situation. Yet, it’s a pretty common practice among entrepreneurs. When designing your business plan, be frank with yourself about how much you’re spending and how much revenue you’ll likely bring in. Then, be realistic about how long it will take before you see a profit. Usually, it takes about at least six months before you start seeing any cash flowing in. Make it a goal to save at least six months’ worth of living expenses so you can devote yourself to your new business.
Ask your friends and family for extra funds
Remember, you’re not asking for charity. You’re not asking your friends and family to support your wacky business idea. No, you’ve got a dream of a business and your business plan is solid. You’ve crossed your t’s and dotted the i’s. That’s why you’re looking to those closest to you when making your pitch. Use your friends and family as multi-layered resources.
Practice your sales pitch with them. Ask for feedback. And, when you’re ready to launch your business, ask if they can help with a small loan to kickstart the business. Just be sure to get everything down in writing and when you’ll pay them back. You can even use a crowdfunding platform to encourage the people around you to encourage their networks to pitch in.
Apply for a small business loan when you need extra cash
If you’re looking for more capital and have been operating on a shoestring budget, consider applying for a small business loan. Banks and online lenders offer differing kinds of small business loans to customers looking for extra cash flow or investment funds. You can usually get more favorable terms with a traditional bank. Online lenders, however, are typically more lenient in their requirements. Just watch out for those high interest rates.
If you’re not looking for a lump sum loan amount, consider a business line of credit. In short, they’re like credit cards for your business. They’re good options for purchasing items on an as-needed basis. (You can read about them and other small business loan options, here.)
Look to small business grants and local funding opportunities
Truthfully, grants for small businesses aren’t always the easiest to find or get. But, once you’ve got your business up and running (no matter how small), you can begin searching in earnest for free cash. Always remember that grants will usually have specific application requirements. So long as you meet those, you’re in the running for a pot of cash that’s all yours for the taking. Start your search in government databases and always be sure to ask your local small business administration chapters for help.
Find out about—and woo—potential angel investors
You’ve probably heard of angel investors, and with good reason. They come into play when it’s time to scale your business beyond you, yourself, and the handful of loved ones who’ve bought in. Angel investors are usually among the first people outside the company to invest in a business.
Unlike outside firms or other venture capitalists, angel investors put down their own personal funds. They can also make for the best kind of mentors, since many are former/current entrepreneurs themselves. (Find out more about how your can win over Angel investors, here.)
The rise of Airbnb has seen the average person turn their homes and other properties into a successful business with huge incomes. Even if you don’t own a home, you can still get in the game. In this guide, I will answer the burning question – how to make money on Airbnb without owning property?
You don’t need to own or even be renting a property to make money on Airbnb. For example, managing someone else’s property, co-host, become a cleaner, run an Airbnb experience or even become an affiliate.
I know of savvy people who are earning 6-digit salaries on Airbnb, despite not owning any property! I know this, because I have met them myself and picked their brains.
In this article I will show you the ways people are making money on Airbnb without owning property. In fact, I’ll show you 9 of the best ways.
There are so many options and you can make a lot of money if you’re thrifty. So let’s get right into it.
#1 Managing Properties
Property management could be a good option for you, especially if you are a time rich person. This way, you get get involved in Airbnb without the risk of investing in your own home.
It’s a great way to make money on Airbnb without actually owning any property. There are many people who want to list, but simply don’t have the time or the resources to look after their property. This is where you would come in.
So how does this work? The owner of the Airbnb will hire you to manage all aspects of the property. You will reply to guest messages, check guests in, top up amenities and turn the property over after each booking.
Typically as a managing partner, you will receive between 10% – 20% of the booking amount for your efforts. So if a one-night booking is $150, you will get $30. If a one-week booking is $1050, you will pocket $210 and so on.
A tidy profit, but for you to live off this as your main income you would need 5 or 6 properties under your belt. This could bring in anywhere from $1,000 to $1,500 per week, not too shabby.
I think most people could live quite comfortably on a wage like this.
#2 Airbnb House Sitting
This is an interesting one. When travelling through Bath in the UK, I met a couple that
Their listing is in their basement. The house sitter would live upstairs and the listing continued running while they were off sunning themselves.
The owners would work out a percentage depending on how many bookings they have and the house sitters get to live rent free for 3 months. Not a bad deal.
#3 Renting a Furnished House
A furnished rental could be your pot of gold. This option may appeal to you if you want to go the whole nine yards and run your own Airbnb, but lack the funds to do so.
A lot of times a furnished rental will come with everything you could possibly need to set up an Airbnb. Extra linens, towels, a fully stocked kitchen and even a washing machine.
Your start-up costs will be quite minimal with only the basics like shampoo, coffee and tea to provide out of your own pocket.
The only hurdle you will face will be getting the landlord to agree sublet their property as an Airbnb. You will also have to look into your local laws and regulations as some cities are cracking down on sub-lets.
But if you do your homework, there is definitely scope here to make money on Airbnb without the expensive start-up costs.
It’s definitely an interesting way to make money on Airbnb that many people are currently doing.
#4 Approaching Home Owners Looking To Rent
This tactic is similar to that of renting a furnished house as an Airbnb except this one doesn’t require you to take out a lease.
