Passive Income with a Bitcoin ATM Business? From $769!

Can owning a Bitcoin ATM business provide passive income with a relatively low ($700) start-up cost? How much do BTC ATM machines cost and how much can I make? Today on Franchise City.

Bitcoin ATM's, BTM's or Kiosks as they are sometimes called work in a similar way to traditional ATM's. First, you place your machines in a location, preferably one with good foot traffic. Top locations for placement are Restaurants, coffee shops, shopping malls or supermarkets. The benefit for the venue owner you are placing the machine is more people coming into their store and you, the Bitcoin machine owner split a small amount with them from every transaction. Note that busy malls may want a 12 month commitment which is bad if the location is not good. A convenience or liquor store will likely go month to month.

There are several Bitcoin ATM providers including Genesis Coin, General Bytes, and BitAccess. We won't dig too deeply into the differences of features and benefits of each provider, but pricing starts at just over $700 for the BitTeller by Blockchain Innovation, up to $14,500 for the Genesis1 from Genesiscoin. One decision you need to make is whether you want a one way machine that only provides buying ability, or a two way machine that does both buying and selling. Machines that buy and sell cost more money and are a bit more work.

If you want a truly passive business, and have someone else take care of everything you will need a *managed model, where a company places your machines, handles everything and you are just an investor. More on that in a second. If you have time to spend on the business you can save money by handling everything yourself, but it is not as easy as just buying a machine and placing it in a location.

As an Independent Bitcoin ATM owner before you do anything you first need to check your state for what type of licensing you will need. There are financial regulations and licensing required both at federal and state levels, as well as KYC and AML rules, which are "Know your customer" and "anti money laundering" rules. If you are trying to launder money you may be better off with a less regulated industry - feel free to contact our money laundering specialists here at Franchise City. (Joking!)

In certain situations you may be considered an MSB, or money services business and MSB licensing can cost 10's of thousands of dollars. A money transmitting business license may be required in certain states if you are hooked directly to an exchange. A surety bond may be required up to several million, so in certain situations your costs and overhead may make owning a single machine or even a few machines unfeasible. Licensing in some states can take up to a year if you get approved at all so again, check your state and federal requirements before you buy anything because some states are just not business friendly.

So how much can you make with a Bitcoin ATM? It can vary widely based on a number of factors, location of course being the most important, but the estimated gross transactions per month is around $20k, busy, premium locations that know how to advertise can do into 6 figures a month in transactions. How much you can reasonably take from each transaction will be based on local market conditions and your surrounding competition, it can very from 1% up to 12%, so your profit can vary from a couple of hundred dollars to several thousand per month per machine.

If you don't want to worry about all the paperwork and registrations an initially more expensive but easier route is a managed machine. The company uses their umbrella corporation for the machines so you don't have to worry about most of the licensing and regulatory paperwork. They also place the machines and manage them, so you can just check the activity of any of your machines on your phone. The cost for a single managed machine will run around $35k with discounts for volume purchases.

Obviously we know BTC is volatile and your performance will be tied to market sentiment. If Bitcoin takes off you could have been a market pioneer and have premium locations making money for life. If you prefer more predictable revenue with a similar type of business you can consider regular vending machines or something like check cashing machines that pay a guaranteed amount each month.

BITCOIN ATM'S FROM $769 https://youtu.be/PtugH3gi_1o

OWNING A TRADITIONAL CASH ATM https://youtu.be/_fFNTkr0eJI

SPEAK WITH A BROKER ABOUT INVESTING IN MANAGED BTC ATM's, CHECK CASHING, OR VENDING https://www.franchise.city/franchise-inquiry

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