14 Passive Income Ideas For Software Developers [2024]
Interested in earning passive income as a software developer in 2024?
We put together a few of the best passive income ideas you can start as a software developer today. These will help you increase your quality of life by bringing in more income for yourself or your business.
For each income idea, we’ll show you real-world examples, revenue expectations for each idea, plus some things you might need to know before you start your passive income journey as a software developer.
Here's the full list:
1. Make passive income with an email marketing tool ($992K/month)
As a software developer, creating an email marketing tool could be a rewarding way to supplement your income. You could leverage your coding skills to develop software that helps businesses automate their email campaigns, manage subscribers, and send out bulk emails efficiently. Given the booming market, with the global email marketing tool market size expected to reach $2.53 billion by 2028, there’s significant demand for innovative solutions that could make email marketing easier and more effective for users.
The startup costs are relatively low; all you need is a domain and hosting account to get started. From there, you could explore countless opportunities to enhance your tool, such as integrating analytics, offering customizable email templates, and adding features that cater to various industries like real estate and e-commerce. This approach could not only provide you with a steady stream of passive income but also add a valuable product to your portfolio, furthering your entrepreneurial journey.
How much you can make: $120 — $20,833,333/month
How much does it cost to start: $1,000 (?)
How long does it take to build: 180 days (?)
H-supertools founder Hasan developed a set of free SEO and digital marketing tools generating $2k per month in profit using Google Adsense, affiliate marketing, selling ad spaces, and email, plans to launch a membership option, and has attained over 80k registered users and 300k monthly visits in less than two years.
2. Make passive income with a social media automation business ($139K/month)
Starting a social media automation business makes sense for software developers because it leverages your technical skills to solve real-world problems for clients like small businesses and influencers. You could create tools and services that schedule posts, automate interactions, and analyze data, effectively saving your clients time while boosting their social media engagement.
With the rising demand for consistent and strategic social media management, this business aligns with your tech savvy and offers a meaningful way to generate passive income. Developing or integrating software solutions and staying updated on social media trends could make your services highly sought after, providing a substantial income stream while letting you remain in your field of expertise.
How much you can make: $4,000 — $400,000/month
How long does it take to build: 50 days (?)
MeetEdgar, a bootstrapped social media automation tool founded in 2014 by Laura Roeder, has grown to $4 million in annual recurring revenue and more than 5,000 customers, with a team size of two dozen, achieved through content marketing, social media marketing, and organic search.
3. Make passive income with an AI writing tool ($255K/month)
As a software developer, creating an AI writing tool could be a practical way to supplement your income and tap into the growing demand for content creation. The tool you develop could use artificial intelligence to help businesses, bloggers, and students generate accurate and engaging content quickly and efficiently. By automating this process, you could significantly reduce the time and effort required in traditional writing methods.
With the knowledge you already possess in coding and software development, you could create a digital tool that stands out in the market. Not only would this venture allow you to leverage your existing skills, but it could also open up new revenue streams as more people seek out innovative ways to produce quality content. By easing the workload of writers and boosting overall productivity, your AI writing tool could become a valuable resource in the ever-evolving digital landscape.
How much you can make: $4,000 — $1,000,000/month
How long does it take to build: 52 days (?)
Rytr, a new AI writing assistant developed by a startup platform and business incubator, has become a market leader, serving over 300,000 customers across the world and doing seven figures in ARR.
4. Make passive income with a cold email service business ($170K/month)
As a software developer, starting a cold email service business could be a great way to use your analytical and technical skills to create additional income. You could help companies reach new clients directly through well-crafted email campaigns. This would involve writing compelling emails, using email marketing tools, and analyzing metrics like open rates and conversions.
By leveraging your strategic mindset, you could begin with small businesses looking for lead generation and grow your clientele as you build success stories. Apart from generating extra income, this business marries marketing abilities with technical knowhow. It's a service that's always in demand, providing an excellent opportunity for scaling.
How much you can make: $4,000 — $450,000/month
How much does it cost to start: $200 (?)
How long does it take to build: 35 days (?)
GMass, an email marketing platform that allows users to send cold emails and email marketing campaigns with Gmail, has attracted over 500,000 user signups, including major tech companies like Uber, LinkedIn, and Google, and now generates over $200K in monthly recurring revenue through a successful content marketing strategy and focused ad spend.
5. Make passive income with a mobile app ($70.3K/month)
Creating a mobile app could be a fantastic way for you to supplement your income as a software developer. You likely already have the necessary coding skills or can easily hire someone to help. By turning a unique idea into an app, you have the chance to reach millions of users on smartphones and tablets.
