Making $120,000 from a Vending Machine Business | The Graham Stephan Show

welcome back to the Graham Stefan show my name is Graham and welcome to my show and today we have a very special caller he is 19 years old he has a YouTube channel and he runs a vending machine business and guess how much money he's making one hundred and twenty thousand dollars a year and his question is what to do with all of this money so let's bring him on and see what it's all about so welcome to the Graham Stefan show what's going on well my name is jaime and I'm from Dallas Texas I'm currently I'm actually a fellow youtuber and I currently make videos about the vending machine business I started about six months ago and I now make over six figures a year that's in crumb I want you I want you to use by the way thank you thinking I've been watching it for a while and by a while I mean like three months four months I remember you used to comment on my channel and yeah and so I would check out your videos from there and you've had some incredible success on that but anyway I'll let you continue what that's what I do for time now it's just YouTube but I've been having out of their problems saving money but I would say you know I need help because I went I went from making like fifteen hundred dollars a month like only five months ago to now over ten thousand a month and you're not the big jump all right so the first thing I'm gonna say I'm gonna interrupt you right there I want you to know that when it comes to YouTube as quickly as you went to 10k you can go back down to zero and I hate to scare you or instill any sort of fear in you when it comes to this it can go down so quickly and the reason I know this is because I have seen this happen to so many channels and I am praying for my own channel that it doesn't go down to zero and I'm being dead serious I have seen some channels just get killed off in a matter of days from an algorithm change or a D monetization I've seen it happen so many times now where it's definitely not the norm but it's something that you cannot put all of your eggs in one basket and expect this to continue forever when the reality is that you are at the whims of a YouTube algorithm that decides how much money you make and how much they like you determines how much money you make that's the truth first thing I want to say you need to act like every day is gonna be your last day earning that dollar and I hate to sound this extreme but it is the truth that's how I want you to think of all of this money right now and very well I hope it continues and I hope you can start making 50 thousand and even a hundred thousand dollars a month and I think that's absolutely possible on YouTube but I also don't want to get delusioned that okay this is the new normal this is going to be my my new income now and I can spend as though I'm making ten thousand month I think YouTube is the same as just about any sort of Commission job out there that the only way to budget is by based on what you've made the previous year so like your real estate is very common that what they say is you can never budget based on how much you make in a year because some years you'll make a lot of money and the other years you might not make anything so budget on last year which you don't have the last year so right now save everything and doubled everything now you have this opportunity on YouTube the window is open and I like the fact that you went full time and you jump right into it I think that's the right move to make and I would have told you to do the same thing save everything what are your current expenses right now how much do you spend current expenses what I do have to pay every month you know I recently moved out so I pay rent you know utilities Oh how much is right red not not too bad at 950 okay that's good what are your total expenses every single month total expenses I would say about 1,500 keep it at 1500 that's really good dude dude that's really good do not repeat do not spend any more money right now at least for the next I again I'm extreme like you guys know me I'm a little on the extreme side when it comes to frugality and savings ideally if if if you want me to be happy and you want me like oh you made me proud for the next two years I want you to spend $1500 a month and keep it in that everything else that you get I want you to put in savings and I want you to probably if it were me I'd probably invest half of it and keep half of it in a high-interest savings account just because you don't know when you might need access to that money or maybe you decide to go and invest in real estate or buy a property or maybe something happens you see a new opportunity I think it's important at 19 to have that type of liquidity yeah but I also believe that you should be investing and saving just a big portion of that okay yeah I feel like it's gonna be hard for sure going only spending 1,500 and 1/3 – yes since the last few months since I've been doing this I've been spending at least to be honest a little over half what you piss me off here man you may be so happy in the beginning and now you just have rushed it you cannot do this man you have to realize you're you're six months in to do all of this money you're so new you're so new to all of this now is your chance to get ahead you have been handed this golden egg I'm just like here's money don't screw it up that's what you've been handed you cannot you cannot spit if you had a salaried career and you had a w-2 job that was stable that you've worked at for ten years if you said I spent half of my income I would have not I wouldn't have a problem with it but when you talk about you relying on a YouTube algorithm and you have a run up lately of really good videos and really good views and now you're making this money it it will not last forever and you have to treat it as though this money is not going to last forever because it will not and it sounds depressing and I hope it does but I really believe YouTube is a type of career for anyone watching you can make so much money in like five years you can make enough money to retire if you play that five years smart you don't want to be like a fouseytube right who makes it a million two million dollars a year blows it all and it's all gone and then and then you have to start over you don't want to do that man you don't want to do that you want to play it smart well the thing is that yeah even though I do spend over have it's actually not unlike you know use this stuff like I don't go out and buy you know Gucci or like a new phone or new shoes it's better not I put most of that money back into my business actually so I mean would you still say all yes and no no how are you putting it back into your business because that does change things yeah well I mean like I said I do you have a vending machine business so it's either buying more machines to grow that business that's fine buying better you know upgrading the machines to accept credit cards that's basically you know that's a better camera for YouTube that's totally fine oh I thought I thought you were just man you should have told me that anyway everything still applies but it's different if you're spending it back on a business that that totally makes sense and that I would all and that I would almost you say goes back to remember how he said I would invest half and save half the same thing I mean what I meant to invest half he that could be investing back into a business it doesn't necessarily need to be an index fund it doesn't necessarily need to be stocks or anything like that mm-hmm so yes okay so I think that's I think that's fantastic and and just save the rest of it okay yeah I've actually I've been seeing your videos and I've heard you talking about and saving the money with an ally Bank yes yeah I was looking into that actually that way I don't spend the other half yes I would absolutely do that Ally Bank is really good I've just opened up an account with wealthfront recently they're offering a 2.5 1% interest and they're insure up to a million dollars so I