Passive Income vs. Residual Income

Often we come across terms in regards to doing business online that we are not 100% familiar with. Sometimes even several terms that are mistakenly interchanged to the point that the true meaning of each gets lost altogether.

According to a recent survey, two such terms are "passive income" and "residual income". Both are often associated with Network Marketing opportunities... but today we're going to explore their true meaning, as well as other online opportunities to earn one or both types of income. 

Residual Income

Recurring payments that you receive long after the initial sale is made, usually in specific amounts and at regular intervals.

Passive Income

"Income derived from business investments in which the individual is not actively involved"

Passive basically means "inactive" or "submissive", so Passive Income could be viewed as money that you make that doesn't require an effort from you.

Examples of residual income options might include:

• Network Marketing, where you enroll customers or recruit representatives that you earn a monthly commission from.
   
• Affiliate programs for recurring payment type services or products, such as: hosting, membership sites, dating sites, etc. In these programs, you are paid a commission each time the recurring payment is billed to the customer you referred.
   
• Selling anything that is automatically renewable, or consumables where the re-ordering is automated.

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Are Vending Machine Business Right For You?

It seems that in times of economic uncertainty many people begin looking for alternative income possibilities separate from their regular day-to-day jobs. There are several problems of course such as:

1) Start up capital or financing
2) Which business opportunity
3) Risk
4) Technical expertise
5) How long before realizing returns
6) Time required to operate the business

Naturally these are not all the concerns regarding a new business venture but are probably the most important factors to consider. One business among others that seems to be solidly in favor of most people with limited time and investment yet has the potential of providing a fairly strong return is the vending machine business. Vending machines can be thought of as being a little like oil wells. Now what I mean by that is this once you have a good location with plenty of foot traffic and you’ve stocked your vending machine with appropriate products for that location, then with minimum servicing those vending machines may continue to earn money day after day. In many ways it’s a set and forget business model… excepting of course that you will need to replace inventory or products sold, collect money, and occasionally service your machines to make sure they are in tip top shape. It's really good investment to maintain your vending machine well.

Getting started is not all that difficult. Often you can buy refurbished machines which are basically used vending machines that have been completely rebuilt to be in a like new condition. The advantage is that you can get a reliable machine with a limited initial investment. There are many companies that can provide you with start up information as well. Get more info by browsing the internet and keep updating from time to time.

Vending Machine Business Disadvantages

There are several issues that need to be dealt with if you are running your own vending machine business. It is essential to understand the nature of problems that you may face.

1. Right place: Placing the vending machine at the right location is the key factor to ensure that your vending machine business is profitable. Suppose, you decide to buy a toy dispensing vending machine and place it outside a pub. On the other hand, your competitor also buys a toy dispensing vending machine and places it outside a children's park. In this case, your competitor would definitely earn more than you. Your competitors' machine will sell the entire stock even before you manage to sell one toy, because your machine is not at the right location. Location plays an important role in the success of the vending machine business.
2. Increasing competition: The fact that there is a very low initial investment needed in order to start a vending machine business is a major factor which is responsible for increasing business competition.
3. Increased liabilities: Being a sole owner of the business, your responsibilities would increase. You will be responsible for the service of the vending machine on time. Initially you will have to maintain the stock and regularly service the vending machine. As you start getting revenue, you can hire people to help you. Maintaining fresh stock and regularly servicing the vending machine is necessary to make your vending machine business work.
4. Vending machine cost: Apart from the cost of vending machine, there are several other hidden cost factors like license fees, maintenance of the machine, insurance, and advertising cost. Therefore, it is advisable to start with the basic vending machines like gum ball dispensers, sticker (tattoo) vending machines, as they are cheaper as compared to the electronic vending machines that refrigerate drinks or warm snacks.

Incorrect selection of the products and wrong location can cause you severe losses, thereby not generating the desired revenue from the vending machine business. If finding a location, buying a vending machine and getting it placed, seems like a long procedure for you, then you can opt for other vending machine business opportunities, like buying a vending machine business for sale. You will find many online advertisements for vending machine businesses for sale. But, be careful while dealing online, as these advertisements may rip you off.