Your journey would start with planning the user experience and designing engaging interfaces. Once developed, thorough testing for functionality and bugs is essential. Effective marketing is also key to ensuring your app gains traction and achieves downloads. If you have an innovative idea that solves a problem or provides entertainment, the world of mobile apps offers a vast opportunity for passive income.
How much you can make: $1 — $500,000/month
How long does it take to build: 180 days (?)
BACH, an app that plans and books bachelorette parties, has grown from $0 to >$1M net revenue run rate in less than 6 months, gained over 100,000 users in their first 60 days, and has over 40,000 parties using the app this month.
6. Make passive income with a health and wellness app ($108K/month)
Creating a health and wellness app could be a great way to supplement your income as a software developer. This app would serve as a digital tool offering personalized fitness routines, nutrition plans, mental well-being exercises, and progress tracking. Essentially, it acts as a virtual coach, helping users stay on top of their health goals with reminders to drink water, guides for yoga practices, and tailored meal plans.
Building such an app involves several steps, including market research, collaboration with health experts, and, of course, app development and marketing. Given your background in software development, you already have the technical skills needed to bring this idea to life. Not only does it provide an opportunity to earn passive income, but it also allows you to positively impact people's lives by helping them take better care of their health.
How much you can make: $600 — $300,000/month
How long does it take to build: 200 days (?)
Founder and CEO of SelfDecode, Joe Cohen, explains how his company helps people discover personalized diet, supplement, and lifestyle recommendations based on DNA and lab tests; generating about $2.7 million in revenue over the past year and raising $8 million in a crowdfunding campaign, SelfDecode provides personalized health recommendations prioritized on unique genetic variants, marking the future of healthcare.
7. Make passive income with a lead generation tool ($108K/month)
As a software developer, you could leverage your coding skills to create a lead generation tool that helps businesses find potential customers. By designing a platform that integrates with websites and social media channels, your tool could capture valuable information like email addresses and phone numbers, simplifying the often tedious task of collecting leads.
Imagine businesses using your tool to automate their client-finding processes, allowing them to spend more time converting leads into sales. With the high demand for efficient lead generation solutions, you could not only make extra money but also build a product that businesses genuinely need.
How much you can make: $1,000 — $400,000/month
How much does it cost to start: $600 (?)
How long does it take to build: 90 days (?)
Dux-Soup is a LinkedIn automation tool that helps business owners and sales & marketing professionals generate more leads, increase efficiency, and save time; with over 70,000 users and revenue of nearly $5 million, it offers automated top-of-the-funnel LinkedIn outreach activities, targeted LinkedIn campaigns and multi-touch & personalized LinkedIn drip campaigns for lead generation.
8. Make passive income with a wordpress plugin business ($33.4K/month)
As a software developer, starting a WordPress plugin business makes sense because it allows you to leverage your coding skills to solve real-world problems faced by website owners. Many websites rely heavily on plugins to run smoothly, so if you can identify a common issue and develop a plugin to address it, you could create a steady stream of income.
You could sell your plugins on platforms like CodeCanyon, your own blog, or even a dedicated website. This way, you're not just limited to one sales channel, and you gain the flexibility to reach a broader audience. Plus, once the plugin is developed and marketed, the income you generate could be largely passive, freeing up your time for other projects or side hustles.
How much you can make: $120 — $120,000/month
How much does it cost to start: $5,000 (?)
How long does it take to build: 120 days (?)
Time commitment per week: Min. 5 hours/week
Wheely Sales CEO Josh created a lucky wheel popup that has grown revenue from $0 to $600/month in just 4 months since getting started and has attracted over 1.1 million users to his customers’ websites, all while proving that when it comes to creating a product, competition is validation.
9. Make passive income with an ai based business solution ($55.8K/month)
As a software developer, you could leverage your technical skills to start an AI-based business solution that helps companies streamline their operations. AI can optimize various business processes such as customer service, inventory management, data analysis, and personalized marketing. This creates opportunities to enhance efficiency, reduce costs, and enable data-driven decision-making for businesses.
By automating repetitive tasks and providing valuable customer insights, AI tools can allow businesses to focus on higher-value activities. With the growing demand for AI solutions, you could enter a rapidly expanding market and provide competitive advantages to your clients. Given your background, developing and implementing an AI-based solution could be a strategic move to supplement your income and make a lasting impact in the business world.
How much you can make: $4,000 — $120,000/month
How long does it take to build: 125 days (?)
Mikkelsen Twins grew an online education company from scratch with over 800 students, making over 6-figures in profit every month thanks to their successful program, Audiobook Income Academy 2.0.
