Funded vs Bootstrapped Side Project
You’re building something awesome—maybe a SaaS, a dev tool, or a niche app.
You’re coding nights and weekends, fueled by coffee and curiosity.
But soon, you face a big question:
Should you chase revenue, or keep it bootstrapped and indie?
This isn’t just about money.
It’s about freedom, control, and the kind of life you want to build.
Let’s break it down.
What Does “Revenue-Funded” Even Mean?
Revenue-funded means your side project makes money—enough to pay for itself, maybe even pay you.
You’re not relying on savings, day job income, or investors.
Every feature, every server, every coffee is paid for by users.
Why go revenue-funded?
Sustainability: Your project can survive without your day job.
Validation: People are willing to pay for what you’re building.
Growth: You can reinvest profits to make your project better.
What’s Bootstrapping, Really?
Bootstrapping means you’re funding your project yourself—no outside money, no investors, no revenue (yet).
You’re in control, but you’re also on the hook for all the costs.
Why bootstrap?
Freedom: You answer to no one but yourself.
Focus: You can build what you want, not what investors demand.
Learning: You’ll figure out how to do more with less.
The Revenue-Funded Path: Pros and Cons
Pros
Real Validation: If people pay, you’re solving a real problem.
Sustainable Growth: You can scale without begging for money.
Less Stress: You’re not draining your savings or maxing out credit cards.
Cons
Pressure to Perform: You need to keep users happy and paying.
Feature Creep: Users will ask for more, and you’ll feel obligated to deliver.
Less Fun: It can start to feel like a job, not a passion project.
The Bootstrapped Path: Pros and Cons
Pros
Total Control: You decide what to build, when to ship, and how to grow.
No Strings Attached: No investors, no pressure to exit, no one to answer to.
Pure Passion: You’re building for the love of it, not for a paycheck.
Cons
Limited Resources: You’re paying for everything out of pocket.
Slower Growth: Without revenue, it’s hard to invest in marketing or features.
Burnout Risk: It’s easy to get discouraged if progress is slow.
Real-World Scenarios
Let’s look at how real devs handle this crossroads.
Scenario 1: The Revenue-Funded Dev
You build a tool for developers.
You launch with a free tier and a paid plan.
Users start paying.
You reinvest the money in servers, marketing, and new features.
Soon, your side project is paying your rent.
But you’re also fielding support requests, fixing bugs, and dealing with churn.
It’s rewarding, but it’s work.
Scenario 2: The Bootstrapped Dev
You build a library you wish existed.
You release it as open source.
You pay for hosting out of pocket.
You get stars, forks, and thank-you emails.
You’re not making money, but you’re building something you love.
You’re free to experiment, but growth is slow.
How to Decide: Revenue-Funded or Bootstrapped?
There’s no one right answer.
It depends on your goals, your personality, and your situation.
Ask yourself:
Do you want to make money from your project?
Are you willing to handle support, billing, and customer requests?
Do you value control over growth?
Are you okay with slow, steady progress?
The Hybrid Approach: Best of Both Worlds?
Some devs start bootstrapped, then go revenue-funded when they’re ready.
Others keep a free, open-source core and charge for premium features.
There’s no rule that says you have to pick one path and stick to it.
Tip: You can always change your mind.
Start small. Experiment. See what feels right.
The Dark Side of Revenue-Funded
Revenue-funded isn’t all sunshine and paychecks.
You’ll face churn, refunds, and angry users.
You’ll spend time on billing, taxes, and legal stuff.
You’ll feel pressure to keep growing, even when you’re tired.
How to cope:
Automate as much as possible.
Set boundaries. Don’t let your project take over your life.
Remember why you started. Don’t lose sight of your passion.
The Dark Side of Bootstrapped
Bootstrapping isn’t all freedom and fun.
You’ll hit limits.
You’ll wish you had more resources.
You’ll wonder if anyone cares.
How to cope:
Celebrate small wins. Every star, fork, or thank-you matters.
Find a community. Other indie devs can keep you motivated.
Keep shipping. Progress, no matter how slow, is progress.
How to Go Revenue-Funded (If You Want To)
If you decide to chase revenue, here’s how to start:
Find a problem worth solving.
Build a minimal solution.
Launch with a paid plan.
Listen to users.
Iterate and grow.
Tip: Start small. You don’t need a fancy billing system or a sales team.
Stripe, PayPal, or even Gumroad can get you started.
How to Stay Bootstrapped (If That’s Your Thing)
If you prefer the indie life, here’s how to thrive:
Build what you love.
Release early and often.
Engage with your community.
Keep costs low.
Enjoy the journey.
Tip: Don’t compare yourself to funded startups.
Your path is your own.
The Indie Dev’s Checklist
Here’s a quick checklist for both paths:
Revenue-Funded:
Find a problem worth solving.
Build a minimal solution.
Launch with a paid plan.
Listen to users.
Iterate and grow.
Bootstrapped:
Build what you love.
Release early and often.
Engage with your community.
Keep costs low.
Enjoy the journey.
How to Stay Motivated (No Matter Which Path You Choose)
Side projects are a marathon, not a sprint.
Here’s how to stay motivated:
Celebrate small wins.
Find accountability. Share your progress with other devs.
Remember your why. Why are you building this? What kind of life do you want?
The Bottom Line
Revenue-funded or bootstrapped—both paths have pros and cons.
The best path is the one that lets you build, learn, and enjoy the journey.
Don’t let anyone tell you there’s only one way to win.
This week, ask yourself:
What kind of side project do I want to build?
What kind of life do I want to live?
Then pick a path—and start coding.