Where to Put Vending Machines: 27 Best Locations
March 2, 2023
If you’re looking to get into the vending machine business, you’ve come to the right spot. We analyzed existing resources and talked to the owner of Hill Vending to find out the best vending machine locations. Get ready to find out where to put vending machines!
Adam Hill bought his first vending machine route for $120K in 2014 and grew his vending machine business to $600K annually. He’s even started his own machine vending training course. In our interview, he explained there are four keys to vending machine business success:
- Location
- Machines
- Service
- Pricing
Adam said:
If you’re in a slow location, it doesn’t matter how good your machines, pricing, and service are. You won’t make any money. You have to have all four keys to be successful.
Click any of the above text to jump to that section of the article. Adam Hill told us: He went on to explain there are two main ways to choose a vending machine location: Check out our interview about the vending machine industry below: In addition to the two ways that Adam mentioned, we’ll also discuss buying a vending machine franchise. Keep reading to learn how to buy an existing vending machine route. Adam suggests buying an existing vending machine business from a business owner because: As you review a potential route for purchase, you’ll want to ask lots of questions about the following: Adam discusses all that and more in our Vending Machine Class. Sign up for early access. Adam explained: Next, we’ll discuss cold-calling businesses. Adam also discussed going to businesses and negotiating to place vending machines on their properties. He explained that this can be difficult because existing locations frequently have a service contract. He also gave tips on the best person to talk to: He also explained why you shouldn’t approach the general manager or property owner unless you are dealing with a solo entrepreneur. Check out our in-depth walkthrough on the vending machine industry. Next, we’ll discuss vending machine franchises. Vending machine owners can also use the franchise model to start a vending machine business. This vending machine business model is often used by major vending machines companies like Coca-Cola and Pepsi. In addition, other vending companies like Pharmabox use this model. There are two basic models that these franchising opportunities use: Check out our other blogs about vending machines including: Then sign up for our Vending Machine Bootcamp. You’ll want to consider the elements of choosing a location for your vending machines. The best locations for vending machines have the following characteristics: Let’s look at each of these a little more. You can legally put a vending machine anywhere you have an agreement with a property owner. There may be licensing requirements depending on your location, but as long as you follow the laws and have an agreement in place, you can put your vending machines in almost any location. The vending industry covers all types of products. Your ideal location will depend on what you sell in your vending machines. The right location for a snack machine is almost anywhere (except maybe the lines in amusement parks), but maybe you shouldn’t offer energy drinks in the waiting room in medical centers. Adam told us: Check out our blog about different types of vending machines to find the types that most interest you. The number of people passing a vending machine impacts whether you have profitable locations. Some locations have less than 50 people passing the vending machine daily, while airports can achieve up to 76 million travelers per day. A business that is busy 24/7 like a hospital is likely to be a better place for a vending machine than somewhere like an apartment complex pool that closes for half the day. You’ll want to make sure that your route is easy to get to regularly. The further you have to drive, the more business expenses you’ll have. It is harder to sell products if people can’t easily access the vending machines. Providing easy access means: Sometimes there will be a suitable location in areas that are off the beaten path. For instance, shopping malls and casinos often have hallways with a bathroom and drink machines. These machines regularly do well because people buy snacks or sports drinks while waiting for their friends. You probably want to avoid businesses where the property owner frequently changes. You don’t want to enter into a vending machine placement contract, then have to renegotiate with a new owner soon afterward. Next, we’ll discuss some of the best locations for vending machines. We’ve compiled some data on the best places to put a vending machine. We’ll cover: Consider some of the following vending machine location ideas. The top 10 airports have more than 100,000 people passing each day. Your vending machine business is sure to make some great revenue. You’ll need lots of machines and potentially a full staff to keep up with the foot traffic in the best locations. If you can’t secure one of the best locations, there are plenty of other options. A business owner that even secures a slower airport has over 600 people pass their vending locations every day. Placing vending machines at train and bus stations can be highly profitable. Amtrak, the largest U.S train station operator, carries more than 22.9 million riders in 160 communities. That comes out to 400 riders daily per community, but the highest travel rates see more than 34,000 people per day. Meanwhile, Greyhound Lines serves nearly 16 million passengers across 135 markets, or over 325 people per bus station daily. If you can negotiate a deal with the station property owners, they are a good place to put a vending machine. Hospitals and long-term care facilities are also high-volume places for vending operators. According to the Center for Disease Control, the average person goes to the doctor 2.5 times per year, and such facilities house nearly 240,000 people. There are three common areas to include vending machines: A waiting room is a great place to put a vending machine with healthy snacks like protein bars and granola bars. You’ll probably do well with drink machines as well. Provide vending needs for people waiting for their families and make a nice profit doing it. Employees need a place to get an easy snack or drink and a vending machine in the break room can be highly profitable. You’ll get a steady flow of revenue from these 24/7 businesses. Placing a vending machine near the nurses’ desks is a great way to make a huge profit because you can serve patients, visitors, and staff all from one machine. Another good place to put vending machines is in warehouses. Warehouses are commonly used as distribution centers, manufacturing facilities, and industrial parks. These businesses generally employ hundreds or thousands of people and operate 24/7. State laws typically guarantee two 15-minute breaks and a 30-minute break per shift. That means vending machines in the break room do well because employees don’t have time to leave the premises. A vending business can be highly profitable if you place machines in office buildings with 50 or more employees. Employees get hungry and thirsty throughout the day and vending machines provide options for people who forgot to bring something from home. That makes an office space a great location for vending machines. Apartment complexes are great locations for vending machines. Each complex is different, but many have multiple locations for people to pass a machine regularly including: Adam warned us: Keep reading to find out why a car dealership is on the best vending machine location list. Car dealerships make great locations for beverage services because they have lots of employees, plus the average consumer spends nearly three to four hours buying a car and several hours waiting every time they take the car for service. Guests in a hotel or motel will want a quick snack or drink even if they don’t want a full meal. Once you negotiate deals with these properties, you might wonder where to put your vending machine. You can place your vending machine: Given that hotels are 24/7, they can be top-grossing locations. Gyms and fitness centers are full of people working out. Where can you put a vending machine in a gym? Try the following locations to give your machines a competitive edge: Make sure to offer healthy snacks, water, and sports drinks. They don’t expect a full meal because that would weigh them down. Schools, community colleges, and universities are always busy. That makes them a great place for vending machines. Just to give you an idea there are: States often have regulations about the type of quick snack options you can provide on school property. You’ll also need to be ADA compliant. The answer for many colleges is probably no. Many private institutions are seeing large declines in enrollment. Some state-funded schools are doing well, but on average they are facing year-over-year declines (see enrolled students link above). If you can negotiate deals in these locations, you may find greater success because they have growing populations of college enrollment: Make sure to research the enrollment trends and percent of students who are online only. Every school releases information about this. Keep reading for another exception to the decline in foot traffic at colleges. If a college has a dorm, you might want to figure out how to get vending machine locations into it and the rest of the campus. Dorms tend to have lots of people at them 24/7. Don’t forget to integrate your card machine with their meal plans to get even better revenue. A retail store has two primary areas vending machines make sense: The front of the store should be things that people run in to get quickly like personal hygiene products, while the break rooms would be perfect for snack machines and drink machines. A gas station needs a variety of vending machines, but most machines will not be coin operated. They may be from one vendor or multiple vendors. They will typically include: It’s difficult to be all things to all people so if you choose to go with gas stations, start with one type of vending option and go from there. A shopping center is another great place for vending machines. You can place a vending machine: If there’s an amusement park in your area, you can find places to put vending machines like: They’ll be outside, so they’ll have more wear and tear. A sports complex will also have similar needs. These buildings make great locations for vending machines because they host meetings and conventions where people spend most of their days. You can place vending machines that offer: A car wash is a great place for a vending machine because people often want a drink. There are two types of car washes: If a restaurant has popular items that will stay good for a decent amount of time, it might