5 Ways to Make Extra Money from Home

When you were a kid, you might have dreamed of growing up to become a fashion designer or world-famous architect, but a sagging economy and tight job market have made these kinds of dream jobs hard to come by. Just because your ideal employer isn't clamoring to hire you doesn't mean you have to settle for a boring 9-to-5 job you hate. Create your own dream job!

Nearly 6 million Americans work from home [source: U.S. Census Bureau]. It may not be much fun to be isolated from peers and you may find yourself waiting by the mailbox for checks, but being self-employed and working from home have some distinct advantages: There's no more stressful commute. Your office is just steps from your bedroom. You even can go to work every day in your Tweety Bird pajamas, if you like. When you need to take a three-hour lunch or two-week vacation, you don't have to ask your boss for permission, because you don't have one. Best of all, the earning potential is unlimited: The more hours you work, the more you earn!

Sound intriguing? Here are a few ideas to get you started on a work-from-home career, plus some tips on avoiding the scammers who try to prey on home workers.

1: Cooking/Baking

Are you a fabulous chef? Do your friends rave every time you host a dinner party? Why not profit from your culinary talents by starting your own cooking business?

You have several options when it comes to starting a home-based cooking business. You can be a personal chef, sell food or baked goods at local farmers' markets and supermarkets, or start your own catering business serving parties and other special events.

Before you fire up your oven, though, you need to find out whether you're allowed to cook out of your own kitchen. Many state health departments require any food that's sold to the public to be prepared in a commercial kitchen. If that's the case in your area, you'll have to either bring your own kitchen up to code or rent one near you. Also check with your state, city, and county to find out whether your business will require a food safety and/or catering license, as well as a permit and inspections.

Once your kitchen is fully legal, it needs to be operational. Decide what type of food you're going to specialize in -- whether you're making cupcakes, barbecue or French haute cuisine. Once you've got a menu, you have to invest in the equipment and supplies you'll need to make it.

You also need to cover yourself with liability insurance, just in case one of your customers winds up with a bad case of food poisoning after eating your famous oyster casserole.

2: Personal Services

Everyone is busy these days, and many of us need help with the simplest tasks, like picking up our laundry, shopping for clothes or making dinner reservations. That need creates an opening for anyone with good organizational skills and a willingness to tackle any task -- no matter how mundane.

Virtual concierges act much like the concierges you encounter at hotels. They do everything from running errands to making travel reservations for busy executives. A concierge might be asked to pick up dry cleaning one day, and track down 500 white roses for a marriage proposal the next.
As a concierge you can work for yourself, or for a concierge company like VIP Desk. Having your own concierge business is riskier because you need to drum up your own clients, but it also means you can set your own hours rather than working a fixed schedule.

Another type of personal service professional is a personal shopper, who actually gets paid to shop! People with limited time -- or fashion sense -- hire personal shoppers to create outfits and accessories that match their style. If you love spending time in your mall and local boutiques, this is the perfect job for you. The greatest asset a successful personal shopper can have is good taste. If you are also good at helping people design their makeup and hairstyle, then you can be a personal stylist or image consultant.

3: Freelancing

Skills that require little more than a computer and telephone offer lots of flexibility. Creative professions like writing, graphic design, translation and public relations all give you the option of working from home.

Freelancing offers consistent opportunities, no matter what the general job outlook. When companies are cash heavy, they have extra work that requires freelance help. When they're cash-strapped, they can't afford to hire full-timers with benefits, so they bring on more affordable freelance workers.
Here are a few freelance job options:

Writing, editing, and proofreading newspaper and magazine articles, Web content, books, blogs, technical manuals and corporate marketing materials
Graphic design --- create brochures and other business marketing materials, Web sites, books and video game animations
Public relations -- write press releases, contact TV stations and other media outlets to get coverage for your clients
Translation -- translate books, business documents, audio and other materials into English or another language, and interpret for people who speak different languages and are trying to communicate

If you're going to freelance in a creative profession, be prepared to show samples of your work. Post your articles or graphic designs on a Web site, or put together a portfolio you can quickly send to prospective freelance employers.

4: Administrative Assistance

Can you type and answer phones? Then you're already qualified for one of the many administrative work-at-home positions available. Here are a few of your options:

Transcription -- You listen to and transcribe recordings of meetings, telephone calls or personal dictation. To work as a medical transcriptionist, you need some knowledge of medical terms. Legal transcriptionists similarly must be familiar with legal terminology. Depending on the company that hires you, you may need to buy a transcription foot pedal or other equipment.
Customer service -- Airlines, clothing stores and other companies need representatives to answer customer calls. When they don't want to staff their own customer service centers, they hire at-home workers.
Answering service -- Doctor's offices and other businesses need answering service representatives to pick up calls and take messages when their offices are closed.
Virtual administrative assistant -- Just like an administrative assistant who works in an office, a virtual assistant handles everything from typing and data entry to answering phones and making travel arrangements.

5: Sales

Do you have an old baseball card collection lying around, collecting dust? Or have you knitted an entire collection of sweaters you don't know what to do with? You could earn extra income selling them online.
Here are a few home sales possibilities:

Sell your homemade jewelry and other crafts on a Web site like Etsy. You'll pay a small fee to list each item, plus 3.5 percent of the final sale price, but you'll have access to people around the world who want to buy exactly what you're selling. Art Fire is another online artists' marketplace.
Start your own eBay store. You can sell just about anything on eBay, from collectibles to cars. You just need to post the item and ship it once someone buys. When you sell with an online auction like eBay, it's important to provide excellent customer service. The more positive feedback you receive, the more likely prospective buyers will be to purchase your items.
Go to work for a direct marketing company like Mary Kay, Avon, Lia Sophia, CAbi, Amway, or others. These businesses cut out the brick-and-mortar store, letting you sell directly to your friends, neighbors, colleagues and relatives. Direct sales are ideal for people who are motivated, hard-working -- and who have an established network of potential buyers.