You cannot arbitrarily legislate that a PDF file with particular content be of a particular size.
Yes, there are numerous parameters that can be specified for reducing the size of a PDF files via Optimize PDF, but which if any of these parameters can in fact reduce a particular PDF file's size depends (1) on the actual content of the PDF file and (2) to what degree you are willing to accept degradation of viewing and/or printing quality from the resultant PDF file.
For example, if a PDF file is strictly text and vector data and multiple pages, it is very unlikely that any of the Optimize PDF parameters or Reduced Size PDF will in fact reduce the file's size in any significant manner. If the original PDF file is mostly raster images at very high resolution, you might be able to significant reduce the file's size by setting optimization parameters to a lower resolution such as 150dpi (instead of 300 or 600) and compression to JPEG with a quality other than maximum. Just remember that even for screen display, many mobile and even desktop computers now have displays at or exceeding 300dpi; in other words, it isn't just printing quality loss you need to worry about when downsampling images.
Ultimately you just may not be able to reduce file sizes to 500K or less. You either must accept that fact or redo the documents to be less graphically-complex.
And NO, on behalf of Adobe, we urge you not to use the hack of printing to the Adobe PDF PostScript printer driver instance. That can be an exceptionally lossy process that makes your existing PDF non-searchable, not properly color-managed, and in some cases, actually bigger that the original PDF file.
- Dov