boost business to offer them in vending machines. This is especially so in a location that makes it easy to pick up food on the way home from work. Check out this Pecan Pie Vending Machine outside Berdoll’s Farm: Offer to place a vending machine outside of a health food store and help them sell their products even when they’re closed. Communities that often sponsor athletic events that involve cycling and running might especially benefit from after hours service. Salons are bustling with activity and people will often get hungry or thirsty during a cut or dye job. Provide vending machines for employees or customers to get their snacks or drink on the go. You might even be able to offer alcohol in them. Offering drinks and snacks in a park is another great way to find vending machine locations. If you start a Hey Buddy Franchise, you can offer treats for humans and doggies in the same vending machine. Everyone will be happy when they get a treat with man’s best friend. Laundromats and vending machines go together like peanut butter and jelly. You can offer snack and drink machines, but don’t forget to offer products for laundry care, too. Check out Vend-Rite for vending machines specifically made for laundromats. If you’ve ever wondered how to start a laundromat business, we’ve got a blog about that, too. An RV Park is a great place for a vending machine because people often need drinks, ice, snacks, or personal hygiene items while traveling. If there is an RV Park near you, see if you can provide services. A waiting room is a great place to put a vending machine with healthy snacks like protein bars and granola bars. You’ll probably do well with drink machines as well. Provide vending needs for people waiting for a service to be completed and make a nice profit doing it. Employees need a place to get an easy snack or drink and a vending machine in the break room can be highly profitable. You’ll get a steady flow of revenue from these, especially in 24/7 businesses. Placing a vending machine near the nurses’ desks is a great way to make a huge profit because you can serve customers, visitors, and staff all from one machine. Firefighters commonly live at their stations during their shifts. They need drinks and snacks, so make it easy for them with a vending machine. Now that you know where to put vending machines, let’s look at how to find a vending machine location. There are a ton of ways to find vending machine locations. You might want to try some of the following ideas. You can look up businesses online to establish places you want to offer to put vending machines. I’m going to use Clark County, Nevada as an example. You’ll want to follow these steps: The following steps are sparsely cited because this is a strategy I use when conducting research for my consulting business. Let’s look at each step. Do a quick Google Search to find your local business licensing lookup. In this example, the search would look like “Clark County business license lookup.” The results should look similar to the picture below: You want to make sure that it is the real site, which means look for a .gov in most scenarios. Click the link that says “Business License Search.” That will bring you to a page that will be similar to the one below: We’ll discuss what to do here in the next step. On this step, you’ll have different ways to search for a business license including: Click on the “Search Business Category” option and it will take you to a page that looks like the one below: Each state will have slightly different options, but should be similar. I’ve done this in Dallas, Las Vegas, and Seattle, where all were similar. You can fill in as many of the following fields as you want. Once you’ve put in the information, click enter and you’ll get results like the ones below. You’ll want a list of businesses to research that includes about 50-250 businesses, depending on how many machines you are trying to place. I only found six hotels so I would need some more from other categories in this example. Next, we’ll want to review each business. If you click on one of the licenses, it will take you to the summary page, which looks like the picture below. You specifically want the address, phone number, and owners’ name from the screen. Do your research on them to find out: Once you find enough information, it’s time to reach out to them. Depending on the business, you can either do an email lookup, call them, or just go up there. An email or call is less expensive and might help establish if they are open to discussing your proposal. If they agree to meet with you, go visit them. If not, move on to the next business. When you visit the location, bring a: Remember to be friendly and observe the location so you can describe where you’d put the machines and how often you’d provide service. Once the property owner agrees that it makes sense to have a vending machine on their property, negotiate the terms and provide them a vending machine proposal contract. While many vending machine companies don’t like offering a percentage to the property owner, it is common to pay 5% to 20% of sales for lease of the space. Once they sign, start preparing to service their location. Now that you have established where to place your vending machines, it’s time to place them and provide stellar service to your customers. We’ve partnered with Adam to bring you the best information on starting a vending machine business. Sign up for our free class below: What are your favorite vending machine locations?In this article, we’ll focus on the first of the four keys: Location. When you’re done, you should understand:
3 Ways of Investing in Vending Machines
The corporate world was trying to make me bounce around a lot and I wanted to stay in my strip of paradise. I decided to leave my job, buy a vending machine route, and have been doing this ever since.
Buy Vending Machine Route
You don’t have to worry about finding the route. You can focus on the other three keys.
You need to link up with an education platform like UpFlip. You’ll be running your business by making mistakes if you don’t. There’s no college courses for this.Perform B2B Sales
The Facility Manager is normally much less busy and will accept your visit. He’s often sitting in an office and will enjoy your company. Once they like you, you have an in. Then you can propose replacing the service contract.The GM is the busiest person in the building. The gatekeeper (receptionist) is specifically instructed to brush people off politely.Buy a Vending Machine Franchise
Where Can I Learn How to Start a Vending Machine Business?
Where Can I Put a Vending Machine Near Me?
Where Can I Legally Put a Vending Machine?
Type of Vending Machine Business
I mostly sell food, but I have one cigarette machine.Foot Traffic
Hours of Operation
Distance from You
Accessibility to the Vending Machine
Infrequent Ownership Changes
Best Places to Put Vending Machines
#1. Airports Are the Best Locations for Vending Machines
#2. Where Can I Put My Vending Machine? Bus and Train Stations
#3. Hospitals and Care Facilities Are Good Locations
Waiting Rooms
Break Rooms
Reception Desk
#4. Warehouses Are Good Places to Put Vending Machines
#5. Where Can I Put a Vending Machine? Offices
#6. Where to Put a Vending Machine: Apartment Complexes
Don’t put machines outside. It wears them out.#7. Where Can I Put My Vending Machines? Car Dealerships
#8. Best Location for Vending Machine: Hotels
#9. Gyms Might Be Ideal Locations
#10. Want High Foot Traffic? Try Schools, Community Colleges, and Universities
Are vending machines a good investment on college campuses?
#11. Dorms: Best Vending Machine Locations
#12. Retail Locations are Great Vending Machine Locations
#13. Gas Stations Use Vending Machines Too!
#14. Shopping Centers are Good Vending Machine Locations
#15. Amusement Parks are Great Locations for Machine Vending
#16. Conference Centers Need Vending Machines
#17. Car Washes
#18. Restaurants Use Vending Machines to Save Time
View this post on Instagram
#19. Health Food Stores
#20. Hair Salons
#21. Parks are Great Places for Vending Machines
#22. Laundromats Need Specialty Vending Machines
#23. RV Parks Need Vending Machines
$24. Waiting Rooms: Visitors Love Vending Machines
#25. Break Rooms: Employees Need Snacks
#26. Reception Desks Like Vending Machines
#27 Fire Stations Need Food And Drinks
How to Find Vending Machine Locations
How to Find Locations For Vending Machine Using Business Lookups
Find Business Lookup Site for Your City
Review Search Options
Input Category, Date of License, or Zip Code
Review Businesses
Reach Out to Business Owners
Visit the Location
Provide a Vending Machine Contract Proposal
Ready to Take The Next Step?
Author
Brandon Boushy
Related articles
Are you tired of the rat race? Maybe you just want to know what to do with 1 million dollars. We have some of the best million-dollar business ideas for you.
Don’t assume you have to find untapped business ideas. Sometimes an untapped idea means that you should keep looking. Find better ways to get a million dollars.
[su_note note_color="#dbeafc"]
We’ll discuss how to start a million-dollar business by discussing the following topics. Click on the one that interests you to jump straight to that section.
A $100-million-dollar business is normally going to be a publicly held company. According to KPI Crunch, somewhere between 1 and 3 percent of companies in business databases are $100 million business ideas.
Make at least $2,739.72 of daily revenue, $19,178.04 per week, or $83,333 monthly.To make a million in a year, focus on the most profitable businesses and be prepared to invest at least $80,000 in marketing over the year.
To make $1 million in profit, just divide $1 million by the profit margin.
- What is a $100-million-dollar business idea?
- Multi-million dollar business ideas
- Million dollar business ideas to start with no money
- Out-of-the-box business ideas to make millions in business
- Small businesses that make $1 million a year
- FAQs about how to get 1 million dollars
- What would you do with a million dollars?
What is a $100-million-dollar business idea?
A $100-million-dollar business is normally going to be a publicly held company. According to KPI Crunch, somewhere between 1 and 3 percent of companies in business databases are $100 million business ideas.
#1. Real Estate Business
Average Annual Revenue: $298,870
Average Profit Margins: 44.6%
Startup Costs: $500-$5K
Time To Revenue: 1-3 months
Annual Market Growth Rate: -0.3%
Best for: driven and proactive entrepreneurs, analytical thinkers, strong team-builders and communicators
Real estate was a $237 billion industry in 2022, and has been growing at a steady rate of 4.2% per year on average. Due to this value and growth, real estate investing is a consistently reliable business model to start a million-dollar company, or even a billion-dollar company for a savvy business owner.
