Billboards are not passive income.

Billboards are not passive income.  Billboard Insider reposts this once a year because we get too many phone calls and emails from newbies who think this is so.  Google “owning billboards for passive income” and you’ll get rich quick stories written by people who don’t know what they are talking about.  Billboards do not sell themselves.  Billboard structures need repainting.  Lights go out.  Vinyl needs changing…  Billboard Insider asked some industry experts for their opinion:

Johnsen Fretty’s Jim Johnsen says if you want passive out of home income, buy Clear Channel Outdoor bonds.

I would tell them to buy Clear Channel Outdoor bonds.  I’ve come across way to many people that have said that’s the simplest business in the world in the 30 years that I’ve been doing this.  I like to say “it is simple for the very educated.”  Whether you’re talking about renegotiating leases or putting out marketing collateral going door to door and selling outdoor or developing new sites…

Arthur Outdoor’s James Douglas says passive income investors will be disappointed.

I don’t think passive income exists.    Unless you put money into a stock and don’t look at it until 10 years.  Worrying about something is work.  Thinking about something is work.  If you think that you are going to buy a billboard and live off it for the rest of your life you are going to be grossly disappointed.  Although we don’t have toilets and termites in our industry you’re going to have a client call you at midnight saying that their lights are out.  If you have a digital sign and you have a client who’s paying you quite a bit of money to be on your sign if a whole row on the digital is out you’re going to get a call.  You have to be able to have a system to take care of your clients.  Taking care of your clients means taking care of your signs, means taking care of your book..

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