Vending machines are not magical machines. It is a passive business, this machine works even when you are not there. But this does not translate into a reprieve from responsibilities on your side. Ensure that before starting vending machine business, you understand the vending machine business pros and cons and think over the business properly.

Vending Machine Business Advantages

The vending machine business is a great way to earn profit within a few months of starting the business, and if owned solely by you, you can also enjoy the full share of the vending machine business profits. The vending machine business advantages are:

1. Be your own boss: With vending machine business, you can be your own boss. It is you who will determine the vending machine business plan, and decide which vending machine to buy, among the different available vending machines like soft drink dispenser, toy dispenser, gum ball dispenser, etc.
2. Low initial investment: The investment in vending machine business is small unless you are going in for bigger vending machines.
3. Less time and efforts: Buying the right vending machine and setting it at the correct location does not take much of your time or efforts, especially if you have connections with local businesses and stores.
4. Flexible working hours: You can very well manage your full time job and personal life with this vending machine business.
5. Less stress: The vending machine business is stress free. Once you set up your vending machine and start generating revenue, then the only thing you have to look after is the timely maintenance of the vending machine.
6. Unbound success: The vending machine business has an infinite growth rate. There really is no limit to your success.
7. Little experience needed: One of the biggest advantages of setting up a vending machine business, is that no previous business experience is required to start this business. One only requires the working knowledge of how to operate a vending machine.

To make your vending machine business profitable, choose a product that is in demand. Some popular vending machine products are soft drink, gum ball, chips, toys, etc. Being a total cash flow business, the need of a accounts record is limited to ensure that goods are not being filched. Also, you do not need a store front to store the stock, you can easily keep them in your garage. You can update your stock on a weekly basis.

25 Cent Vending Machines

As you know, vending machines come in different sizes and forms as do the products the customers can purchase from them. Most electrically-operated machines can accept both coins and bills and then there are machines that only accept a specific coin denomination and reject the rest.

One of the most common problems one faces when dealing with vending machines is jamming. It is either the customer inserted the wrong coin or the bill is crumpled but ultimately, the customer loses money and does not get the product he or she wanted to buy. It also means that as an operator, you need to get the vending machine serviced to remove the coin or bill stuck in there.

Simply put, it is bad for business as the machine remains unavailable while something is lodged in the very mechanism that actually allows you to earn. This is a loss-loss situation for both the customer and the owner that should be avoided as much as possible.

In the bulk candy vending realm, the quarter vending machines reign supreme. They have become sort of de facto in this particular niche of the vending industry. Gum balls can be sold at 25 cents apiece and the machines can be calibrated to dispense the appropriate number of candies for the same amount.

Now, please note that not all 25 cents vending machines are created equal. It all boils down to the design and the technology used in manufacturing these machines. It is therefore very important for an investor to check the quarter vending machine’s specifications before acquiring one and to stick with manufacturers that are known for producing high quality machines. A simple oversight with something as important as the vending machine’s coin mechanism can prove costly down the line.

To avoid the headaches associated with coin jamming, there are a number of quarter vending machines you can purchase that have incorporated jam-proof technology in their coin mechanism. One such machine is the Four-In-One Candy Carousel. This machine ONLY accepts a quarter and nothing else. Incorrect change just slides down the coin slot to the side for the customer to take back. It doesn’t just swallow the coin and wait for you or a service technician to clear the blockage.

Bulk vending is a potentially profitable venture and it is crucial for your business’ success to have a steady flow of income. 25 cents vending machine are fairly inexpensive but be careful to choose only high quality machines that require far less servicing needs than necessary.

Vending Machine Business Advice and Information

Instead of just jumping into vending and hoping for the best you should prepare by doing as much research on the subject as you can. Let's consider some of the vending machine business information sources that you may use to get a preliminary understanding of the industry, some data for your business plan or some solid advice.

Advice from Other Vending Machine Business Operators

The best way to get advice and information about the vending business would be to ask some existing operators about the local industry and their businesses.

Due to the competitive nature of the vending machine business some business owners may be unlikely to share a lot of information and may even discourage you with false information.

However some of the more established operators care a lot about improving the often bad reputation that the vending industry has. They may be keen to see new operators start out properly instead of having them end up adding to the myth that vending machines and their owners are not to be trusted.