The real estate market is always shifting, but there’s still plenty of opportunity in this space to start a successful business. It’s estimated that up to 20% of office real estate will be removed or repurposed in the coming years. Buying and converting this type of property can be a very profitable business idea, especially in growing markets like Nashville, Dallas, or Atlanta.
Of course, to purchase real estate, you’ll need to have some resources to invest. Your financial resources don’t need to be as extensive as many think, however.
Thach Nguyen started his own business from scratch using his income and knowledge as a real estate agent. That proved to be a multi-million dollar business idea and today he makes revenue of around $800,000 a month. Hear his strategies and story in this YouTube interview:
[su_youtube url="https://www.youtube.com/watch?v=TWCzwn3R78A"]
#2. Sell Products for Pets
Average Annual Revenue: $1,655,640
Average Profit Margins: 1.9%
Startup Costs: $500-$250K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.8%
Best for: veterinarians, pet owners and animal lovers, inventors, and designers
There were 5 million more pets in the United States in 2023 than there were in 2019, driving a projected compound annual growth rate (CAGR) of 8% through 2030. What’s more, people don’t tend to cut back on pet supplies even in a tough economy. This consistent spending is what makes a pet supply company one of the top million-dollar business ideas.
Pet health services is the fastest-growing segment in this sector. Spending is expected to reach $118 billion by 2030, an increase of 143%. Million-dollar companies like PetMeds are already profiting from this trend, to the tune of over $20 million in monthly revenue. Hear CEO Matt Hulett’s insights in this interview:
An online store selling pet toys, organic pet food, or other supplies can be a very lucrative business, as well. Vlad Kuksenko started a 7-figure Etsy shop making personalized collars and tags. Learn how he built it in this interview:
[su_youtube url="https://www.youtube.com/watch?v=7dqHBHA4AmU"]
#3. Online Course and Consulting Services
Average Annual Revenue: $1,400
Average Profit Margins: 6.4%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.3%
Best for: business and leadership experts, effective communicators and motivators, analytical problem-solvers, online education instructors
Management and technical consulting services are among the fastest-growing sectors, with a forecasted CAGR of 4.1% likely to push its market value over $1 trillion by 2028.
Offering consulting services can certainly be a million-dollar business idea for someone with management or industry expertise who has a solid business plan.
Online course platforms or virtual tutoring sessions are helpful for growing your reputation as a new consulting business. It can also help to grow your personal brand through social media channels, your own blog, or other online platforms.
Once you’re established, you can attract customers like large corporate clients that can grow your consulting firm into a multi-million dollar company.
Offering consulting services is a large part of how Bedros Keuilian makes more than $200 million a year, just to cite one example. You can hear how he built his multi-million-dollar business in this interview:
[su_youtube url="https://www.youtube.com/watch?v=gXdFpkfXvGA"]
Multi-million dollar business ideas
#4. Air Charter Business
Average Annual Revenue: $1,758,240
Average Profit Margins: 7.5%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.7%
Best for: pilots, mechanics, and aviation experts with strong customer service skills
Current market research indicates the global air charter services market will grow at a CAGR of 5.8% through 2032. The need for on-demand plane and helicopter service is rising, especially in the niche of air ambulance services and emergency medical transportation.
Justin Sullivan turned his passion for aviation into a million-dollar idea for a business—several businesses, in fact, all under the AJAX Jets name, which bring in a combined revenue of over $2 million a month. Hear how he built his company in this interview:
#5. Start an Online Store
Average Annual Revenue: $60,000-$120,000
Average Profit Margins: 5-15%
Startup Cost: $100-$10K
Time To Revenue: 30-90 days
Annual Market Growth Rate: -9.3%
Best for: a creative person who’s tuned in to fashion trends, entrepreneurs with online marketing and sales skills
An online store is the most affordable way to start your own business in the fashion industry. Consider a dropshipping business with a subscription business model selling vitamins or other wellness-themed products.
Unique Vintage started off reselling vintage clothes on an e-commerce website. Pivoting to making their vintage-inspired clothes proved a successful business plan, rocketing their revenue to more than $34 million a year.
Hear how they did it in this podcast interview:
Finding the right niche is the first step to starting a multi-million-dollar company in this lucrative industry. Portland Gear founder Marcus Harvey focused on his local market, capitalizing on their social media popularity to grow to 7-figure yearly revenue. You can hear his advice in this YouTube interview:
[su_youtube url="https://www.youtube.com/watch?v=xcPqw952Xm8"]
#6. Fitness Studio Franchise
Average Annual Revenue: $668,930
Average Profit Margins: 12.7%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.1%
Best for: health and fitness experts, personal trainers, people who love exercise and excel at motivating others
The pandemic prompted substantial growth in the healthcare sector and public health awareness in general. That’s also driven growth in the fitness industry. In 2023, 39% of Americans had gym memberships, and that number is expected to rise. In fact, the industry as a whole is expected to grow by 171% by 2028.
Franchising is an excellent business model for a fitness studio, expanding your potential customer base and paving the way to grow it into a million-dollar business idea. That’s how Stretch Zone grew to more than $47 million in annual revenue, as you’ll hear in this podcast interview with CEO Tony Zaccario:
Million-dollar business ideas to start with no money
#7. Cleaning Business
Average Annual Revenue: $74,880
Average Profit Margins: 6.7%
Startup Costs: $0-$30K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.2%
Best for: detail-oriented entrepreneurs with strong customer service skills
Cleaning businesses are like gold mines—easy to start and they have high success rates. In fact, our friend Chris Mondragon, owner of Queen Bee Cleaning, started out making $6K a month and has scaled tremendously. His second month he made $18K, and by the end of his first year, he’d earned over $195K.
Today, the business makes $125K monthly. That’s the beauty of the cleaning business: It’s one of those rare industries where you can start small and scale with no limits. However, you must be careful where you start your business as only certain cities offer million-dollar potential.
In Chris’s free masterclass, he shares a formula that reveals your city’s cleaning business earning potential. It may be a good idea to check whether your city passes the test before deciding a cleaning service is the million-dollar business idea for you.
Want to grow your cleaning business even further? Add revenue streams by making and selling products, like specialty cleaners or eco-friendly cleaning solutions, online. Spruse Clean increased their revenue to $112,000 a month when they added an eCommerce website to their cleaning services. Hear how they did it in this YouTube interview:
[su_youtube url="https://www.youtube.com/watch?v=E53eEcGXhSk"]
#8. Digital Marketing Agency
Average Annual Revenue: $817,000
Average Profit Margins: 6.9%
Startup Costs: $0-$16K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.3%
Best for: social media and SEO experts, people with skills in branding, advertising, and data analysis
The digital advertising agency market size grew at a rate of 28.2% per year from 2017-2022, and is projected to continue that growth at a CAGR of 19.4% through 2030. This makes it one of the fastest-growing industries with a low cost to start.
Knowledge is the key to thriving in this space. If you’re skilled in areas like search engine optimization, content marketing, and social media management, you can offer these services online to other businesses to help them grow their brand and customer base.
UpFlip talked to Eric Berman of Brandetize, a digital marketing agency with an average revenue of $400,000 a month, in a podcast interview. Listen to it to hear his million-dollar ideas to start and grow a marketing agency:
#9. Start a Podcast
Average Annual Revenue: $4,083,600
Average Profit Margins: 27.1%
Startup Costs: $0-$5K
Time To Revenue: 1-3 months
Annual Market Growth Rate: 6.4%
Best for: influencers, thought leaders, people with valuable expertise, and online marketing/social media skills
Starting a podcast is a great business idea for people who have a compelling on-air presence and know how to attract a large online following.
That audience is key to turning a podcast into a million-dollar business idea. Adding additional revenue streams is another great way to scale. Offering online courses and other online educational resources helped Entrepreneurs on Fire grow into one of the top business podcasts, with a $1.8 million a year revenue. Hear their advice in this interview:
Out-of-the-box business ideas to make millions in business
#10. Painting Business
Average Annual Revenue: $76,857
Average Profit Margins: 7.2%
Startup Costs: $1K-$100K
Time To Revenue: 6-18 months
Annual Market Growth Rate: -2%
Best for: contractors, handymen, people who like working with their hands outdoors
The house painting services market is trending upwards, driven largely by an increase in spending on residential construction and renovation. The industry is forecasted to grow at a CAGR of 5.2% over the next decade.
