Passive Income Ideas For Software Development Managers [2024]
Interested in earning passive income as a software development manager in 2024?
We put together a few of the best passive income ideas you can start as a software development manager 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 development manager.
Here's the full list:
1. Make passive income with an email marketing tool ($992K/month)
As a software development manager, starting an email marketing tool could be an excellent way to make extra money and eventually generate passive income. With your technical skills and understanding of how software works, you could design an email tool that is more intuitive and user-friendly than existing options. This could help busy entrepreneurs, startups, and even real estate agents efficiently manage their email campaigns.
The email marketing industry is projected to reach $2.53B by 2028, so there's significant market potential. Given that email marketing is one of the most effective marketing channels for generating leads and increasing sales, creating a robust email tool could open up opportunities for recurring revenue through subscription models. Furthermore, setting up the basics of an email marketing tool is straightforward, meaning you could potentially get your business running with just a domain and hosting account.
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 an AI writing tool ($255K/month)
As a software development manager, you could leverage your technical expertise to create an AI writing tool that caters to the growing need for quality content. This tool could help businesses, bloggers, and students generate accurate and engaging content quickly and efficiently, reducing the time and effort traditionally required for writing.
By embedding artificial intelligence into the core of content creation, you could offer a solution that creates automated, error-free content at the click of a button. This innovation not only meets the market demand but also showcases your ability to develop cutting-edge technology, positioning you as a leader in the digital transformation of writing.
Furthermore, by commercializing this tool, you could generate a steady stream of passive income, as users subscribe to benefit from its time-saving and productivity-boosting features. This venture allows you to capitalize on your existing skills while contributing to the future of content creation.
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.
3. Make passive income with an ai based business solution ($55.8K/month)
If you're a software development manager looking to supplement your income, starting an AI-based business solution could be a smart move. One possibility is to leverage AI to optimize various aspects of business operations, such as customer service, inventory management, or data analysis. With your background in software, you could develop or customize AI tools that automate repetitive tasks, provide valuable customer insights, and predict market trends.
The demand for AI solutions is rapidly growing as businesses seek to enhance efficiency and reduce costs. Even if you’re new to AI, many platform providers offer user-friendly interfaces and robust support systems to help you get started. By focusing on high-impact areas and having a solid implementation plan, you could tap into this expanding market and create a new stream of passive income.
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.
4. Make passive income with a cold email service business ($170K/month)
Starting a cold email service business could be a great way to supplement your income as a software development manager. You could use your strategic thinking and problem-solving skills to craft compelling email campaigns that get through to prospective clients. Your familiarity with software tools would also be handy, as you’d need to track metrics like open rates and conversions to show results to your clients.
Additionally, the market for lead generation is always robust, especially for small businesses looking to grow. By starting small and delivering solid results, you could expand your client base over time. This business combines your existing technical know-how with marketing skills, making it a consistent and scalable source of passive income.
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)
As a software development manager, starting a mobile app could be a great way to supplement your income and leverage your existing skills. You already understand technical concepts, project management, and team coordination, making the transition smoother. Whether you want to solve a common problem or create a game, the possibilities are endless.
By focusing on planning the user experience, designing engaging interfaces, and testing for functionality, you could ensure your app meets high standards. Plus, with the increasing reliance on mobile apps, there is a massive potential for your app to gain traction. Marketing your app effectively is crucial to attract users and achieve downloads, turning your side project into a source of 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 lead generation tool ($108K/month)
As a software development manager, you could leverage your technical skills to create a lead generation tool. This tool would help businesses automate the process of finding potential clients by collecting data from websites, social media, and other digital touchpoints. By making it easier for companies to acquire valuable information like email addresses, phone numbers, and customer interests, your tool would save them time and effort, allowing them to focus on converting these leads into paying customers.
Given the high demand for efficient lead generation solutions, this could be a lucrative opportunity. Businesses of all sizes are looking for ways to streamline their marketing and grow their customer base. By developing a lead generation tool, you could tap into this need, creating a steady stream of passive income while making a significant impact on the efficiency of various marketing teams.
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.
7. Make passive income with a wordpress plugin business ($33.4K/month)
As a software development manager, starting a WordPress plugin business could be a practical way to generate passive income. Since WordPress powers a significant portion of websites on the internet, there's a constant need for plugins that can solve common issues or add valuable features. If you've identified a specific problem during your management experience, you could develop a plugin to address it and potentially see a steady stream of income from sales.
You could sell your WordPress plugins on online platforms like CodeCanyon, your personal blog, or even on a dedicated website. Over time, with good marketing and continuous updates, your plugin could become popular, providing a reliable passive income stream that complements your primary role.
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.
8. Make passive income with a niche website ($107K/month)
As a software development manager, you could supplement your income by creating a niche website. This would involve selecting a specialized topic you are passionate about and knowledgeable in, then developing engaging content to attract a dedicated audience. Over time, as you build valuable resources for your readers, you could monetize your site through affiliate marketing, ad placements, and selling digital products.
