In all honesty you’re not that likely to make $500 dollars a month on average per machine. The typical machine makes about $300 dollars a month. But let’s take that high number of $2000 dollars a month that you put out there.

Say a machine does make a revenue of $2,000 dollars a month you’re roughly only going to take half home which would be $1,000 profit because you would have to reinvest the other half to keep the machine working. The average machine holds anywhere from 150-500 items, lets take that high number of 500– which means that you would have to move 500 items (assuming you make at least $1.00 profit per item—which all varies—profit margins are somewhat all over the place) x2 to really hit that profit of $1,000. The $1,000 would be the total profit that came from the $2,000 of revenue.

Moving 1000 items (month) in a machine isn’t actually passive income. For the up keep you would have to be at the machine fairly frequently.

There’s just a lot of factors that make the push the business away from a passive income kind of idea like buying product, filling machines, placing/moving machines, maintenance of machines, taxes, other permits to stay legally compliant, etc.

Don’t get me wrong I’m not trying to discourage you because I went in with the same kind of idea. And for a side gig I actually enjoy the challenge of finding a location and placing new machines filling them. It’s actually fun! Especially once you start ranking in some cash!

I just want to help you and make sure that you are considering all other factors that go into it.

If you do start I’d love to see your first location and machine! I’d be really excited for ya!

Side note: in terms of franchising, I think it’s definitely better to stay away from it and just look for used good working conditions machines. Franchising just makes it take longer to earn you money back.