Tag Archive for: passive income

13 FAQs About How to Get Into the ATM Business

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If you want to know how to get into the ATM business, there are a lot of factors to consider. First, you might want to be sure that getting into the ATM business is something you really want to do. Therefore, you will want to be able to weigh the rewards against the costs before you get invested.

Then, once you are sure you want to start an ATM business, you will likely have a lot of questions about what to expect and how to handle certain situations. We’ve found that many new independent ATM deployers (IADs) have some of the same curiosities and concerns when it comes to getting started. 

Our hope is that by answering these frequently asked questions all in one place, IADs will understand how to get into the ATM business and become confident about getting started. 

What Is an ATM Business?

Before understanding the ins and outs of how to get into the ATM business, you should know what “ATM business” means. Did you know that not all ATM machines are owned and operated by financial institutions? That means that there are other companies and individuals who purchase ATM machine equipment, place it in locations where there is a lot of foot traffic and demand, and make money from each transaction. 

Individuals who purchase, place, and operate ATM machines are known as independent ATM deployers, or IADs. However, there are a lot of other ways to get involved and make money in the ATM industry. There are ATM vendors who sell ATM equipment to businesses who want to operate their own machines. There are vaulters who work with ATM operators to handle the cash stocking. And there are site locators who match businesses and operators so that both parties benefit from the placement.

Regardless of your role, the following FAQs and answers can help you better understand how to get into the ATM business and start making money. 

1. How much does it cost to start an ATM business?

Of course, the question that is on the forefront of everyone’s mind is financial investment versus reward. One reason an ATM business is the ultimate side hustle is because it has a low overhead compared to many other businesses. The biggest cost is the ATM machine itself. This can be about $2,000-$3,000. The next cost is the cash you use to stock the machine if you will vault your machine yourself. This is still your money at the end of the day, but it will be tied up in your business as an investment.

There are other costs that vary from operator to operator. For example, you might pay for installation and programming, equipment upgrades and add-ons, and/or advertising. These are all optional.

So while it’s hard to provide an exact number, you can expect to start an ATM business with just a few thousand dollars. The vault cash is the only expense you need in full up front. You can handle installation yourself if you are comfortable, purchase ATM equipment on credit and pay over time, and you can add custom graphics, cameras, and other features over time and as needed once you start making money.

2. What are the ongoing costs of operating an ATM?

Now, those are the costs to consider when it comes to getting up and running. Ongoing costs will include internet service, insurance, maintenance, and travel.

Purchasing your own wireless device to provide your ATM machine with an internet connection separate from the location’s ISP is essential to maintaining consistent service. If anything happens to the location’s internet and your machine loses connection, you will lose more business than it would have cost to provide your own connection. 

Insurance is optional, but the location may require you to obtain at least general liability insurance as a condition of your placement agreement. General liability insurance typically covers bodily injury, property damage, medical payments, and legal defense. 

Maintenance costs will include cleaning supplies, receipt paper, and any technician calls. These costs can be unpredictable, so it’s a good idea to set aside some money or budget for these things.

Finally, you might want to consider the travel to and from your machine. This is why it is important to try to place your machine close to where you live or work or already go regularly. The farther out of the way your machine is, the more you will spend on travel costs.

3. How do I make money from an ATM?

There are a lot of different ways to make money from an ATM. As an ATM site locator who negotiates with location owners on behalf of ATM owners, you can request a flat rate or negotiate for a share of the surcharge. As an ATM vendor, you can mark up the price of ATM equipment to earn an upfront commission and/or keep a share of the surcharge for servicing the machine.

But most commonly, individuals will purchase and operate their own machines, generating revenue from surcharge fees imposed on transactions. Surcharge fees can range anywhere from $1-$10 depending on the location. Setting the right surcharge fee depends on the location. How much demand is there for cash in the area? How much competition is there? What is the average withdrawal amount? 

When setting a fair surcharge fee, you want it to be high enough to make your return on investment as soon as possible but not too high that customers opt for service elsewhere. Typically, the best surcharge fee is the one that brings in the most users. But you will monitor your data when you start and make adjustments as necessary.

4. What is the typical profit margin for an ATM business?

As an IAD, you can expect to make an annualized return of 35%-70% or more. With just one machine, you can make a few hundred dollars a month. One machine can generate some extra passive income to help supplement your regular salary or fund a savings account or large purchase. But if you want to rely on your ATM business for your salary and make thousands of dollars, plan to scale your business.

