Data is fast becoming the lifeblood of the modern economy. Companies rely on data for everything, from organizing the delivery of their products to understanding what customers want. But there’s a problem: very few people have the sophisticated data skills required to help them achieve their objectives. A lot of the time companies have to rely on third-party off-the-shelf solutions or just go without the skills that they need.
For people who want to make money, this is actually a good thing: the rarer something is, the more valuable it becomes. Today people with masters in statistics are relatively rare compared to the demand coming from industry, pushing up wages and allowing those who do have the skills to make a lot of money.
Currently, people who have data skills are in highest demand by businesses, followed by those with other IT-related skills. It’s a hot area, thanks to the desire of companies to become more data-driven in their operations. Firms want to be able to find any remaining profit opportunities using their data, maximizing their income potential.
So, once you know about data, how can you put it to use and make money? Let’s take a look.
Although teaching might not sound like a great way to make money, there’s a huge demand out there for people with both knowledge of statistics and the ability to communicate that knowledge to others. Statistics is a tricky subject, and many people get stuck along the way. Some need help overcoming intellectual hurdles, like understanding how regression coefficients work and are willing to pay good money for it.
It’s not uncommon for a professional private statistics tutor to earn more than $100 an hour. The private tutor market is exploding as more people look to get additional assistance with their course materials. You can also teach statistics on a third-party platform, like Udemy, become a member of a tutoring organization, or go into formal academic teaching – all these options are relatively well-paid.
Making money on the side, though, is easy, thanks to the range of opportunities available on the internet. Selling your expertise online is a great way to build an additional revenue stream to supplement your income.
Become A Data Consultant
The consulting market is expanding rapidly – faster than the baseline economy. Firms are beginning to realize that if they want to gain an edge in global markets, they need to get smarter about what they do. Data consultants are in high demand right now, thanks to the fact that companies can see the importance of leveraging data but rarely have the internal skills to do so effectively.
Data consultants can make a lot of money. As a data consultant, you’ll go into firms and work with them to improve the way in which they use the data available to them, how they collect data, and how they eventually analyze it and put it to good use.
As a data consultant, you’ll make money by the day. To start, you’ll have to keep your fees relatively low. But as you build a portfolio of clients and successful project deliveries, you’ll soon be able to start raising rates. It’s not uncommon for data consultants to charge over $1,000 per day, and often many times more.
One of the great things about becoming a data science consultant is that you also get to choose your own hours and be flexible. You don’t have to take on new projects if you don’t want to, giving you the freedom to make money from your knowledge of data science on the side if that’s what you want. Once you’ve built up several good reviews and given clients what they want, they’ll start passing your name around to the people they know, winning you more unsolicited business in the future.
Build A Data-Driven Tool
Remember we said that companies sometimes use “off-the-shelf” data products? Well, as somebody with expertise in statistics and data management, you could be the person who builds one of these tools.
Companies need data tools for all sorts of things, from analyzing website traffic to managing their customer service. Most firm managers don’t understand the nuts and bolts of data and stats, and so they need intuitive tools which help them get the results they want. As somebody with a lot of expertise, you could build these tools and then sell them over the internet. You’ll need to be patient during the marketing phase of the project (it may take time for companies to understand the value of your product), but once it’s selling, all you have to do is wait for the money to come in.
Going down this route is probably the most difficult to start with, but then also potentially the most rewarding in the long term. No, you won’t immediately get a nice day rate, but once the product is complete, a lot of your income will be passive, and you’ll be able to earn more money in a single day than through regular working activities.
Build A Data Tool Kit For Yourself
While selling tools on the open market might seem like a good idea, sometimes it pays to keep your data science knowledge private. Suppose, for instance, you want to make a lot of money on the stock market, and you think that you can build a proprietary tool that will help you do that. Rather than creating it and then selling it on the open market, you could hoard your technology and use it for private gain.
Let’s suppose that you’re interested in buying tech stocks, but you don’t know which stocks to choose. You could build a data tool that uses past performance to predict future outcomes. Your tool could be unique and highly predictive. If nobody else is using it or knows about it, then it may have some ability to predict the future in a way that the overall market cannot.
It takes a lot of time and effort to build these tools, but they can provide a big advantage for investors who want to beat the market over the long term.
Start A Career In Data Science
Getting a career in data science is relatively straightforward, so long as you have the right qualifications. Usually, it takes between one and two years to acquire the necessary skills, as well as a passion for using data. Because data science graduates are in such high demand, it’s highly likely that you’ll get a rewarding career following training.
Graduates who get into the top companies can regularly earn more than $100,000 per year. Average salaries at places like Facebook and Apple hover around the $120,000 mark, with some specialists in artificial intelligence earning even more than this.
The only downside of taking this path is that you’ll have a lot less control over how you spend your time. Companies will dictate when you should show up to work and which projects you must work on. It’s not an ideal setup for many people, but one that can be rewarding if you like a regular paycheck.
Although the pay is good, many people find that work at larger companies isn’t as exciting as working for yourself or developing your own tools. With that said, if you love data, then it’s a lot better than most careers and certainly better paid.
So, in conclusion, there are many ways to make money from your knowledge of data. Right now is the time to do it as the economy plays catch up with demand. Wages should remain high for a while yet, especially if the digital transformation of businesses continues to accelerate.