looked into it it seemed pretty legit so I'm moving half of my money over to wealthfront I don't want to do the whole thing because I'm worried well that's a wealthfront it's it's not quite a lie I don't want to put all my eggs in one basket I would look into allies phenomenal depending on how much money you have the interest rate of like point to something percent isn't gonna matter hugely yeah look into one of those ally from from my experience has been amazing if you're just throwing away if you're just putting away money wealthfront might you know otherwise be a good option for you mm-hmm okay sounds good yeah definitely do that and see hugging days have has my money if not most of it there's like you said you know YouTube Snuggie on that's wherever and I don't want to put all my eggs in one basket yeah that's the one that's the only thing I want to hammer in here because it's I've seen it way too much with Shopify people I don't want to call any any Shopify people out because we're all friends but I have seen it firsthand where they expect this if I figure a month income to continue and then all of a sudden three months later they're making like a tenth of what they used to and they got used to a very very very expensive lifestyle just thinking the money is going to continue coming in and it's very common with people who are – who go from nothing to a lot and and they just know that's a lot more dangerous in my opinion to go from zero to like you know 30k a month than it is from zero to two to five to ten and like slowly ease into it because it catches a lot of people off-guard and I think a lot of people just don't know how to properly manage something like that would you mind giving the income breakdown how much you're making from YouTube how much you're making from vending machines and where you want to take this yeah yeah so on average YouTube I'm I've been making about eleven thousand the last five months the most I've made was almost fourteen thousand so yeah and then from vending it's right now it's about three thousand gross good morning on that net about half four fifty nine eighteen hundred okay that's some sponsorships and you know everything else okay I would diversify if you can from YouTube also to Instagram I don't know if you're doing that already if you haven't done that a hundred percent do that because my my thing is now I'm getting almost more engagement on Instagram within the first like 10 20 minutes than I am on YouTube and that's with like less than a tenth of the following which by the way you guys there should be no excuse if you're watching this video right now you haven't added me on Instagram here is your chance here's your chance to add me right now on Instagram because the thing is this video is going to get like 30 it is probably 70,000 views and I think they have 62,000 followers that the math doesn't make sense unless everyone that's watching adds me on Instagram you know the math doesn't make this here so you guys gonna add that you'd pause the video go it followed you in come right back yeah oh yeah exactly we're just gonna pause the video I'm just gonna wait I'm not even gonna say anything for the next minute I would diversify to Instagram if you can I think the more platforms you have the safer you're going to be and that way just in case something happens to YouTube you have a you know a bit of a following on Instagram to fall back on and also I mean just just building out your personal brand more and more and more and you may want to look into expanding beyond vending machines at some point to maybe get into honestly I think right now it seems like laundromats could be pretty big its own story can be pretty big and one thing that no one is doing on YouTube and I'm kind of surprised about this and I wonder why is mobile homes well here well there is not one big person on YouTube who is doing mobile homes is there's a lot of people doing Airbnb but why is that one investing in mobile homes why is no one doing this it seems like it's very low cost it seems like there's a very high ROI give me what it is I I mean not that I'd not that I want you to go and do this but I do think that there is a need on YouTube for mobile homes if you decided that's something you want to get into yeah I think would be of very interesting diversification from vending machines and it's just a random word we're just having a friendly conversation here but yeah I think we'd be kind of cool yeah I better hop on it before anybody else yeah exactly that's the thing you got it you gotta hop on it before this video goes live and then everyone else is gonna start buying mobile home parks yeah yeah man I mean maybe it's a terrible idea I don't know maybe that's why no it's not that but and by the way one more question which is about credit cards – that's okay no I want to get into like what you said about traveling for free whenever you rack up points but the question about that is you know for example whenever they say you spend $3,000 and you get 50,000 points right for example let's say you have a 5,000 credit limit because I mean bend the whole thing that's like at once and then just pay it off or do you not have to pay it off for it but no you know that's a good question if you have to pay it off and on I believe it's just when you spend when you put three thousand dollars on the card within the first three months or whatever okay I do not believe you have to pay it off that's a really good question but here's the thing though I would never keep a balance on a credit card ever so I mean it's kind of a moot point here because it's like you should always pay it off you putting $3,000 on a credit card to get the points keeping a balance yeah completely erases all the benefit of getting the points because then you're paying interest on the card and then the reward becomes that much less valuable so always pay it off but no the 3000 does not need to be spent at the same time you could spend a thousand dollars in January thousand dollars in February a thousand dollars in March as long as it's done within that time frame you'll get all the problems yeah and that's gonna be very easy for you to do in the vending machine business and you know especially if your overhead is you know like fifteen hundred you should be doing this all the time like every six months sign up pretty hard so as long as you're not gonna buy a house in the next like few years which I don't think you could either because you need the the you know the tax returns oh if I were you and you have a good credit I would every six months get a new credit card rack up the points get a new credit card rack up the points and by the time you're like 21 you're gonna have like and a few hundred thousand points that are sitting there that you can use for travel you can use them for a hotel you can just fall out and you can go you can go anywhere you want you can make more interesting content by just using points yeah okay well anyway man thank you so much for the call I really appreciate it and keep up the great work with the channel and keep me posted on everything by the way yeah thanks a lot for having me on here it really means a lot you know having a chance to speak with you and going about my question density you got it I really appreciate it and for anyone curious you want me to link to your channel in the description they've it up okay yeah man of course of course yeah so for anyone watching then this channel is in the description I highly recommend checking out it's super interesting and hopefully you end up doing some mobile home park investing so I can't the more sleepy call well thanks man I really appreciate it yeah thanks a lot alright you got it right so what that said you guys thank you so much for watching I really appreciate it if you guys make it to the very end you haven't already hit the like button make sure to always absolutely destroy and abolish the like button also make sure to subscribe and add me on Instagram I plug that already but just add me there and thank you again for watching until next time

