The number of American workers choosing to become self-employed has steadily risen since the 1940s. As of 2015, there were 15 million people who owned their own businesses or worked as sole proprietors on a contract basis. In the midst of all of these millions are home security dealers who have found a way to make a living and do something they enjoy by affiliating with a home security dealer program.
A person wanting to start his or her own business has three options:
- Coming up with an idea and building the entire business from the ground up
- Entering a franchise deal to establish a turn-key business
- Entering affiliate agreement with a national brand.
The typical home security dealer program falls under the third category. Local alarm dealers who choose not to do everything by themselves can affiliate with a national brand to offer equipment sales, installations, and 24-hour monitoring. It is an excellent business opportunity for anyone who wants to get involved in the competitive home security market.
Advantages of Dealer Programs
The first and most attractive advantage of joining a dealer program as a home security dealer is not having to build your entire business from scratch. Obviously, the small business owner must still complete the legal paperwork to establish his/her business entity; he/she must still open a bank account and get an employer identification number; he/she must establish a corporation if he/she decides to go that route.
Upon legally establishing the business, the local alarm dealer can start marketing. This is where affiliating with a national brand helps. The local dealer can immediately begin advertising using the branding of the affiliate company in everything from printed literature to websites to vehicle branding. He or she can also take advantage of leads the affiliate company has already generated in the local area.
Other advantages of dealer programs include:
- Training and Support – Most of the national brands offer training and support for local dealers. That training includes everything from establishing a marketing plan to performing installations that are up to specs.
- Remote Monitoring – The local alarm dealer who chooses to affiliate with a national brand instantly has access to 24-hour monitoring for customers. This is a big plus given how financially prohibitive it would be for a local dealer to set up monitoring
- Financial Incentives – Some national brands are willing to buy accounts from dealers who want to sell them to increase cash flow. Others offer loans based on customer volume. Joining a home security dealer program gives the local dealer a bit of financial security he or she would not have otherwise.
- Complete Ownership – Unlike a franchise, the local dealer who affiliates with the national brand still maintains full ownership and control over his/her business. Although a franchise owner owns his or her business, he or she is more or less at the mercy of the parent company’s direction and vision.
- Business Development – It is in the interests of the national brand to ensure their local dealers thrive as small businesses. When local dealers do well, the national brand also does well. Therefore, national brands tend to invest considerable time, money, and resources in providing business development opportunities.
Starting a business as a local home alarm dealer isn’t right for everyone. But for those who have the personality and drive to be self-employed business owners, the home security industry offers an excellent opportunity to establish a long-term business that will provide a good income, growth potential, and the opportunity to be part of something that is evolving very quickly.