Doug Caris bought Arizona Painting Company in 2014, growing it to 5 locations that bring in upwards of $2 million a month–and 50% of that is profit. He shares his strategies to grow to one million dollars and beyond in this podcast interview:
#11. Epoxy Floor Coating Business
Average Annual Revenue: $1,291,480
Average Profit Margins: 2.8%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: -0.1%
Best for: system-oriented entrepreneurs with strong customer service, math, and communication skills
The affordability and durability of epoxy floor coatings makes it appealing for homeowners, but installing it requires knowledge and equipment that make it tricky to DIY. That’s why epoxy flooring is a million-dollar business idea for entrepreneurs who have (or are willing to learn) those niche skills.
Brandon Vaughn had no experience with epoxy coatings before starting his business. What he did have was expertise in hiring, marketing, and systems. He used that to grow Wise Coatings into a franchise, and the company now generates upwards of $5 million a year in revenue. Learn how he made millions of dollars installing epoxy floors in this interview:
[su_youtube url="https://www.youtube.com/watch?v=q6mghjqijuU"]
#12. Sporting Goods Business
Average Annual Revenue: $1,625,000
Average Profit Margins: 2.9%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.8%
Best for: athletes, inventors and makers, creative sports fans
Sports equipment was an $18.4 billion industry in 2022, and the market is forecasted to grow at a CAGR of 4.6% through 2027. An increasing percentage of those sales are expected to come through online channels, with the majority of sales estimate to be online in 2024. This puts it among the best millionaire business ideas for sports lovers looking to start an e-commerce business.
WeBall Sports was started by a former football player with just $1,000, and grew its revenue to $1.5 million a year in 5 years. You can hear how he achieved 600% growth in this interview:
Sporting goods is a broad category, too, with lots of niches a crafty and creative person can explore to start a million-dollar business. The online store business Beard Head is a great example. It was started by an avid snowboarder who wanted a way to keep his face warm on the slopes. The idea quickly went viral, and it’s now a 7-figure company. See his story in this video:
[su_youtube url="https://www.youtube.com/watch?v=cIUqZapezj8"]
Small businesses that make $1 million a year
#13. Photography Business
Average Annual Revenue: $50,000
Average Profit Margins: 7.3%
Startup Costs: $1K-$10K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 0.3%
Best for: artists and photographers who are great communicators and collaborators
The variety of niches in the photography sector is what puts it among the top million-dollar business ideas for creative entrepreneurs. From an in-home portrait studio to selling stock photos to pictures for advertising and marketing materials, there are lots of ways you can earn money from photography.
Starting a drone-based business was one of the most profitable niches in 2023. A drone allows you to take overhead shots, ideal for working with real estate agents and corporate clients. That’s how Mile High Productions makes most of their revenue, and you can hear how they built the business here:
[su_youtube url="https://www.youtube.com/watch?v=EUcv1HAAbns"]
Adding revenue streams can also help a photography business grow. Katelyn James started off with a standard studio then added an online course to help other photographers monetize their skills. Her online courses have propelled her business to more than $2.4 million in revenue a year, as you’ll hear in this podcast interview:
#14. Electrical Business
Average Annual Revenue: $1,081,550
Average Profit Margins: 6.2%
Startup Costs: $1K-$100K
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.9%
Best for: contractors and construction workers, detail-focused fixers who like working with their hands
Like many skilled trades, there was a shortage of electricians in 2022—and demand for them is still increasing, at a forecasted rate of 9.1% through 2030.
Electricity demand around the world is rising, and there are fewer trained electricians to meet those needs. That represents an opportunity for a small business owner in the skilled trades.
You can learn how to build a million-dollar business in electricity in this podcast interview with Joel Walsman. His company has grown steadily since he started it in 2009 to a revenue of around $6 million in 2022.
#15. Restaurant Business
Average Annual Revenue: $1,177,860
Average Profit Margins: 4%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 0.2%
Best for: cooks, bakers, and other food service workers, system-oriented entrepreneurs with strong customer service skills
The food service industry can be feast or famine. On the one hand, about 30% of restaurants fail in their first year, according to the National Restaurant Association. There are also many million-dollar small businesses in this niche.
Doing ample market research before opening your restaurant can help you become one of those million-dollar businesses (and avoid adding to the failure statistics). If you fill an untapped niche in your area, you’ll be more likely to succeed.
Don Lucho’s was the first Peruvian restaurant in Seattle when Carlo Calisea opened his food truck in 2013. Soon, his sales grew to the point he could open a brick-and-mortar restaurant and bar, driving his sales up to $1.7 million a year:
[su_youtube url="https://www.youtube.com/watch?v=VAZeAV05KLw"]
Like with other ideas on this list, adding multiple revenue streams can also help scale sales. Food delivery services have become increasingly popular in the 2020s, for example. Don Lucho’s has kept the food truck going along with the restaurant and also offers catering services, giving them multiple ways to serve customers.
FAQs about how to get 1 million dollars
How much is a million dollars?
Approximately 12.5 times the average household income.How to make a million dollars in 30 days
Make $33,333.33 per day. That’s unlikely to happen for someone who’s just starting a business from scratch but can be a goal to shoot for down the line as you grow your business.How to make a million dollars in a year
Make at least $2,739.72 of daily revenue, $19,178.04 per week, or $83,333 monthly.To make a million in a year, focus on the most profitable businesses and be prepared to invest at least $80,000 in marketing over the year.
To make $1 million in profit, just divide $1 million by the profit margin.
How much is a business worth with $1 million in sales?
That depends on the business. An easy way to estimate how much a business is worth is using the Price-Sales Ratio, which would value a business with a million dollars in sales at between $300K and $16.5 million, with an average of around $4.5 million.What does 1 million dollars look like?
If you’ve ever wondered what 1 million dollars cash looks like, today’s your lucky day! Binions Casino in Las Vegas used to have a pile of cash for people to take pictures with. Here’s the picture we took:
How to make 1 million dollars overnight
Rob a casino and hope you don’t die. There is not a real way to make $1 million overnight. That amount of money takes multiple days to receive, even if you can make it through lottery or casino earnings, crypto, or other investments.What would you do with a million dollars?
Making a million dollars isn’t an easy task. It requires vision, consistency, and adaptability. If you can pivot as your business grows, there’s a good chance that you can build to a million per year. What would you do after you make your first million?
Do you like physical work and driving around? Maybe starting a junk removal business is right for you.
Kyle Landwehr started Slam Dunkin Junk and The Junk Academy three years ago. Now he’s making $200K to $300K every month to haul away junk—and teach people how to start a junk removal business of their own.
[su_note note_color="#dbeafc"] With advice from Kyle, we’ll answer the questions about starting a junk removal business below. Click on any link to learn more, or just continue reading.
- What is a junk removal business?
- How to start a junk removal business
- Step 1. Learn about the junk removal industry
- Step 2. Create a junk removal business plan
- Step 3. Build a junk removal brand
- Step 4. Register your junk removal business
- Step 5. Get a junk removal business license
- Step 6. Get a business bank account and insurance
- Step 7. Create a junk removal price sheet
- Step 8. Get junk removal equipment
- Step 9. Market your junk removal business
- Step 10. Remove junk from home or business
- Step 11. Expand your junk removal company
- Junk removal business FAQ
- Go start your own junk removal business [/su_note]
What is a junk removal business?
A junk removal business focuses on removing unwanted furniture, appliances, and other items from residences and businesses. It also includes garbage collection, and you may hear it referred to as the waste removal industry.
It’s physical work, and it’s possible to injure yourself. Kyle shared:
[su_quote]I was making $30K to $40K monthly when I broke my ankle stepping off the truck. Breaking my foot is what caused me to start hiring employees and [scale] my business to what it is now.[/su_quote]
He also explained that his injury got him into real estate. Listen to the interview below to find out how:
How to start a junk removal business
- Learn about the junk removal industry.
- Create a junk removal business plan.
- Build a junk removal brand.
- Register your junk removal business.
- Get a junk removal business license.
- Get a business bank account and insurance.
- Create a junk removal price sheet.
- Get junk removal equipment.
- Market your junk removal business.
- Remove junk.
- Expand your junk removal company.
