Software Development Agency

How Much Money Do Software Development Agencies Make? (2024)

Pat Walls

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Updated: June 23rd, 2024

TL;DR:

Based on our data, software development agencies can make between $6,000-$8,500,000 per month.
The average revenue for a successful software development agency is $544K per month.
The highest grossing software development agency in our records makes over $102,000,000 per year.
Software development agency owners salaries can vary wildly depending on industry, niche, and size of the business

So you're thinking about starting a software development agency?

And now you're wondering how much software development agency owners actually make...

Well, let’s dive in!

Here are example of real software development agencies and how much money they make - as reported by the founders themselves:

1. Balsamiq ($6.6M/year)

Balsamiq Wireframes, a low-fidelity wireframing tool, was founded by Giacomo "Peldi" Guilizzoni in 2008. The idea for the tool came from Peldi's experience working at Adobe, where he realized the need for a simple sketching tool that could be used by any contributor in product meetings. With a focus on constant learning and improvement, Balsamiq has grown into a team of 33 people with a monthly revenue of about $550,000.

How much money it makes: $6.6M/year

2. Wolfpack Digital ($3.6M/year)

Gina, the founder of Wolfpack Digital, came up with the idea for her app development agency after realizing the lack of soft skills and business strategy in the tech ecosystem in Romania. With a diverse background in engineering, psychology, and business, Gina was able to bring together her interests and tap into the impressive tech talent pool in her hometown of Cluj. Since launching in 2015, Wolfpack Digital has experienced impressive growth, reaching a yearly revenue of over $1.5 million.

How much money it makes: $3.6M/year

3. ThirstySprout ($3.6M/year)

David Stepania, the Founder of ThirstySprout, came up with the idea for his business while taking a break on a Hawaiian beach. With a background in startups and a realization that building an extraordinary startup required an extraordinary technical team, David decided to solve the problem of connecting startups with top technical talent they could trust. ThirstySprout was born out of this desire for growth and success, and it has since grown to a team of over 40 people with $2.5 million in gross revenue last year.

How much money it makes: $3.6M/year

4. SteelKiwi ($1.8M/year)

Steelkiwi, a Ukrainian outsourcing company for web and mobile app development, was founded by Anton Baterikov and another individual in 2011. They noticed a gap in the market for offering businesses an alternative to PHP development and decided to provide high-quality products using Python. Today, Steelkiwi has expanded its expertise and works with businesses in various industries, with over 80 employees helping clients grow digitally.

How much money it makes: $1.8M/year

5. Krit ($1.09M/year)

Andrew, the founder of Krit, initially had no intention of starting a software agency. However, after taking an intro to Computer Science class in college, he became hooked on programming and the startup world. Through various pivots and a failed product launch, Andrew and his team eventually made the tough decision to shut down their product and transition into a full-time agency.

How much money it makes: $1.09M/year

6. The Jed Mahonis Group ($960K/year)

Tim Bornholdt, co-founder of The Jed Mahonis Group, came up with the idea to start a custom iOS and Android app development consultancy after realizing the potential of the App Store. With a passion for technology and a friend who believed in the business, they started the company with just $250 each and have since grown it into a nearly seven-figure a year agency working with clients such as Great Clips and Profile by Sanford Health.

How much money it makes: $960K/year

7. theta. ($864K/year)

Emmanuel Iroanya, the founder of theta, had a unique journey that led him to start his civic and government-focused digital firm. Inspired by his father's entrepreneurial efforts in working with the City of Baltimore to provide mental health and family preservation services, Emmanuel realized he could make a difference by working with federal agencies. His time at a large federal systems integrator solidified his idea to create a company that existed at the intersection of technology and government, with the goal of addressing the limitations and implications of technology in the public sector.

How much money it makes: $864K/year

8. Infinite MLM Software ($780K/year)

Abdul Majeed, one of the directors of Infinite Open Source Solutions, came up with the idea for their flagship product, Infinite MLM Software, when they realized the need for MLM companies to have a software solution to manage their operations efficiently. After launching the software, they focused on digital marketing and content marketing strategies to attract and retain customers worldwide, achieving a monthly income of around $60,000 and a monthly revenue of around $1,00,000.

How much money it makes: $780K/year

9. Byldd ($600K/year)

Ayush, the founder of Byldd, came up with the idea for his business after seeing the struggle that founders, especially non-technical ones, face when building their first product. He wanted to solve this problem by helping founders build revenue-generating minimum viable products (MVPs) that are just good enough to solve a problem and get customers to pay for it. Since starting as a side project in 2019, Byldd has grown to a team of 35 people and is now making over $50K MRR.

How much money it makes: $600K/year

10. Modern Launch ($600K/year)

Cody Benedetto and Ryan Serkes, founders of Modern Launch, started their custom software development company after experiencing success with their own business ventures. Within just three months of launching, they generated over $100k in revenue and have been profitable since their third week in business. Their services include mobile application development, website development, and custom software development.

How much money it makes: $600K/year