To calculate your ATM business profit, multiply your surcharge by the number of transactions you expect to see in a day or month. Then subtract any business costs, and that will be your profit for any given month or year. There are some formulas and calculators you can use to help set the right surcharge fee and estimate your revenue.

Remember that you can always adjust your surcharge fee or even move your machine to a more successful location if you don’t see the numbers you want. And of course, the more machines you operate, the more revenue you will generate.

5. How do I choose a location for my ATM?

Choosing a location for your ATM requires you to consider a number of factors. First, you either need to find a business that wants to offer ATM service to its customers or a gap in the market. Areas that experience high foot traffic and also provide opportunities to spend cash are the best locations for ATM machines.

Remember that you make money from each transaction made on your machine. So you want to see as many transactions as possible. This should really influence where you place your ATM. Will a lot of people pass by your machine? Will those people need cash? Are there clear benefits of an on-site ATM machine for the location owner? 

It is best to start looking near where you live, work, or already travel to frequently. The more you have to travel to and from your machine, the less profit you will make because more of your revenue will be spent on travel costs. 

We’ve created a list of the best ATM locations and how many transactions each typically sees. But each IAD’s situation is unique, so the right location will really depend on the need in your area.

6. Do I need any special license or permits?

You do not need a specific license to operate an ATM business, but you will need some sort of business name to complete the agreement with the ATM processor as your ATM vendor and to open a business bank account. There are a few options.

You can establish a limited liability company (LLC) to separate your personal assets from your business liabilities. This can be a good idea depending on the scale of your operations, your risk tolerance, and your specific business goals. 

The simplest and most common route among new IADs is to create a sole proprietorship and operate under a fictitious business name, or a DBA—doing business as. There are also partnerships and corporations that can be created depending on your business model and goals.

7. What kind of insurance do I need?

You don’t necessarily need any kind of insurance. However, the owner of your location might require that you at least purchase a general liability policy. General liability insurance covers bodily injury, property damage, medical payments, and legal defense. You can expect to spend about $400-$700 a year for $1 million in general liability coverage.

ATM insurance is an inexpensive way to protect yourself against expensive accidents. Since your ATM machine is not owned by a bank, you are not subject to FDIC protection. While you can get ATM business-specific insurance, you don’t have to. A general liability policy might be enough, depending on your needs.

8. How do I choose an ATM provider?

There are a few qualities to look for in an ATM provider or processing company. First, it’s a good idea to look for a company that also sells ATM machines. This way, you can get equipment and service all in one place. And you know the machines you get from your ATM processor can process using their service.

You might also want to look for flexibility in payment options. Automated payments make your income even more passive and your paydays quicker. You might also want the option to split payments between multiple people or accounts. 

Of course, you want to work with a company that offers free processing. The least amount of hidden and unclear fees, the better. Make sure your ATM provider is transparent about any fees and processes.

Maybe most importantly, choose an ATM provider that offers reliable support. Especially when you are just learning how to get into the ATM business, you want to be confident that you will succeed. The best ATM providers will view your success as their success, offer resources, and be available when you need them.

9. How do I manage cash for my ATMs?

There are a few ways to handle cash vaulting. The most profitable way is to do it yourself. You will need a bank account with a balance that you will withdraw regularly for the sole purpose of stocking your machine. You might need $2,000 or so depending on how busy your machine is and how often you will stock it. Withdrawal amounts from your machine get redeposited to that account by your ATM provider. 

Another option is to have the location owner or other location employee handle the vaulting. This is sometimes a good option for IADs who don’t have enough cash available to tie up in the machine; businesses usually do. However, this extra task might cost you more in a revenue share, meaning you might have to pay a portion of the surcharge revenue to the location owner for taking care of this work.

And of course there are independent vaulters and vaulting companies. Your ATM provider might also offer this service. This is the most expensive option, but it alleviates the burden for you.

10. What kind of maintenance do ATMs require?

Fortunately, ATM maintenance is very simple. Just make sure it is clean, attractive, and functional. Keep it stocked with cash and receipt paper, address any errors immediately, and wipe the machine down regularly. If any decals start to peel, replace them. If someone vandalizes it, clean and repair it. 

Most maintenance you can easily conduct yourself. For more complex problems, simply contact your ATM provider or other ATM technician for help. Consult the manual for your machine when necessary, and check YouTube for how-to videos to save yourself time and money working with someone else. 

