How to Profitably Own and Manage ATM Machines
ATM machines commonly found in convenience stores, gas stations, bars, and other small businesses are not generally owned by major banks, they are owned by people like you and me. Sometimes the business owner owns the machine, other times it is a full-time or part-time ATM management company. In any case, the machines are very profitable investments!
Why you should consider ATM machines as a business:
- no inventory to purchase or stock
- no employees needed
- no store front or rental space needed
- guaranteed, fixed profit on each transaction
- you can check the status of your business online
- scalable...you can start with one machine and expand slowly (or quickly) as you earn your profits
- low investment needed to start
- investment costs are usually returned within 1 year (six months or less at good locations)
- you can manage your business from home at your own schedule. I logon to my machines before I leave for work in the morning. I also check my overnight deposits to check the previous day earnings.
First Steps:
- learn as much as possible about the business (check website http://www.franklinatm.com for a ATM Business Owners Guidebook). That site is the only one I have found that was actually willing to provide a lot of information on startup. Most people in the industry are loath to talk about it. Eventually, I decided that they were too greedy to let anyone else get started.
- find a location! obviously, many good locations are already taken. But many more are still available. It is not unusual to get a new location simply by asking the owner if he/she would like a free ATM machine
- develop a business plan based on your personal finances. Depending on your circumstances, you may choose to lease the machines ($70 - $110 per month) rather than buy the machines.
- Select an ISO (independent sales organization) to process your transactions. Search google.com for "ATM ISO" and you will get a length list of ISOs to choose from. (Which is actually a problem, since you realize that they are all salesmen and are trying to sell you services). You will need to talk at least 10-15 before you sign up. 1 year - 4 year contracts are normal for processing (no cash required on your part though...)
- Determine which ATM model that you want to purchase. New machines will retail between $3000 - $6000 each. But, don't be dismayed by this cost. If you need to lease the machine there are several options.
- Determine who should stock the machine with cash. You can do this with personal cash (most profitable). High volume locations use armored guards and an arrangement with a bank to supply the cash. Replenishment cash can be borrowed at a reasonable cost to the ATM owner.
- Determine insurance requirements. Insurance can be obtained for the ATM machine and for the money. But it comes at a substantial price. Insurance on the cash is dependent on armored service and a certain kind of cash cassette inside the machine.
Second steps:
- Determine how often to visit the machine for service. If using personal cash for replenishment, this may be as often as once per week.
- Determine how to monitor the machine remotely. Certain ATM models have online access (some programs are free, others are about $200, so this is a consideration).
Last step:
- Check your bank account and enjoy the rewards. I have owned and managed machines for several years and have found it to be one of the best decisions I have made. I've seen the MLM schemes, looked at supposed "wholesale" distributorships, etc and found most lack the basic elements of a real business. ATM management and ownership is a real, tangible business that works and returns a direct profit. It is a real service that people desire.
Before you start, take the time to learn everything you can about the ATM business.
Personal note: I hold a regular full-time job and got interested in ATM machines a number of years ago. It took a long time to get enough information to start the business. When I finally bought my first machine, I was nervous, but within the first month I realized that it was a smart move. Now I own several machines and stay at my regular job for the pension and health benefits (and salary too!).
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