If you try to get talking to a business operator while he or she is re-stocking one of his machines you may be able to get some information out of them as part of a polite conversation but it is unlikely that they would spare a lot of time to go into the details.

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Finding & Landing A Good Vending Machine Location

What is a good location? This question is relative, based on your company's size and goals. A national vending concern considers a good account to have gross sales over $240,000 per year ($20,000 per month), whereas a small vendor working out of his garage might consider an account with sales of $6,000 per year ($500 per month) to be a good account. Start with your goals. What kind of vending machine business do you want? How much capital do you have? What are your operational plans? Is this a full time venture for you or a part time income?

For example, a vending machine account that generates $20,000 per month probably will have at least 6 vending machines (3 sets, snack/soda). These vending machines would need to be late model or new, an investment of at least $15,000 in equipment. To service an account of this nature, a vending machine operator would require:
* $2,000 in parts for immediate repair - Customers like this expect service calls to be completed within 4 hours of the initial call.
* A running daily inventory of $5,000 in vending machine product
* Service 2-3 times a day
* Fully insured - liability, workers compensation, etc.
* Paying a commission
* Driving a late model vending truck ($40,000)
* Extremely professional demeanor
* $62,000 in initial capital investment, plus ongoing expenses (telephone, office expense etc.), before the first dollar is generated

As you can imagine, this type of account is very rare, could require even more equipment than we discussed here, and is highly desirable.

A vending machine account that generates $500 per month can have as little as a single vending machine, which could be older and might even have been free. Servicing this account is much easier, requiring 2 route stops per month, service calls handled in a reasonable amount of time (within 5 days), could be run out of a car or pickup truck, would not be a commission account (unless you are crazy), and would have little ongoing expense. These accounts are much more plentiful and, therefore, less desirable.

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Used Vending Machines – Cut Down On Your Initial Investment

When buying used vending machines, the best ones to buy are the ones that are 100% metal. When you see a used vending machine on sale, the price is usually a lot lower than if you purchased it new, which is a great way to get started in the vending machine business. If you are looking for a home business that you can work on your own time and for which you don’t need to hire staff, then take a look at some of the used vending machines that are available. 

You have to be careful when buying used vending machines. This is because the coin receptacle doesn’t usually get replaced if the currency changes, such as dollar bills being changed to coins. This is something that you do have to check out. Check over the used candy vending machine if that is the kind of vending machine you want to use by putting in coins and seeing how easy it is to get the candy. This will give you an idea of how well your vending machine business may go. If the machines are easy to use, you will have many repeat customers. If they are difficult to use, then customers will avoid your machine when they want candy, a snack or a drink. 

You will find many used vending machines for sale if you do an online search. Some of the companies that have the vending machines for sale offer a guarantee that you will not have any problems with the machines that you buy from them. When you compare the price of a new snack vending machine with the price of a refurbished machine, you can save yourself thousands of dollars. With this saving, you don’t have to wait as long to recoup the cost of the used vending machines from the sales of the products.

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How To Approach A Big Box Store & Get Your Vending Machines Placed

Every chain store has their own sort of entity. What you are going to find to be the best way is to go in and talk with the local manager of the store. You want to actually set it up this way because that is the best way to find out and get your information right.

One thing to consider is that some of these bigger chain stores might have a contract with a company already. What happens is that some bigger companies in cities will put bids out. What a bid is, basically like an application, or you have to fill out an application to bid on putting in vending machines in this facility.

You wouldn’t just be providing vending machines for that store, you would be providing vending machines for a bunch of stores in that area, like their chain of stores.

But your first source of contact would be to contact the management first, and simply ask them, What is your vending situation like here? Do you have any vending machines? How is the service? I have a couple of machines that I would like to place here. I would say the best thing is; instead of going right to the corporate office, go to the local management and ask what they feel is the best route to take with that. Once you get into the corporate end of things, like corporate management, you could be chasing most people all day long for months and months. There are some websites out there that actually you can go to where you can be a member of their site and see what bids are coming up in your area.

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How Reliable Is Vending As A Business Venture?

