Revenue Share vs. Flat Rent: Which Deal Should You Offer a Venue?
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When you place a vending machine in someone else's space, you need to agree on how the venue gets paid. The two most common structures are revenue share and flat rent. Each has a place, and choosing the right one can decide whether the owner says yes.
Revenue share
The venue earns a percentage of each sale instead of a fixed fee.
- Best when: Traffic is untested or seasonal.
- For the venue: No risk. They only earn if the machine sells, with upside if it does well.
- For you: Costs scale with sales, so a slow month doesn't leave you paying rent on a quiet machine.
Flat monthly rent
You pay the venue a fixed amount each month regardless of sales.
- Best when: Traffic is proven and consistently high.
- For the venue: Predictable income, though they may push for a higher number once they see how well it does.
- For you: You keep more of every sale in strong months, but you carry the risk in slow ones.
Which should you offer?
For a first placement, revenue share is usually the easier sell. It removes the venue's risk, which is often their main objection. Once a location has a track record, you can revisit the structure.
Terms to agree on before you sign
- Payout structure and schedule: A percentage or flat fee, and how often you pay out. Monthly is common.
- Contract length and exit: How long the agreement runs, and how either side can end it.
- Exclusivity: Whether you're the only vending machine of that type in the space.
- Restocking access: When and how you can get in to refill and service the machine.
- Ownership and responsibility: Who owns the machine, who handles service, and who is responsible for damage or theft.
- Removal: What happens to the machine if the deal ends.
This is general information, not legal advice. Have a lawyer review any contract before you sign.
Make the offer easy to say yes to
Offer to handle delivery, setup, stocking, and service, and to remove the machine if it isn't working. Our free Placement & Negotiation Guide includes scripts and templates for these conversations.