ADT Cleans Up Its Authorized Program, Cuts 200 Dealers Lose

BOCA RATON, Fla.—ADT Security Services Inc. has told Security Sales & Integration that it has trimmed its Authorized Dealer Program from approximately 700 dealers – operating in 1,600 locations nationwide – to around 500.
In a move to eliminate dealers who were either falling short of the quantity and/or quality stipulated in their ADT Authorized Dealer contract, the nation’s largest program of its kind sent letters to 200 of its dealers in August notifying them that they were being terminated. According to ADT, adjusting the program, which had grown substantially since being introduced in 1994, simply made good business sense.

“The changes are intended to improve the quality of customers by increasing the credit score requirements. We believe these new performance requirements will improve customer retention rates, cash flow and increase our ROI [return on investment],” says Jay Stuck, vice president of ADT’s Residential Marketing and Corporate Communications.

“This change reflects a strategic decision we made to shift the program focus from quantity to quality,” continues Stuck. “We remain committed to our dealer program, and believe the changes will strengthen the program as the premier one of its kind in the industry.”

While Stuck also says the company’s sales expectations are fair and based on several factors, including the size of the dealer, some of those affected by the cutback feel they were unfairly targeted.

“No one has given me a great explanation, but I have been told it came down from the CEO,” says Mitch Poppert of SatCom in Redmond, Ore. “They took my ADT license away and hurt my income tremendously. If someone gets good, quality customers, they should not have to worry about the number of accounts sold. I take pride in doing a good job and that’s why I have a low attrition rate.”

The majority of industry professionals SSI spoke with for this story applaud ADT’s decision to reassess its Authorized Dealer Program.

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