8 Best Passive Income Ideas for a Software Engineer

8 Best Passive Income Ideas for a Software Engineer
August 14, 2021

Being keen on entrepreneurship or new business startups, but feel a lack of experience and large investment? Do you have problems getting your startup running smoothly and no idea how to do that?

Now it's time to read this article about the 8 best passive income ideas for a software engineer. It will awe you with valuable information about the great opportunities out there waiting for you. There are smart ways to make money quickly and without much upfront work.

1.Find a problem in your domain and develop a solution for it.

You know what are the problems in your domain or industry that you or your clients face daily. You have to do some repetitive tasks or hard work for small tasks.

Let's take an example if you are in the financial domain if you have to do some calculations daily and you do it on a calculator or excel sheet and you cant automate it on excel.

So for this, you can develop software for a mobile app that can do this task and you can also publish it for others. This is just an example for the finance domain you have to think what are the repetitive task you need to do or other people are facing the problem for it. You can earn extra money by placing ads or charging monthly/year fees for your service. So you can earn money from these types of websites or apps while you are sleeping.


Blogging is a great way to generate passive income if your blog has already got some traction - which usually means that you have written up an extensive number of high-quality posts of your niche.

Creating your own blog can take some time and effort, but the benefits are great. There are many ways to monetize your site including selling products, advertisements, affiliate commissions, donations, or any other way you can think of.

You can start blogging a website in few hours by setting a WordPress blog on GoDaddy or BlueHost. If you want to start a technology blog without any investment you can start it on Medium or Dev.to

3.Develop a microservices Website or Mobile App

When you write code then sometimes you require hex value of color code and then you find it on google, when you have to test any function quickly then you search on google online <Programming language> compiler/editor.

Do you realize these small services we need daily and those who had developed this website earn income by placing the ad on their website? So you can also start making a website or mobile app which provides a small service which will need us in our daily life. 

How to earn money by developing a Mobile App

  1. By Placing Ads in the App
  2. Make app Paid on App Store
  3. In-App purchase

How to earn money by developing a micro-service website

  1. Affiliate Marketing
  2. By Placing Google Ads
  3. Sponsored Ad Banners

4.Be an Instagram Influencer 

The organic reach of Facebook posts is decreased. Now everyone is moving towards Instagram influencer marketing. So many brands come to Instagram influencers to promote their product or post. They give us 10$ to 300$ per post to promote their posts.

Start sharing your knowledge, create good content which adds value to followers' life. Short tips to Increase followers are:

  • Know what your audience wants
  • Choose big audience niche
  • Create a good looking post


Ebooks, with Kindle Direct Publishing or KDP, are a great way to build a brand. You can sell them for as much as you want, set the price for free, and allow your audience to access them. Amazon does all conversion between formats

Through the Amazon Kindle Store, you can publish books easily (and without upfront costs). People can buy your book and read it on their smartphone, tablet, or other mobile devices. Payments go directly to your bank account.

6.Amazon FBA (Work Hands-free)

Amazon FBA or Fulfillment by Amazon is a service provided by the company where sellers can list and sell their products, and then Amazon will handle all the processing, warehousing, wholesaling, packaging, and logistics. If you know the best physical products that can be sold online and you have to start quickly without investing time and money then this is the best option for you.

Once you list the items and set the process it can become a source of passive income.

Check this blog to know more details about Amazon FBA - Link

7.Publish video course on Youtube or Udemy 

This is a great source of extra income, blogging may take time to bring money for you but on the video tutorial, you can earn more money instantly (on Udemy).

Create an advanced course in simple language which can understand easily so people will recommend it to their friends. Now Youtube is the 2nd most used search engine and the number of students on Udemy growing exponentially. So you can publish a tutorial there to bring extra passive income.

8.Invest in Stocks and Mutual funds

Stocks and mutual funds are good ways to generate passive income, and you can do it by buying a very small amount of shares. Pick good stock or mutual fund which pays good dividends. If you are willing to take a risk and want more returns then prefer investing in stocks, otherwise invest in mutual funds or index funds.

If you have a big portfolio you can take service from experts in Stock Market who manages your portfolio and give you Buy and Sell Calls by studying the companies and business.

Here is a good article you can read: How to Pick a Stock: Basic Best Practices for New Investors

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