The internet has revolutionised the way we earn money, putting users with an idea, product or service in instant contact with a market of millions. Websites such as eBay enable members to set up as traders with minimum hassle and none of the overheads of a conventional business.

SetYourRate.com is a new online marketplace for services, rather than goods. Users register free to create a profile, selling anything from Italian lessons to graphic design and dog-walking. Each profile features three pages, with a detailed overview, member reviews and images.

Luke Aviet, co-founder of the site and a former executive at Trade-Doubler, the affiliate marketing site, says: “We were surprised that this did not exist, when you think how many people have marketable skills.”

Members come from a variety of backgrounds. Groups that are well represented include students, retired people supplementing their pensions, IT professionals, life coaches, marketing advisers and tradesmen.

A quick browse finds drum lessons in Central London from Tim Desmond, “a Top 40 artist”, at £25 an hour. In Brixton and Stockwell, TMC Computers fixes “typical” PC glitches for £40 to £50. Meanwhile, Jossi, who is half-Swedish and half-Norwegian, translates to or from either language for £120 an hour.

Seller profiles are complemented by user requests. Members who cannot find a service are invited to submit their requirements in a “needed” section. Mr Aviet, for example, is offering £60 an hour for advice on his tax situation. James Breckenridge, of Southampton, meanwhile, will pay £10 an hour for a reliable cleaner with recommendations.

Jemima Walsh, 23, a TEFL student in London, used the site last month to find a personal trainer to reverse an “excessive” Christmas. She found plenty of suitable profiles, so did not have to make a request.

As on most free websites, profiles are not vetted. Users should therefore exercise caution and use the site’s internal messaging system before handing over contact details or personal information. Mr Aviet likens the set-up to online dating. “We put people in touch, but the rest is up to them.”

Despite this, he believes that the user ratings system, which allows members to rate a service from one to five stars, will promote good practice. The site has no internal payment system, however, so ratings and comments can be made without a transaction and are open to abuse. The absence of a payment system also means that transactions must be made between members directly. This hassle should be offset by absence of commission or hidden fees – eBay and PayPal both take a cut from sellers.

Tax matters are left to the discretion of members. Any tax owed will be negligble for those making the occasional £10, but the implications for regular sellers will be significant and should be checked. You may have to register as self-employed and file a tax return. The Revenue provides advice at www.hmrc.gov.uk.

CASE STUDY: Lights, camera, action

Georgia Merton, of Fulham, West London, works as a freelance film producer, making documentaries. She signed up to SetYourRate.com on a friend’s recommendation last year. “I get most of my day-to-day work through word of mouth or by using specialist websites, such as Broadcast Freelancer,” she says. “I decided to use SetYourRate to sell wedding videos.”

Within weeks, the 26-year-old was commissioned to film a Christmas wedding in London – a three-day assignment, including editing – at £300 a day. “It was great fun,” she says. “I will advertise other services soon.”