Guide to Making Passive Money from Old Phones: Anyone Can Do It!

There are many ways to make money online. One interesting and somewhat unusual way is through “phone farming”. Phone farming is a concept that allows someone to generate passive income by using an old smartphone that is no longer in use.

Research shows that this method is popular in online communities, especially on forums like reddit.com/Beermoney, which often discuss ways to make “beer money” or extra pocket money.

Curious, right? Let’s discuss what phone farming is, how it works, and how you can start it yourself.

What is Phone Farming?

Phone farming is the practice of using multiple smartphones to perform tasks in apps that pay for them. For example, watching ads, completing surveys, or performing other simple tasks.

The basic idea is to set the smartphone to work passively, earning money while you are not using it. This is an attractive form of passive income for those who have old smartphones that they no longer use.

For example, someone in the US could use an old phone to watch ads and earn Amazon gift cards, which are useful for online shopping.

How Does Phone Farming Work?

Phone farming works through two main types of apps, as explained in various sources:

1. Video Viewer Apps: These apps display short videos and ads in between videos or playlists. Users are rewarded with points or digital currency for each ad view or ad rotation. These points can then be redeemed for gift cards, cash, or cryptocurrency. Examples of apps include Swagbucks and InboxDollars, which allow users to watch videos over and over again to earn points.
2. Data Collector Apps: These apps run in the background of your smartphone. They pay you to collect personal data like location, phone usage, and demographic information. The companies that own these apps sell the data to companies that are willing to pay, and give you a small percentage. An example is Neilson App, which pays around $50 per year per phone for user data.

Neither of these types of apps make much money per smartphone. But when you have multiple smartphones running simultaneously, your passive income can increase significantly. For example, someone with 10 phones could make $2-$3 per day, or $60-$90 per month.

Best Apps for Phone Farming in 2025

To start phone farming, you need to know which apps are the most profitable right now. Here are some of the best apps that are still popular and paying in 2025, based on research:

• Swagbucks: One of the oldest and most popular platforms for making money online. This app lets you earn points (SB) through various activities such as watching videos, playing games, shopping online, and completing surveys. Points can be redeemed for gift cards or cash via PayPal.
• InboxDollars: This app pays you to read emails, complete surveys, and watch videos. Payments are made via check or bank transfer.
• Cash Magnet: An app that lets you earn money simply by watching videos and ads. Payments are made via gift cards or cash, and is often mentioned in online forums as a popular choice.
• Engageme.tv: A platform that lets you earn money by watching videos and ads. Payments are made via gift cards or cash, perfect for users who want a minimal passive income.
• Perk: An app that lets you earn money through various activities. Such as watching videos, playing games, and completing surveys. Payments are made via gift cards or cash. And the device limit is up to 18 per account according to discussions on reddit.
• Youlotto: An app that lets you earn money by watching videos and ads. Payment is made via gift cards or cash, often used in large phone farm setups.

It’s important to note that the effectiveness of apps can vary by location, especially for readers from the US, where apps like Swagbucks and InboxDollars often offer more opportunities than in other countries.

How to Start a Phone Farm

To start a phone farm, you need to follow these steps, based on guides from various sources:

• Collect Smartphones: Find an old smartphone that you no longer use. Android smartphones running Android 4 or higher are usually suitable. You can buy cheap used smartphones or ask friends and family for them. For example, models like the LG Stylo or LG Optimus Zone 3. These models are often mentioned as cheap options, with prices ranging from $10-$20 each on eBay or Amazon.
• Set Up an Internet Connection and Multi-Port Charger: Make sure the smartphones are connected to the internet and have enough power. You may need to purchase a multi-port charger to connect multiple smartphones at once. And make sure your home Wi-Fi can share the connection between multiple devices.
• Install the App: Install the phone farming app of your choice on each smartphone. The app selection is mentioned above. Make sure each smartphone has a different account if required by the app. For example, using a unique email for each account.
• Run the App: Set the smartphone to run the app continuously. Some apps allow you to autoplay videos, while others may require minimal interaction, such as clicking every few hours.
• Collecting Rewards: Track your earnings and redeem your points or rewards for cash or gift cards as needed. For example, Swagbucks allows redemption via PayPal, while InboxDollars offers checks.

Costs Involved

The main costs involved in phone farming are the cost of purchasing the smartphones and the electricity costs to run them. Used smartphones can usually be purchased for a reasonable price, around $10 to $20 each.

The electricity costs will depend on how many smartphones are used and how long they are running each day. For example, running 10 phones 24/7 can add up to an electricity bill, which needs to be factored in to ensure profitability.

