My 13 Sources of Income as a Software Engineer

Summary

In this video, a software engineer and part-time content creator provides a detailed breakdown of their 13 income sources. These range from a full-time software engineering job in Silicon Valley, including salary, stock compensation, and bonuses, to content creation on platforms like YouTube, TikTok, and Instagram. Additional sources include sponsorships, affiliate marketing, speaking engagements, and angel investing. The creator shares insights into how these income streams come together, offering transparency and valuable lessons on managing multiple revenue sources, while emphasizing the importance of investing and growing a personal brand.

Takeaways

• 😀 Full-time software engineers often have multiple income streams, with some earning money from side hustles and content creation.
• 😀 A typical salary for an entry-level software engineer in the US is around $118,000, but it can go higher depending on company and location.
• 😀 Stock compensation (RSUs) can significantly boost earnings, but they require long-term commitment (usually 4 years) to fully vest.
• 😀 The Employee Stock Purchase Plan (ESPP) lets employees buy company stock at a 25% discount, offering a guaranteed profit if the stock performs well.
• 😀 Bonuses in the tech industry are often based on both company and individual performance, and can be a significant part of total compensation.
• 😀 YouTube AdSense can be a lucrative income stream, with earnings growing as the channel gains subscribers and views over time.
• 😀 TikTok's Creator Fund initially offers a higher payout per 1,000 views but can decrease as creators reach more international audiences.
• 😀 Instagram bonuses are invite-only and offer additional revenue to content creators based on engagement and following.
• 😀 Sponsorship deals with brands are one of the most profitable income sources for content creators, offering six-figure earnings in some cases.
• 😀 Affiliate marketing through platforms like Cod Tech can be an easy way to earn income while promoting products or services.
• 😀 Offering courses and consulting services can generate income without requiring heavy advertising, as seen with the 'Land Your First Tech Job' course.

Q & A

What are the three main components of the compensation package for a software engineer in Silicon Valley?

The three main components are salary, stock compensation (RSUs), and bonuses.

How does stock compensation (RSUs) work, and what is its potential downside?

Stock compensation involves granting company stock over several years. While it can increase in value significantly (e.g., at Amazon or Nvidia), the downside is that employees may be locked into their jobs for up to four years to receive the full payout.

What is an Employee Stock Purchase Plan (ESP), and how does it benefit employees?

An ESP allows employees to purchase company stock at a 25% discount, providing an immediate profit if the stock price increases. It's a guaranteed profit, as long as the company performs well.

What factors determine the annual bonus for a software engineer?

Annual bonuses are based on two factors: company performance and individual performance. Half of the bonus depends on company financial health, and the other half on how well the individual meets goals and contributes to product delivery.

How much can a software engineer expect to earn from a typical 9-to-5 job in Silicon Valley?

A software engineer can earn between $250,000 and $300,000 annually, depending on factors like performance bonuses and stock compensation.

How has the creator's YouTube income evolved over time?

The creator's YouTube income started modestly, making only $1.39 on the first day and $22.67 in the first month, but as their channel grew to 40,000 subscribers, the income increased to between $700 and $11,000 per month.

What are the challenges associated with the TikTok Creator Fund?

While the TikTok Creator Fund initially paid $2 per 1,000 views, this rate declined as the creator's videos reached international audiences with lower purchasing power, eventually dropping to $0.50 per 1,000 views.

How does Instagram's invite-only bonus program work?

The Instagram bonus program is invite-only, and the creator earns between $800 and $1,200 per month for content on the platform, despite not knowing exactly how the invitations are distributed.

What is the significance of sponsorships in the creator's income?

Sponsorships are a major source of income for content creators. The creator has worked with brands like AWS and IBM, earning over six figures in sponsorships alone in 2024, demonstrating the potential for substantial income through brand partnerships.

What is affiliate marketing, and how does the creator make money from it?

Affiliate marketing involves promoting products or services in exchange for a commission. The creator works with platforms like Cod Tech, offering discounts for premium features through affiliate links, earning a portion of the sales.

What is the creator's approach to investing, and what specific funds do they invest in?

The creator invests in index funds, particularly ones that track the S&P 500 and the Dow Jones, but with a focus on Muslim-friendly stocks that avoid industries like alcohol. These investments have provided a steady return over time.

What is angel investing, and how is the creator involved in it?

Angel investing involves putting money into early-stage startups in the hope that they will grow significantly. The creator participates in an angel investing group called Angel Squad, where they can invest in promising startups and expand their network.