- Competition will be greater this summer. Promises will be bigger and grander, but results may not keep up. The economy has effected everyone in some way, large or small. If not financially, mentally. People are not going to be eager to pony up $50 per month. The successful sales reps this summer will be the ones who make the sale a highly emotional sale. The logic won't be on the good deal, but then again, it rarely has been. The logic will be to tactfully hit on the fears. It's a rough and blunt way to say it, but people are scared and want to be protected. The succesful reps will be ones who have no reservations about the realities. If you are thinking about selling, and are any bit scared about people's finances and think about "if they can afford it", it is going to be a long dry summer.
- Licensing will be a bigger issue this year than any other previous years. To compound the fact that most police don't like door-to-door alarm salesman, is budget cuts. If they get a whiff that there is an unlicensed company, they will go quicker and faster to get them to pay. Across the board, that will be the biggest hurdle. The well equipped will survive. But for the smaller company, it will be harder. Nothing saps motivation quite like getting busted by the police because your company didn't get permits. The idea of going till they get caught will catch up with them. The large companies like APX Alarm and Pinnacle have targets on their back. It is easy to fly under the radar for the first year or two of being in an area. But after being there for a while, people catch on to the tricks.
- The lure of big money is enticing. This summer will probably have the most people go out and sell than any previous year. The job situation is rough, and getting a sales job with an alarm company requires a pulse. I wouldn't really even say it is a job. Money is potentially there, but less than 20% make what they say you will make. 80% of people will probably only break even or make what they could make at an hourly job elsewhere. For those 20%, life is good. For the others, it is a job that pays no guarantee, no benefits, long hours, not enjoyable work, and if not successful no great experience maker for the resume. If you are thinking about going out to sell, think hard about it. It could be great for you, you could make big money, but the odds are not in your favor. Even if you gave everything, were a great salesman, knew your stuff, you could still make zero. It is a possibility. Then there is the odd case where one has no skill, knows zilch, and sells a lot. Sometimes it's luck, but just know that it is a pretty sizable risk, and should be treated as such.
Thursday, February 19, 2009
My Thoughts on Current Situation of Alarms
To say that I have not been following the Alarm Industry closely these past few months would be an understatement. I have probably missed out on a few bits of news, but I have had a few thoughts on the upcoming summer.
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7 comments:
You have a ton of great info on your site. I wish more people interested in door to door sales would do their research. I am having a dispute with a home security company and have started a blog about it. So far 3 former employees have come forward to share that companies horrible business practices. Keep up the great posts!
I like to see that you have updated this page and I really enjoy reading what you have to say. Please keep putting your advise and opinions up here when you have a chance. Postive or negative or niether Its good to hear an opinion other than my own. Thanks for your efforts.
I think it’s about time you retire from writing about alarm sales. Seriously, I don’t think you know nearly as much as you think you know. For example, where do you get stats like, “less than 20% make what they say you will make. 80% of people will break even…” ??? Are you kidding me? I don’t know where you find your stats. Also, what do you mean by, “break even?” To break even, don’t you have to invest a certain amount of money into something? Most alarm companies pay for guys to get out to their areas, they pay for down payments on the apartment complexes, they sign four month leases on the apartments, they pay for their shirts, hats, badges, licensing, training, etc. All a sales rep invests is their time and maybe a few bucks here and there for gas money to make it to weekly trainings.
The other comment I thought that wasn’t thought out too well was the one where you talked about how the odds aren’t in someone’s favor to have a good summer selling alarms and that, “Even if you gave everything, were a great salesman, knew your stuff, you could still make zero.” I had a good chuckle over that comment. I haven’t seen too many good salesmen that worked their butts off, and knew their stuff that didn’t make some phenomenal cash! It just doesn’t happen. I don’t know what you consider “giving everything” or “knowing your stuff” but about the only time I see a good salesman not succeed, is when he/she doesn’t work.
Seriously, I used to like to keep updated on your blog, but it’s starting to be just a waste of my time since most of it is just a load of dung. I think I’m just going to start my own blog now. I might be too busy selling alarms, and training guys to do the same in order to keep up on it though, but hopefully if you keep posting, you can think a little more carefully about the things you decide to write about and your awesome statistics you make up.
There is a lot of BS mixed in with the truth here. I have been in the industry 8 years at this point, and I haven't noticed too much of an impact on sales this year. True, we will find people who simply don't want to take on additional expenses right now. But, property crime is up and people want to protect themselves and what they DO have. Any homeowner can afford the cost of monitoring. It is the sales manager's responsibility to see that he follows through on promises made regarding training, completing proper licensing, and getting things done. Each rep has the responsibility to be hard-working, ethical, determined, and to apply what he is being trained on.
In the past, so many reps have been burned by selling bad business (i.e. waiving activations, lowering monitoring rates, and giving out too much equipment). That is what causes reps to get burned. Usually the manager is the worst in regards to these things. Lead by example and you're good to go.
Do you sell? Have you sold in the past? I have sold in the past and may sell again this year, but I want to choose the best option. Can you please email me so I can ask you some questions?
Thanks
Curt@lagoamedia.com
I am making a big decision this summer. I have sold furniture in the past and the market has completely tanked. I think what you are going to see is a higher caliber sales crew go out this year. Obviously you will have the younger guys but you will have an increase in the age and caliber of people willing to jump on board like myself. I have ran the numbers it is a calculated risk that I am willing to take. 1.10 a day is going to make me some cash enough to get by until next summer. I can do that and I will. Crime rate is up the caliber of people is up lets see what happens!
-Brian
I also found this blog to be VERY "off" as far as fact are concerned. I have been in the industry for close to 8 years and have not made less than 6 figures ANY YEAR (except my first 2). I am well on track this year to do the same. I have found just about anyone I have ever talked to in the security industry to be lazy and unmotivated. They will use any reason they can to throw their hands up in the air to excuse their poor performance. Don't forget, it's also going to be hot out this summer...I bet that will bring sales down even more! :)
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