What you do here is approach a landlord that is looking to rent out their property. You would start a conversation with them about how they could be making two to three times more income renting their property out as an Airbnb.
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This I’m sure will raise the eyebrows of the home owner and they will want to know more. This is where your offer to run their place as an Airbnb would come in.
You wouldn’t be renting, you wouldn’t have to pay any bills or outgoings, you would simply run their property as an Airbnb for them and take a cut.
In other words, all the rewards without the risk. The hard part is finding the right landlord. The best place to start is websites like Craigslist or Oodle where you can see people wanting to let out their properties.
Emailing or approaching the landlord is the next step. You could discuss an arrangement on the premise of making them a lot more money than a traditional long-term rental.
You will make money this way, but it requires a more hands on approach. You’ll need to wrangle the right property.
#5 Become an Airbnb Cleaner
I speak from experience here that one of the most time-consuming parts of running an Airbnb is the cleaning.
This is the #1 job that hosts will outsource which leaves plenty of opportunities to make some good money. Websites like Craigslist have a huge amount of people advertising for help, there is certainly no shortage of customers.
The pay rate of a cleaner varies greatly with each property. You can either set your own price per hour, per room, per property or per month.
Based on a 1 bedroom apartment, the average income of a cleaner per hour is around $20/25, per house is around $30/$50 and the average per month is around $800.
To get a better idea of what cleaners in your area are making, have a look at a tool called Properly. Airbnb endorse these guys and they’re a great way to research your potential income.
So with a check-in/out window of around 5 hours, you could potentially clean 3 properties per day. A very solid income and a great way to make money on Airbnb without owning property.
In conclusion, you should check out my Airbnb cleaning checklist if you are interested in making money with this.
#6 Airbnb Experiences
Airbnb experiences are a creative way to make money on Airbnb that doesn’t require a huge amount of time or cash to set up. In fact, I have given you a head start. Check out my article on 11 great ways to make money with Airbnb experiences.
An example of an experience could be
- a walking tour of your city
- a pub crawl at night to all the best hotspots around town
- an art class with a cheese tasting plate and champagne
- a guided hike to a hidden valley
- a cooking class in your own kitchen
- teach people how to make amazing coffee
Your guests want to experience your city like a local. They want to see things that they would never have known was there, so you need to wow them. The list is endless and is only bound by your imagination, so put yourself in their shoes and think like a tourist.
For a full run down of what an Airbnb Experience is, check this link. I give you a step by step guide and some great example ideas to get started.
#7 Co-Host with an Established Airbnb
A co host is similar to managing an Airbnb property, except that you are more of a consultant or concierge rather than a manager. This ‘title’ will come in handy as some states and countries make it hard to be a property manager for Airbnb.
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*Learn how much an Airbnb co host makes in my detailed guide.*
The role is more of a helper to an established host. While your jobs may be the same as being a full time manager, it doesn’t come with all the paperwork. It is more suited to the everyday person wanting to get into the game.
The host will reach a monetary agreement with you and allocate a percentage that Airbnb will send straight to your bank account.
You will then receive an invite to share their listing. When accepted, you will have access to the calendar and can respond to guests if that is part of your job.
If you don’t want the hassle of setting up your own property, this is a good option. You’ll still be able to make money on Airbnb, but your co host will do the hard work for you.
But be mindful that there isn’t a huge amount of skin in the game if you are co-hosting a regular Airbnb. Try to find listings that are in a high-end market or in a very touristy part of the city that get a lot of
#8 Become an Airbnb Affiliate
What is an affiliate and how do you make money on Airbnb with it?
An affiliate is a person who advertises a product owned by someone else. Take TripAdvisor for example. Their website advertises hotels from all around the world and gets a commission from every room that gets booked.
Therefore, to be an Airbnb affiliate you would advertise users listing to potential guests and if they get booked, you get a cut.
Becoming an affiliate for Airbnb is not for everyone though.
On top of that, your website has to be relevant
#9 The Airbnb Referral Program
A little more user friendly than than trying to become an affiliate, the referral program is open to any Airbnb user.
A unique referral link is available for you upon signing up to Airbnb. You can share this code with your friends and family and earn rewards for both yourself, and them.
This link will give your friends and family a $55 credit when they sign up and book a house for the first time. Once they make a booking, you get a $25 credit.
Same goes for hosting. If you are a host and you refer another host and they make a new listing on Airbnb, you receive $100.
Ok, so you’re technically not making money on Airbnb to spend in your day to day lives. But if you love to travel it will help pay for your accommodation which is always a welcomed bonus!
Time to Make Money on Airbnb
Earning money on Airbnb is much easier than you would imagine. Most people believe you need to own a property, but you now know that is not the case.
I have now helped you discover that there are many ways to make money on Airbnb without actually owning any property.
Some methods are a little harder than others and some require a bit of a sales pitch. But if you put your head down and are prepared to work hard, you can quit your 9-to-5 job and make a business out of Airbnb.
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I’ve heard of some savvy people making 6-digit salaries a year by doing the methods I’ve explained in this article. I know for a fact it’s possible.
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Therefore, it’s time to get cracking! What methods will you use?