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being able to retire and quit your Monday to Friday 9:00 to 5:00 job is the all-american dream and people do this for a variety of reasons maybe they want to travel more or spend more time with friends and family or maybe they just hate their job hate their boss and they want to tell them to stick it whatever your reason is being able to quit your job is the end goal unfortunately for most people that’s never gonna happen most people are going to work well into their 60s and even when they do quit they’re still not going to have enough money to actually enjoy the golden years but what if I told you that with a little bit of effort and a little bit of hustle most people could replace their entire w2 salary in less than a year now if that sounds too good to be true make sure you watch all the way to the end because I’m gonna walk you through from start to finish how to set up this business and how this is so incredibly profitable
hi everyone my name is Ben and this channel is dedicated to all things personal finance related helping you earn more spend less and invest the difference now if you enjoy educational content like this be sure to subscribe but we have a comment down below I love hearing your guys’s success stories but without any further ado let’s get straight into it so of all the research that I do on money and finance and investing and starting up your own small business one of the best ways that I found to immediately start earning some relatively significant amounts of income that’s relatively passive is by owning your own ATM machine and some of you guys are saying wait what I didn’t think that you could own an ATM machine I thought that was something that banks did and yes banks do own ATM machines but so do a lot of smaller independent contractors just like myself in fact owning your own ATM machine is highly lucrative we’re going to get into the numbers in more detail a little bit later on in the video but your average ATM makes about 540 dollars a month in profit and that’s just for one machine it’s highly likely that you’re gonna be able to scale up your business to at least ten machines within your first year so that means you’re gonna be making about fifty four hundred dollars a month in relatively passive income which translates to roughly sixty five thousand dollars a year that’s enough to quit your job and live off of all right so enough of that let’s get actually into the nuts and bolts of how to set everything up so the first thing that I would recommend doing and this is optional but highly recommended is to go and start an LLC go to a lawyer have them set up the paperwork and regulatory filings and whatnot it might cost you know a couple hundred bucks or whatever depending on what state you live in to set up a business entity for you and you’re also going to want to set up a business checking account and setting up a business checking account that’s usually free and you’re also going to want to have the lawyer draft up a few contracts that you’re going to use with your business partners where you’re going to be placing these ATM machines inside of their establishments like I said this is not mandatory but it is highly recommended that way you separate your personal finances from your business finances just in case in a worst-case scenario if there’s some sort of a lawsuit or something like that you’re protected so once you have your company set up you’re gonna want to go out and start looking for clients you can actually look for clients before you go out and purchase your first ATM machine
so we’ve all seen ATM machines around town we know where they’re typically placed right anywhere there’s a lot of foot traffic anywhere this cash businesses is gonna be a prime location for some of these ATM machines so places like bars and restaurants clubs gentlemen’s clubs which is strip clubs for those of you guys that don’t know barber shops and hair salons a lot of times those are a lot of cash only businesses they don’t accept card at all and so the case like that having an ATM machine on site is going to be very beneficial to the store because there’s gonna be times that I mean let’s face it it’s 2020 not everyone carries around a large amount of cash in their wallet and so if they walk into one of these cash only establishments then either they need to go somewhere else or they need to use your ATM machine so if there’s not an ATM machine then that business is simply losing clients so you’re gonna want to go and try to identify some places some prime locations and speak to this store owner and see if they’re willing to let you install an ATM machine there now when you’re going and doing your presentation trying to get a machine installed in their location make sure you keep everything focused on how this is going to benefit them and their store so you might say something like sir I was looking at your establishment and I was wondering if you would benefit from having a free ATM installed at this location it would be a hundred percent free to install maintain all of that stuff is going to be handled by us and this is going to help your customers by providing them additional customer services so that they can easily access and spend their money right here in your store as opposed to needing to go somewhere else simply to get some money and customers that use an ATM machine typically spend more money inside that store than they normally would and this is usually by about 20 to 25 percent so the store itself is going to earn higher revenues as well not only that but you’re going to get a portion of the income that’s generated by having this machine installed inside your store and at this point the store owner is more than likely gonna say so wait