There are many ways to earn passive income, this method being software development. Software can be a type of both true and term passive income, meaning you can get paid whenever someone purchases your product, or at the end of the month from ads. In my opinion, this is a phenomenal method of generating passive income, and there are a few good ways to with this income medium.
Software is simply a needed program that you distribute to the market, often with the goal of making a profit. There are 2 primary types of software to choose from: mobile apps (app is short for application), and computer apps. Mobile apps are designed for mobile devices such as iPhones, iTouch’s, Androids, etc. Computer apps are those made for desktop or laptop computers. The advantage to writing software is that it continues selling, and can continue to be sell for years, making you money for a long time. The downside however is that there are many various skills you need to know before you can make the most money from this method.
Software Writing Process
The first step to the software writing process is getting an idea. If you do not know what to make, how can you make anything? Personally, I see this as the hardest part of creating software. If you do not have a good idea, people will not download your app. The best way to get ideas is to try to find something in your life that isn’t as good as it could be. You then fill this need with your app. Also, you could just happen to either think of or hear a good idea that would entertain people, such as the popular app “Face Swap.”
The next step is to plan anything and everything about the app. This includes what it will look like, how it will work, how it will interact with a server etc. You need to include everything here, especially if you are paying someone else to write your app. Know where every button and image will go. You can change this later, but it is a lot easier to plan it all out here.
This is the step where you actually create the program: the writing stage. There are two ways you can do this: outsource the writing, or write it yourself. The advantages to outsourcing are that you save a lot of time, and don’t have to know any programming skills. However, it also costs money and it is hard to communicate exactly how you want the app to work and look to the writer. If you do it yourself, you can make it exactly how you want it, and it is free. The downside is that you have to learn programming skills and languages, plus it takes up a big chunk of your time.
The testing stage is very important and should not be overlooked. This is when you make sure that all of the written code works, and the program is exactly how you want it. This stage can take a long time, but is very important. If your program doesn’t work, why would people buy it? This also leads to TONS of angry buyers: the people who didn’t read the reviews about it not working. It is ok to release it with a few MINOR bugs, as you can fix these later.
Once you finally have a perfectly working program/application, you are ready to release it to the market. There are many places you sell your program, depending on what device it is for. Mobile apps can usually be placed on a marketplace specific to that device. Computer apps are more versatile. They can be sold on a personal page, blog, or an online app marketplace. You also need to continually update the app to work out any bugs you may have forgotten, and also to make it better by adding new features. Now to being making money!
Monetization of Software
The first way to generate income with software is direct sales. This is when you first write the program, then sell it for a set fee to anyone who buys it. The difficult thing about this method is picking a price. You do not want to price it so high that people will not buy it, yet you don’t want to give it away for less than its worth. You need to price it based on demand, competition, and the amount of time you put into making it. If done right, directly selling an app can majorly pay off, and generate a decent amount of passive income.
The second way to generate income with software is ads. You can put ads anywhere in your app, and if people click on them, you get paid! My only advice here is to not be too intrusive with the number and placement of ads. Consumers detest too many ads, especially if they accidentally click on them when they don’t mean to. Ads are the main source of income for free programs, and usually generate slightly less than direct sales, though can make more.
Many programs, primarily mobile apps, offer ad-on’s for their programs. This could be anything from them paying for extra in-game coins, to a new map on a shooting game, to a new plugin for a word processor. The income from ad-on’s can vary depending on how obsessive or important your program is, and how many people use it. Generally, these make less than the other two types of monetization, but there are those special cases where this method generates a solid amount of income.
Obviously, the best way to earn money from your software is to combine all of the methods. If you sell it for a price, then get money as the people who paid to buy it click on ads and purchase add-on’s, you will have a great income stream. And the best part: you don’t have to do a thing after releasing the program (unless you want to), making it completely passive.
I hope you enjoyed this article about software, and are now ready to go and generate passive income with it! Please visit my article, “What is Passive income” to see other types of passive income.