Companies You Should Know: 24-7 Security
24-7 Security Intl. got its start in 2008 under the name OnlineAlarmQuotes.
Jim Bush, owner of Advanced Security Systems, Olympia, Wash., joined the 24-7 Security program in 2012. PHOTO COURTESY OF 24-7 SECURITY
24-7 Security Intl., a dealer program based in New York got its start in 2008 under the name OnlineAlarmQuotes. In August of 2012, the company rebranded as 24-7 Security, and OnlineAlarmQuotes remained as a lead-generation service. Tom Fowler, president and chief executive officer of the company set out to create a program that broke industry conventions such as charge-backs, account quotas, caps on commercial accounts, infrequent funding, and more. SDM spoke with Fowler and two of the dealers in his program to learn more.
John Hubble is managing partner of Next Generation Security, Greenville, S.C. The company was founded in March of 2012 and covers S.C. focusing on Greenville with burglary systems for residential and commercial applications. Next Generation joined the 24-7 Security program in June 2013.
Jim Bush is the owner of Advanced Security Systems, Olympia, Wash., dba 24-7 Security since 2012. The company began doing business in 2008 and recently expanded into doing monitored systems.
One of the cornerstones of the program, Fowler explained is: “We don’t charge for credit checks. We don’t do charge-backs. The monthly fee is the end user’s responsibility. Dealers are not my bill collectors. If a customer doesn’t pay, shame on me for buying a bad contract.”
Other differentiators for the company are that it accepts renters and places no limits on the numbers of commercial accounts dealers can sell.
“The second security company I ever worked for (in sales) did a ton of business in Everdeen, where only 10 percent of our sales were allowed to be commercial accounts,” said Hubble. “They stopped me and told me not to take any more of them because they couldn’t sell the contracts.”
Another stand-out feature is that the 24-7 Security program provides daily funding, Hubble and Bush agree. In the majority of cases, if a dealer sends paperwork on the morning of any given day, the money will be in that dealer’s account the following morning.
“We’re not in business to take over or to put dealers out of business,” Fowler said. “We’re not their boss. We’re looking for very long term partners.”
Fowler stressed that part of that partnership building means adding the most value possible for dealers so that the annual fee of $1000 to belong to the program is offset quickly. “We don’t take kickbacks on equipment,” Fowler said. “Rebates are passed on to dealers.”
Hubble explained, “Being a smaller dealer, we’re able to buy as a large dealer. You’re able to purchase equipment at deep discounts. When I teamed up with Tom, I was able to buy complete kits for less than a single panel.” Also, when Hubble was looking for some specific hardware, Fowler became personally involved so the distributor would stock the needed equipment.
Fowler highlighted that 24-7 Security will buy accounts often underappreciated by the industry. “Alarm companies fear renters,” Fowler added. “But our banks are behind us so we can take on slightly riskier accounts. Our portfolio performs over 95 percent… We can purchase up to $100 million a month in contracts. That’s the line we have with the banks.”