For millions of Americans, a side hustle is no longer a novelty. It’s part of everyday life. Some take extra shifts to track prices; others pursue more ambitious goals or a creative outlet.
Platforms like Fiverr, Uber, and Etsy make this possible, but it’s worth asking a harder question: Who really comes out on top: the people who do the work or the companies who run the apps?
Here’s a look at how these platforms actually make money, what that means for the people who use them, and some ways to avoid common pitfalls heading into 2026.
Let’s start with the basics: how these platforms work and who really benefits from them.
Inside the secondary economy
Today concert apps making it easier than ever to get back to work, whether it’s dropping off takeaways, designing a logo or tackling odd jobs that don’t fit anywhere else. On-demand economy revenue models lower the barriers to entry, but they also increase the platform’s profits, and not necessarily yours.
The DollarSprout 2024 Secondary Activities Report found that nearly 70% of Americans earn some amount of extra money, often through platforms like Fiverr, Uber, Upwork or Etsy.
Ancillary platforms cover a wide variety of industries, but they share three fundamental characteristics:
- A low barrier to entry for new users
- A huge supply of labor and services
- Platform control over fees, visibility and rules
Many users make money, but the economics don’t always add up. In fact, the majority of gig workers (36%) only earn $100 to $500 per month. Side hustlers are most often lured into taking paid surveys (72.6%), reselling or flipping items (39.4%), and online self-employment (29.8%). Many people sign up for gig apps without realizing how much control they are giving up in the process.
Where does the money really come from?
Most of these companies make their money in several predictable ways: through transaction fees, paid visibility, and, in some cases, the data they collect from users.
Take Fiverr and Upwork. Both charge freelancers a cut of their revenue, up to 20% per transaction. Fiverr’s fees are a flat 20%, while Upwork’s rate ranges from 5% to 15% depending on how much you’ve charged a client over time. Uber takes a comparable cut, keeping around 25% (and often more) of each fare while drivers cover gas, maintenance and depreciation costs.
But it doesn’t stop there. These platforms also benefit from:
- Billing buyer service fees
- Sell visibility via advertisements, sponsored ads or “rising stars” boosts
- Charge monthly subscriptions to access premium features (e.g. Upwork Freelancer Plus or Etsy Plus)
Etsy’s selling fees, in particular, can surprise new users. Beyond the 6.5% transaction fee, sellers pay a listing fee of $0.20 per item, plus payment processing fees, off-site advertising fees, and optional advertising expenses. In practice, this stack of micro-fees can quietly reduce margins, especially for sellers who don’t track every cost. It may take some time for users to realize that the business model of Etsy’s secondary animation platform often rewards volume and paid promotions, not just quality.
Meanwhile, companies like Uber operate on big economy revenue models that rely heavily on volume and dynamic pricing. Uber’s driver pay structure is complex. The company takes a significant cut of each fare (at least 25%), while drivers cover costs such as gasoline, maintenance and depreciation.
Platforms also quietly benefit from your behavior. Many monetize user data to train algorithms, predict trends, or attract investors, all without direct compensation to you.
Related: 7 Instacart Tips From a Shopper Making $3,000 a Month
When the platform wins first
Of course, ancillary platforms do not claim to be charitable; they have to make money. However, it is important to recognize the degree of control they have over your income. Even if you do the work, these platforms still control:
- How visible are your ads or gigs
- If your account remains active
- How much you get paid and when
- What fees apply at each stage
Austin Rulfs, a mortgage broker by day, once turned to weekend gig work to earn extra money while growing his business.
“An example that sticks out to me is driving twelve-hour days over a long weekend,” says Rulfs. “The gross rates looked fantastic, but once I calculated the fuel, maintenance, and platform fees, the hourly output was barely more than what I could earn working in a coffee shop. The same applied to selling on Etsy. The volume of micro-fees eroded profits to the point that I had to either raise prices or treat them as a marketing channel rather than a primary revenue source.”
This is the disadvantage of the secondary economy. You often face the effort and risk while the platform takes a guaranteed share. You do not own the infrastructure and can be kicked off the platform without recourse.
How to level the playing field
I’m not saying you should quit your side job. Yet to be successful, you need to understand how independent platforms profit and play smarter.
- Read the fine print. Know the true cost of participation, including seller fees, commission rates, and visibility monetization. While you can’t eliminate platform fees completely, you can reduce them on some sites by hitting higher billing thresholds (like Upwork’s fee levels) or attracting repeat customers to your own site.
- Diversify your income. Don’t rely on just one platform or app. You don’t want your income to disappear overnight if Etsy changes its algorithm or Uber cuts driver prices.
- Build your own pipeline. Use these platforms to test your ideas and find customers, but work toward independent channels like your own website, newsletter, or Shopify store.
Jennifer Street found success using these methods. She runs Forged rocketan ornament shop that she originally started as a small side project on Etsy. The site helped her reach buyers who were already looking for handmade gifts, she says, while also warning that many sellers rely too much on them.
“While Etsy is an incredible platform, especially for craft and creative businesses, it shouldn’t be your only strategy,” she advises. “Use it to build momentum, find out what sells, and build a customer base, but make sure you’re also creating something you fully own.”
Since opening in December 2020, Forged Flare has made nearly $60,000 in sales, thanks in part to Street’s transition to a personal online store.
Related: How One Woman Makes $2,500/Month Selling Pet ID Tags on Etsy
Don’t ignore the platforms, outsmart them
Secondary platforms are not intended to scam anyone. They are built above all to make money. They can still be incredibly helpful, as long as you know how their incentives differ from yours.
Whether you’re freelancing on Fiverr, driving for Uber, or selling crafts on Etsy, take a step back and look at what you’re giving up for convenience. Know the fees, spread your risks, and treat each platform as a stepping stone, not a destination.
This is how you turn someone else’s algorithm into your opportunity.
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