It’s time to turn our attention to whether vending is a viable business to enter, as well as the average cost for a very important part of the business: the vending machine.

 

Is vending a reliable business venture?
The first recorded vending machines date back to the first century B.C., but came to prominence in the late 1880s. These were primarily postcard and gumball machines with simple mechanisms, a single selection and accepted one coin.

The snack and soda machines we recognize today – multi-selection, accepting multiple coin types, dispensing change – originated in the 1940s. In the ’40s, of course, vending machines accepted coins only, did not dispense change, and limited selections about 20 items. These were fully mechanical vend mechanisms and required no power to operate the vend cycle.

Early soda machines required power to refrigerate the product. The modern vending machine design with spiral dispense, full change capacity, dollar bill acceptance (usually by dollar bill coin changer), 30-40 snack selections, and up to 10 soda options, came to being in the late 1960s and was refined in the 1970s.

Improvements in vending machine technology since have been base on electronics and computer innovation, with standardization of protocols and improvements in currency acceptance. Ultra-modern vending machines can accept a variety of payment types – credit cards, large denomination bills (up to 0), cell phone charges (charging a product to your cell phone bill) – can be monitored remotely by Internet, can produce sales figures to individual unit numbers (sold 13 Snickers and 8 Doritos out of this machine last week), log machine entry times, and can even provide surveillance with camera technology. Yes, we’ve come a long way, baby.

So how is this history lesson relevant? Vending machine technology is responding to market need. The successful vending operators have driven this technology with their purchasing habits. Like all businesses, if technology affords a profitable advantage, that product has a market. The fact that the vending machine manufacturers have continued to produce better and better vending machines means that the vending business is a reliable venture when run properly.

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Considering Vending Machines for Your Business?

Facts you should know about vending

Vending machines are machines that dispense food items, beverages, toys or other items for a fee. Vending machines can hold many different types of items, such as cold drinks, coffee, candy, cookies, sandwiches, cigarettes, bubblegum, gumballs, newspapers, ice cream, ice, healthy foods, soda pop, water and snacks. Most vending machines are coin operated, but some operate with a lock and key, or by code. You can find vending machine companies by looking online for one near you or by checking your local phone book. 

Consider which type of vending machine you need for your business, such as soda cans, juice beverages, and coffee. If you're an antique store owner, you may be interested in antique vending machines for your business. Some liquor stores may even offer beer bottle vending machines. When wondering how to choose the vending machine for your location, check out several different vending machine companies and their backgrounds. Target vending machine companies that offer the specific type of machine you want, such as crane, claw, mini, manual, automatic, ATM, carousel, bulk, personal, combo or vending machines for capsules and stickers. 

Find out how long the companies have been in business, what their hours are, and what their service availability is. 

Find out if the company or franchise is properly licensed, and get written quotes and prices for all services. Inquire as to what type of vending machine services are available, such as repair, as well as accessories such as labels. 

Ask how often the vending machine company representative will come by to refill items. Work out a schedule in advance and get it in writing. When choosing a vending machine company or franchise, research the various types of vending machines available. Research various vending machines online, where you can find reviews, prices, photos, and troubleshooting tips. 

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Is Vending Machine Business Profitable?

Vending machine business profit has always been the topic of discussion in the society. Many people are eager to know how much vending machine owners can earn and how profitable are vending machines in general. The answer to the question, is vending machine business profitable is YES, provided you follow some rules and regulations. The vending machine profits are sometimes very huge while others have to struggle a lot to reach that level. 

How to Earn Profits in the Vending Machine Business

Arrange for Finance
The profitability of vending machines is great, however, this business requires money or credit at every stage. If you are cash strapped, then you may have to postpone buying the products from your suppliers and this will hamper your business prospects. So, you need to ensure finance at attractive rates of interest to increase your business volumes. If you find it difficult to get loans sanctioned, then bring in a business partner and divide the expenses equally.

Look for the Best Location
The answer to the question are vending machines profitable is surely a yes if they are located at prime locations. The vending machine business profit would naturally be high if you are able to sale more products to more and more people. So, crowded streets, shopping malls and multiplexes would be the best options for setting up vending machine business. Vending machine profits would be high if you cater to the customers in rich localities because of their high spending power.