Step 1. Learn about the junk removal industry
You should understand the junk removal industry before you enter it. Some of the important questions you should ask before you start a junk removal company include:
- How much does it cost to start a junk removal business
- How much do junk removal companies make?
- Is the junk removal business profitable?
How much does it cost to start a junk removal business?
The amount of money you need to start a junk removal business will depend on the business’s location (due to cost of living) and the materials you already own.
The items you’ll need to start a junk removal business include:
• A truck: $1,000 to $90,000
• Limited liability company (LLC): Under $1,000
• Business license: Under $1,000
• Business insurance: $1,000 to $10,000
• Dolly: $200
• Trash bags: $25
• Reciprocating saw: $300
• Safety equipment: $100
• Website: $1,200 per year
That means you can start a junk removal business for as little as $4,325 or as much as $102,325. Kyle told us:
[su_quote]If you have a truck, expect to spend around $6,000 starting your business. If you want to know how to start a junk removal business with no money, promote it on Facebook groups during the week and rent a U-Haul on the weekend. That will cost you $40 per day, plus $1.30 per mile.[/su_quote]
How much do junk removal companies make?
According to IBISWorld, there are 8,607 companies in the junk removal industry. They make a combined $73.7B, or $8.6M each. Kyle told us he makes $200K to $300K a month as a junk removal company owner.
Is the junk removal business profitable?
Yes. The gross profit margin is 32.74%, while the junk removal profit margins come out to 7.29% after after taxes, bonuses, and all other costs. This is based on data from 62 publicly held companies.
Kyle told us:
[su_quote]The gross profit margin the first year was around 50% margin, [the] following year 30% to 35% margin, and the third year I hired an operations manager, which took the margin down to 20%, but now I don’t have to be involved in the business.[/su_quote]
How much is a junk removal owner's salary?
The salary for working as an operations manager is around $75,000 annually for waste removal companies. This is nearly $18,000 less than other operations managers. When you run an S-Corp, you will need to use that as your wages and any profit you can pay as dividends.
Step 2. Create a junk removal business plan
For your company to be a profitable business, make sure to write a business plan.
You’ll want to include:
- Your mission and vision
- Ways you’ll make money
- Your target market
- How you will market the business
Check out our interview with Mike Andes to learn how to write a business plan. You can refer to our business plan writing guide as well.
Step 3. Build a junk removal brand
Kyle told us:
[su_quote]My smartest business move was building my plan.[/su_quote]
A distinctive and memorable brand for your service-based business sets you apart from competitors and establishes a reputation for your enterprise. Your brand relies on two main elements: your business name and logo.
First, select a junk removal business name that draws in customers and conveys a strong message about your services. Make sure it’s not already taken in your service area and online.
Next, craft a logo for your junk removal service. You have the option to hire a designer for assistance, or you can create one yourself using an online logo creator such as Canva.
Step 4. Register your junk removal business
You’ll want to register your business with your state. Kyle and most other business owners recommend structuring your business as an LLC, but there are plenty of other structures. Learn more about the business registration requirements and process in our business registration guide.
The cost of registering on the Secretary of State website varies from state to state. To give you an idea of the cost, Kyle said he paid $300 for his LLC in St. Louis.
You’ll also need an Employer Identification Number from the IRS.
Step 5. Get a junk removal business license
A junk removal business may need local or county licenses. Check with your local government’s business office to see what is required in your state.
What license do I need to start a junk removal business?
You may need special licenses and permits for waste removal if you collect hazardous waste or do construction tasks like demolition (which Kyle offers in addition to junk removal services). He also told us:
[su_quote]You could also offer dumpsters for people [which requires licenses].[/su_quote]
Your local business office will be able to help you establish what business licenses you need.
Step 6. Get a business bank account and insurance
A junk removal business needs a small business bank account before it offers junk removal services. The business bank account should have low fees and high interest rates on savings accounts. Keeping your finances separate will be helpful when tax season arrives.
You’ll also need junk removal business insurance. A junk removal company will need commercial auto insurance and general liability insurance at a minimum, but you might want more extensive business insurance, like a business owner's policy (BOP). Learn more in our business insurance guide.
A BOP covers general liability, property damage, and unexpected shutdowns, plus has riders for other policies. We suggest contacting Simply Business to get quotes from multiple insurance companies.
For added financial management, consider enlisting the services of a bookkeeper or accountant. They can oversee business income and expenditures, handle bills and payroll, generate and dispatch invoices, and maintain the financial health of your business.
Step 7. Create a junk removal price sheet
Getting paid for removing junk is nice, but junk removal business owners need to make a profit. That means you need to cover your labor, materials, and overhead costs. To achieve this, it's essential to develop a pricing strategy for your waste removal business:
- Decide how to charge customers: You might want to have standardized prices for time, weight, and volume (like by the cubic foot). Creating all three will help you establish which way makes the most sense for each job.
- Research competition pricing: You don’t want your services to be overpriced or underpriced because both scenarios will hurt your earning potential
- Include overhead: Add all the expenses that are not directly applied to a job, then divide them by the number of billable hours (160 per person, per month). Add this rate to every hour of labor.
- Additional time and materials: You’ll need to cover time driving, disposal fees, taxes, and your profit margin. In general, junk removal services should assume each job will be at least two hours between driving, pickup, and disposal.
Once you've established your junk removal business pricing, you’ll want to create a junk removal price sheet.
Step 8. Get junk removal equipment
Junk removal businesses need a variety of tools, equipment, and software to run successfully.
We’ve got you covered! Get all the supplies you need as a junk removal business owner from the UpFlip Junk Removal Store, or check out the list of tools you need for junk removal jobs below.
What do I need to start a junk removal business?
Junk removal businesses need the following:
- Pickup truck or box truck: You’ll need a vehicle to transport junk. This will be the largest of the business expenses, but Kyle says when you’re first getting started you can just rent a U-Haul.
- 3-in-1 Dolly: A successful junk removal business will need a dolly that converts to a cart. Kyle told us they have a 1,000-pound capacity dolly.
- Safety equipment: Depending on what you do in your junk removal business, you’ll need work gloves, work boots, safety goggles, and hard hats.
- Trash bags and bins: Load small things into these to simplify the process once you get to the dump or recycling yard.
- Reciprocating saw: Being able to saw items into smaller pieces comes in handy if you are recycling air conditioners because wires, copper, steel, compressors, and motors all have different values. Don’t forget blades and extension cords.
Author’s Note: Hauling away a ton (2,000 pounds) of air conditioners can make you around $2,000, based on my time working in HVAC.
You might want other tools including:
- 16-ounce claw hammer
- Construction broom
- Crowbar
- Forearm forklift
- Large trash bins
- Laundry cart
- Long cut snips
- Moving blankets
- Orange vehicle flag
- Packing tape
- Rake
- Screwdriver set
- Shovel
- Sledgehammer
- Tarps
- Utility cart
- Wrench set
Next, find out how to market your junk disposal company.
Step 9. Market your junk removal business
When you start a junk removal business, you’ll need to build a name for yourself. To market yourself, you should:
- Post on social media.
- Find junk removal leads.
- Use junk removal software.
- Quote prices.
Post on social media
Social media is a powerhouse for all forms of service businesses. Kyle told us:
[su_quote]I went all in on social media, specifically Facebook. You used to have to go to businesses to network, but I can get way more leads from social.[/su_quote]
Junk removal businesses should:
- Set up a Facebook business profile.
- Get their friends and family to like the Facebook page and share it.
- Post pictures of work they do from each junk removal job.
- Join local Facebook groups and network with potential customers.
- Create automated FAQs on Facebook Messenger.
- Keep posting regularly.
Kyle also explained that Instagram is better for marketing his junk removal coaching business.
Find junk removal leads
You’ll need to find customers who need junk disposal services. There are a lot of ways to help people find you when they need help. Kyle discussed where you can find potential customers:
[su_quote]Social media, Google (both search and local ads), flyers, door knocking, and Yelp are all good places to find leads.[/su_quote]
Use junk removal business software
Business software is necessary to help potential customers find your business and manage all the jobs.
The main requirements you are looking for in software include a website, email and text automation, quotes, invoicing, and a customer relationship management system.
Many junk removal businesses use either Jobber or Housecall Pro, which offer all of the services above. Based on testing both for blogs, I like Housecall Pro’s functionality better.
