After leveraging a direct-to-home business model to become of one of the fastest growing residential security companies in the country, NorthStar Home recently announced it is launching an Authorized Affiliate Funding Program as a way to bring independent alarm dealers into the fold and continue to grow the company’s nationwide footprint.
Founded in 2000 by Jason Christensen, NorthStar has embraced the emergence of smart home technology that has seen the alarm industry transition from the installation and monitoring of simple burglar and fire systems to providing whole home automation solutions. A combination of record sales in recent years combined with low customer attrition rates resulted in NorthStar being the top-ranked company in the 2016 SD&I Fast50 which annually recognizes the fastest growing security integrators and dealers in North America.
So, why would a company that has already achieved record success with a proven business model choose to also go to market through the traditional dealer sales channel? The answer, says Nick Perry, NorthStar’s new vice president of business development, is to give the company more of a permanent physical presence in the markets they serve – which he expects will help increase the company’s sales in those areas.
“For the last 17 years, NorthStar has had a direct-to-home business model, which has brought the company into just about every major market in the U.S,” says Perry, who previously oversaw dealer sales and development at Security Networks. “The dealer program is designed to complement that business in a number of ways. NorthStar’s traditional model is more of a summer (door-to-door) program where we don’t have a permanent presence in our markets. The dealers are going to act as an anchor or permanent presence in those markets and allow us to generate sales year round and also help us with service needs and other efficiencies in those markets.”
Perry says the cash infusion that NorthStar has received in recent years from its investors – namely Goldman Sachs and The Beekman Group – has enabled them to expand in a number of ways. “The dealer program was a natural fit for us to take advantage of an underserved market and have a scalable, more predictable sales channel that we felt like there was a big need for,” he says.
Benefits for Dealers
Perry says the “economics” of the NorthStar Affiliate Funding…