ADT Authorized Dealer Program Overhauled

ADT is one of the most well known home alarm companies operating in the United States (and abroad). Last year ADT separated from Tyco International to become it’s own entity and publicly traded company. With that split ADT took full control of its Authorized Dealer program, which ADT recently gutted due to poor performance of many dealers. To fully understand the magnitude and rationale it’s important to understand what ADT’s Authorized Dealer Program is and how it operates.

ADT Authorized Dealer program is a type of franchise for alarm companies already in business. For instance, the John Doe Alarm Company in Pleasantville, USA can become an ADT Authorized Dealer to help secure more business. The John Doe company applies to become a dealer and if ADT agrees then John Doe Alarm Company can now sell ADT alarm systems, products, and service. The John Doe Alarm company handles all of the sales, installation, and maintenance of the system while ADT handles the monitoring agreements and financials. In very lay terms, John Doe signs the customers up and creates an account for them, then “sells” that account back to ADT. This allows ADT to branch out and sell its products in hundreds of locations around the country without having to have a physical presence. This also allows customers who normally may not have the opportunity to purchase alarm systems from ADT to do so from a trusted local alarm company.

The ADT Authorized Dealer program works well on many levels, but it also has its downfalls. ADT cannot keep track of or help out all of the dealers equally. Some dealers will highly outperform others prompting ADT to focus more on its high value dealers. This leaves some dealers struggling to learn the technology offered by ADT and to assist its customers. This makes the local company look bad, as well as ADT.

With the recent separation from Tyco, ADT has looked to “clean up” its Authorized Dealer program and make it more efficient. In a recent interview with Security Systems News Jeff Kessler of Imperial Capital (a full service investment bank researching ADT) explained that the disconnect between ADT and its dealers almost spelled doom for the Authorized Dealer program, but after a recent cut of about 100 dealers things are looking up, “..it’s finally beginning to look better,” said Kessler, “For the first time I’m kind of beginning to reverse myself and say it looks as if there is light at the end of the tunnel for their dealer business..”

Kessler also stated in the interview with SSN that he believed ADT would cut even more dealers in the next year, but that most of the worst performing dealers had already been cut from the program.

So, as a homeowner and alarm system consumer what does this mean for you?

This is great news if you’re a homeowner looking to purchase a system from an ADT Authorized Dealer. By cutting down the number of dealers and working closely with new ones to ensure quality and success ADT will be providing better opportunities to its dealers and better service to homeowners via their dealers. There won’t be as much of a disconnect between ADT and the dealer. ADT will no longer be a background player with its logo all over the front. This could also curb prices for ADT service such as ADT Pulse, which is ADT’s interactive monitoring service with video monitoring, smartphone apps, and home automation. All of this is great news for homeowners and local home alarm companies looking to become a successful ADT Dealer.

To learn more about ADT please visit our ADT Alarm System Review or contact an ADT Authorized Dealer at (888) 352-3304.