Quote prices
Once you have gotten leads, Kyle said that you’ll want to go to the person’s residence or business location so you can see the extent of the junk haul-off. There, you’ll examine what you need to remove and provide an estimate. If you’re in the junk removal truck, you might even be able to haul the junk immediately.
You should also provide a business card so they can contact you if they don’t want the junk removed immediately.
In addition to offering home and office junk removal, Kyle suggested the following services:
[su_quote]You can also offer house flipping, dumpster rentals, and demolition.[/su_quote]
Step 10. Remove junk from home or business
When it’s time to collect the junk, you’ll go to the customer’s location and put it in the truck or scrap trailer. Removal time will depend on the number of items, ease of getting to them, and other tasks you need to do.
When you are done, you’ll want to get paid for junk removal. You might also want to provide junk removal business cards because the waste removal industry doesn’t get much repeat business, but business cards could help you get referrals.
Finally, you’ll take the junk to the dump, a recycling yard, or somewhere that you can repair it. When there are things you can recycle or repair, you can commonly make some extra money when you have slow periods.
Step 11. Expand your junk removal company
When you start a junk removal company, you’ll want to find ways to expand it. Kyle told us:
[su_quote]Focus on perfecting one thing, but be open to expanding to other services. In my case, it led to house flipping and coaching.[/su_quote]
You could recycle or repair appliances to make extra money, too. As your business grows, you could also franchise your business to help other people get started quicker.
Find employees
Kyle explained:
[su_quote]Lots of people thought I was all talk, but once I started a lot of my friends wanted to become junk removers.[/su_quote]
If you don’t want to work with friends, learn about hiring employees from a recruiter.
Systemize everything
Establishing and documenting systems and policies for your business can make it run smoother, even in your absence.
Junk removal business FAQ
How much is junk removal for customers?
Junk removal pros normally charge a minimum pickup fee of $50 to $150, and larger jobs may cost a minimum of $100 to $450. If customers rent dumpsters, those may cost $30 to $285 per day.
Can I buy a junk removal franchise?
Yes, you can buy a junk removal franchise. Some of the common junk removal franchises are:
- 1-800-Got-Junk?: The most famous commercial junk removal company hauls away all kinds of junk.
- College HUNKS Hauling Junk & Moving: Starting a junk removal business with College HUNKS means you’ll provide moving and junk removal services.
- Bin There Dump That: This hauling junk business brings dumpsters to people’s homes, then hauls it afterward. Learn more.
- Junk Removal Authority (JRA): The JRA offers the equivalent of franchise support without royalty fees.
- JDog Junk Removal & Hauling: JDog focuses on helping veterans start waste removal companies. They also donate or recycle over 60% of junk.
- The Junkluggers: Junkluggers franchises offer same-day and next-day junk and trash removal.
Learn about other junk collector franchises.
Go start your own junk removal business
Whether you want to start a junk removal side hustle, buy a franchise, or start your own business, we’ve covered every aspect of entering the junk removal business as an entrepreneur.
It’s up to you to get started. What kind of junk removal will you do?
From grocery stores to Amazon, you see private label products all day long. But do you know how to find private label products?
We’ve talked to a lot of people who make money selling private label products. Amazon FBA is one of their favorite tools to sell online, and they had some great tips about other sales outlets as well.
We’ll provide you with a guide to the product development process with input from interviews we’ve done with some of the most successful independent private label sellers.
[su_note note_color="#dbeafc"]
You’ll learn all there is to know on topics like these:
Private label products are products created by a manufacturer with the intent for an exclusive third party to sell them using a different brand name. Private labeling removes the need to invest in high-priced equipment by paying an existing manufacturer for the production of goods.
Private label businesses are growing increasingly popular in the ecommerce field thanks to the reduced startup costs of a private label brand.
According to Statista, private label products accounted for $6.6 trillion of 2021 GDP and are projected to hit $7.9 trillion in 2026. This includes big brands that offer their own branded products. To draw inspiration from which products sell most, look at the major retail private labels:
We pulled a list of commonly searched private label, white label, and branded products from ahrefs.com to find out what industries use the most private label-ready products. If you’re looking for a niche market, consider these private labeling ideas:
Private labeling will require a contract between your business and the third party manufacturer. The contract terms may be dictated by the private label manufacturer, the private label, or negotiated.
If you are using print-on-demand, the manufacturer will almost always dictate the terms, while terms for a custom-made product will be negotiated.
Even when terms are negotiated, there are some specifics that may be unchangeable, like the minimum order quantity (MOQ) or quality controls.
Now that you understand the process of private labeling, let’s circle back to where to find private label products to start your business.
This category includes the following search terms:
To find hemp and CBD private label products to sell on Amazon and other sites, search terms like:
Another popular directory is MFG. You can search suppliers by continent. This directory is over 20 years old and allows you to find manufacturers or create a free profile to request quotes and use other features. While I haven’t dug deep into MFG’s database, they seem to be more focused on metals and plastics.
After you have sourced your private label products, you’ll need to set up the system to sell your private label goods. You’ll need to perform the following steps when you have private label products to sell.
eCommerce business models make it easy for a business owner to build their own websites and ecommerce stores. This is really important when you have private label products to sell (I’ll tell you more in our cautionary tale). A private label product company will need to:
A consulting client of mine contracted one of the top web development companies in the area to create his online store.
He wanted the first heading to be below the fold (not visible when you first open the webpage) because he spent $10K+ on photography to have beautiful pictures that conveyed the style of the brand.
The website developers refused and never delivered a final product because they disagreed with his request.
Long story short, the client has spent hundreds of thousands of dollars, has huge amounts of inventory, and has pretty much written off his business because he paid for everything on the front end and never got past this hiccup with the website.
[/su_note]
After you’ve written content for your private label business, you should share it on social media. Make sure the content fits both your private label business and the social media platform you share it on. Some types of content perform better on certain social media platforms:
Create an online store on every marketplace you can to get your private labeling in front of as many eyes as you can. According to SimilarWeb, the top places to sell private labeled products are:
No brand starts with instant name recognition. You’ll need to get reviews for your private label to help overcome poor consumer perception of private and white label products.
Once people see that a company has great product reviews, they are more likely to accept that the brand identity isn’t just trying to make higher profit margins on generic products.
One of the best ways to do this is to automate requests for reviews several days to a week after the consumer has received the product. (Be careful though. Amazon private label products can get in trouble if they request reviews through means other than the standard product review process.)
You’ll want to research Amazon’s seller options to decide which one you want to use. Most Amazon sellers use the FBA service, in which the manufacturer ships your bulk goods to Amazon and Amazon fulfills the order for a referral fee between 5 and 20%.
Make sure to read the fees really well because they impact pricing and profitability.
One particularly useful trick you can use with Amazon FBA is working with a dropshipper to produce your custom products. Place an original bulk order that is sent to the Amazon warehouse, then every time a product is ordered, have Amazon ship it, send the dropshipper money for more, and you keep the profits.
Just like that, you get the benefits of Prime and dropshipping all in one.
You’ll also want to research the demand for the product category. Make sure you study the number of competitors and the number of searches for similar products. Michael Jackness, the owner of treadmill.com and Amazon FBA private label stores, told us:
[su_quote]Picking the right niche and market is really important. It’s gotten more expensive to get the customer, so you need to be able to sell to them more than once.[/su_quote]
Hear more from Michael to learn how he created a $9 million annual ecommerce company.
Learn more about market research.
We’ve already provided a list of private label products and where to find them, but you should check out our best things to resell blog for more information on the best products to private label.
To make the most of Amazon, you need to have an Amazon FBA account. Sending your products to Amazon’s warehouse means they qualify for Amazon Prime. You can also qualify for Prime with self fulfillment (but there are more stringent requirements). I strongly suggest reading Amazon’s guide before getting started as well.
- What Private Labeling Is
- How to Private Label Products
- How to Find Private Labels
- Best Private Label Manufacturers Directories
- How to Sell Private Label
- Private Labeling Amazon FBA
What are Private Label Products?
Private label products are products created by a manufacturer with the intent for an exclusive third party to sell them using a different brand name. Private labeling removes the need to invest in high-priced equipment by paying an existing manufacturer for the production of goods.
Private label businesses are growing increasingly popular in the ecommerce field thanks to the reduced startup costs of a private label brand.