Know your machine well by monitoring the activity. That way you can identify errors and anomalies more quickly. The faster you resolve an issue, the less time you spend out of business, and the more money you make.

11. How do I handle security concerns?

There are a number of ways criminals can tamper with an ATM machine to try to access cash or customer account details. However, the simplest barriers can easily deter this activity. The most important thing you can do is be vigilant.

It is a good idea to keep your machine under surveillance. Whether it is always in eyeshot of a location employee or in the line of security cameras, advertising this kind of monitoring can deter criminals as well as reassure customers of their safety. 

Make sure the machine is bolted firmly and evenly to the ground to prevent the machine being moved. Test your machine’s security by trying to nudge or shift it. If it doesn’t give, you are good to go! The more time it will take someone to get access to the machine, the less likely they are to pursue it.

Therefore, you want to try to barricade the machine as well. Keep a straight path to it open, of course, but blocking the sides with furniture or displays can make getting to the machine more difficult. 

And again, know your machine well. You don’t want someone to install a pinhole camera or fake front to your machine that would compromise customer account data. Regularly inspect your machine to ensure that it hasn’t been tampered with. 

12. How do I attract business to my ATM?

There are a lot of free and inexpensive ways to bring more traffic to your ATM machine. A little bit of promotion can go a long way; you need to let people know your ATM exists! 

You can purchase an ATM sign and coordinate with the location owner about displaying it, but if you want to save some money at the start, just consider strategic placement. Put your machine close to a payment counter or somewhere else where all or most customers will pass by and see it.

You can also coordinate with the location owner to offer coupons printed on receipts and even advertise deals and discounts for cash payments. Cash payments save businesses on credit card processing fees, so discounts for cash payments is a win-win-win scenario that can encourage more ATM transactions. 

And take advantage of your ATM screen. Create custom graphics that appeal to users and also brand yourself at the same time. You can do this yourself or hire out for it, but some ATM providers will add custom screens as a perk!

13. What is the best ATM equipment?

You have a lot of options when it comes to choosing ATM equipment. To keep it simple, the leading brands are Hyosung and Genmega. But this doesn’t mean you have to purchase one of these brands. What you do want to look for is reliability and ease of use. 

Be wary of used machines. They might come with complicated issues, be noncompliant, or simply no longer work with ATM networks. Purchase new or certified refurbished. This ensures that the machine will function properly. Newer machines also tend to be more user-friendly because any issues with older models are typically improved with newer ones.

You also have a lot of options when it comes to features. The screens, cassettes, locks, etc. will vary from model to model. So shop around and make a list of features that are “nice to have” and features that are “need to have”. This will help you narrow down your options based on your budget. 

How to Get Into the ATM Business

There is a lot of information for you to consider when starting an ATM business. However, we hope that this list of frequently asked questions helps to simplify some of that information and put you at ease knowing what to expect at every stage of the process. 

Working with a knowledgeable, supportive ATM provider can make or break your business. ATMDepot.com specializes in helping people go from zero to ATM business owner. If you want to get into the ATM business as soon as possible, request an ATM Start-up Kit or check out the ATM Business Road Map risk-free to get a detailed guide for starting an ATM business from the ground up. 

An ATM business is the ultimate side hustle. It is simple, inexpensive, and rewarding. With decades of experience and a wealth of resources available to you, we can show you how to get into the ATM business today!

9 Additional Income Ideas for Brick-and-Mortar Entrepreneurs

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Additional income ideas are often sought after no matter who you are. But if you are a brick-and-mortar entrepreneur, you might have a leg up already. You already own a business which means you already have products and services ready to offer your customers and clients. Now, it’s just a matter of optimizing the resources you already have in place.

Here, we have 9 additional income ideas for brick-and-mortar entrepreneurs. That’s anyone who owns his or her own business and operates it from a store or office, but some of these ideas will apply to any business. If nothing else, use these ideas as a springboard for developing an additional income stream that works for you!

Workshops and Classes

Workshops and classes are a great way to promote your services and engage with the community. And, you don’t even have to have a lot of space. Depending on the nature of your business, you might be able to host workshops and classes online. These can be live, like a webinar, or prerecorded, like a class. 

This is one of the most flexible additional income ideas. With pre-recorded classes, you can create the content and roll it out when there is particular demand for it, or just sell it as an appetizer for done-for-you services.

