Passive Income As A Developer: HOW? ($2000/Month Or More!)

Passive Income As A Developer: HOW? ($2000/Month Or More!)

Hey, what’s up? John Sonmez here from I’m going to answer a question today about
how can I make passive income as a programmer, as a software developer? What’s my favorite kind of income? Passive income. Passive income is my favorite kind of income. There’s no income better than passive income. Robert asked this question. He says, “Hi John, I’m a big fan of your Real
Estate videos and you encouraged me to start investing in rent units.” What does Robert say? He says, “Notwithstanding the fact that programmers
have a reasonably high salary compared to other profession, it is not nearly enough
to invest in rent units at least once a year as you did.” It is enough, but it depends on what your
goals are. “You did alright with the PluralSight courses,”
I did more than alright, “But what other ways are there to make a passive income?” Okay, so first of all let’s talk about like
if you just did the rental. Actually, before I even get into this I want
to give you a reference and link from a buddy of mine, I interviewed him on this channel,
MJ DiMarco has a great book called The Millionaire Fastlane. You need to read this book. You really need to read this book. I’m serious. You need to read this book. Everyone needs to read this book. He debunks some of the stuff about especially
compound, the power of compound interest. I hate compound interest. It’s ridiculous. It’s a great concept, but so many people bank
on it and it takes so long. It takes so long. So first of all, even if you just did the
real estate that is enough. Here’s a simple plan for generating passive
income and becoming wealthy, real simple plan. You’ve got to start young though. Let’s say you’re 20 and you buy a house every
year, one house, everyone can do this if you’re a software developer. You’ve got to scrunch and save and put down
the down payment, but you could do it. You might buy somewhere in the Midwest where
the houses are cheap. You buy one house every year and you rent
that house out. In 15 years, so let’s say you’re 20. In 15 years you’ll be 35. In 15 years you take the first house that
you bought that you’ve had for 15 years and you sell it. Now, true or false, it’s going to worth at
least double what you paid for it in 15 years? True. Do the math. Do the numbers. Look back at the housing prices from 15 years
ago. Almost always—it’s almost guaranteed that
it’s going to at least double. It might even triple. It probably would be a 1.5 is probably what
you’re expecting there. You’re going to get a pretty good amount of
money, enough to live off of for sure. Then the next year what do you—then what
do you do that year? You buy another house, you keep buying a house
because you take some of that money. Let’s say you bought a house originally right
now for $100,000. I’m just going to use round numbers to make
it easy. Then 15 years from now let’s say it’s worth
$200,000. So, you take the $100,000 that you’ve got
and you take 20 out of it or 10 out of it and you buy another house and then you take
the rest of it and you live off of that. You keep on rolling this forward and keep
on buying houses. That’s a guaranteed way. You’re going to have guaranteed income, it
might not be a huge amount of income, but you’re going to have guaranteed income for
the rest of your life just by doing that, just by buying one house a year. It will take 15 years. If you really want to make sure that you make
enough money, wait until you’re 40 and hold on to the house for 20 years. If you really, really want to make sure you
could do it 30 years, but it’s as guaranteed way that you’re going to become wealthy and
you’re going to retire. You’re going to be able to make—there’s
no way that this plan doesn’t—I’m not going to say there’s no, but there’s practically
no way that this fails. I want to say that just so you know that this
is a possibility, but it does take some time. that’s not necessarily the only way to make
passive income. That’s what this question was, what other
ways are there to make passive income? There’s about a million. When I was first trying to figure this out,
I read a book a while—a long time ago, that first got me this way of thinking called Rich
Dad Poor Dad. I know some of you don’t like Rich Dad Poor
Dad, I don’t care if you like it or not. It’s a fuckin’ good book because it changes
your mindset. If you ever read the book it’s really good. I don’t care what Robert Kiyosaki did to make
his money or what, or if he’s a hypocrite or not, he’s got good ideas in the book and
it will change your mindset. After I read that book I couldn’t figure out
how to make passive income. The only thing I could come up with besides
real estate was gumball machines. So, guess what I did? I bought a bunch of gumball machines. Actually, if you look at—in my book, in
Soft Skills: A Software Developer’s Life Manual, I’ll link to that here, go check that out. Go buy a copy of the book. I have a photo of me standing—filling gumball
machines. I’ll tell you, there’s nothing more fun in
life than going through Costco and filling a whole shopping cart full of fuckin’ candy. That is the most wonderful experience anyone
could have in life, because I had to fill up like 16 candy machines, gumball machines,
various candy machines with candy. It was a wonderful sublime experience. Anyway, that worked. I did generate some passive income. Now what I would recommend, I would have done