White Label vs Private Label
Understanding the difference between private label vs white label is important before getting started in this field. Private labeling provides exclusivity for the retailer or wholesaler. White labeling allows multiple retailers to add their branding to the product and sell it as their own. Here’s what this confusion can cause harm to your business: If you create a private label product and sign a manufacturing agreement as a white label product, you have effectively allowed the third-party manufacturer to use and sell your intellectual property for their gains. Moral of the story? Make sure to read your contract!How Much Do Private Label Products Make?
According to Statista, private label products accounted for $6.6 trillion of 2021 GDP and are projected to hit $7.9 trillion in 2026. This includes big brands that offer their own branded products. To draw inspiration from which products sell most, look at the major retail private labels:
- Walmart: Great Value
- Amazon: Amazon Basics
- Costco: Kirkland
- Target: Archer Farms
Benefits of Selling Private Label Products
You might want to consider becoming a private label seller for these advantages:- You Control Production: Specifying quality, materials, ingredients, and production rate (as long as it is over the minimum order quantity (MOQ) provides more control than white label brands.
- You Can Act Quicker: Major competitors have to go through a chain of command, but a private label brand can adjust to market conditions faster.
- You Set Pricing: You get to set the pricing to get the margins you need. Using another business model might make pricing competitively difficult. (If your prices are too high, you won’t sell products, though).
- You Control Marketing: When you sell another company’s products, you have to obey their brand communication guide. When you create your own product ideas, you can package them how you want and market them to your target audience without worrying if someone will reject your marketing ideas.
Cons of Selling Private Label Products
Selling private label products doesn’t come without challenges. Here are some to keep in mind:- Manufacturer Quality: Every manufacturer has their own quality control standards. If your product quality expectations are higher than those of your suppliers, you might be disappointed.
- Consumer Perception: Private brands pop up every day with the prevalence of print-on-demand. Some are amazing, while others are cheap and poorly made. Consumers need time to trust a brand. Do everything you can to build their trust.
- Loyalty Building: Your target audience doesn’t know you yet. Until they get to know you and love your brand, finding customers for your private label products may be difficult.
How to Private Label Products
You’ll need to perform the following tasks when you create your own brand name products: [su_note note_color="#dbeafc"]- Decide what type of private brand you’ll be.
- Find private label manufacturers.
- Test their products.
- Negotiate a deal.
What are the Best Niche Markets?
First, you’ll want to perform market research. You’ll want to establish:- The products you want to sell
- The target market for the products
- Where you will sell the products
- How you will market the products
Common Private Label Product Ideas
We pulled a list of commonly searched private label, white label, and branded products from ahrefs.com to find out what industries use the most private label-ready products. If you’re looking for a niche market, consider these private labeling ideas:
- Private label clothing
- Private label hair care products
- Branded promotional products
- White label food products
- Private label skin care products
- White label marketing products
- Private label detailing products
- Private label cleaning products
- White label furniture
- Private label pet products
- Private label CBD products
Where To Find the Best Private Label Suppliers
Next, you’ll need to choose a private label supplier. There are plenty of private label suppliers, depending on your industry. Check a supplier directory like:- ThomasNET: The most sophisticated database of third party manufacturers.
- Private Label Help: 27 categories of private label manufacturers.
- HAPPI: Find a private label manufacturer by industry or country.
- Impressions: Find apparel private label manufacturers.
Test Each Private Label Manufacturer
Before you get into a minimum order quantity contract and provide the third party manufacturer with your intellectual property, you want to verify they are a reliable manufacturer. That means you’ll want to ask the private label manufacturer for some samples. Pay attention to aspects like: [su_note note_color="#dbeafc"]- How long does it take to receive your shipment?
- How much did the products cost before shipping?
- Is the quality of the products consistent?
- How much did shipping cost?
- How long was shipping vs lead time?
Negotiate A Private Label Brand Contract
Private labeling will require a contract between your business and the third party manufacturer. The contract terms may be dictated by the private label manufacturer, the private label, or negotiated.
If you are using print-on-demand, the manufacturer will almost always dictate the terms, while terms for a custom-made product will be negotiated.
Even when terms are negotiated, there are some specifics that may be unchangeable, like the minimum order quantity (MOQ) or quality controls.
Now that you understand the process of private labeling, let’s circle back to where to find private label products to start your business.
How to Find Private Label Products
There are a ton of ways to find private label products for small business ventures. As part of this article, I looked for the most commonly searched private and white label products on Google. Here are the high-level categories that are most searched.Private label bath and body products
This category includes the following search terms:
- Private label beard products
- Private label hair products
- Wholesale organic skin care products private label
- Private label hair products manufacturer
- Private label hair products for small business
- Wholesale private label natural hair products
- Private label body products
- Private label soap
Best Trade Show USA to Resource Private Label Skin Products
It comes as no surprise to me that Las Vegas leads the way in trade shows to promote private label products. If you want to know how to find private label products, go check out some of these conventions.Vegas Conventions
The following conventions will have private label wholesale beauty product suppliers:- iSpa Conference and Expo: May 9-11, 2023
- International Beauty Show: June 24-26, 2023
- Cosmoprof: July 11-13, 2023
- SupplySide West: Oct 23-27, 2023
Most Beauty Shows Change Cities Each Year
Some other tradeshows to check out include:- Premiere Orlando: Largest North American private labeling convention for beauty supplies.
- The Makeup Show: Hosts three conferences across the country.
- IndieBeauty Expo: This convention is primarily independent products, while others are more focused on the beauty aspect.
Private Label Hemp Products
To find hemp and CBD private label products to sell on Amazon and other sites, search terms like:
- Private label CBD products low minimum
- Cannabidiol private label
- Best private label CBD companies
- CBD white labeling companies
- CBD private label dropship
- private label CBD manufacturer
Best Private Label Manufacturers
Thomasnet
Find US and Canadian manufacturers, suppliers, and buyers on this online database. Thomasnet lets you compare manufacturers by size, history, sales, standards they follow, and more. This free database is a great place to start your journey creating private label products. Learn more about Thomasnet.AOP+
AOP+ sells print-on-demand products and connects to Etsy and Shopify to make selling in the US, UK, and EU easier. They handle order processing and fulfillment in-house, which is a rarity for print-on-demand companies. Get clothing, accessories, and other products manufactured and shipped to your customers with AOP+.Maker’s Row
Maker’s Row was started in 2012 to connect businesses with American manufacturers. Unfortunately, this platform has a monthly or annual fee that will cost up to $1,800 per year. You can see Maker’s Row online or at many trade shows like the MAGIC fashion show.MFG
Another popular directory is MFG. You can search suppliers by continent. This directory is over 20 years old and allows you to find manufacturers or create a free profile to request quotes and use other features. While I haven’t dug deep into MFG’s database, they seem to be more focused on metals and plastics.
Kompass
This free B2B connects businesses in more than 60 countries. Kompass is one of the smaller databases, but it has more countries you can work with than other directories. I also really like that Kompass makes it easy to tell what kind of suppliers they have on their website.SaleHoo
Check out SaleHoo for tools that go beyond a suppliers’ directory. This company offers educational materials, market research tools, and a forum to get the most out of your private label products and dropshipping company. You’ll have options for monthly, annual, or lifetime plans depending on your needs, but you can get access for as low as $67.How to Sell Private Label Products
After you have sourced your private label products, you’ll need to set up the system to sell your private label goods. You’ll need to perform the following steps when you have private label products to sell.
- Register your private label business
- Create branded packaging
- Build a website (or list your products in an online marketplace)
- Market your product line
- Start selling
- Get reviews
- Pay your taxes
Step 1. Register Your Private Label Business
A private label business should form their legal business entity before they start accumulating costs. This means you’ll need to: [su_quote]- Get an LLC or Corporation
- Get a Sales Tax Permit
- Get a Business Bank Account
Step 2. Create Branded Packaging
Now that your private label business is legal, you’ll want to create custom packaging for your private label products. Depending on the product, the business labels might be:- A sticker on a plastic sleeve
- A custom designed box with brand labels
- Branding labels on the inside of a t-shirt
Step 3. Build a Website (or List Your Products in an Online Marketplace)
eCommerce business models make it easy for a business owner to build their own websites and ecommerce stores. This is really important when you have private label products to sell (I’ll tell you more in our cautionary tale). A private label product company will need to:
- Create an ecommerce market somewhere like Woocommerce or Shopify
- Setup a payment processor
- Take photos of their own branded products
- Write compelling product descriptions
[su_note note_color="#dbeafc"]
A consulting client of mine contracted one of the top web development companies in the area to create his online store.