Starting this type of venture requires some upfront effort in research, content creation, and SEO. However, once established, your niche website could evolve into a dependable source of passive income. It's a great way to leverage your expertise and interests, turning them into a rewarding side project that fits into your existing career.
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.
9. Make passive income with a niche blog ($31.5K/month)
Starting a niche blog could be an effective way for you to earn extra money by sharing your expertise on a specific topic within software development. By focusing on areas like agile methodologies, team management techniques, or even software architecture best practices, you could attract a dedicated audience interested in your insights.
Once you identify your niche, create unique and informative content such as how-to guides, top product lists, or interviews with industry leaders. Over time, you could monetize your blog by incorporating affiliate links, collaborating with relevant brands, or even speaking at events. With consistent effort, this side project could turn into a source of passive income while allowing you to engage deeply with a community that shares your professional passions.
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.
10. Make passive income with an affiliate marketing business ($77.5K/month)
As a software development manager, you could look at affiliate marketing as a practical way to supplement your income. Given your expertise in the tech field, you could choose to promote products and services that you are already familiar with and that are relevant to your audience. This makes your recommendations more authentic and increases the likelihood that others will trust your advice, making meaningful conversions.
You could start by identifying tech products or software tools that you find valuable and become an affiliate for those companies. By sharing your insights and reviews through blogs, social media, or a YouTube channel, you could earn commissions on sales without much additional effort on your part. This venture aligns well with your existing knowledge and could turn into a steady stream of passive income over time.
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.
11. Make passive income with an online survey tool ($304K/month)
As a software development manager, you could leverage your technical expertise and project management skills to create an online survey tool. This tool can help businesses easily gather customer feedback, offering a convenient and cost-effective way to collect data from large groups of people. You could develop features such as a survey builder, a data collection tool, and a reporting system to make it user-friendly and attractive to businesses.
This is a growing market, with more companies recognizing the value of online surveys to improve their services and develop new products. Creating a tool similar to Typeform, which reported surpassing $70 million in annual recurring revenue in 2021, shows the lucrative potential of this venture. Your background in software development management would be advantageous in ensuring the tool is efficient, reliable, and scalable, making it a promising path for earning passive income.
How much you can make: $40 — $1,600,000/month
How long does it take to build: 180 days (?)
GreenRope, a self-funded CRM and marketing automation platform with over 1,000 customers in 20 countries, was built organically and focused on creating a positive, customer-centric culture without outside investment, with an all-in-one interface solving challenges in managing sales, marketing, customer service, and operations.
12. Make passive income with a social media automation business ($139K/month)
As a software development manager, you could leverage your technical skills to start a social media automation business that generates passive income. By creating tools to schedule posts, automate interactions, and analyze data, you could help businesses and influencers manage their social media more efficiently, saving them both time and effort.
Given the growing need for consistent social media engagement, the demand for such automation solutions is on the rise. Your expertise in development and understanding client needs could position you well to create impactful software tools that clients are willing to pay for. This venture not only allows you to use your technical capabilities but also taps into the expanding social media landscape, potentially yielding a lucrative side income.
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.
13. Make passive income with a dropshipping business ($414K/month)
As a software development manager, you could supplement your income and explore passive income opportunities by starting a dropshipping business. Since this business model eliminates the need to hold inventory, it allows you to focus on selecting and marketing products without the hassle of storage and shipping. Platforms like Shopify or WooCommerce make it easy to set up an online store, and you could use your tech skills to optimize and automate various aspects of the business.
To get started, you could choose a specific category or niche that interests you and find reliable suppliers through platforms like AliExpress. With some initial effort in setting up the store and finding good suppliers, a dropshipping business could run smoothly while you continue to focus on your main career. Managing expenses and keeping a close eye on profit margins would be important to ensure that your side hustle remains profitable.
How much you can make: $6,000 — $3,000,000/month
How much does it cost to start: $8,500 (?)
How long does it take to build: 90 days (?)
Time commitment per week: Min. 10 hours/week
Entrepreneur Kamil Sattar has developed multiple six-figure drop shipping businesses, and his company, e-commerce mentoring, specializes in helping others create their own successful companies, with favorite platforms including using Shopify and apps such as Loox reviews and SMSBump.
14. Make passive income with an online course sales business ($85K/month)
As a software development manager, you could leverage your expertise to create and sell online courses tailored to those aspiring to enter the tech industry or improve their skills. Given your experience, it makes sense to develop courses on topics like project management, coding best practices, or team leadership. These subjects are in high demand, and many people are willing to pay for quality education in these areas.
Creating online courses allows you to share your knowledge while generating passive income. You could select a target audience, craft a curriculum, and then sell it through an online learning platform. Considering the e-learning market is projected to grow significantly, this could be a lucrative and sustainable side hustle.
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.
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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.
