How to Start a Vending Business with AI Vending Machines (in Just 5 Hours a Week)

Imagine turning a side hustle into a business generating over $80,000 a month while only spending a few hours a week on it. This isn't just a dream; it’s the true story of Mike Hoffman, founder of MRP Passive. Mike transitioned from earning $1,200 a month as a college strength coach to building a portfolio of over 80 AI-powered vending machines and markets.

The best part? He started small—financing his first machine for under $1,000—and managed the business around his full-time job. Here is the step-by-step guide to how you can do the same.

Why AI Vending is Changing the Game

When people think of vending, they often picture bulky, old-school machines where a Snickers bar gets stuck in a spiral motor. AI vending machines are different. Instead of cash-only systems and complicated codes, users simply tap their credit card to unlock the door, grab what they want, and walk away.

The Advantages of AI Machines:

• Higher Revenue: AI machines can generate three times the revenue of traditional machines.
• Larger Transactions: Because customers can grab multiple items after one unlock, average transactions jump from $1.75 to around $6.50.
• Diverse Product Range: You aren't limited by what fits in a motor. You can sell anything from large bags of Tide Pods to fresh sandwiches, salads, and even electronics.
• Reduced Friction: No more "C4" or "B12" codes; just grab and go.

Step 1: Secure Your Location First

The biggest rookie mistake is buying a machine before you have a place to put it. Mike’s golden rule: Never buy a machine until you have a signed contract for a location.

Where to look for high-traffic spots:

• Residential (High Unit Count): Think apartment complexes, condos, and student housing. Pro tip: Instead of the lobby, try placing machines near the package room where residents frequent most.
• Commercial (High Employee Count): Manufacturing plants with 24/7 shifts are gold mines because workers often can't leave for breaks.
• Specialty Clinics: Urgent cares and medical centers that aren't attached to a major hospital are excellent for selling convenience items like cough drops, bandages, and healthy snacks.

Step 2: Master the "Pop-In" Sales Strategy

Landing your first location requires "professional persistence". Mike recommends the "Pop-In" method rather than cold calling

• The Gift Basket Trick: When visiting a potential location, bring a gift basket of samples you intend to sell, such as sugar-free protein bars for a gym or energy drinks for nurses.
• The 2% Strategy: If a property manager asks for a "revenue share," offer to donate 2% of proceeds to a local nonprofit instead. This creates a "good cause" branding for your machine and can often secure you more leads.
• Focus on Convenience: Sell the machine as a free amenity for the property that solves their tenants' or employees' pain points.

Step 3: Finance and Scale

You don’t need a massive bankroll to start. Mike compares vending to real estate but with much lower entry costs.

• Low Entry Cost: While a $70,000 rental property might require $14,000 down, a $4,000 vending machine may only require a 20% down payment of $800.
• Use "Good Debt": Financing allows you to scale faster while the machine’s cash flow pays off the loan.
• Healthy Margins: A well-placed micro market can see profit margins of 30% even after labor and product costs.

Step 4: Systemize for a 5-Hour Work Week

The ultimate goal is to earn with your mind, not your time.

• Start Part-Time: When Mike had a full-time job, he only committed 5 hours a week to his route.
• Hire "Stalkers": As you scale, hire restockers to handle the physical labor.
• Monitor Remotely: Use the AI machine's data to track inventory and sales from your phone, so you only visit the location when it’s absolutely necessary.

By focusing on high-traffic locations, utilizing smart AI technology, and following a consistent sales process, you can build a passive income stream that grows with you.