The Bait & Switch of Home Security

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In America, burglaries and home invasions are highly publicized crimes that surface regularly in fiction and media. Turn on the news, and it seems like just about every week, someone nearby is getting robbed - whether it’s shoplifters at retail stores, burglars who steal valuables, or viral footage of opportunistic creeps caught on a Ring doorbell camera.
Many companies have popped up over the decades with a variety of solutions to help people better protect their homes - private patrols, panic rooms, burglar alarms, and DIY wireless cameras. In the world of home security, there is no company more famous than ADT. ADT and its iconic blue signs are plastered over many lawns and commercial buildings. ADT was the first to turn home security into service - a company that would come to your house, install a custom security system, setup burglar alarms, and then “watch” your home 24/7 365 for a monthly subscription.
Through the high-crime and low-tech era of the 80s and 90s, ADT was seen as a necessary investment for homeowners. Yet as we dive deeper, the fundamentals reveal the opposite. In this episode, we’ll cover ADT - a troubled company who with even the highest market share must rely on multi-year contracts, lock-in, hidden pricing, and aggressive sales in order to cover up a fundamentally flawed business and the sobering reality that no one makes money in home security.
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🎧 Audio Editing & Mixing: Sonalf
0:00 Always There, Always On
6:00 Home Security As A Service
13:56 Your Monthly Payments Are Our Priority
20:32 All Cash, No Bite

[@ModernMBA]

🔒Visit our sponsor aura.com/mba to get a 14-day free trial and see if your personal information has been leaked online. 0:00 Always There, Always On 6:00 Home Security As A Service 13:56 Your Monthly Payments Are Our Priority 20:32 All Cash, No Bite

[@Aidan-ZA]

Yet in South Africa, services like these are vital as the police do not respond - the company itself sends out an armed response team (even medical), usually consisting of people patrolling your neighbourhood.

[@rockmusicman21]

Those farm murders are some scary stuff. Hope you stay safe.

[@williamford9564]

So now that the country is under black rule, crime is up and the streets are not safe. What a remarkable surprise!

[@user-nu8in3ey8c]

ADT doesn't do anything like that. Most security firms in the US are very limited in what they can do these days.

[@gblargg]

Don't worry, that's coming to America and Europe.

[@DUKEHadToDoItToEm]

​@@gblargg Maybe select European countries. Definitely not the US, too much legal red tape, if it were going to happen it would've already happened

[@mlmFormula]

100% spot on calling out the sleaze factor. And you were being polite. I had a warehouse I leased for 1 year. It already had ADT equipment, just had to connect it. Local ADT rep says we require 3 year contract. And I said well that sucks, I only signed a 1 year lease. Guess it won't work, thanks anyway. Guy fires back, "I'll do a workaround for you, I can do it." So I say sure, since I figured it was because they had to do nothing except start collecting subscription fees. Then... Year passes, I call ADT to confirm it cancels. Nope, there's a 3 year contract. And the customer rep essentially called me a liar when I calmly explained the situation, like oh, I don't know... why the h** would I sign a 3 year contract for a 1 year lease lol. I still had the original contract, scanned it in, sent it over. Didn't even get an apology, or explanation on the "mix up", which he never even admitted. So at first I wondered did the ADT rep forge the contract? Or was dude just trying to bump up his retention numbers. Then I realized, it doesn't matter. When I sent over the scanned doc, he wasn't like "Omg, that's wild, I'm forwarding this to my manager because that's not the contract that I have here". Nope, dude didn't even miss a beat. So either he was making it up the whole time, or this is a common occurrence. Either way, that ain't good.

[@stanle6602]

Did you have to end up paying money on cancelation fees? Either way seems very scummy

[@billywalendom]

@@stanle6602 predatory

[@mlmFormula]

@@stanle6602 Nope, scanned in the the (originally signed) contract and emailed it over, and it clearly showed what he was saying was false. The fact that it was so dead obvious is why to this day I remember the entire interaction so vividly. It made it crystal clear that this was par for the course for them, and after growing up with ADT commercials it kind of rattled me a bit TBH lol

[@ZuperZocker]

Ugh ADT was so predatory in my experience. Bought a house and the previous owners had ADT. They sent reps by a minimum of 4 times trying to get us to sign up. It got to point where I became paranoid that they were going to rob us just to prove a point 😅

[@Airbender24B]

They were definitely hoping you forgot your contract terms or misplaced your paperwork. Shady business practices.