Online classes and workshops allow you to offer this service without the need for a ton of space, and those who are interested will be better able to fit it into their schedules. However, if you do have the space, in-person workshops can bring in traffic to your store where they can view and purchase items and services. It’s a great way to get exposure.

Workshops and classes work well for any service people typically have done for them. This might be financial maintenance, meal prep, auto repair, or crafting. If you have expertise in a particular area related to your business, you can offer workshops or classes.

Online Sales

If you own a brick-and-mortar retail store, you might consider offering online sales. You can do this from your own website or even from social media and other third-party platforms like Amazon or Etsy. Determine a maximum shipping radius and develop a set shipping fee or adjust online ticket prices and offer “free” shipping. Either way, this can bring in more sales without costing you anything extra. 

Even if you don’t own a retail store, you can still offer online sales. You can sell any product related to your industry that clients and customers might need from someone like you. Say you own a salon, for example. You might consider selling beauty products online. 

As an expert in your industry, your customers will value your product recommendations. This can put you ahead of the competition with other big businesses. It also offers your customers a one-stop-shop. They’re already buying your service; why not buy your products, too?

Extra Services

To piggy-back on online sales, think of other services you can offer your clients related to your business. For example, if you run a beauty salon, you could offer makeup or skincare consultations. If you specialize in clothing design, offer alterations. A lawn care business could expand into other outdoor maintenance like cleaning gutters or washing windows. A restaurant or cafe can offer delivery, catering, or meal-prep packages. 

With specialized knowledge or expertise in your industry, you can offer consulting services to customers and even to other businesses. The possibilities are endless!

Loyalty Programs and Memberships

Loyalty programs and memberships are great upsells in and of themselves, but they also encourage repeat business and a steady stream of income. Offer a one-time or annual charge in exchange for discounted product pricing, special offers, coupons, free shipping, and other incentives. 

This is one of the most cost-effective additional income ideas. It requires very little extra time and resources.

Events

Hosting events offers a lot of benefits:

First, it helps you connect with your community. Especially if you live in a small town, people are always looking for something new to do. This is a good way for you to get to know your community better and network.

Second, it’s great for exposure. People who might not have previously been aware of your business might find you through your event. And then, of course, if held on-site, you bring in extra traffic to your business location. 

Events could include product launches, fashion shows, talent shows, singles’ nights, or networking events. Charge admission fees or partner with other businesses to sponsor the events. Partnering with other businesses that offer complementary products or services could include cross-promotion, joint event, or bundled offering opportunities, too.

Merchandise

Whether you own a salon, a lawn care company, or a financial advising business, you can sell merchandise. Sell t-shirts, ball caps, tumblers, etc. with your name, logo, slogan, or motto to friends, family, and regular customers and clients. Not only will they more than likely be happy to support you, but you benefit from the additional marketing, too!

Franchise Opportunities

If your business model is successful, consider franchising it to expand your brand and generate additional income through franchise fees and royalties. Scale your business and open more locations!

Rent Space

If you have extra space at your brick-and-mortar location, consider renting it out to other businesses or individuals for events, meetings, or pop-up shops. You can also rent store space out to an independent ATM deployer (IAD). Having an ATM on-site provides you with a number of benefits. 

It encourages cash payments which can save you money on credit card transaction fees. It also brings in more traffic to your location. Some people might visit you rather than a competitor for the extra ATM service. Others might visit you just to use the ATM machine. That’s okay. It still brings them into your business so that they know you exist and maybe even make an impulse purchase! 

There are also advertising opportunities with an ATM machine. You can work with the IAD to customize the graphics to promote your business and offer coupons on transaction receipts to encourage repeat business.

And, most importantly, you can earn a portion of the surcharge fee on each transaction made on an ATM in your location. So if you are approached by an IAD or are able to locate one, you should jump on the opportunity to let them operate an ATM machine from your location and share in the benefits, namely passive income: you make money without doing the work!

ATM Machine

Why share in someone else’s surcharge revenue when you could have it all? Sharing your location with an IAD is a great idea, especially if you feel like you are too busy to take on more responsibility. But if you have a few hours a week to spend on vaulting your own machine, it could be a worthy investment for you.

Owning your own ATM machine provides you with all of the benefits above plus the whole surcharge fee revenue. And, since you are already benefiting from having an ATM on-site, the surcharge revenue might just be the icing on the cake. Therefore, you could find yourself offering a competitively low surcharge fee which will bring in not only your own customers but ATM customers, too. You basically end up operating two businesses simultaneously!