Income Potential

The income from phone farming varies depending on the number of smartphones you have and the apps you use. In general, one smartphone can earn you around $0.20 to $0.30 per day, according to. If you have 10 smartphones, you can earn around $2 to $3 per day, or $60 to $90 per month.

In fact, some phone farmers who own hundreds of smartphones can earn hundreds of dollars per month. For example, one person in the US reported earning $150 per month with a few phones. Of course, this requires calculating the initial costs and operating costs to ensure that the income far exceeds the costs incurred.

Here is a comparison table of potential income based on the number of smartphones:

Conclusion

Phone farming has a controversial side, as some see it as an exploitation of mobile incentive programs, especially when done on a large scale. Apparently, Phone farming can be used for fraudulent purposes.

For example, increasing app ratings or faking engagement, although individual users usually use it for legal purposes. So, it is important to comply with the application rules and not violate the policies, to avoid account bans.

FAQs

1. Is phone farming legal and not against the law in the US?

Phone farming can be legal in the US if it is done according to the application’s rules and does not involve advertising fraud. Research shows that this practice is often associated with ad fraud, which is illegal in many countries, including the US. Based on the Computer Fraud and Abuse Act (CFAA) which prohibits unauthorized access to computers, including bot activity for fraudulent clicks. However, if users only watch ads or complete tasks as intended by the application, without fraudulent automation, it appears to be legal. The controversy arises because many phone farmers use automation, which can be considered a violation. To be safe, make sure each account is legitimate and does not violate the application’s terms.

2. How safe are the applications mentioned regarding personal data privacy? Especially for data collection applications, how is the data used and is there a risk of misuse?

Data privacy security varies by application. Swagbucks, for example, claims data protection with encryption and a clear privacy policy. But users should be careful because data collection applications, such as Neilson App, may sell data to third parties for market research. The risk of misuse exists, especially if the application is less transparent. Users are advised to read the privacy policy and limit the data shared.

3. Is there a risk of an app account being blocked even if I follow the rules? How can I minimize this risk?

Even if I follow the rules, there is a risk of an account being blocked because the app system detects suspicious activity. For example, such as rapid point accumulation or multiple accounts from the same IP. Swagbucks, for example, allows multiple accounts per household if they are for different people, but it is a violation if one person has multiple accounts. To minimize the risk, use the app like a normal user, avoid automation, and monitor policy changes.

4. How to effectively manage multiple smartphones at once? Are there any special tools or software that can help?

Managing multiple smartphones can use tools like GeeLark for remote control and automation, but you have to make sure you don’t violate the app’s rules. Other tools like AirDroid or TeamViewer are also for remote management. Daily time is usually a few minutes to check the device, but it can be more if there are technical problems

5. Is there a limit to the number of accounts that can be created on one IP address or using the same personal data?

The account limit depends on the app. Swagbucks allows multiple accounts per household if they are for different people, but one person cannot have multiple accounts. Some apps may restrict based on device ID or IP, so make sure each account uses unique personal data and avoid duplication.

6. Does the potential income mentioned include electricity and internet costs? What is the estimated net profit?

Potential income, for example $60-$90/month for 10 phones ($0.20-$0.30/day per phone), must be subtracted from electricity and internet costs. Electricity consumption is 5 watts per phone, 10 phones = 50 watts = 1.2 kW-hr/day, cost $0.10/kW-hr = $0.12/day or $3.60/month.

Internet is usually included in the home package, so net profit is around $56.40-$86.40/month. The initial cost of the phones ($10-$20/unit) needs to be recouped over time.

Potential Income Comparison Table

Here is a table based on the assumption of $0.20-$0.30 income per phone per day, after deducting electricity costs of $3.60/month:

This table helps calculate the net profit after electricity costs, assuming internet is already included in a home package.

7. How stable is the income from these apps? Is it possible that the rewards or points value will decrease over time?

Income from apps can be volatile as companies can reduce rewards or change policies. Diversifying apps can help, but users must be prepared to adapt to changes.

8. Is there a specific strategy to maximize income from phone farming? For example, a specific combination of apps or the best time to run apps.

To maximize, choose high-paying apps like Swagbucks, run multiple apps at once, take advantage of peak times, and participate in promotions.

9. Are there any environmental considerations for running multiple electronic devices 24/7?

Phone farming has an environmental impact due to the 24/7 electricity consumption, especially if it is from non-renewable sources. Suggestions include using energy-efficient devices, turning them off when not needed, and using renewable energy.

10. Compared to other ways to make money online, how effective and efficient is phone farming in terms of time and effort?

Compared to freelancing or affiliate marketing, phone farming is more passive, requires minimal effort after setup, but the income is lower. Suitable for those looking for additional income without much effort.