The Rise of Teen Entrepreneurs: Making Money Online
Gone are the days when mowing the neighbor’s lawn was the quintessential way for teenagers to earn pocket money. Today, a new generation of young entrepreneurs is raking in thousands of dollars through innovative online side hustles. Recent research from the digital marketing platform Whop reveals that there’s at least one “ultra-high-earning” teenager in every U.S. high school, making $10,000 or more annually—all from the comfort of their bedrooms.
The Shift to Digital Earnings
According to Whop’s findings, around 42% of American teenagers are now earning money through digital channels, with some starting as young as 12. In contrast, only 38% are engaged in traditional jobs. This shift signifies a fundamental change in how young people view work and income generation.
While some teenagers are making substantial amounts, the average teen has earned approximately $718 online in the past year. This figure highlights that while the potential for high earnings exists, many are still in the early stages of their entrepreneurial journeys.
Influencers: The New Role Models
It’s not just social media stars like the Kardashians and D’Amelios who are cashing in on their online presence. A significant number of teenagers are stepping into the influencer arena after school. Whop’s report indicates that one in three students under 18 has been approached by a brand for sponsorship opportunities, or knows someone who has.
Interestingly, while influencing isn’t the most popular way to earn money among teens, it holds the potential for the highest returns. The average teenager earns about $94 a year from product reviews, and 7% have secured brand sponsorship deals. Although selling clothes ranks higher in popularity, those who venture into influencing often see earnings exceeding $1,000.
Top Money-Making Schemes for Teens
The landscape of teenage entrepreneurship is diverse. Here are the top ways teens are making money online:
Selling Clothes, Footwear, or Accessories — 16.69%
Streaming Video Games — 10.09%
Earning In-Game Currency — 10.79%
Video Game Tournament Prizes — 9.20%
Product Reviews — 8.75%
Brand Sponsorships — 8.60%
Viewer Earnings from Social Media — 6.55%
Affiliate Marketing — 5.70%
Dropshipping — 5.30%
Paid Unboxing Videos — 4.90%
These avenues not only provide financial rewards but also foster skills in marketing, negotiation, and digital literacy.
A New Generation of Entrepreneurs
This trend of rejecting traditional employment is not isolated. A recent study found that 72% of Gen Z workers prefer not to climb the corporate ladder. Instead, they are more inclined to focus on individual contributor roles or pursue their own ventures. This mindset is reflected in the growing number of young people identifying as “founders” on platforms like LinkedIn.
Moreover, over half of Gen Z respondents expressed a desire to become full-time influencers if given the opportunity. This interest has only increased since 2019, indicating a significant cultural shift towards valuing personal branding and entrepreneurship over conventional career paths.
The Appeal of Non-Traditional Careers
Many young people are also gravitating towards trades like landscaping, HVAC, and auto maintenance, where they can be their own bosses and earn substantial salaries without the burden of student debt. This trend underscores a broader desire for financial independence and job satisfaction.
Cameron Zoub, cofounder of Whop, emphasizes that the way people make a living is evolving. “Younger generations are hungry for opportunities to make money online,” he notes. “They’re building networks, engaging with brands, and creating their own paths to financial freedom.”
Conclusion
The landscape of teenage employment is rapidly changing, with digital entrepreneurship taking center stage. As young people embrace online opportunities, they are not just earning money; they are redefining what it means to work and succeed in today’s economy. Whether through influencing, selling products, or engaging in digital content creation, today’s teenagers are paving the way for a future where traditional jobs may no longer hold the same allure.
Are you an “ultra-high-earning” teenager? Fortune wants to hear from you about your side hustle. Email Orianna.Royle@fortune.com.
