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Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Mitchell Sorkin, aka “The ATM Guy” (https://x.com/Mitchell_Sorkin), to talk about the world of ATM businesses. Mitchell shares his journey from e-commerce and software to acquiring 900 ATMs and building a business generating $180,000/month in revenue. We talk about what makes ATMs such a scalable opportunity, how to negotiate deals on ATM routes, and the challenges (and opportunities) of working with merchants and managing capital instead of people. If you’ve ever wondered how the ATM business works or wanted a low-labor, high-margin venture, this episode is for you.
Questions this Episode Answers:
- How does the ATM business model work, and what are the revenue streams?
- What does it take to scale an ATM portfolio from a few machines to hundreds?
- How do you negotiate and evaluate deals on ATM routes?
- What are the biggest challenges in the ATM industry, and how do you overcome them?
- Why is managing capital often easier than managing people in small businesses?
Enjoy the conversation!
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This week we covered:
- 00:00 - Introduction to Nikonomics and Mitchell the ATM Guy
- 01:32 - The Basics of the ATM Business
- 02:07 - Scaling the ATM Business: From 3 to 900 Machines
- 04:06 - Revenue and Scale of the ATM Business
- 05:38 - Deep Dive into "Own and Load" vs. "Processing"
- 07:31 - Negotiating Buy Rates and Revenue Streams
- 09:25 - The Role of ISOs in the ATM Business
- 11:07 - Mitchell's Background and Motivation
- 13:42 - The Economics of an Individual ATM
- 15:09 - Valuing ATM Portfolios
- 15:57 - Net Income and Cash Flow
- 17:46 - Pros and Cons of Different Loading Methods
- 19:24 - Cash Flow and Valuation Multiples
- 22:20 - Profit Margins and Risks
- 24:52 - Useful Life of ATMs and Depreciation
- 25:28 - Bitcoin ATMs
- 27:13 - Growth Strategy
- 28:10 - Marketing Strategies
- 29:22 - The Power of Google Business Profiles
- 30:32 - Rapid Fire Questions
- 37:56 - Conclusion and How to Find Mitchell