it differently today, but a coin operated business is one way to make passive income. Now, today, I could tell you a million ways
to do it. I’ll just toss out some ideas here. One of them that I’m working on right now
that I was just telling someone about and maybe I’m blowing the secret on this is make
a whole bunch of Amazon books. Make Kindle books. Make one a week or one a month—one a month,
one a month. Just pick a book, a topic, 10, 20,000 words
pump it out, write it out, sell it for 99 cents or $1.99 and you keep on doing that
and in 12 months you’ll have 12 books. If you did one a month I guarantee you’ll
generate some passive income, probably a couple of grand a month at the end of a year, maybe
even more. If you did 100 books, imagine where you’d
be. The same thing with audio books, another thing
here. A lot of my passive income from a while came
from the blog, from Simple Programmer. How do we generate passive income—”passive
income” at Simple Programmer? No income is truly passive, but as close as
possible, the blog, right? You have a blog. You write blog posts for it. It continues to generate traffic for years
if you’ve got good SEO content in there, especially if you’ve got Evergreen content
and you have ads on there or you sell a product on there that automatically generates revenue. It’s basically passive, if you think about
it, because yes, I’m doing these videos and stuff, but if I stop doing the videos and
I stopped doing blogposts I would continue to generate money for probably a few years
because I’ve created that engine. Another thing that you could do is you can
buy rights to things. There was an auction site that I was thinking
about, auctioning off my PluralSight courses and they sell rights to music. You can buy rights to music or film. A lot of artists they—I don’t know about
you, but a lot of famous people they tend to want to spend more money than they have,
so what do they do? They sell the rights to their music or to
their movies. You can get a share on that every time that
it plays on the radio. That’s an investment that you could make. There’s a ton of ways to do this. You’ve got to think outside the box. What kind of thing can you buy or can you
create that’s going to keep on generating you money. Books are a good one, resources, anything
that’s going to be evergreen. Anywhere you can use someone else’s marketplace
to sell something, apps in the app store is an example. Some SAAS businesses. I know a guy—I was just talking to this
guy, he built an app that is a typing test. It just tells you how many words per minute
you type and he’s making $5000 a month on ads on that site. He doesn’t work on it. He just made it once. It’s a crappy site, I think, I haven’t even
seen it, but he said it was a crappy site and he’s just making money from this. It’s passive income because you came up with
something and through the power of the internet, an SEO, people are finding it and they continue
to find it everyday and they continue to give him money based on the ads. There’s another guy I know that created a
calendar site, a scheduling site, and he doesn’t work on the site. He just built it one time, he made a couple
of changes to it and he’s making several thousand dollars a month. You’ve got to come up with something—you’ve
just got to start thinking and brain storming. There’s a ton of ways to do this that are
possible. Some of them are more passive than other ways,
but if you really sit down and you think about how can you create a renewing resource, something
like that, there’s a ton of ways to do that. Think about any business—every time you
see something, when you look around, I see a Pepsi machine here. Obviously, someone’s making some kind of passive
income off of that. Parking lots here, I see parking lots where
they charge you to park. Especially outside night clubs, they charge
a higher price in the evening. That’s passive income. Someone’s making passive income off of that. Rental properties, obviously, we talked about
already. How about the storage unit places where they
store your stuff. People pay for storage units. There’s a ton of ways. Everything that you see around you, someone’s
making some kind of passive income off of these things. A lot of the—if you don’t see someone actually
selling something and it’s something that you have to pay for, it’s passive income essentially. There’s a lot of models for it and you can
take those models and you can apply them to different places, to the internet and you’ve
just got to think about this. You’ve just got to start getting in the mindset
of thinking about how can you do these things. Most people think it’s impossible so they’ll
say don’t even try, but I definitely recommend—like I said, I’ve given you a lot of resources
here. The book Rich Dad Poor Dad, if you haven’t
read that already it will sort of change your mindset. Heck, the worst case you could start a gumball
business like me, or maybe a coin operated arcade, something like that, something where
you don’t have to be there and you still make money. All right, that’s all I got for you today. If you have a question for me you can always
email me at [email protected] Make sure you click the Subscribe button below. Click the bell, like I say in every video,
so that you don’t miss any videos. I’ll talk to you next time. Take care.

