In 2026, developers are seeking ways to generate recurring income from their IoT devices without disrupting performance or annoying users. But what is IoT monetization?
IoT monetization refers to the strategies developers use to earn revenue from connected devices. Instead of relying solely on hardware sales, developers can leverage usage, data, and integrations to create ongoing income streams.
This guide breaks down five practical IoT monetization models that help generate recurring revenue streams without impacting device performance or user experience.
Passive network monetization lets developers earn revenue by securely sharing idle internet bandwidth from IoT devices. It’s an increasingly attractive model in the landscape of IoT app development, where developers seek to monetize without altering user-facing experiences.
As more IoT companies deploy vast networks of active devices, this method provides a seamless way to monetize your IoT while maintaining performance.
What it is: This model monetizes unused network resources without affecting how a device operates. It runs silently in the background, with no changes to UI or functionality.
How it works: SDKs like Honeygain allow IoT devices to contribute bandwidth to secure data networks. This is perfect for IoT products such as smart plugs, air quality monitors, ambient sensors, or simply devices that are powered on 24/7.
What’s more, Honeygain SDK provides remote monitoring and real-time dashboards, making it easy to track your IoT products’ earnings.
Benefits for developers:
Technical complexity: Low. Honeygain SDK is simple to integrate and designed for embedded environments.
This model solves a key developer pain point: creating recurring revenue for simple IoT devices without redesign or intrusive features.
Usage-based billing means charging users based on how much they use a service rather than a flat monthly fee. This model is particularly well-suited for different IoT platforms where connected device interactions can vary greatly in frequency and data volume.
It also aligns naturally with modern cloud infrastructure, allowing developers to scale services efficiently and support ongoing revenue growth.
Examples include:
Revenue potential: Depends on scale. A platform handling millions of interactions per month could generate thousands in recurring revenue, especially if value increases with usage.
Why it works:
Technical complexity: Medium. Developers need to implement tracking, metering, and possibly a billing API, but most cloud platforms support this natively.
Pain point solved: Developers avoid forcing users into flat-rate subscriptions or gated upgrades. Instead, they charge fairly and transparently based on how the device or service is actually used.
Pro tip: Transparent billing interfaces and usage dashboards reduce friction and support trust-based monetization.
Subscriptions, especially annual subscriptions, can work well when offered as optional enhancements rather than mandatory components. This model generates revenue without disrupting the customer experience.
Subscription-based IoT solutions are expected to account for approximately 35% of total revenue in the IoT monetization market by 2026. Hence, it is one of the most effective monetization strategies for the Internet of things.
How it works: Users access core features for free and can upgrade for advanced features. These add-ons might include:
Revenue potential: Many consumer IoT apps can generate a few dollars per user monthly, while niche B2B tools often see higher returns depending on the value of their premium features and customer base.
Technical complexity: Medium to high. Developers must manage subscription states, user tiers, and secure access to premium features.
Why it works:
Developer tip: Users only accept subscription plans when the added value is clear, immediate, and frictionless. Consider offering tiered subscriptions that scale with feature usage, and always prioritize user experience to ensure high customer satisfaction.
Instead of personal data, developers can explore IoT data monetization through anonymized, aggregated device metrics derived from the data collected across their network of IoT devices.
This method focuses on turning operational data into insights that can be monetized while maintaining ethical standards. It’s grounded in effective data management practices that prioritize data privacy, transparency, and compliance.
What kind of data?
Revenue potential: Depends on volume and sector. Environmental or utility IoT systems can generate revenue through data partnerships or analytics marketplaces.
Technical complexity: Medium. Requires pipelines for collecting, filtering, and anonymizing data at scale, as well as handling compliance and consent frameworks.
Why it works:
Privacy note: Always anonymize and aggregate. Obtain explicit user consent and follow data protection laws like GDPR and CCPA.
This method is especially useful for developers in industrial IoT, energy, agri-tech, or smart city applications, where data trends are more valuable than individual behavior.
You can earn revenue by integrating your IoT devices or services into third-party platforms, expanding your offering beyond initial device sales. These integrations create ongoing revenue streams by leveraging ecosystems your users already trust and engage with.
Examples include:
Revenue streams:
Revenue potential: Ranges from hundreds to thousands per month depending on the depth of integration and user base overlap.
Technical complexity: Medium to high. Integrations may require custom APIs, SDKs, security certifications, or co-branding agreements.
Why it works:
Developer tip: Prioritize partners that match your device’s use case and user base. Test small before scaling any integration deal.
Not every strategy fits every IoT product. Use the table below to compare models based on your needs:
| Model | Best for | Technical complexity | Revenue potential |
| Passive Network Monetization | Low-margin smart devices | Low | $$ (scales with volume) |
| Usage-Based Billing | Enterprise tools, platforms | Medium | $$$ (usage dependent) |
| Subscription Upgrades | Consumer gadgets, pro features | Medium–High | $$$ (recurring) |
| Data Insights Monetization | Environmental, industrial IoT | Medium | $$$ (data network) |
| Partner Integrations | Ecosystem-ready or B2B hardware | Medium–High | $$$ (partner deals) |
Definitions:
Use this chart to align your monetization goals with your development capabilities.
Here’s a quick recap of the five proven IoT solutions every developer should consider in 2026, each designed to generate sustainable revenue without compromising device performance or user trust.
Quiet, ethical, low-friction monetization is not only achievable, it’s the future of IoT business models. And even low-margin devices can now support profitable ecosystems.