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How to Make Money Even When You’re Sleeping

Money doesn’t grow on trees. But that doesn’t mean it has to be difficult to come by. Pyramid schemes and multi-level marketing companies, and even direct sales organizations will tell you that they have the best solution to make a quick buck without much work involved. However, that’s not exactly true. Often these schemes involve bulk delivery of a product to your home that you then have to try to sell to your friends and family. With an over-abundance of these get-rich-quick ploys in the marketplace, it’s just not likely that you’ll make enough sales to earn that new Lexus they are dangling in front of your nose like a carrot.

There are, however, ways to create a consistent, comfortable revenue stream to either earn you extra cash or even become your sole source of income.

As an Independent ATM Distributor (IAD), you have the ability to choose how many machines you want to place in your community. Perhaps you own a boutique or convenience store and are looking for some extra passive income? Maybe you want to create your own independent ATM distribution fleet and are thinking on a larger scale? Either way, there are some things you’ll need to consider before you set up your business.

1. How Do I Get Started?

The first thing you’ll need to do is choose a name for your business and register it with your state.

Then you will need to acquire a business license. This process involves several steps:

  1. Finding a sponsor bank.
  2. Registering as an official Independent Sales Organization (ISO).
  3. Choosing and contracting with a transaction processor.
  4. Signing up with each network.
  5. Initiating and submitting a background check.
  6. Submitting audited financials.

As per industry recommendations, you’ll also need set up two business bank accounts – a vault cash account and a settlement account. The cash used to fill your ATM(s) comes out of your vault cash account. It is then transported to the individual ATM location(s) to resupply your ATM.

When a transaction is underway by a customer, the ATM sends the bank account information and transaction information through processing networks to get the proper approval. This process takes mere seconds to complete. Once the approval has been given and cash has been distributed to the customer, an Electronic Funds Transfer (EFT) is initiated to refund the dispensed cash amount to the ATM owner’s settlement account.

2. How much does it cost to become an IAD?

Starting a new IAD business from the ground up can get expensive, so be sure you know and understand the costs involved up front. Thankfully, these costs can be recouped over time and with the popularity of your ATM. Here are a few costs that you’ll need to expect:

  • When finding a sponsor bank a deposit of $5,000-$30,000 is typically required.
  • You’ll need to sign up with each network, and there are many of them: banks, credit unions, pre-paids, and credit cards (including Amex, Visa, Mastercard, Discover, and more). Initiation fees per network can be around $3,000. Networks also charge annual fees, which can be roughly $3,000 per network.
  • Requesting a background check usually has a small fee attached, typically around $20.

3. How do I make money by being an IAD?

As an IAD your profit will come from the convenience fee charged for the use of the ATM. This is also commonly referred to as the surcharge fee. A surcharge fee is typically based on two things, the amortization of operating expenses for each location and an understanding of the ATM’s location, popularity, and proximity to other ATMs. Surcharge fees commonly range from $1.25 to $3.00. If your ATM is in a prime location, such as a cash-only business with high demands, you can charge as much as $5.00+ for a surcharge fee.

Additionally, IADs can also profit from interchange, which is a fee that financial institutions pay for each transaction.

Here is an example of how much you can potentially earn from your ATM:

Transactions Per ATM

 200400600800
$1.50 Surcharge$300$600$900$1,200
$2.00 Surcharge$400$800$1,200$1,600
$2.50 Surcharge$500$1,000$1,500$2,000
$3.00 Surcharge$600$1,200$1,800$2,400

4. What type of ATM machine would be best for me?

To answer that question, you’ll need to know where you want to place your ATM. Are you a small specialty store or convenience store without a lot of square footage? If so, then perhaps you’ll want an ATM that has a small footprint. The Puloon SiriUs I is the smallest ATM on the market. As a leader in ATM development worldwide for over 25 years, Puloon ATMs provide distributors the opportunity to generate more profit on each ATM due to the incredible performance of their patented gear-driven dispenser.

Or perhaps you are looking for a more refined, upscale retail ATM. The Puloon SiriUs II is elegant, efficient, and has the Puloon reliability built right in!

5. Do I have to purchase my ATM?

You have options! IADs like GoldStar ATM provides customized ATM options tailored to your needs.

  • 50/50 ATM Partnership – IADs like GoldStar ATM provides the ATM, you provide the cash, and you split all the profits 50/50! This partnership works well for retailers who want to share the profits without the risk of investing in a new ATM. With this option, GoldStar will deliver and install the ATM and provide ATM machine training, service, and support!
  • Free ATM Placement – If you feel that this is the right option for you, it will take NO money down for you to receive a monthly payment for the use of the space in your business. IADs like GoldStar ATM pays you, and at the same time covers all of the charges that go with having your ATM installed, the purchase of the machine, service or repair, and even paper for receipts for the life of the agreement. Your customers get the cash they need to spend more, and you pay nothing!
  • Lease an ATM – By leasing an ATM you get the benefit of the latest ATM model without the upfront cost of purchasing an ATM outright. You still gain the same revenue, but without the cost.
  • Rent an ATM – If you’re looking for an ATM for an event or temporary venue, renting an ATM is a great option. IADs like GoldStar ATM provides full service ATM rentals and can handle both indoor and outdoor events. From planning to installation and service, it’s all covered with a Mobile Event ATM Rental. Renting an ATM for your event or temporary venue, will add to your customers’ overall satisfaction by giving them choice in payment options and the ability to avoid credit card processing fees.

With some initial planning and a good ATM service provider, you can create an IAD business that will give you a solid return on investment and provide a passive cash stream for years to come.