On the first glance passive income seems like fairytale, but it is possible. You only need some money to start investing into different markets. Sadly very often people that finally have something on the side get hyped over some piramid sheme or scam and are after that convinced that they will be better of if they keep their money close. Some that do get invested might get greedy and end up risking too much. Like you said first rule should be: don't keep all the eggs in one basket.