He wanted the first heading to be below the fold (not visible when you first open the webpage) because he spent $10K+ on photography to have beautiful pictures that conveyed the style of the brand.
The website developers refused and never delivered a final product because they disagreed with his request.
Long story short, the client has spent hundreds of thousands of dollars, has huge amounts of inventory, and has pretty much written off his business because he paid for everything on the front end and never got past this hiccup with the website.
[/su_note]
Step 4. Market Your Product Line
Once you have an online store, you’ll want to start marketing your products. There are a lot of ways to market private labeling companies. Some of the best ways are:- Keyword Research and Optimization
- Content Creation
- Sharing on Social Media
- Product Giveaways
- Influencer Marketing
- Listing Them in Other Marketplaces
Keyword Research and Optimization
Even the best private label products aren’t going to sell themselves. People have to know about them. You need to perform keyword research and optimize your site to meet the terms that people search for when looking for a product. For instance, the owner of Pooch Selfie, a custom product that holds a tennis ball on top of a cell phone, gets around 50% of his ecommerce store traffic from people who find his private label products by searching for things like “dog selfie sticks” or “Shark Tank dog toys” as opposed to the branded term. Watch the video below for his tips on creating a custom product. [su_youtube url="https://www.youtube.com/watch?v=j7UzP5dVOqA"]Content Marketing for Private Label Brands
You’ll want to use the keywords you found to drive your content by using them in product pages, URLs, blogs, pictures, and more. Content marketing lets search engines and consumers know that you are an active online business. The more useful the content you create, the more likely your online store is to rank for the subject matters you are targeting. Here at UpFlip, we use SurferSEO and Ahrefs to help our brands rank for keywords.Social Media
After you’ve written content for your private label business, you should share it on social media. Make sure the content fits both your private label business and the social media platform you share it on. Some types of content perform better on certain social media platforms:
- Short Form Video: TikTok, YouTube, Facebook, and Instagram
- Long Form Video: YouTube, Facebook, TikTok, LinkedIn
- Pictures: Instagram, Facebook, Twitter, LinkedIn
- Blogs: Facebook, Instagram, Twitter, LinkedIn
Everyone Loves Product Giveaways
Private label brands can do well with product giveaways. You’ll want to make the giveaway something that is inexpensive for you, but that will get your private labeling where people use it as frequently as possible. For instance, if you sell private label car care products you might want to do a giveaway for fun branded air fresheners. This gives you an easy way to collect customers’ emails and information to target them for other car cleaning products.Try Influencer Marketing
Influencer marketing is a great way to help people find private label products. This marketing business model makes use of people who have a large following on social media who can talk about specific niches and bring awareness to their followers. They can help boost your private label product sales by using your products in a video and sharing the brand identity with their followers. This works particularly well for private label beauty products as followers are eager to learn what an influencer does to achieve specific makeup or hairstyle.List Your Products in Other Marketplaces
Create an online store on every marketplace you can to get your private labeling in front of as many eyes as you can. According to SimilarWeb, the top places to sell private labeled products are:
- Amazon: Learn more about selling on Amazon.
- Ebay: Learn how to sell private labeling on eBay’s online store.
- Walmart: Find out how to sell your private label apparel or other products on Walmart.com.
- Etsy: Learn about starting an Etsy shop from a brand owner.
- Target: Learn more about private labeling sales through Target.
Step 5. Start Selling Your Private Label Products
Once you’ve created your online store, there are plenty of additional ways to sell your products. You can sell:- Private label products wholesale
- Private label products in retail stores
- Amazon private label products
- Direct to consumer
Step 6. Get Reviews for Your Private Label Company
No brand starts with instant name recognition. You’ll need to get reviews for your private label to help overcome poor consumer perception of private and white label products.
Once people see that a company has great product reviews, they are more likely to accept that the brand identity isn’t just trying to make higher profit margins on generic products.
One of the best ways to do this is to automate requests for reviews several days to a week after the consumer has received the product. (Be careful though. Amazon private label products can get in trouble if they request reviews through means other than the standard product review process.)
Step 7. Don’t Forget To Pay Your Taxes
One of the ways many business owners and self-employed people get in trouble is by forgetting to pay their taxes. Many locations require quarterly tax filings for private label business ventures. These filings may include federal income taxes, state income taxes, sales taxes, and payroll taxes. Make sure to keep track of the due dates and work with a licensed tax preparer.How to Sell Private Label Products on Amazon
Amazon is a great place to sell a private label. Amazon offers multiple ways for merchants to sell, including Amazon FBA, Amazon Merch, and other strategies. It doesn’t matter which strategy you choose; you’ll want to:- Perform market research
- Start an Amazon merchant account
- Decide how you’ll sell on Amazon
- Find private label products to sell on Amazon
- Register your products with Amazon
- Send them to Amazon FBA private label
Step 1. Research the Market
You’ll want to research Amazon’s seller options to decide which one you want to use. Most Amazon sellers use the FBA service, in which the manufacturer ships your bulk goods to Amazon and Amazon fulfills the order for a referral fee between 5 and 20%.
Make sure to read the fees really well because they impact pricing and profitability.
One particularly useful trick you can use with Amazon FBA is working with a dropshipper to produce your custom products. Place an original bulk order that is sent to the Amazon warehouse, then every time a product is ordered, have Amazon ship it, send the dropshipper money for more, and you keep the profits.
Just like that, you get the benefits of Prime and dropshipping all in one.
You’ll also want to research the demand for the product category. Make sure you study the number of competitors and the number of searches for similar products. Michael Jackness, the owner of treadmill.com and Amazon FBA private label stores, told us:
[su_quote]Picking the right niche and market is really important. It’s gotten more expensive to get the customer, so you need to be able to sell to them more than once.[/su_quote]
Hear more from Michael to learn how he created a $9 million annual ecommerce company.
Learn more about market research.
Step 2. Create an Amazon Seller Account
Next, you’ll need to sign up for an Amazon seller account. Go to Seller Central. We show you how to set up an Amazon account in our blog about an Amazon FBA business.Step 3. Test the Products
Test the products to make sure there are no quality control issues. Depending on the type of product, you’ll do this in different ways. For example, I stress-test t-shirts by running them through a wash to test how many times you can wash and dry them before the designs wear off. With candles, you might want to test the burn time and see how long it takes to burn them down to nothing. There are plenty of ways to test any product; you should definitely know how long your product will last.Step 4. Find Private Label Products to Sell
We’ve already provided a list of private label products and where to find them, but you should check out our best things to resell blog for more information on the best products to private label.
Step 5. Register Your Products With Amazon
Any branded products should be registered with Amazon brand services to protect them from being stolen. To do this, you’ll need a registered trademark with the appropriate government office. Check out Amazon’s Brand Services page.Step 6. Send Your Products to Amazon
To make the most of Amazon, you need to have an Amazon FBA account. Sending your products to Amazon’s warehouse means they qualify for Amazon Prime. You can also qualify for Prime with self fulfillment (but there are more stringent requirements). I strongly suggest reading Amazon’s guide before getting started as well.
People Also Ask
What is White Labeling?
The white labeled definition is to provide the exact same product to different companies with their brand logo on it. The manufacturer normally offers this service for the top products to sell online because it helps them run closer to 100% capacity. The name comes from manufacturers providing the products with a blank white label so other companies can sell the product with their branding. Vitamins, marketing, and other industries use this strategy to help business owners make more money by filling excess capacity while the marketers can increase their offerings without the additional costs of creating a new manufacturing facility.What is Private Label Masters?
Private Label Masters is an affiliate course that teaches people about the best thing to sell online through private labeling and white labeling.What is the Best Product to Sell Online?
The best product to sell online is a product that has the following characteristics:- High search volume
- Low competition
- High profit margin
- You are knowledgeable and passionate about it
Start Building a Private Label Company Today
At this point, you should be ready to start your market research and start an Amazon private label store. I strongly recommend using the links in this blog to dig deeper into the subject matters you need more information about. What experience do you have with white label, private label, and custom-made products?Comments
Get business advice straight to your 
Inbox 
Learn from business failures and successes in 5 min or less. The stories, frameworks, and tactics that will make you a 10x better founder.
Join our 45,000+ entrepreneurs