[@mariojr3390]

I actually inquired ADT for pricing on possibly having 2-4 cameras installed- Salesman refused to give me pricing unless I provided him with my SS number so they can run a “soft credit check”. Lmao I was like what a joke - I’m not buying a damn car - I just want prices on surveillance cameras 😂

[@scottduncan8070]

That's an odd request. Giving your SSN up is too risky. People are too loose with that kind of sensitive data.

[@alexanderchenf1]

Never allow car dealerships to pull your SSN.

[@scottduncan8070]

@@alexanderchenf1 Agree, the no need for them to access that data.

[@scottsloan4014]

It’s because it is a soft credit check, they make you open a line of credit to finance the equipment.

[@brandonbuckley857]

Where are you located ? My company does cctv cameras. No credit inquiry whatsoever!

[@snorman1911]

I had ADT install a system over 20 years ago. I sold the house a year later and called to transfer my service to the new house. They said no, you signed a 3 year contract for that house. Nobody ever told me it was a three year contract and i didn't notice it in the paperwork when i signed up. They told me i had to pay the remainder of my contract, *and* sign up with another contract in the new house. I told them if that's what they were going to try to do i won't be signing up again and I'm going to tell everyone i know how much they suck. I didn't even want to cancel, i would have kept paying them for service at the new house. But no they wanted the contract paid out. How absolutely stupid do you have to be to do business like that?

[@kylespencer2192]

That's their business model.

[@_CoachW]

I actually had a client who provided a bodyguard service. I asked him about home security. He told me a smart lock, a dog and nosy neighbors. Past that the return on investment wasn't worth it. Just goes to show you, keep it simple.

[@Inspectorzinn2]

Or maybe ask the professional burglars turned security consultants. People who actually have experience robbing 100+ homes. Plenty of interviews on YT. The advice you got is trash according to real burglars

[@_CoachW]

​@@Inspectorzinn2 I grew up with "amateur burglars," among other lets call them non licensed professions. So we'll just agree to disagree on that one. Wish you luck ;)

[@user-nu8in3ey8c]

I am not an expert, but the following things should be better than a paid monitoring system: * Easiest and most cost effective: ** Dogs, they can protect and monitor the house, without needing a keypad. ** Blinds: they make it hard to locate occupants and valuable items that could be stolen. ** Make sure your door has a peep-hole or smart doorbell. Look before opening, never answer knocks at the door after a certain time. * Some more ways to improve home security without a monitored system: ** Lighting around the house, no bushes near the building to conceal criminals ** A cheap gate at the end of a drive way can make it harder for people to simply drive up ** Use solid doors and use longer screws on the strike plate to reinforce the door jam ** Empower the homeowner with the second amendment In worse places it might be a good idea to put some bars, grating, or reinforcement on the windows. This is more expensive, but it makes it a lot harder to get in. Reinforcing the windows could make escaping a fire more difficult, so that should be considered.

[@soratbeats]

@@_CoachW youre not too bright if you think having an alarm go off and call the police isnt a deterrent lmfao

[@_CoachW]

@@soratbeats So when you hear a car alarm you come running to help and see what's going on right? Now extrapolate that to a house alarm. A person calling for help. If you think an alarm is enough, statistically speaking... you're going to have a rude awakening. And I truly pray you survive the lesson.

[@anthonypaparo]

I worked in home security for a private company. Our contracts were really terrible -- and if you tried to cancel we would say you owed the rest of the balance (years worth of service!) at the cancellation. I'm glad to be out of the industry.

[@ooc6921]

How ? What kind of terms in that contract

[@electrified0]

​@@ooc6921 They can write whatever they want in the terms of services. Such terms would be unenforceable and would not hold up in court, which they know, but they'll still hold it over you in attempt to scare you into keeping their service. Which makes sense since the home security industry's entire existence is based on scaring you into paying for something worthless.

[@ooc6921]

@@electrified0 🥶

[@michaels_madness]

​@@electrified0 Peace of mind doesn't have a price tag. And it's "worthless" until it saves your life.