100 thoughts on “Passive Income As A Developer: HOW? ($2000/Month Or More!)

  1. Is it a joke? One year to buy a house, and keep buying houses……Did you remember the crash a few years ago? Not to mention how many developers can buy a house in a year. Also buying a candy machine…to make money….lmao

  2. I can just share with you a fact that real estate investments in Poland would be impossible for a normal employee. It's an investment of at least $50k while earning 1,5$k/mo with a high corporate position. No chance without a loan. Also giant taxes and complicated law.

    Also, it's a lie about house prices (US housing bubble ca 2011)

  3. I was thinking about vending machine business. I am not sure if they make much money.

  4. Just one question: how many twenty year old software developers (which puts them at the midpoint of college) are able to buy a house once a year?

  5. If you charge $500/h yeah, you can buy one house a year.

  6. It depends. In Greece where there is a 9-year long recession, properties lost 40%-60% of their values. In Japan also there was a fall in property prices after the 90s.

  7. Hey John, may I ask where you shot the video? It looks lovely! Greetings from cold and grey Germany!

  8. This is the sort of thing older people should hop onto, especially if they're in danger of severe poverty and homelessness.

  9. passive income as a developer? build a youtube channel for developers and write books for developers

  10. Great advice. I think you can do both as buying real estate does not require much work. Buy real estate and follow this advice for a long term and at the same time look for opportunities that will bring in passive income quicker.

  11. Amazing how Americans already have forgotten that real estate caused the last mega bear market

  12. So you just use affiliate links to make passive income in this video?

  13. Or you could just invest 100K a year instead of buying a house every year. If you can afford a $100,000 house every year, that's about $8300 a month you could invest in the stock market. After 15 years investing about $8300 you could have 3 – 3.5 Million easily (that is if you somehow have an extra $8300 lying around every month!). From there just live off the interest, you'll make 150K to 250K doing nothing! It's so easy everyone should do it! (except not everyone is rich to begin with, I hate videos like this). One final question, where can I get a programming job that will pay me enough to eat and pay rent, in addition to having an extra 100K every year?

  14. Sure, just buy one house every year, it's not like that one house cost something like more then 100 salaries

  15. Man, are you joking? I'm in Eastern Europe. A mid-level front-end developer get a bit more than 1k euro per month. Let's say you get 1500 euros per month. How can you afford a house / apartment with that money? And by the way those wages are for Bucharest, Romania.

  16. Rich Dad Poor Dad is really good, I'll try the fast lane one.

  17. I think real estate is weird and less profitable. But it’s secure and if you want to build your retirement, bet on something that will be here. Computers/website and everything… it move so fast it will generate a lot but won’t last long. As software developer we know it.

  18. You are without a doubt an idea generating machine! Love your book recommendations, fitness tips, real estate ideas, etc., but most of all your inspiration to take action, which is what so many of us need! I see you actually get nervous when you are not in a creative mode, you are absolutely incredible! And you make it fun!

  19. Hmmm this guy's sublime experience was filling a shopping cart up with gumballs from Costco… mine was when my daughter was born I guess we know who's truly richer…

  20. I have even a better idea!
    Lets just buy 5 houses a year and after 15 years you will have 75 houses! then start selling them each a year and live free

  21. So basically you're giving advices that make this world an even more annoying place. Especially that: "make an eBook a week or month". We dont need more guys flooding the (Audio)book market with heartless clickbaity content. We don't need more of those people who are only creating stuff for the intention that some idiots fall for it so the "author's" hedonistic life dreams will be fulfilled. And dont tell me that you can create good books on a weekly period without lacking the content.
    What a bad advice… sorry. You are possibly educating people on how to be content scammers with this.

  22. Most (over 90%) houses never go up in value. You can prove this to yourself by looking up local real estate, finding their sale histories, and then seeing what it sold for in that year's dollars and comparing that to todays dollars. Meaning, dollars were worth a different amount 15 years ago. There are a few sites that do conversions, google it. I did this on a lot of properties where I live, and it's almost scary how exactly the same they are, to the dollar. Obviously exploding areas actually do see value hikes, but the vast majority of the country doesn't go up in VALUE. Goes up in dollars sure, but not comparative value.

    This doesn't mean his plan is bad, it's just important to know you didn't really double your net worth by buying and selling houses 15 years apart. You just kept your money even with inflation.

  23. So, passive income as a developer… how… $2000 month or more…

    tl;dw Spend a lot of money and wait while working really hard

  24. All these bogus life coaches read lot of bogus books

  25. Isn't it true that most books are NOT bought?

  26. didn't knew John Berthal is a programmer

  27. how to make passive income: make shitty youtube videos and drop an ad for 10 different books every few minutes.

