12 Passive Income Ideas For Software Engineers [2025]
Interested in earning passive income as a software engineer in 2024?
We put together a few of the best passive income ideas you can start as a software engineer 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 engineer.
Here's the full list:
1. Make passive income with an ai based business solution ($55.8K/month)
Starting an AI-based business solution could be a smart way for software engineers to supplement their income and tap into a growing market. By leveraging your skills in coding and software development, you could create AI tools that streamline business operations, automate repetitive tasks, or provide valuable data analysis. This could help businesses improve efficiency and make better decisions, which makes your AI solutions highly valuable.
With AI being in high demand, the market opportunities are substantial. Companies are constantly looking for new ways to gain a competitive edge, and your AI-based solutions could offer that. Even if you're new to entrepreneurship, many platforms provide easy-to-use interfaces and strong support, making it feasible to develop and implement these solutions with minimal hassle.
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.
2. Make passive income with a mobile app ($70.3K/month)
Creating a mobile app could be a great way for you to make extra money as a software engineer. You already have the coding skills necessary to bring your idea to life, which gives you a huge advantage. By focusing on creating an app that addresses a common need or provides entertainment, you could reach a large number of users and potentially earn substantial revenue.
The process involves planning the user experience, designing engaging interfaces, and testing for any functionality issues or bugs. Even if you don’t have expertise in every area, you could hire specialists to assist with design and marketing. Your technical know-how combined with a clear vision could significantly increase your chances of success in the app market.
Considering that mobile apps are now a fundamental part of daily life, there's a huge opportunity here for innovative solutions. If you have an idea that’s both practical and unique, dedicating time to develop a mobile app could be a worthwhile venture.
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.
3. Make passive income with a wordpress plugin business ($33.4K/month)
As a software engineer, starting a WordPress plugin business could be a great way to earn passive income. If you've used WordPress, you already know how indispensable plugins are for running a successful website. By developing a plugin that solves a specific problem or fills a particular need, you could earn income from each sale of that plugin.
You could sell your plugins on platforms such as CodeCanyon, on your own blog, or even create a dedicated website for your plugins. This allows you to Supplement your income while leveraging your existing skills. By focusing on creating valuable solutions, you open up the possibility for a steady stream of income with minimal ongoing effort.
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.
4. Make passive income with a niche blog ($31.5K/month)
Starting a niche blog could be a fantastic way for you as a software engineer to share your unique perspective and knowledge with a passionate online community. By focusing on a specific topic that interests you, like tech tools, coding tutorials, or software development trends, you could create valuable content that attracts readers who are eager to learn from your expertise.
The first step would be to identify a profitable and underserved niche within the tech industry. From there, you could produce engaging content, such as how-to guides, top product lists, or commentary on the latest software innovations. Over time, as you grow your audience, you could monetize the blog through affiliate links, brand collaborations, or even speaking opportunities at tech events.
By consistently creating quality content and interacting with your followers, you could build a reputable online presence that not only supplements your income but also opens doors to various entrepreneurial ventures.
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.
5. Make passive income with a lead generation tool ($108K/month)
As a software engineer, you could leverage your coding skills to develop a lead generation tool that helps businesses attract the right customers. This type of software collects potential customer leads from various digital touchpoints, such as websites and social media channels, automating the time-consuming process of client acquisition.
By gathering valuable data like email addresses, phone numbers, and interests, your tool would enable companies to focus on converting these leads into paying clients. Given the high demand for efficient lead generation, businesses of all sizes are eager to streamline their marketing efforts, making this a potentially lucrative venture. If you’re tech-savvy and interested in marketing, creating a lead generation tool could be the perfect opportunity for you to start earning passive income.
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.
6. Make passive income with an AI writing tool ($255K/month)
As a software engineer, you could leverage your technical skills to create an AI writing tool, tapping into the rapid advancements in technology. By developing a tool that automates content creation, you would be offering a solution that generates accurate and engaging content, beneficial to businesses, bloggers, and students alike. This kind of tool could greatly reduce the time and effort it takes for writers to produce high-quality work, making writing more efficient and less error-prone.