[@davecozzi9721]

@@michaels_madness Damn right! I have had more great stories by far than bad from my customers. We do not do anything under the table anb our clients get local service from the same local guys whether it is installation, billing or service. We maintain our systems in a timely fashion to prevent false alarms and fines so the client does not suffer, unlike a lot of other stories I have heard.

[@MatthewKeys]

Today, we’re going to discuss the failing business of security. But first, a word from our sponsor, the security company Aura…

[@Dr.Dubz_]

😂😂

[@gabeslutzky3269]

I almost thought the hypocritical ad was a joke

[@shyone8386]

​@@gabeslutzky3269I'm starting to think it's a joke cause this isn't the first time

[@hamzix6599]

home sec and digital/cyber sec are 2 different business, the first 1 is dying the second one is thriving

[@simonu1612]

Different industries

[@Droidman1231]

What's always confused me about the appeal of home security is that the cops are not going to get there in time, while at the same time alarms send the police department a ton of false alarms, bogging down the system.

[@electrified0]

Yep. Average police response times are over 30 minutes in many areas and any professional is going to know that. The cops are more likely to kill you in your own home than stop an active break in.

[@Inspectorzinn2]

? What are you talking about? An intruder having 5 minutes vs 6 hours is a huge difference. Even a cheap safe would take longer than 5 minutes to locate, crack and leave. Even the best safe can’t withstand 6 hours of a burglar and his angle grinder. The difference between 5 minutes of theft vs 6 hours is massive

[@snorman1911]

For my personal safety, yes I'm on my own and the police won't get there in time. If I'm not home, an alarm is the difference between everything valuable gone vs whatever they can run away with.

[@darkshadowrule2952]

@@Inspectorzinn2 I mean if you're worried about that, a handful of sensors off Amazon or a motion activated camera can notify you of entry on your phone, and knowing your own home's traffic, you can cut down on false calls, save a crapton of money compared to what you'd get from a big service brand, and still have a good response time. ADT and the like are a scam in the modern age of smart homes and smart phones

[@GruntSlayerCD]

As a cop, yep 👍🏻

[@anything4validation]

family friend was the only person i knew who had any home security (adt). she would give the blue signs out to friends to put in their yard and then ask the adt people for more, saying someone kept taking hers. the sign is 90% of the battle, its not worth the risk for most thieves to figure out if you actually have it or not

[@Immadeus]

Sounds smart

[@Ziegfried82]

The sign is a good deterrent, but having an actual alarm go off when they break in is nice too. But the price is a little steep at around $500-600 per year if you don't have nice things for a thief to steal.

[@brainybananaproduction]

Yes, thats why I kept the old ADT control panel by the front door after I bought my house, even tough its not connected.

[@bronsontolliver9027]

Knew a guy who posed as ADT to gain access to convenience stores. He would disable the motion sensors and note camera locations. He would come back later that night and, using a sledgehammer, break in and steal cigarettes by the carton. Ended up with 40+ year prison sentence.

[@Ziegfried82]

Clever, but his big mistake was to keep doing it. I'm guessing he ended up killing somebody with a sentence like that.

[@bronsontolliver9027]

@@Ziegfried82 No murder, just a couple dozen felonies in five separate counties while being your own lawyer.

[@Randomdive]

​@@bronsontolliver9027still, a 40 year sentence for a nonviolent crime is definitely United States sentencing in a nutshell.

[@bronsontolliver9027]

@@Randomdive But it wasn't just one crime. This guy hit dozens of stores for what added up to hundreds of thousands in merchandise and property damage. I'm with you on sentencing reform, especially the disenfranchisement of felons upon release, but you can't just let behavior like that slide. This guy doesn't have the resources to restore the value destroyed by his actions so what else should we do?

[@Janzer_]

@@Ziegfried82 that's what i call "Smart Stupid". smart enough to ride the line, but stupid enough to keep doing it.

[@UnicornDreamsPastelSkies]

"Total security has never been available to anyone. To wish for it is unrealistic, to imagine that it exists is an invite to disaster." - Wilson, Home Improvement

[@iseabeck9488]

I used to work for Safestreets, ADT's largest 3rd party. Working there introduced me to depression.