Conclusion

When it comes down to it, an ATM machine might be one of the best additional income ideas because it requires the least amount of effort. It will require some regular maintenance, but you don’t need to spend nearly as much time planning and marketing for an ATM machine as you do for other additional income ideas. 

Plus, it’s cost-effective. It will require a little bit of money up-front if you purchase your own, but once it’s up and running, you make money anytime someone uses it; you don’t even have to be there! And if you are able to place it outdoors, you could be making money 24/7.That’s what’s great about being a brick-and-mortar entrepreneur: you already have the number one asset of a location. Now all you have to do is optimize it. Interested in making additional income? Get your ATM start-up kit today!

How an ATM Business Creates Residual Income

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Here’s a four-second finance tip: if you want more spending money, you need to create residual income.

If you’re not sure exactly what that means, we’ll help you out. But—spoiler alert—an ATM business will help you create residual income if you build it right. This is how it works.

Residual income vs passive income: What’s the difference?

We’ve talked about using an ATM business to create passive income before. But, passive income and residual income aren’t quite the same thing. Though, they are related.

Passive income

Passive income is money that you earn through an asset or a business that requires very little ongoing effort.

Income from an ATM business is an excellent example of passive income because it takes very little time, effort, and energy to keep the ATM up and running once you get it setup. Your ATM machine just sits there and makes you money, while you do other things.

That’s a textbook example of passive income.

Residual income

Residual income is different. The term “residual income” is a bit misleading, because it’s technically not income.

Residual income is money that you have left after subtracting all of your debts and expenses. It doesn’t matter if that money is from a passive income stream or from a full-time job. But, passive income is the best way to create residual income.

Creating residual income

In personal finance, there are two ways to create more residual income:

  1. Get paid more for what you do.
  2. Add additional sources of income.

If you only earn money by doing work as an employee, there’s a cap on both of these methods. There’s probably a top end of how much you can get paid for doing your job. And, because you have to spend a certain number of hours every day at work, you can also only take on so many jobs.

So, traditional labor isn’t an ideal way to build residual income.

Adding passive income streams is a much better way to build residual income. A passive income source, like an ATM business, won’t interfere with your full-time employment. But, it adds income on top of your full-time salary.

Ideally, income from just one source should cover all of your debts and expenses. It’s best if your passive income pays all your bills. That way, any time you invest in making money is pure spending money.

But, when you first start building passive income streams, it’s most likely that your full-time salary will be the breadwinner.

Building residual income with an ATM business

Building residual income with an ATM business has a lot in common with using other passive income streams to build residual income. But, operating ATM machines has a few advantages of other passive income sources:

  • You invest money, rather than time.

The smartest financial experts—from Benjamin Graham to Robert Kiyosaki—advocate spending money to make money rather than spending time to make money. And, it makes sense.

Think about it. You have a limited amount of time. And you don’t know exactly how much time you have in your life. AND you can’t get more time. It’s a fixed resource.

But, you can make more money.

Also, buying a money-making asset, rather than building one, enables you to start making money from that asset faster.

Now, your ATM business as a whole is an asset that you have to build. But, you can simply buy the thing that makes the money—ATMs. For a few thousand dollars, you can have an ATM that’s generating income. And, it takes very little time to get an ATM machine going.

  • You truly own your money-making asset.

Many passive income sources rely on platforms and services that are owned by other people and companies.

YouTube channels have been completely shut down by YouTube. Blogs have been ripped from the internet by the website hosting provider. That’s a really quick way for a passive income stream to disappear.

But, when you own an ATM machine, it’s yours. No one can legally take it from you (unless you do something crazy illegal. But, we’re sure you can avoid that). Even if the business where your ATM is located shuts down or gets sold to a new owner, the ATM is still yours. You can simply move your ATM to a new location and start making money again.

Your ATM business is dependent on you. So, it’s much more stable than many other passive income methods.

  • An ATM business scales easily.

One of the best things about owning ATMs is that adding more ATM machines doesn’t significantly increase your time investment, if you build a good route. You can easily manage several machines with just one day a week.

And, if you want your ATM business income to replace your full-time job, it can easily do that. It’s totally up to you how big your ATM business gets. You can build it around your lifestyle.