10. Make passive income with an online course sales business ($85K/month)
As a software developer, starting an online course sales business could be an effective way to supplement your income. By leveraging your coding and technical skills, you could create courses on popular subjects like web development, mobile app development, or data science. Sharing what you already know allows you to earn money while helping others learn valuable skills.
To get started, you would need to identify a target audience and design a course tailored to their needs. You could then sell your course on an online learning platform. With the e-learning market expected to be worth over $645 billion in the next few years, there's ample opportunity for you to carve out a profitable niche in this growing industry.
How much you can make: $100 — $300,000/month
How much does it cost to start: $2,000 (?)
How long does it take to build: 180 days (?)
A multipreneur shares how she built a successful print on demand side hustle, generating $120,000 per year through multiple brands spread over various platforms.
11. Make passive income with a niche website ($107K/month)
As a software developer, you could start a niche website to supplement your income by sharing your expertise in a specific area you're passionate about. For example, you might create a website that offers tutorials, reviews, or tips about a particular programming language or technology. Your specialized knowledge can help attract an audience that shares your interests.
By investing time in creating quality content and optimizing for search engines, you could drive traffic to your site and build a loyal following. Once your site gains traction, you could monetize it through methods like affiliate marketing, ad placements, or even selling your own digital products such as eBooks or courses. This way, a well-established niche website can become a reliable source of passive income, providing financial benefits while allowing you to share what you love.
How much you can make: $400 — $250,000/month
How long does it take to build: 60 days (?)
DPW (Digital Procurement World) is a fast-growing conference and community in procurement that has more than tripled in revenue since launching in 2019, capping out the year at €1.8 million, with 95% of their growth coming from inbound traffic leveraging LinkedIn and applying social selling techniques.
12. Make passive income with a niche blog ($31.5K/month)
Starting a niche blog could be a practical way for you to earn extra money as a software developer. You could focus on topics that you're already passionate about or knowledgeable in, such as coding tutorials, software development trends, or reviews of the latest programming tools. By creating unique and informative content like articles, how-to guides, and product reviews, you could build a loyal audience interested in your expertise.
Once your blog gains traction, you could monetize it in several ways. Adding affiliate links to coding tools or online courses, partnering with relevant tech brands, and even growing a YouTube channel for coding tutorials might help you generate passive income. If you enjoy sharing your knowledge and helping others, this side hustle could be both rewarding and profitable.
How much you can make: $100 — $650,000/month
How much does it cost to start: $650 (?)
How long does it take to build: 60 days (?)
Starter Story grew to 1.4 million monthly visitors and millions in annual revenue by sharing the stories of entrepreneurs. Pat breaks down the early days and how he grew the business into something that changed his life.
13. Make passive income with a YouTube channel ($72.1K/month)
Starting a YouTube channel could be an excellent way for you as a software developer to supplement your income. You could create content about coding tutorials, software development tips, or even share your experiences working on real-world projects. This type of content is always in demand, and you could attract a substantial following over time.
By consistently producing quality videos, your channel could earn revenue through ads, sponsorships, and even by selling your own merchandise or services. While it requires a commitment to planning, filming, and editing, the rewards could be well worth the effort. Plus, you could enhance your personal brand in the software development community, opening up even more opportunities for passive income.
How much you can make: $2,000 — $333,333/month
How much does it cost to start: $5,250 (?)
How long does it take to build: 30 days (?)
This case study follows the journey of a young entrepreneur from Nigeria who started a profitable blog generating a monthly revenue of $1,500+ through sales of advertising space, sponsored posts, and information products, and shares his strategies for success including a Twitter growth challenge and guest post pitches.
14. Make passive income with an affiliate marketing business ($77.5K/month)
As a software developer, starting an affiliate marketing business could be a smart way to supplement your income. By promoting other companies' products and services online, you would earn commissions for each sale you help generate. This allows you to leverage your technical skills in web development and digital marketing to create content that attracts potential buyers.
To get started, you could learn how to identify the right products and brands to partner with, such as those related to tech gadgets, software tools, or even educational courses for developers. For instance, you might choose to become an affiliate marketer for an eCommerce store, partnering with a manufacturer, and marketing their products for a commission. This side hustle not only provides a potential passive income stream but also requires a relatively low initial investment, making it an attractive option for entrepreneurial-minded software developers.
How much you can make: $500 — $773,000/month
How much does it cost to start: $700 (?)
How long does it take to build: 60 days (?)
This case study explores how Spencer Mecham founded Buildapreneur, an affiliate marketing business, and has made over half a million dollars in profit with no employees, relying solely on content marketing through platforms like Facebook, YouTube, and TikTok.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