[@Taospark]

Bad sales pitch or bad customers?

[@iseabeck9488]

@@Taospark Scripted phone sales, pushing people who can't afford it to buy it. I get it, it's sales, but that's the shit that sucks the life out of people.

[@bloxer9563]

@@iseabeck9488 yup

[@Erik_Scott]

tried to look into security cameras once. Its infuriating how borderline impossible it is to find one that doesnt have a subscription for the software (after paying hundreds to thousands of dollars)

[@lajthabalazs]

Just went through that exercise. I can recommend Reolink. It's just an IP camera. You don't even have to buy their own NVR, you can set up one of the open source NVR software, and it works. The camera zoom can even be controlled through third party software.

[@VEVOJavier]

I have a TP Link tapo home security camera, it can be accessed anywhere you have internet, and records to a micro SD card. For extra safety and a small monthly fee, I could have the camera automatically record to TP Link cloud servers in case burglars take the camera, but I don't do this though.

[@jacobdupre8809]

Ubiquiti offers a decent product if you are willing to run cable for each camera. Plus all the data/footage is stored locally. The upfront cost is expensive though.

[@EZNutz]

For wireless, eufy, for wired, reolink

[@Inspectorzinn2]

What are you talking about? I use Eufy for wireless and Lorex for wired., no subscription. It’s cheap, 1.5 grand for 30 cameras

[@FIDEL_CASHFLOW_]

I just bought a house last week. ADT has been intrusive and relentless in trying to get me to sign up for a home security system. The representative physically showed up to our house the second day that we had the keys and I was not home at the time but my fiance was. She made the mistake of giving this guy my number and I blocked his number as soon as he called and left a voicemail. This guy has showed up two more times over the course of a week and a half. Both times I have told him I am not interested in a home security system. He sat there on the sidewalk and gave me his sales pitch again after it didn't work the first time but this time he started rattling off all these crime statistics and was really trying to give me the hard sell. After about 45 seconds of this I held my hand up, interrupted him, and said again that I'm not interested. I told him please do not come back because I'm not going to change my mind on this. He cursed his lips said okay, then got back in his car and drove away. I wouldn't be surprised if he shows up again in a month or two or they send somebody else to my house.

[@nintendoeats]

F!ing Bell. I do not want to change ISP. I DO NOT WANT TO CHANGE ISP. Been around once a month for the last 4 months Last guy had the audacity to leave a door hanger, even after I basically told him to eff off (but politely, I am Canadian after all). Not as bad as your ADT story, but same drift.

[@ebradley2357]

I was in the alarm business back in the early 2000's, we had a nickname for ADT - Alarms Done Twice. They would hack every system they installed. We would get calls from their customers due to false alarms ADT couldn't figure out. Usually misaligned sensors, improperly installed sensors, or poor wiring jobs. The kicker was the customer was paying $40-$50 a month, locked into a 3 year contract. While we would offer monitoring for $20 a month and only required a one year contract. To put it in perspective, the monitoring company would charge us $5 a month per account, so we would make a $15 a month profit.

[@LIKEaB0SSvideos]

I always like the ADT = Another Dumb Technician

[@MrPaxio]

holy shit $15 back then that must be like $200 now

[@nickgee7291]

even today same exact story as yourself but today! I work in this industry too, ADT does such a bad job responding to alarms, that we get customers coming from them. The customers are also surprised that most private company's charge half of adt monitoring rates and have faster response times.

[@Ufphen]

ADT - Another Dumb Technician

[@chilaeyaezell2171]

I once worked as an installation coordinator at a security company. During that time I moved into a new apartment and asked on if our sales guys about the employee discount as I was interested in installing a security system since I lived alone. His advice, "Meet and get friendly with your neighbors, they will keep an eye out for you. You already have two dogs, so their barking will be a deterent. Here, take some of our stickers to put at your door and windows to add additional deterance. Other than that, get a shotgun and learn to shoot in case someone is still bold enough to enter. That alarm system isn't stopping anything that what you already have won't deter." Did just that, and years later I still follow that advice. No problems, and I feel secure.

[@NotApplicable555]

My wife let in some ADT guys who straight up refused to leave. I opened the door for them and said we're expecting company, and they stayed there until my friend (who was actually coming) arrived all while telling me that my property was going to get stolen.