That’s why an ATM business is the perfect passive income idea for building residual income.

How an ATM business generates residual income is even simpler, and you’ve probably already figured it out.

Since it takes very little time to operate ATM machines, you can easily run an ATM business and hold down a full-time job.

If your full-time salary covers all of your expenses, the income from your ATM machines is entirely residual income. Or, if your ATM business generates enough revenue to cover all your expenses, all the money you earn at work is residual income.

Then there’s a third option: if you build your ATM business to the point that it pays all your business and personal expenses, every additional ATM that you buy brings in more residual income.

With some careful planning, your ATM business could be a self-perpetuating cycle of income expansion. Every machine you add brings in more money. Then you have more money to invest in new machines, which bring in even more money, and on and on… Imagine how cool it would be to simply pay a few thousand dollars every month to give yourself a raise.

But, the point is that an ATM business is a steady, reliable income stream that empowers you to generate income that greatly exceeds your expenses, which is—by definition—residual income.

That’s how an ATM business creates residual income.

What to do now

Ready to start your ATM business? Learn everything you need to know about building an ATM business.

Or become an ATMDepot member to jumpstart your ATM business.

  

 

An ATM Business Can Save Your Marriage (It’s Not as Crazy as It Sounds)

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The title statement may sound outlandish. But, consider these stats about gray divorce (divorce among couples over 50):

  1. Gray divorce has doubled since 1990.
  2. Gray divorce has increased by 700% since 1960.

Those are startling numbers. And, it probably seems unlikely that an ATM business is the solution. But, if you look at why the gray divorce rate has skyrocketed, it becomes clear how an ATM business can help.

Here’s a quick story to illustrate the most common cause of gray divorce:

A young couple meets, dates, and gets married early in life—shortly after college. For the next few decades, they spend most of their time building careers, raising children, and preparing for retirement. There’s a lot to do, and they’re both happy to be doing it together.

Then it comes time to retire. Suddenly, the shared goals are gone. And the man has dedicated the majority of his life working. He spent very little time building relationships or hobbies. Or maybe both of the people in this couple spent very little time pursuing things other than work.

The struggle is that retired people often find themselves with nothing to do. And, this can severely strain marriages. When all the work is done, it’s easy to feel that there’s no need for a team anymore.

But there’s more: having nothing to do is no fun. Retirement is supposed to be enjoyable—at least as enjoyable as a fulfilling career, if not more enjoyable. So, it’s easy to feel unhappy in retirement.

That’s what’s caused this spike in gray divorce: a lack of shared goals and things to do in retirement.

An ATM business solves that problem.

How an ATM business can save your marriage from gray divorce

Being an ATM owner is not a way to get rich quick. When you start an ATM business, you’re playing the long game. And, this long game affords people opportunities to build relationships and develop a routine that can sustain them throughout retirement.

Older Couple having CoffeeBuilding relationships

One of the most important aspects of owning an ATM business is building a successful route. An ATM route is just the common path you take to refill your ATM machines with cash and ensure they’re in good shape.

The benefit of this ATM route for older people is that it provides a place where you show up regularly and get to know people. Socially, it’s like a bar (but far more productive and profitable).

Additionally, each ATM machine will be located in or near a business, and maybe even a bar if that’s something you’d enjoy. And, you have to develop a relationship with that business owner, because your ATM is on their property. And, these business owners may want to be involved, to some small degree, in the operation of that ATM machine (coupons, promotions, lowered credit card fees for them, etc.).

Developing quality relationships with these landlords, business owners, and property owners is key if you want to have an ATM business that’s all about service. And, your ATM business should be all about service. That will make your business successful and will ensure you keep your customers happy so they’ll stay with you for a long, long, time.

But, more than being an important part of your ATM business, these relationships give you people to do things with once you’ve retired. Your ATM business creates a circle of friends that will last a lifetime.

Productive routines

An ATM business also solves the problem of idle time in retirement.

Once you’ve set up your ATM route, you’ll obviously need to run that route regularly to keep your ATM machines up and running. This creates a routine that helps retain a sense of purpose and offers shared goals for you and your partner.

But, the best thing about the routine of an ATM business is that your routine can be as busy or as minimal as you’d like. If you want, you could work nearly full time in your ATM business. Or, it can be as part-time as you like.

And, you’re not just keeping busy. Your ATM business gives you productive work. It’s even better than a hobby, in many ways.