I get a free ATM installed in my store that I don’t have to worry about I don’t have to do any maintenance I don’t have to install it it’s completely hands-off for me it’s going to help my customers by providing them additional customer service and I’m also going to make some more money in the meantime yeah sign me up so at this point you’re gonna have them sign one of these pre-made contracts that hopefully your lawyer has already drafted up and you’re gonna want to keep them on a month-to-month basis and that’s for a couple of reasons one because as a business owner you don’t want to get locked into long-term contracts because we all know a long-term contract suck right I know a lot of you guys maybe have long-term a cellphone contracts and maybe halfway through a better product comes out but you’re still locked into this old contract and the same thing applies for you right so if this location just doesn’t seem to be working out if it’s not making you any money then you don’t want to be forced to leave your ATM machine there for a couple of years if you signed a long-term contract so if you can make sure to keep everything month-to-month but you’re definitely going to want to have them signing a contract with you now once you actually have a signed sealed delivered contract saying yes please put an ATM inside my location that’s what you’re actually going to want to go and purchase an ATM online now there’s a lot of different places to go and buy an ATM I like ATM depot.com now cart Ronix and a few others that are very popular and sometimes they will give you some of these other suppliers will give you cheaper ATMs like the upfront cost of purchasing at one of these ATMs is cheaper by a couple hundred bucks on some of these other websites but they charge significantly higher fees and so those fees in the long run are going to make it definitely worth your while and spend just a tiny bit more money upfront and go with somebody like ATM Depot where you’re keeping a hundred percent of these surcharges so how much does an ATM actually cost an ATM Depot well the halo2 is one of their newer models it’s got all the bells and whistles and security features so a brand new model is about two thousand two hundred and forty-five dollars with delivery now there is a few additional add-ons that you can also get on that for your first one I highly recommend paying the two three hundred bucks to have it professionally installed and to have them train you on how to use and operate this machine so you’re looking at your first machine for give or take about two thousand five hundred dollars and twenty five hundred bucks to start a business is very very cheap some of you guys might already have that amount of money or significantly more or if you don’t twenty five hundred bucks isn’t that bad if you’re trying to save up for it even if you have to do something like drive uber or lyft on the weekends to make a couple of extra bucks twenty five hundred bucks is gonna come in no time and then on top of the amount of money that you’re gonna need to purchase this ATM
you’re actually going to obviously need to have money inside the ATM so that customers can withdraw that money and the amount of money that you are actually going to put in there it can vary so especially when you’re first starting out you don’t need a ton of money inside the ATM machine it just means that you’re gonna be making a little bit more frequent trips to refill and restock this ATM as your business grows and as things start to scale up for you maybe you start putting in a little bit more money into the ATM that way you don’t have to make near as many trips in order to refill and restock these ATMs but to break it down into numbers some of these ATMs that are in you know somewhat desirable locations gas stations restaurants bars clubs that kind of stuff barber shops they typically get used on average somewhere between six and ten times per day and the average withdrawal that each of these people is going to make is about sixty dollars each so if the average usage is somewhere between a six and ten for the rest of this video we’re just gonna call it eight we’re gonna assume that eight people per day are going to be using this machine now if you get it in one of the super premium locations you might actually be giving 30 or more times per day that using it but for our calculations we’ll just assume sort of a nice average eight times per day and the average customer is going to withdraw about $60 per use of the ATM machine so if you have eight customers at $60 a piece you’re looking at about four hundred and eighty dollars per day that’s gonna be withdrawn from your account now that’s gonna be averages though so you want to make sure that you have more than just four hundred and eighty dollars in your in your ATM machine so by federal law a customer has to be able to withdraw at least two hundred dollars from an ATM but you can set limits so maybe two hundred is the most that you all allow somebody to withdraw at any one particular time so let’s just say on the high end and we’ll assume that you know a hundred dollars is what these customers are going to be doing sixty is the average so we’re gonna you know play it on the safe side and say a hundred so if you have $800 a day being withdrawn from your ATM machine then realistically you only need $1,000 or $800 or whatever inside that machine if you are gonna go and restock it every day so if this is ATM is somewhere relatively close and you’re gonna restock this every day maybe on your way to work or on the way home from work or something like that so 800 bucks to actually put in the machine maybe three hundred bucks for the professional installation for your first machine that installation and training and then about