  28. Write the app and sell with save 50% of stocks

  29. If you're 20 you're not a software developer and the only way you can afford a house is through debt.

  30. Seems like you have all the financial acumen of a Trump advisor. See you never.

  31. If you make so much money you can buy a house every year… you don't need passive income or investing. You can retire at 35 and just live off the money you saved for the rest of your life. If you choose to invest, you'll just get even richer.

  32. If that's "doing alright" on pluralsight I'd love to be below average.

  33. Where the fuck can you buy a house for 20.000 dollars

  34. buy a house when you're twenty yrs. Get Real dude!? You'd have to be rich anyway to get a loan. Buy a house a year, get REAL man…

  35. Started with a downvote because of the house buying idea, then changed to an arguable upvote about halfway through when you starting talking about writing books, apps, SaaS with ads, etc. The house idea is definitely not attainable for everyone, but the other ideas are (except maybe authoring books) are things most developers worth their salt can do. Thinking outside the box is definitely key and changing your mindset, so kudos on that. 😀

  36. is that even true, doesnt it depend on where you live and stuff?

  37. 10:00

  38. Being a fucking landlord is definitely NOT passive income. Dealing with tenants, contractors and what not is a job, and a boring and annoying one at that. If you want passive income, invest in stock market or buy bonds, then other people take care of things for you (for a price) and you just cash in dividends. Also, a lot easier to make a few clicks to buy a damn index fund than a real estate property {with a much higher chance of getting burnt because of the lumped risk problem). Incidentally, Kiyosaki is a scammer and a clown who got somewhat rich off selling how-to-get-rich books, not real estate.

  39. Absolutely NOT TRUE that it will double in 15 years. You say look at the past? YOU look at the past. If you had bought a house 15 years ago it will have not doubled if you average out all the real estate in the world.

  40. Buy a house an year – either a joke or a video for the top 0.0001% in the market. They won't be looking for passive income YouTube videos anyways… joke it is then.

  41. Passive income as a programmer? How about developing some useful application and selling it to people? Sounds crazy? Well, it is much more probable to succeed than this buying houses selling houses crap…

  42. Thx for being specific about the incomes you talk about and talking stuff to avoid the real topic .

  43. 'developer'

  44. A house a year? Come on now. Starting homes prices are 800K in Toronto, no developer makes that much.

  45. Most of those ways on the internet involve trading your users faith in you/freedom/data for money…

  46. Does no one here take inflation into account? If you buy a house for 100k now and sell it for 200k after 15 years, your 200k will be roughly as valuable as 30k is now.

  47. he looks like jon bernthal

  48. Housing doesn't double in value. Not really. You aren't taking into account purchasing power of the currency. Currencies are worth less, especially the US dollar. Also, there is yet another bubble forming in the housing market, so that will be fun. again.

  49. Let's see. Average house price in London around 500-600KGBP or $750-850K. Average salary for a senior dev ~100K if in finance, or 70-80K any other area. I reckon 10-15 years just to buy 1 house, never mind one a year

  50. When did you start casually dropping f-bombs? Takes away from your authority.

  51. I'm 71…..any suggestions as to how to get rich? HELP! This is also meant to be somewhat funny…….One question: who's is going to manage these properties? A property management company for a fee?

  52. Hi John, I love your videos so far and I have much more to watch. I listened to the intro to your career guide book and found that it does not address the entrepreneur side of software development, which I am most interested in. Can you recommend any books that might? I would consider myself a "beginner" and have been on the slow lane for years working a 9-5 miserably as an engineer. I have read the Millionaire Fastlane and am reading Unscripted now. Your interview with DeMarco got me to buy the book and I don't regret it!

  53. Bullshit at it's finest

  54. guarantee, hahaha


  56. This video is a boat load of stupidity.

  57. He doesn't like compound interest. Wants you to buy 15 houses, if a house market crashes boom. you just lost a lot of money. He is in his 30's, 10 years ago house prices were much cheaper than they were.

  58. for some reason, I get the feeling the guy asking wouldn't be able to tuff it out living in one of the bedrooms of the investment rental, or driving a 12 year old car and skipping the $5000 Omega for a Casio! 15 years delayed gratification would be a lifetime to those people, but more for me!

  59. He has no understanding of market cycles. Tell this to folks who got crushed in 2008 when housing prices didn't exactly double.

  60. who the fuck is this clown, why is he answering questions

  61. Or Just do what Sonmez does in each of his videos..

  62. write a book on writing books about passive income. wtf, is this guy high is this vid?