Reaching retirementOlder Retired Couple Enjoying Retirement Early via the ATM Business

Although this focuses most on how an ATM business can protect you from a gray divorce, an ATM business can also help you stay married until retirement.

As we mentioned earlier, an ATM business is not a get rich quick scheme. It’s a long game.

But, running an ATM business can provide reliable income that doesn’t require you to grind it out day after day. And, it’s income that you can earn in addition to your professional income. So, an ATM business can certainly make it easier to retire when you want to.

And, the additional income of an ATM business gives you time to develop relationships outside of work and build a marriage that’s ready for the realities of retirement. It’s also a business that gets you out of the house which is a big plus for decreasing the chance of a grey divorce. Plus, you get to enjoy any neighborhood you wish to pursue, make connections, and have fun at the same time. 

So, your ATM business isn’t just a marriage failsafe for retirement. It’s also something that can sustain your marriage and life until you reach retirement.

And, what about those who are retired or near retirement right now? You can start an ATM business at any time. Yes, the ATM business is a long game. But, it’s a long game that you can start right now, regardless of where you are in your life. Besides, you can start and ATM business with less than $5,000 and the returns on that money will be much better than the bank and much safer than the stock market. You’re investing in yourself and in your retirement. 

If you’re ready to start now, learn more about starting an ATM business.

 

1 Passive Income Idea That Will Get You Out of the Rat Race for Good

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Let’s start by setting the record straight on passive income: no form of income is truly 100% passive. Any income stream requires that you invest some time, effort, and energy.

Even income earned from interest on money sitting in the bank requires you to check the balance occasionally.

What we really mean when we say “passive income” is “low effort income.”

Fortunately, there are many low effort income generators. But, some are better than others. And, there’s one that beats the rest in the most important areas:

  • Initial investment (time and money).
  • Time to start generating income.
  • Maintenance requirements.

As you may have guessed, the best passive income idea is the ATM business. Here’s why an ATM business beats other passive income investments in the short term and the long run.

Low Upfront Investment

We have to be honest here: the most popular passive income ideas work. Investing, real estate, building a successful blog, and other methods will indeed generate passive income in the long run.

Grow Your Money with Passive Income

However, these passive income methods require a large investment before you get any money back.

In his book, The Intelligent Investor, Benjamin Graham talks about generating income from stocks and bonds. He gives good advice.

But, by Graham’s figures, one can expect between 4% and 7% return on their stock market investments. So, you’re not really generating meaningful cash flow until you’ve got tens of thousands invested. And, the required investment is closer to 100,000 if you happen to get 4% returns.

Real estate is another common passive income investment. But, it doesn’t take much searching to discover that buying a house might cost far more than 100,000.

There are ways to purchase real estate properties with no money down. But, you’re still spending money. The investment comes in the form of thousands, maybe hundreds of thousands of dollars in debt liability. And, you’ll most likely need to spend some time working on the property you purchase before it will be profitable.

Then there’s blogging, or becoming an online influencer or creator. The monetary investment here can be very small. But, the time investment is huge. It can take years to build a blog or YouTube channel that gets enough traffic to turn a profit.

An ATM machine, on the other hand, costs a few thousand to set up. That includes the cash to fill the machine. And, that’s the average cost of buying and placing an ATM. There are ways to get started for less, such as buying a refurbished or used ATM machine.

So, yes, there is an upfront cost to starting an ATM business. However, it’s a fraction of the cost of most other passive income methods, both in time and money.

Time to Return

In his financial classic, Rich Dad Poor Dad, Robert Kiyosaki says the most important question to ask before you make an investment purchase is, “How long will it take to get my money back?”

He means that you need to consider how long it will take to recoup the initial cost of the investment. Any money you make after you’ve recovered your initial investment is profit. So, the faster you recoup your initial investment costs, the faster you start truly making money.

In that same book, Kiyosaki gives an example of a real estate investor who purchases a rental property. The property generates $125 a month in cash flow, which the investor reinvests into the property (so that money does not go into his bank account). Several years later, the property sells for more than he paid, and he makes a solid profit.

Making Money from Your Bank

All well and good. The key phrase here is, “several years later.” Yes, he made good money on the deal. But, it took years of renting. That’s a long time to recover your investment and start making money.

Stock market investing suffers from a similar issue. There are case studies that show how you could have invested $5 in the stock market in 1929, then by 1954 that $5 would have turned into several thousand or more.

