How to Create and Sell Online Software Tools and Generate Income Monthly

Last Updated on October 9, 2024 by Arif Chowdhury

Look, I know what you’re thinking.

“How do I actually create and sell software online that makes real money? Like $7,100 a month, not peanuts.”

You’re tired of hearing success stories that don’t tell you how to replicate them.

You’ve heard people talk about passive income through software, but no one tells you how to get started, how to avoid falling on your face, or how to make it consistent.

And you might also be asking:

“Do I need to know how to code? Is the market already too saturated? Will people even pay for what I create?”

I get it.

I was there once. But here’s the thing. You can hit that $7,100 mark, consistently, by selling online tools.

You just need to know where to start and how to market them right. Let’s break it down.

Why $7,100 Every Month?

Why $7,100?

Because it’s a realistic goal, achievable for most people with the right mindset and strategy.

It’s also more than a side hustle; it’s enough to replace a lot of day jobs. Imagine—bringing in just over $85,000 a year from something you built once and just keep selling.

$7,100 sounds like a dream, but it’s really just the starting point. Let’s get to how you can make this happen.


Step 1: Understand What People Need

Here’s the secret: No one buys software just because it’s cool. People buy software because it solves a problem.

Forget trying to create the next unicorn startup. Instead, think small. The average person looking to buy online tools doesn’t need something revolutionary.

They need something that makes their life easier or helps their business grow.

Here’s what you need to do:

  • Talk to people: This is so underrated. Get into Facebook groups, Reddit forums, LinkedIn discussions—wherever your potential customers hang out. Ask them about their struggles and pain points.
  • Look at what people are paying for right now: Browse marketplaces like Gumroad, AppSumo, and CodeCanyon. What’s selling well? Could you improve upon those tools, make them simpler, or target a niche?

Stat check: Research shows that 90% of startups fail because they create a product no one wants. Don’t make this mistake. Solve a real problem from day one.


Step 2: Build the Minimum Viable Product (MVP)

Here’s where a lot of people freak out.

“I don’t know how to code. Does this mean I can’t build software?”

No, it doesn’t. The beauty of living in 2024 is that you don’t need to be a coding expert to create a solid software tool.

Options to consider:

  • No-Code Platforms: Think Bubble, Adalo, or Glide. These platforms allow you to create functional software without writing a single line of code.
  • Hire a Developer: If no-code isn’t your thing, hire someone from platforms like Upwork or Fiverr. You can find competent developers for a few thousand dollars, or even less, depending on your project.

When you start building, focus on the MVP—the minimum viable product.

Don’t try to pack it with features.

Remember, less is more. If your tool does one thing well, that’s enough to start generating revenue.

  • Keep it simple. Solve just one problem at first.
  • Make sure it works. A glitchy product is worse than no product.

Step 3: Price It Right

Here’s where a lot of people get stuck.

“How do I price my tool?”

You want to price it low enough to get customers, but high enough to hit that $7,100 mark.

Here’s a cheat sheet:

  • Low-Ticket Items ($10-$50): These are easier to sell because they’re affordable, but you’ll need a higher volume to hit your monthly goal. Aim for SaaS (software as a service) subscriptions or sell in bulk on marketplaces.
  • Mid-Ticket Items ($100-$500): This is the sweet spot. You don’t need to sell a ton of licenses, but each sale will push you closer to $7,100 fast. Think about offering lifetime access for this range.
  • High-Ticket Items ($1,000+): If your tool is solving a bigger problem for businesses, you can go high-ticket. However, sales will take longer, and you’ll need to spend more time on support and customization.

Stat check: Software companies using subscription models generate 40% more revenue than one-time sales.

So, if you can, go for a subscription model. Even a $30/month subscription needs only 237 customers to hit that $7,100 goal.


Step 4: Sell the Right Way

Selling is where most people fail.

They build an amazing tool and then… crickets.

Here’s how to avoid that:

1. Build in Public

Share your journey with potential customers before you even launch. Document the entire process of building the tool—what problems you’re solving, the challenges you’re facing, and the progress you’re making.

Post it on Twitter, YouTube, or even LinkedIn. People love seeing behind the scenes, and this builds anticipation.

2. Use a Sales Page That Converts

Your sales page is your storefront.

If it sucks, no one will buy.

Here’s what it needs:

  • A killer headline: What’s the biggest problem your tool solves? Lead with that.
  • Clear benefits: Don’t just list features. Tell people exactly how your tool will help them. Will it save time? Make them more money?
  • Social proof: If you’ve got beta testers or testimonials, use them. If not, use stats or case studies that show why your solution matters.

3. Leverage Marketplaces

You don’t need to reinvent the wheel.

Get your product in front of people already looking to buy tools like yours. Platforms like Gumroad, AppSumo, and CodeCanyon already have buyers looking for your type of software.

Here’s a tip: Offer an exclusive discount on these platforms to drive initial sales and gather reviews. Once you have testimonials and feedback, selling on your own platform becomes easier.


Step 5: Automate and Scale

Once you’ve made your first sales, it’s time to automate.

You don’t want to spend all day chasing customers or fixing bugs. Here’s how you scale:

1. Use Email Marketing

Your email list is one of your biggest assets.

Offer a freebie or demo in exchange for email addresses. Then nurture these leads with a simple email sequence that educates them about your tool, its benefits, and how it’ll solve their problem.

2. Customer Support Automation

Use chatbots, FAQs, and even outsourced support teams to handle basic customer issues. Your time should be focused on improving the product or finding new customers, not solving minor issues.

3. Expand Features Slowly

Once your tool is gaining traction, don’t rush to add a ton of features. Listen to customer feedback. What are they asking for? Prioritize one or two new features every quarter.


The $7,100 Breakdown

Now, let’s look at the math behind making $7,100 each month.

  • If you sell your tool for $47/month, you’ll need 151 customers.
  • If you go mid-tier, say $197 for a one-time purchase, you only need 36 sales per month.
  • With a $497 tool, just 15 sales and you’re there.

This is totally doable.

You just need a solid tool that solves a real problem and a steady stream of customers coming in every month.


Final Thoughts: Keep it Simple and Focused

Too many people overthink this.

They want to build some huge company before they’ve made their first dollar.

Don’t.

Focus on solving one small problem for a niche group of people.

Sell a simple tool that delivers real value. Price it right, market it smart, and keep tweaking and improving based on real feedback.

This way, $7,100 a month isn’t some distant dream—it’s totally within reach.

You’ve got this.