Passive income seems like the perfect type of income right? It might be, but there are some problems related to passive income that people don’t think about.

The problem with most types of passive income ideas in the sense normal people think about it is that passive income sources normally needs some maintenance over time in order to maintain their stability and income level.
One common type of income that people call passive income is rent income from real estate. This can be a good type of passive income. It will require maintenance over time though. It is not the type of passive income that gives you income year after year after year without any intervention on your part.

There are several things you have to take into concideration when looking at this type of income. Real Estate needs maintenance. Your investment needs to be looked after from time to time. You also need to make sure everything is going according to plan, that regulations are followed, that your tenants needs are being met, making sure your rent is adjusted according to the market index in order not to lose money etc. etc.

Another passive income idea is interest on money in the bank. The problem with this type of income is that you get so low interest on your money that inflation and taxes eats up the whole gain. This is probably the worst type of passive income you can have.

A third passive income idea is income from businesses you own. This type of passive income also needs maintenance like most other types of passive income. You need to meet regularly with the people looking after your business to make sure things are running smooth, see if there can be made improvements that can increase the profits etc.

Yet another Passive Income Idea that is very popular is Network Marketing income. This is one of the best types of passive income you can have provided that you can get to the level where your team is self sifficient and grows and thrives on it’s own.

It still needs maintenance though. A little time each week to meet with your key people and make sure they are up to speed, and see to it that everything is running smoothly and the growth rate is acceptable. If you build a network marketing organisation the right way, it can provide you with passive income and residual income for years and years into the future.

Another passive income idea is income from online marketing. This can also be near passive income if you do it right. Many people are receiving money from websites they have built where they make money from advertising, affiliate sales, list building etc. Like most other ideas for passive income, this too require maintenance making sure you have the links and search engine placements you want, and your servers are up and running etc.

More on passive income ideas and residual income soon…

Until next time…
~Olav