There are other examples that start at different dates. But, all these case studies have the same thing in common: the timeline is very long. It always takes decades for that money to grow. The reality of investing is that you either need a lot of time or a lot of money to generate real profits.

Then, other passive income models like blogging have an undefined timeline. Some people get lucky. Their content becomes famous overnight, and they’re off. But, the majority of people who go this route spend years creating content before they ever see a dime.

Now, here’s a brief explanation of how an ATM makes money for you:

You buy the ATM machine, place it in a retail store, restaurant, coffee shop, gas station, or anywhere else where people may need to get cash.

You charge the customer $2.50 to get money from your ATM. That $2.50 is your revenue. Some of it will usually go to the business owner for allowing you to place an ATM in their business space. And, a little bit gets used to pay operating expenses.

But, even after all that, you’re still making a couple bucks per transaction. Even a slow location will get 3 or 4 transactions a day.

Regardless of the transaction volume, the ATM machine starts recovering your initial investment immediately. And, in a decent location, you could recover the cost of the ATM machine in a matter of months.

The bottom line is that the time to return on investing in ATM machines is far lower than any other passive income investment we know of. Which means you’ll start generating profit much faster.

Risk

Of course, we can’t talk about real estate and stock market investing without talking about risk. Even blogging and content creation carries some risk. Though, you can overcome the risk by making smart adjustments and putting in persistent work.

But, the risks in real estate and stock market investing are very real. And, if you’re not careful, they can be financially devastating, at least temporarily. The only thing we know for sure about stock and real estate markets is that they reliably go up and down.

At some point, your investments are going to lose value. And, it may come at a time when you’re not in a good position to absorb that loss. Any experienced investor will tell you that’s just the way it goes.

However, cash never goes out of style. And, ATM machines offer convenience. The demand for that convenience is actually going up as more and more banks move to providing digital services.

But, that’s only part of the point here. The main point is that an ATM machine will reliably get transactions. If you put an ATM where people can see it and use it, somebody will use it.

Everyone Loves Cash

 

Unlike other passive income investments, it’s not a question of if you make money, it’s when. And, you can control that by placing your ATM machines in good locations.

It’s one of the few low risks, high potential reward investments in the world.

Effort

For some people, this is the most important thing. How much work does it take to maintain your passive income?

As we mentioned earlier, there’s no such thing as 100% passive income. You have to put in some effort. It’s just a matter of how much effort is required.

Some “passive income ideas” are actually not passive at all. How passive is running a blog and selling ad space on your blog? It’s not. Running a successful blog is nearly a full-time job.

Investing can be super low effort. But, the less effort you put in, the less money you make. It takes a lot of education, time, effort, and energy to be a successful aggressive investor. Look at Warren Buffet. His job title is “investor” because that’s what he spends most of his time doing.

Real estate is the same way. It takes a lot of time, effort, and energy to consistently find good real estate investments and close the deals.

All this isn’t to say that operating ATM machines takes no effort. It does. Here’s what you have to do:

  1. Monitor the cash level in your ATM.
  2. Go to your ATM machine.
  3. Open it with your key.
  4. Add a fat stack of $20 bills to the cassette.
  5. Close it.
  6. Make sure it’s locked.
  7. Withdraw $20 to make sure it’s working correctly.

Making Passive Income

That’s it. Have you ever seen someone restock a vending machine? It’s less complex than that.

This takes a few minutes. And, depending on how much cash you keep in the machine, you may only have to do this once a week. You can easily keep your full-time job and operate ATM machines.

Sure, you’ll have to do it more often if you have multiple ATM machines. But, multiple ATM machines also means more ATM income. Your passive income scales directly with the required effort. So, you may not need to keep your full-time job if you’re filling a lot of ATM machines.

 

The passive income machine

That’s it. The one passive income idea that will get you off the hamster wheel. It’s not hard. And, the barrier to entry is so low that almost anyone can afford it (both in terms of time and money).

Since we’ve mentioned him already, Robert Kiyosaki says that the difference between a rich person and a poor person is how they spend their money.

A rich person buys things that will make him more money. A poor person buys things that end up costing him money.

An ATM machine is probably the most affordable thing you can buy that will actually make you money.

So, you can spend your next few thousand dollars reaching the next rung on the hamster wheel. Or, you can spend those dollars like a rich person, and buy something that will make you money, and break that hamster wheel.