twenty to forty five for the actual unit itself so grand total you’re looking at a little over three thousand dollars maybe about thirty three hundred dollars give or take to get your first machine up and running and at that point you’re just going to set the amount of money for the surcharge that’s gonna be the amount of money that you make each and every time that somebody uses this machine now the national average surcharge for an ATM machine is about three dollars but this is also going to be highway independent so while three dollars might be the average some locations are able to charge significantly more than just three dollars per use so if you’ve ever been to a strip club and tried to use their ATM machine you know just how much you get robbed it’s not uncommon at all for gentlemen to club to charge seven or eight dollars per use of an ATM machine but we’ll just use sort of the national average for everything we’ll just assume three dollars per transaction that means that every single time that somebody that uses your ATM machine you make $3 now we already said that about eight people we’re gonna use your machine on average per day so if you’re making three dollars per transaction at roughly eight customers per day that means you’re making about twenty four dollars per day per machine in profit so if you have 30 days in a month that means you’re making about 720 dollars in profit each and every month before your expenses now you are gonna have a little bit of expenses so Internet is usually about ten bucks a month for some of these things you are gonna have to have your ATM machine connect it up to some sort of an Internet service that’s how the actual banking transaction works so that’s going to cost you about ten bucks a month and then I usually prefer to give my store owners roughly about 25 percent of the cut so if I make $3 from the transaction then I’m going to give the store owner about seventy-five cents and I’ll keep two dollars and 25 cents for myself as profit that way it’s a win-win for everyone I make some money and the store owner is incentivized to be able to actually let me place my ATM inside their store so where we started off with about seven hundred and twenty dollars in profit every month from eight customers three dollars per transaction times thirty days in a month now once we split that profits that 25 percent of the revenue with the store owner that means that each and every month I get about five hundred and forty dollars in profit the store owner gets about a hundred and eighty dollars in profit so that means on average I’m making give or take about five hundred and forty dollars per machine now if I reinvest that five hundred and forty dollars and try to purchase a second machine then in roughly four months I’ll have enough money to get a second machine and at that point I’m making close to eleven hundred bucks a month and at eleven hundred bucks a month it’s only gonna take me two months to get my third machine so it kind of snowballs where you’re able to buy more and more machines very very rapidly once you get your first couple and start in reinvesting those profits so as long as you’re reinvesting your money it’s highly likely that you’re gonna be able to scale up to about ten machines within your first year to a year and a half somewhere in there now if you have ten machines and are making five hundred and forty dollars in profit on average per month per machine that means you’re making about fifty four hundred dollars a month at this point or about sixty five thousand dollars a year just by owning and operating these machines so what is actually operating these machines entail well thankfully not a whole lot these machines since you’re buying them new they have a two year warranty so if anything does break or malfunction ATM depot will come out and fix it for you and other than that the only thing you really have to do is make sure that these machines are consistently stopped full of money now like I said when you’re first starting out maybe you only put maybe a thousand dollars in each machine and that means you might have to go out and refill it every day or two or something like that but as you begin to scale and grow your business maybe you’re willing to put a little bit more money in there at a time that way you don’t have to go and refill these machines nearly as much now in the halo2 that we talked about it can hold a thousand banknotes so if these are all twenty dollar bills then that means this machine is capable of holding $20,000 in bills and so at that point you’re at best gonna go and refill this machine once a month but maybe once a month is too much maybe you don’t want to put 20 grand inside of there but you can at least set it up where you’re only gonna have to go and refill these machines once a week once every two weeks once a month whatever it is that you’re actually comfortable with and in case you are wondering the accounting process for this is super easy so you’re actually gonna get set up with a back-end office so you’re gonna get all the data provided straight to you on your smart phone so you can easily at a glance get notified as far as when a particular ATM is running low on money that way you can go out and refill it now some of you guys might be saying yeah but if I am just starting out and I gotta put in you know five hundred or a thousand dollars into this ATM every day in order to keep it going well I don’t have five hundred to a thousand dollars every day that I can actually put into this machine where am I going to get that money well you’re not actually spending any additional money you just need that first set of funds to get in there and after that you’re just kind of recycling the same money over and over and over again so the way it works