Passive Income

November 1st, 2009 by Kenric

October is over and the ebiz stores had a decent month.  Just a tad under 150 orders, about 5 orders a day.  I was wondering if this is still considered passive income.  I read an old real estate post on a different blog today about passive income and thought it was funny.  I think that landlording is much more work, but people call it passive.

Do you consider running an online store passive?

I would answer no and yes.  I had to answer phone calls and do a few more hours of work during the month of October, but in general if you had a business that required really no more than 1 hour a day of work, wouldn’t it still be passive?

I may have worked about 40 hours in my stores last month, but that amount of work generated thousands of dollars.

Do you consider landlording a few single family homes passive income?

When I need to find a new tenant or evict a tenant, it definitely takes up more than a few hours in time.  In this market landlording is generating barely any money.  It could actually be losing money.  But in general I am finding that running an ebiz is alot less work than landlording.

I think what I’m learning is that the only real passive income is interest from the bank.



  1. 5 Comments to “Passive Income
  2. I think this idea of Passive Income has painted a pie-in-the-sky scenario for people to believe is the fastest way to riches. Without lifting a finger, suddenly you’re making money and continue to make money with no effort on your part.

    Landlording is work. Granted, months could pass by without a phone call from a tenant. But things break, require repairs, bills must be paid . . . and when a tenant moves out then it becomes a full time job to replace them.

    If you split hairs, anything that is going to produce decent returns does require effort on the part of the person.

    By Clifford on Nov 2, 2009

  3. Hard money lending is about as passive as you can get – especially if you have a partner you trust that does all the work! I’m getting about $600 / month and all the work I did was write a check.

    By Shaun on Nov 2, 2009

  4. Don’t forget dividends from investments. There’s something I’ve started to look at that might be promising. Check out http://www.lendingclub.com.

    By Edwin on Nov 2, 2009

  5. Great you asked!

    I’ve experienced landlording and I can attest that’s it’s hard work at first and in some occasions. I call it passive because it’s “rent”.

    Now imagine your estate is located at a sweet spot and applied online marketing on it. You can have lesser work because customers find you, not the other way around.

    I define passive income as this phrase: “work less”. When you have passion on it, you won’t feel that phrase.

    By Menandro on Nov 3, 2009

  6. For me, passive income means income where I won’t get a phone call — either from a customer, a client or a tenant.

    I can deal with emails okay under my ‘passive’ label, but being interrupted by a phone call when I’m doing something else is, for me, not passive.

    That’s what keeps me from a lot of online ventures, and if I’m honest from making a lot more money.

    By Monevator on Jan 5, 2010

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