This as-told-to story is based on a conversation with Zach Downey, owner and CEO at Distinctive Vending, which operates cotton candy machines in high-traffic locations such as resorts and amusement parks.

As a college student at James Madison University, Downey was approved to put a pizza vending machine on campus when a funding issue derailed the plan. That's when he "discovered the world of cotton candy vending machines." Downey got into the business, and now Distinctive Vending is on track for $500,000 in revenue in 2024.

Image Credit: Courtesy of Distinctive Vending. Zach Downey.

Read on to learn what goes into building a successful cotton candy vending machine business — and how you can use it for passive income.

I didn't know how many people were interested in starting this type of side hustle. I still receive calls from people asking about the specifics.

Related: He 'Accidentally Discovered' a Semi-Passive Side Hustle in College — Now He's on Track to Make More Than $500,000 This Year

There are three main things that go into running a cotton candy vending machine business.

First, I've talked to people who didn't find the location for their machines before committing to the business. They just buy machines, and that's not the smartest way to do it. Buying the machine first increases your risk. So, deciding on the location for your machine should be the very first step. In my experience, the best way to find a location is to go in person to the location you want and try to talk with the person in charge — that has the greatest chance of success. If you don't want to do that, you can........

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