Embarking on such a project allows you to explore the innovative realm of artificial intelligence, proving not only your coding prowess but also recognizing a substantive market need. Today, there’s a constant demand for quality content; an AI writing tool could cater to this need by boosting writers' productivity worldwide. By integrating AI into the heart of content creation, you could make your mark on the digital world while generating passive income.
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.
7. Make passive income with a social media automation business ($139K/month)
As a software engineer, you could leverage your coding skills to start a social media automation business. This means you could create tools that schedule posts, automate interactions, and analyze data for multiple social media accounts. Essentially, you would be helping small businesses and influencers grow their online presence without having to manually manage each interaction.
Given the increasing demand for automated solutions to enhance social media engagement, you could find a steady stream of clients willing to pay for your services. You'll need to stay current with social media trends and customer preferences to provide effective solutions. If you enjoy both technology and marketing, this entrepreneurial path could offer both financial rewards and personal fulfillment.
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.
8. Make passive income with a niche website ($107K/month)
As a software engineer, you could easily leverage your expertise to start a niche website, combining your technical skills with a potential source of passive income. A niche website focuses on a specialized topic that you're passionate about, enabling you to create targeted and compelling content for a dedicated audience. This could be something related to your day-to-day work, like coding tutorials, tools reviews, or productivity tips for developers.
To get started, you'd select a niche, create high-quality content, and work on driving traffic to your site through SEO and social media. Over time, you could monetize your site through affiliate marketing, ad placements, or selling digital products like eBooks or online courses. Although this project requires upfront effort and ongoing optimization, once your website gains traction, it could provide a steady stream of passive income alongside your main job.
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 an email marketing tool ($992K/month)
As a software engineer, you could leverage your coding skills to build an email marketing tool, which helps businesses create, manage, and automate email campaigns. This type of software is highly sought after, as email marketing is one of the most effective ways to generate leads, increase sales, and reach more customers compared to a blog or website.
The email marketing industry is flourishing, with the global market expected to hit $2.53 billion by 2028. By developing an email tool, you could tap into this growing market, offering your product to entrepreneurs, startups, and even sectors like real estate. The technical expertise you already possess would give you a strong foundation to create a reliable and user-friendly tool while also allowing you to generate passive income.
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.
10. Make passive income with an online course sales business ($85K/month)
As a software engineer, you could supplement your income by creating and selling online courses. People are always eager to learn new skills such as coding, web development, or software design, and as someone with expertise in these areas, you have valuable knowledge to share. The e-learning market is booming, expected to reach over $645 billion in the near future, which means there's a huge demand for your skills.
To get started, you could identify a target audience and create a course that addresses their needs. Choose an online learning platform to host and sell your course. Once your course is live, it could generate passive income as people enroll and learn from your expertise without requiring continuous effort from you.
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 web scraping API ($34.2K/month)
Starting a web scraping API could make perfect sense if you're a software engineer looking to supplement your income. By utilizing your coding skills and knowledge of web protocols, you could develop a service that automatically extracts data from websites, saving businesses valuable time and effort. Companies often need this kind of service for tasks such as market research, competitor analysis, or content aggregation.
The versatility of a web scraping API means you could target a wide array of industries, starting with a specific niche and expanding over time. Given the rising importance of data analytics in business decisions, a reliable web scraping API offers real potential for consistent passive income. Investing your effort into setting up and maintaining such a service could turn out to be a profitable venture while leveraging your existing technical expertise.
How much you can make: $50 — $125,000/month
How much does it cost to start: $900 (?)
How long does it take to build: 105 days (?)
PlanIt is a travel recommendation and planning platform that has seen compelling growth in database coverage and user growth, covering every country in the world with several thousand users and a large SEO focus as well as a growing interest from travel and lifestyle businesses to list their details.
12. Make passive income with a YouTube channel ($72.1K/month)
As a software engineer, starting a YouTube channel could be an exciting and profitable side hustle. You could share your knowledge on coding, debugging, and various software tools with an audience hungry for such expertise. By creating tutorials, reviews, or even daily vlogs about your career, you could both educate and engage a community of like-minded individuals.
Monetizing your channel through ads, sponsorships, and merchandise offers a passive income stream that complements your main job. While it requires consistent effort to create quality content and engage with your audience regularly, the potential rewards make it a worthwhile investment of your time. With dedication, your channel could provide both financial benefits and personal satisfaction.
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.
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.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
