- Crystal Warren started her vending-machine business as a side hustle in 2016 while still a teacher.
- Now, she runs the business full time and finds locations for other entrepreneurs.
Crystal Warren started her vending-machine business in 2016 as a side hustle while she worked full time as a teacher. Once she began earning more from her business than her full-time job, she quit teaching to focus on her company, Vending Factory.
Now, instead of owning and operating vending machines, she establishes locations for other entrepreneurs getting into the business. She identifies locations, places the machines, and sells them for others to operate. Vending machines can make up a lucrative business for entrepreneurs looking to earn passive income, especially as economic experts warn of a potential recession this year.
In 2022, Vending Factory booked more than $242,000 in sales, which Insider verified with documentation.
The following is an as-told-to interview and has been edited and condensed for clarity.
How it all started
I got into vending because my sister's friend had vending machines at a casino. Once I heard that, I went to the library to look up everything I needed to know about vending machines.
I had $1,000 dollars and purchased my first vending machine for $650. It was an AP, or an automatic-snack machine, and I placed it in a day-care center. When I bought it, I hadn't realized that the machine was worth about $1,250, so I bought it at a really good price. At that day care, I made $450 in the first three weeks. I was not expecting that.
I had a little money left over, so I bought my second vending machine for around $1,100 and put it in a private school. I made $550 in four weeks at that location.
Taking a side hustle full time
When I started my vending business, I was a full-time schoolteacher. I didn't quit my job before, because I loved it. I also had workers in my business, so I didn't have to do all of the legwork, and I learned how to automate parts of the business.
I was making about $60,000 annually with my teaching job, and then I was making six figures with vending. I was making more money with my side hustle than I was with my nine-to-five, so I decided to quit in 2020.
I want people to understand that they don't have to quit their jobs just to pursue something else. They can have a goal, make good money in that business first, and let that help them decide if they want to quit.
I made sure to save up all of the money I was making in vending — I did not spend it. I put all of the money back into my business. And I knew that even if something happened with my business, I still had all of that money saved up.
Scaling the business
I got up to five vending machines and five locations, then I learned how to find vending-machine locations for other people. I sold all of my machines and locations for about $5,000 each. That's when I was able to scale my business, because I was making way more finding locations for people than I was actually owning the vending machines myself.
I would go on Craigslist and ask people if they were looking for vending-machine locations. Then I realized that people were looking for vending machines inside the locations. So, then I would buy a vending machine, place it in the location, and sell the location for $5,000 or more.
There are no guarantees, but the client is able to scope out the location and figure out if they want it. If they don't want the machine within five days, we offer them a full refund. But once they see that it's already in a location, and they like the traffic, they're often willing to pay that amount because of the time it's going to take them to find such a good location.
You can start a vending business without buying a machine
You can start in the vending-machine business with or without owning vending machines. You don't have to be the one stocking the machines, and you can get started with little-to-no money by becoming a vending-machine locator. You can sit at home and find other people's vending machines, and provide FaceTime calls with them so you're right there helping them purchase a good machine.
As a single parent, don't feel like you need a spouse, or that you need help, because I was a schoolteacher, and I did it on my own. I also never had a vending-machine coach, so I never had someone to teach me the business. I've learned a lot on my own about making money, losing money, and working from home to do it.