  63. I'd be very worried getting so over exposed in property with trade wars incoming and bank deregulation on the horizon. This is how you get fucked hard if they economy even slightly slows down and your sitting on 15 properties and massive debt.

  64. want passive income => watch Office Space – Bob's interview … this is the definition of passive income

  65. The real estate sounds great in theory. Maybe on another video or book you mention how to passively support renters. I guess if you are renting one house a year then selling it that could work. You could easily over extend yourself though. I have kindle unlimited and the books generated a month especially the programming ones generally suck because it's rushed.

  66. At 20 years old you can't buy 100k house per year…

  67. EVER heard of Inflation?

  68. just buy a house a year bro

  69. How do you create passive income? Teach other people how to make passive income.

  70. how can i make money thats easy and can be down at home. Also if it can make a lot of money

  71. Another awesome video here!

  72. I have a better plan:
    One house a day, keeps your loans away

  73. You lost me at "get this book"

  74. The whole point for YouTubers is to make YouTube videos about passive income – this is how they generate passive income!!! Don't fall a victim to this.

  75. The title says: as a DEVELOPER. Not as a housing tycoon or a book writer …

  76. What do you want for your birthday?
    – A house would be fine.

  77. It's free real estate

  78. Simple Programmer has a brand new channel! John Sonmez is back (with other programmer career coaches as well) to help you build the programming career you've always dreamed of.


  79. I have seen SO MANY cases where people would buy so many apartments in the "boom" period, and the demand dropped so quickly, they are actually loosing money at the moment. BUT, real-estate is a long term investment. Usually it will never go wrong. Money because of inflation loose value, … real-estate does not loose money.

  80. india thats not the case

  81. 1 house a year as a 20 year old developer, man the sun is making damage to your brain, go drink a beer

  82. This guy is delusional

  83. sounds like everybody will want to rent your house!!!

  84. Great stuff John! Very motivating!

  85. If you are a developer and want to make passive income, develop an app then sell it as a subscription service. Better yet develop 1 app a year and sell them all as subscriptions.

  86. At 20 as a dev, I could barely afford my rent let alone buy a house. ree

  87. As soon as he said forget about investing and compounding interest I was out.

  88. This dude absolutely doesn't know what he's talking about. When you're twenty buy a house, write a book every month. WTH Dude are you high?

  89. Bruh…. This guy is ridiculous xD I hope this is a joke. That house you buy for 1$ and sell for 2$ in 15 years, that 2$ will be worth less than 60¢ in 15 years. Inflation. Lmao this shit is just to advertise books and he makes money from vulnerable people -.-

  90. This f****n guy… same crap spewing out of a different mouth. Hows that Geico ad revenue? How about do something healthy for society and the planet? No? Moneymoneymoney gimme more moneymoneymoney.

  91. buy a house each year! ok sure why i didn't think about it earlier?! GTFOH

  92. Why the hell do you have to show pull ups on a bar in the intro video. Like you have some sort of condition. Sheesh.

  93. So that's why I'm getting the MJ vibe. You do know him. Wow. This is awesome. Are you in the TMF as too?

  94. How are these youtubers and social influencers making their own books?? I am pretty sure they don't write it themselves and find someone to do it. Is there a specific person or a website that are giving them a greadt deal?

  95. High much!

  96. Learn how to sell pipe dreams over and over and over

  97. This does not take into account rises in interest rates, slowdowns in the over inflated property market, nightmare tenants and other issues. If you're going to borrow $250k for a business there are way better businesses to come up with and with much better margins than a house. If you're a developer find a client (or three) and hire a team of freelance developers to help you land bigger projects. Build a good team and produce good software or web applications and you will soon be hitting 6 figures.

  98. Even better idea.. Buy 10 house a year, and buy another 10 at the end of the year, now lets see, you have 20 houses, next year buy 25 more and keep eating oatmeal 3 times a day, you can even push 35 house a year, really simple..

  99. just make a milion dollar app every week for a year, and you will have 52 million.

  100. Is this a troll video? What does buying and selling house have to do with making a passive income as a developer? And just a realistic point of view here with what your saying, houses here in Australia at least cost $300,0000-$500,000 for a average kind of house $200,000 buys you an absolute shit hole. So what kind of person in their 20's earn over $300,000 to be able to save enough to buy a house every year?
    Now if your talking about coming up with a deposit (50k+ at least for 10% down payment) then that's really, really poor advice. In 15 years your still paying off every single one of those houses, how you would still keep earning enough to just buy another I don't even know but lets say you could after 15 years your only just finishing paying off your interest for that first house therefore you losing money.

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