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8 Ways To Earn Passive Income

Wouldn't you like to take a vacation whenever you want, or have your wife stop working so she can look after the kids and still keep up the payment of your bills? Well, if you wish to achieve this, you need to build a passive residual income.

Definition of passive residual income:
The definition of traditional passive income is "Income generated with minimal work from your investments such as interest, dividends, or real estate rentals." However in this article we are discussing creating a passive income online. Investment of time and money is initially required to build a passive income online, then possibly minimal work thereafter.

The benefits of generating a passive income:

1. Make a strong initial effort to get your income started, then do minimal work (or virtually none) thereafter, resulting in earning more and doing less.

2. Freedom to choose when and where you wish to work.

3. Your passive residual income is not dependent on a 9-5 work week and can be generated 24 hours, 7 days a week.

4. Able to give yourself a pay raise whenever you want by creating multiple income streams.

5. Create an unlimited amount of income - you are only limited by your imagination.

6. Have more free time to spend time with your family, friends or go on vacation.

7. Ability to give to charitable causes

8. Create residual income for your future retirement.

Cold Drink Vending Machine Business - Why You Should Choose the Vending Industry

There are many reasons why you might want to start a vending machine business. The more informed you are, the more you are going to be better prepared for making the right decision. If you are considering a vending business, or have thought about it, there are some good advantages to the business owner.

First, you can operate with all-cash. Excluding the many credit-card capable machines out there, you will love the ability to operate with all-cash, away from the potential problems of having to deal with credit card acceptors. In addition to this, think about all of jobs you had that allowed you to operate on your own hours, without a strict time schedule? Having the freedom to do what you want, when you want to do it, is an important thing to consider. As well, you could enjoy more time with family and friends, away from your job, while your machines work for you and generate potential profit.

Secondly, you could enjoy having a low startup cost. If you plan on operating a business, but stay away because of the initial investment, then look no further because you could enjoy the lower startup costs, which saves you money. As well, consider all of the tax you might have to pay as a business owner, which in this industry there are substantial tax benefits you could enjoy, which potentially save you even more money.

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How does coin recognition in vending machines work?

You Asked:

How does coin recognition in vending machines work?

My Answers:

For human beings, recognizing if a coin is real is pretty easy. We can look at the coin, weigh it in our hand, feel the temperature, listen to it hit the floor, etc. If someone handed you a coin replica made of plastic, you would immediately know it is fake even if it looked authentic to your eyes. If someone handed you a blank steel slug, it would obviously be “not a coin” because it wouldn’t look like a coin at all.

What we take for granted as humans is not so easy for a vending machine. A vending machine needs a relatively inexpensive way to detect if a coin is real.

If you look at vending machine you can understand how the simplest possible vending machine recognizes coins. It uses the simplest possible coin detector. All that it looks at is the diameter of the coin.

In something like a soda machine, there is usually a more sophisticated recognition system that usually depends on: A) diameter, and B) magnetic fields. 

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Vending Machine Business – Passive Income and Recession-proof

Vending business

Vending business is an automated business system with the use of vending machines.

Vending machines offer vast product lines to provide, mainly food and beverages, such as snacks, canned sodas, candies, etc. Other type of products can include: newspapers, public transportation tickets, and even iPod.

I keen on vending business due to the inherited passive income capability. Moreover, with its premise of “convenience – anywhere, anytime,” vending business is recession-proof, because it answers people’s need for convenience.

Any experience in running a vending business? Please share by commenting on this post.

Leveraging success

Success can mean anything – more time with the family, working whenever and wherever you want, etc. – but the most common measurement of success is – surprise, surprise – money.

Having ‘excess’ money means more opportunities – either to spend it lavishly or invest it. I prefer the latter, and I hope you do, too.

Leveraging your success – in this case – your money, is crucial in your path to financial freedom. You have to find ‘vehicles’ to make your money work hard for you, not the other way around.

One way to do it, is to owning businesses that don’t require you to actively involved in them, producing passive income streams for you.

The ideal passive income small business opportunity

Almost all type of business can be turned into passive income businesses, but there are certain types of business that, by nature, allow you to practice passive management and to earn passive income.