23 Replies to “Making $120,000 from a Vending Machine Business | The Graham Stephan Show

  1. Hey Graham! Get Brandon Turner from Bigger Pockets on – He’s heavily invested in mobile home parks and talks about it frequently on the podcast.

  2. The way he just constantly awkwardly laughs makes me annoyed, gives of the vibe that the isn’t taking it seriously or maybe he is just achamed.

  3. For that past few videos I've watched of yours today, your voice sounded so familiar to someone else. AND I JUST FIGURED IT OUT. You sound a lot like ex youtuber "leafyishere", the tone of your voice

  4. Wow wish I had the determination and the drive to make a Youtube Channel work like that back then 🙁 I recently started regular Youtube upload to share my life as a tech PM and recent grad, hope it's not too late.

  5. Graham, please react to glitterforever17. She's a big youtuber with 3.2m followers and she lost her house because she was spending way more than she was earning. She has a video about it but I can't paste the link because youtube will think this comment is spam 😊

  6. Watching this video made me realize. That I really need to get my stuff together and save all my money. @grahamstephan you motivate me in a way. Thank you.

  7. Watch this for mobile homes (Episode from Last week tonight)-

  8. kenny robinson does mobile homes , hes not as big as you but he has like 30k subs or something like that. he moslty talks about stocks though.

  9. Kenny Robinson has 24k subs and does a slice of his videos about mobile home investing. Interesting stuff.

  10. Talk show host John Oliver recently covered mobile homes. It's an interesting video on youtube. Basically mobile homes are not mobile. Once parked, they are pretty much parked for their life. Rich people/companies are buying up mobile park communities (the land) and jacking rates up at record pace because they know the people living there can't live. So Sally's month fee has gone up only $100 from 2000-2015, but in the last 4 years has gone up $250 alone.

  11. If he says he makes $10,000 per month and then says “oh well I put $5,000 back into his business”, then it sounds like he’s not keeping good track of his business expenses vs what he takes home. He might not know exactly how much he is spending on his business after all- you HAVE to be running a tight profit and loss statement from the beginning and track everything.

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