Software Developer

How Profitable Is A Software Developer? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is A Software Developer? (Updated for 2024)

So you want to start a software developer?

And the first question that came to your mind was, “well, are software developers actually profitable?”

With a market size of $581B - there’s plenty of business to go around.

Especially considering:

You could start a software developer with as low as $30
Based on our data, software developers generate an average of $67.3M per year
You could see gross margins as high as 89% with software developers

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a software developer.

Let’s dive in!

Is a software developer profitable?

Yes, a software developer is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $67.3M per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your software developer.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your software developer is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a software developer worth it?

If you’re wondering if a software developer is worth it, the answer is a big YES. With software developers, you have the potential to earn $67.3M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $581B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a software developer to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful software developers case studies.

Examples Of Profitable Software Developers

Here are a few examples of profitable software developers, and a few more details about them:

1. SkyVerge, Inc. ($4.2M/year)

Max Rice, the co-founder of SkyVerge, came up with the idea for the business while working as an IT Director. He reached out to Justin Stern, who was knowledgeable about WooCommerce, for help with an eCommerce project. The successful collaboration led them to start SkyVerge, which now generates $350,000 in monthly revenue and provides software tools for over 100,000 eCommerce brands.

Is it profitable? Yes
How much money it makes: $4.2M/year

How We Started A $350K/Month Business Developing Software Tools For Ecommerce Brands

SkyVerge, a software company, has grown rapidly with revenue of $350,000 per month, over 100,000 eCommerce customers, and a globally distributed team of 30 people, all through starting with consulting projects and building focused and solutions-based products, acquiring small products from other developers, and focusing largely on content marketing and providing excellent customer support.

Read this case study

Read by 39,881 founders

2. Epixel Solutions ($1.8M/year)

Sajin Rajan, co-founder of Epixel Solutions, came up with the idea for the company after attending a trade show and realizing the difficulties faced by product-selling companies in the direct selling industry. He saw an opportunity to provide a stable and advanced MLM software solution to help these companies manage their business more effectively. Since launching in 2015, Epixel has experienced impressive growth, with a monthly revenue of $70,000 and a client base that includes direct selling, MLM, blockchain, cryptocurrency exchanges, and more.

Is it profitable? Yes
How much money it makes: $1.8M/year

How I Started A $70K/Month Business Selling Software For MLMs

Epixel Solutions, LLC provides MLM software as a complete solution to manage and organize direct selling and MLM businesses, and has seen significant growth since launching, currently making a monthly revenue of around $70,000 and completing over 200+ projects in different sectors around the world.

Read this case study

Read by 7,694 founders

3. ScrapingBee ($1.5M/year)

Pierre de Wulf leveraged his experience as a data engineer and reused code from a failed startup to launch ScrapingBee in 2019, which now generates $1.5 million annually.

Is it profitable? Yes
How much money it makes: $1.5M/year

How Pierre de Wulf Built ScrapingBee to $1.5 ARR in 2 Years Without VC Funding

This case study showcases how ScrapingBee, a web scraping API, was built on a shoestring budget using a mix of tools and outsourced services, achieving impressive growth through SEO content and targeted marketing strategies, with revenues averaging $125K/month, generating $1.5M/year since 2019.

Read this case study

Read by 382 founders

Learn more about starting a software developer:

Where to start?

-> Software developer plan
-> How to finance a software developer?
-> How much does it cost to start a software developer?
-> Pros and cons of a software developer

Need inspiration?

-> Other software developer success stories
-> Marketing ideas for a software developer
-> Software developer slogans
-> Software developer names
-> Software developer Instagram captions

Other resources

-> Software developer tips

How much can you make with a software developer?

With a software developer, you can make an average of $67.3M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $30. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a software developer make a week?

Based on our data, average weekly revenue for a software developer ranges around $25.8K. As such, you could see monthly revenues of $103K.

To know if your software developer achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your software developer.

How much do software developers owners make?

The income of a software developer owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established software developer is about $25.8K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a software developer owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Software Developer Profit Margins

Generally speaking, a software developer can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a software developer, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, software developer owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, software developer owners can ensure long-term sustainability and profitability for their business.

Software developer owner salary

The salary of a software developer owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established software developer, in a prime position, might see an average weekly salary around the ballpark of $21.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a software developer may be a promising business to start - but the success of your software developer mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable software developer.

Part of

Becoming A Software Developer: Everything You Need To Know

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