My take on passive income businesses are: all things automatic, such as automatic car wash, and coin-operated businesses, such as laundromats, phone booths, and vending business.

Of all, I keen on vending business.

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Vending Machine Placement Fee and Commission Plans

The concept of paying for a location in the vending business can be categorized under one of three headings:

1.Placement Fees
2.Commissions
3.Locating Fees

It's important that you understand the unique nature of each of these items. Snack and soda vending account placement require a bit of effort in marketing and sales to make the right placement locations. Using a vending account locator service to find accounts for you might seem like a simple way to land locations for your machines but understand that when you use such a service you will have to pay a Locating Fee to the service when you close the deal with the property that your machines will be placed at. These fees are generally only one time expenses but can be very large in some cases based upon the perceived value of the account to your business, meaning the amount of money that you are expected to make from the account over the course of the first year.

Placement Fees are in a word BAD in another word STUPID and in a final word REDICULOUS. Never agree to pay a placement fee. If the property owner asks you to pay a placement fee it means that you are not important to them, they do not value your relationship to them and they will replace you as soon as your competitor comes along willing to pay a higher fee than you are.

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How Much to Pay for a Vending Machine Spot

The vending machine industry has spawned numerous businesses with high profits, but machine placement--a process and expense known as location--can quickly eat into the income produced. With some knowledge about the vending industry and a professional approach, a proper vending machine location contract can be created to ensure profitability for all parties involved.

Some Locations Require Fixed Fees

In some locations, particularly hospitals and office buildings, managers or facilities personnel who approve the installation of a vending machine require a fixed monthly or quarterly fee to pay for "rental" of the machine's location. This fee varies depending on the type of machine installed, but typically ranges from around $5 per month for simple stand-alone machines, such as gumball machines, to as much as $50 per month for coffee and snack vending machines that require electricity or water.

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Business Promotion Ideas

Did you lose weight fast and become thinner because of the stress given by handling your own business? This article will help you get rid of that problem.

In handling a business, careful preparation should be done to gain more profits and reach success. In any business, it is very important to be consistently equipped towards captivating customers. Most victorious companies are those who use strategies that can guarantee them of positive feedbacks from frequent or new customers equally. Actually, there are various modus operandi by which marketing becomes effective but only if it is carried out properly and with the loyalty and support given among those who are involved.

For instance, you are launching new products. It is very vital to expose your product widely. It entails lots of budget but your product will be known and it gives you great chances that costumers will be attracted with your product.  You may decide on choosing a local level of broadcasting if your funds are limited during your starting point. On the other hand, if you planned for a major leap, international and national channels are readily accessible, it just that these might cost quite a heavy budget. Despite of the scope, media outlets can definitely get attention and attract customers.

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Vending Machine Financing - Funding For Your Vending Business Startup

Due to the generally low startup costs involved with vending compared to other industries it is not a sensible idea to go too far into debt right away. You may need access to credit at a later date to see you through tough times or to expand so it is best to use savings to cover startup costs if possible. However if your starting capital is insufficient you could consider one of the vending machine financing options below.

Financing from Family and Friends
If you do need funding then a loan from friends or family would be the best way to go. If they have a lot of trust in you and you are sincere with them this arrangement can work well. If things go bad though you can risk losing a lot more than your business.

Investors
Alternatively you could look at taking on an investor and giving them an ownership stake in your business. Potential investors would probably want to see a detailed vending business plan. They may also want to have an active role in the management of the business in return for their investment. For the small amount of funding required you are usually better off having 100% ownership of your business and having full control.

Vending Machine Distributors
Vending machine distributors will often offer you financing plans to help you to purchase their machines. It is likely though that you will be required to come up with the money for a sizable down payment. If this is not possible then the distributor's finance company may be able to offer you financing to cover most of the cost providing that your business plan looks strong and that you have some collateral to offer.

You will also find that some of the distributors that you are able to purchase inventory to stock your vending machines with, can sell to you on credit. Depending on the deal that you work out with them you can usually arrange to pay your invoices within 30 days (Net 30). This is usually only possible if you have a good credit history and are able to show references.

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