How to Make Money With ATM Machines
Automatic teller machines (ATMs) provide a number of ways for entrepreneurs to make money. For example, some entrepreneurs earn commissions from the sale or lease of ATMs and related equipment. Others earn money through providing service and maintenance for owners of ATM machines. Many businesses generate additional purchase revenues in your place of business by making it easy for your customers to access cash. Finally, you can generate a stream of income by charging ATM users a transaction fee whenever they use your machine.
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Instructions
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Establish a business. You may already have a business where you can site your ATM machine, in which case you may realize an indirect increase in revenue just from having the ATM machine available to facilitate your customer's purchases. Or, you may want to start a business to sell or service ATMs. In this case, incorporate or form a limited liability company if necessary, file any necessary articles of incorporation with the state, get an employee identification number (EIN) from the U.S. Internal Revenue Service, and obtain a business license from your local government.
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Become a distributor. You can approach a variety of ATM machine manufacturers and obtain a selling agreement that authorizes you to represent their line to buyers of ATM machines. You will have to sign a seller's agreement, which may commit you to a certain level of production in order to retain your status as a distributor. It is usually a good idea to work with several manufacturers, as no one manufacturer has the ideal solution for every situation you may encounter. You can also work as a sales person for an independent sales organization (ISO) that itself has a selling agreement with one or more manufacturers.
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Partner with a finance company. Many ATM machines are leased, rather than purchased outright. This allows the ATM machine owner to realize immediate cash flow benefits from installing the ATM machine without the necessity of a large cash outlay. If you are not in a position to finance the purchases yourself, you will need to partner with a finance company that specializes in ATM and merchant services equipment.
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Gather or develop marketing materials. In many cases, the ATM manufacturers will provide you with product sheets and other marketing materials. However, you must develop any materials specific to your own company and your unique selection of products, services and expertise.
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Place the ATM machines. You can do this in two ways: Sell or lease the ATM machine to a merchant or business owner and allow them to keep any ATM fees, or work out a revenue sharing agreement. In this case, you agree to place the ATM machine in the place of business, giving the business owner the benefit of having an ATM machine on site. But, you retain ownership of the machine and either keep all ATM transaction fees or work out a split with the business owner.
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Establish a servicing agreement. You can leave this up to the merchant, or you can contract with an armored car company and charge the ATM machine owner to maintain the ATM machine and keep it stocked with cash.
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Contract with a merchant services company. This company will handle the electronic processing of ATM transactions for the merchant. In most cases, you can also provide credit card and check verification or check guarantee services for the merchant -- which may help increase your own revenues.
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