is let’s say that you put in a thousand dollars into the Machine and then customers take a thousand dollars out so now you need to go and replace that well the very next day after that customers take out that thousand dollars ATM Depot is going to deposit that thousand dollars back into your checking account so then you would just go to your bank withdraw that thousand dollars and put it back in the ATM machine so there’s constant flow of money you get paid the very next day after your customers withdraw any money now as far as that three dollars of profit that gets paid out once a month at the end of the month that way it’s nice neat clean for accounting purposes now when you do actually go to these businesses to refill your ATM machine you want to make sure that your doing this very sort of the off-peak hours when the fewest number of customers possible are there and that’s this is a kind of a security risk because you are walking into this store with potentially thousands of dollars in cash in your pocket trying to reload this ATM machine so you don’t want to get robbed or mugged or anything like that so you want to make sure that as few as possible people are in this establishment if you can get in before they actually open like if it’s a restaurant sometimes there’s just people in the back you know getting things prepped before any customers are there then that would be ideal if you can get in at that time and as far as actually replacing the money inside the machine this is a incredibly fast process it takes less than a minute start to finish in order to refill an ATM so you are literally in and out of the establishment quick so once you scale up your business to was to say ten different ATM machines and if you are putting enough money in where you only need to restock your machines once a week it might take you two hours to drive to the different locations and refill these machines once a week so if you extrapolate that that turns out to about sixty five thousand dollars a year and to get that you only need to work about eight hours per month now once you scale up even further where maybe you’re only replacing the money inside here once a month then your time invested goes down even more and if you’re looking for truly passive income once you scale up to a decent number of machines it’s very easy to just simply hire somebody that you know and trust to do this for you I mean if it only takes two hours once a month to go around and refill all ten of these machines what if you paid somebody two or three hundred dollars to do this for you would you be willing to pay two three thousand dollars a year to have now a completely hands-off passive business structure set up I know I sure would and a lot of other people are gonna jump at the chance to make two or three hundred bucks for only working two hours like that’s a hundred dollars an hour more that they’re making so it’s gonna be very easy to find somebody that’s willing to take these routes for you the biggest thing is obviously you have to trust them because while they’re walking around they’re gonna have thousands of dollars with them so you got to be trustworthy
now some of you guys might be worried about the accounting how does all of that work well ATM Depot like I said they’re already going to set you up with a back office set up so they’re gonna handle all the accounting they’re gonna handle all the transactions and the payments and all that stuff in fact they can also set up that split payment option for you so I said you’re gonna be paying it the business owner maybe 25% and you’re gonna be keeping 75% of that surcharge speed they can handle that automatically so you don’t ever actually have to write you know that gas station or that restaurant a check or anything like that it’s just going to be automatically deposited into their checking account just like your money is going to be deposited into your checking account so it’s very very hands-off when it comes to the accounting setup so at this point really all you’re doing is worrying about scaling your business and trying to find new locations for where you want to put your ATM machines now one thing that’s handy is if you just simply go into someplace like Google and type in new businesses near me or something similar to that into Google it’ll actually pull up a list of new businesses that have recently opened or that are coming soon so especially these coming soon places is a prime candidate because you know that they don’t have an ATM machine like they’re not even in business yet so these are some prime people to reach out to and try to see if you can get something installed at their location and even if a store does already have an ATM machine in it that doesn’t mean that you can’t undercut the current contractor that is operating out of there I usually offer about 25% to start with new businesses but if they already have an established ATM in their location what if you were to offer them 30 40 or 50 percent of the income because let’s be real if you can offer the business manager more money than what he is currently getting then he’s probably willing and to start using you as a ATM distributor now obviously you want to limit the amount of percentage that you’re giving these business owners as much as possible because that is eating into your revenue but if this store owner has a super prime location maybe a gentleman’s club or something like that it’s not uncommon to pay 60% or more to the club in fees and you only keep 30 or 40 percent of the profits for yourself so that’s gonna do it for us today folks how to start your own ATM business and quickly replace your w-2 salary if you enjoyed this video be sure to subscribe leave a comment down below and as always I’ll see you again next time thanks