[@ram89572]

That's not how you tell them to leave. You pussed around and didn't drop the legal threat to start with. Inform them that they are no longer welcome. You want them to leave NOW. And if they do not then they are informed that they are trespassing and you pick up the damn phone to call the police. If that doesn't work you can always let them know that they can either get the fuck out or you are happy to go grab your pistol and put a few additional holes in them before dragging them out

[@bun04y]

This is why I don't even answer the door anymore unless I know who is coming and why. All door to door sales are taught to not leave until they get the sale.

[@bronsontolliver9027]

If I came home and there were men refusing to leave, they'd need more than motion sensors and keypads to make it out alive.

[@ofer987]

Why did you not call the police for trespassing?

[@NotApplicable555]

@@ofer987 Well, unfortunately I do live in a bad area. Calling the police isn't an option, because they simply won't show up. In Vallejo CA, where I live, the cops don't even show up for home invasions. They only have like 3 or 4 officers on duty at a time.

[@rice_frying_shrimp]

As a European these are always infinitely fascinating to watch, since neither the problems nor the "solutions" at hand really apply to my life in any meaningful way. It always feels like corporations will find a problem people worry about more than they probably should, then find ways to increase the panic of the average consumer and profit big from said panic. Not that it doesn't happen here but certainly not this commonly.

[@a_god8269]

Lol. South Africa

[@Wolf_Larsen]

You'd be worried too if your house was made of plywood, drywall and cardboard.

[@rice_frying_shrimp]

@@Wolf_Larsen sure but not necessarily of burglars, more so of a light gust of wind 😂

[@TheScourge007]

As an American who's been a home owner for 3 years in a significantly-higher-crime-than-the-US-average area, I've found home security systems like this to be completely unnecessary. I've never even had someone steal a package from my front door. And a friend of mine who lives nearby and does have home security has only ever gotten false alarms (and had me show up to check on that false alarm before the cops did, police response times around here are laughable). Home security is a business model that is completely dependent on the general paranoia exhibited by a lot of American home owners (and that manifests in a variety of largely self-destructive ways). But when that paranoia runs against the fact that burglaries and home invasions aren't really all that common, and the folks that have the most serious risk of those can least afford these services, that drives a lot of folks to realize they're wasting a lot of money and causes those high cancellation rates. A lot of Americans will get offended when you say "hey you're probably over-reacting to news about crime" but when it finally comes down to "pay $60 a month to try and address a largely illusory problem" some basic critical thinking kicks in.

[@Wolf_Larsen]

@@TheScourge007 you might say it's snake oil on par with online security services

[@JasmineJu]

ADT has massive contracts with home builders. Almost every house in my neighborhood already has ADT built in, yet very few of them are active.

[@jf7760]

I used to work in this industry. We picked up lots of business from ADT customers who were dissatisfied with their monitoring rates. It was easy to beat them on monitoring prices while still marking up the monitoring service that we would pass along to the consumer. It was impossible to beat them on the speed of installation though. It always seemed like the "smart" home devices could be a goldmine for these companies because they come with a higher monthly monitoring rate. However, the only popular smart devices that could be integrated with the alarm panel, the video doorbells, work fine without being connected to the panel and monitoring. I suspect the next thing they offer is going to be some AI service that's tied into the panel/app...and knowing ADT it will probably work like shit.

[@nickgee7291]

same here! I work in this industry too, ADT does such a bad job responding to alarms, that we get customers coming from them. The customers are also surprised that most private company's charge half of adt monitoring rates and have faster response times

[@quadsnipershotp1lvl4]

When I worked at a best buy store I remember working with vivant home security at times, my god those people would try to interject in anything smart home. Like no this person on limited income does not need a high end security system. I believe we eventually gave up on them due to other issues as well.

[@saynotop2w]

My “home security system” is just a few $50 trail cams that I change memory cards on every week. That $200 served me well past decade. It’s sad that a lot of people can’t budget around their income.

[@Bustermachine]

@@saynotop2w People can and do. Marketing and sales is very good at harassing and manipulating people who are already stressed out into spending money they don't have. They wouldn't be a multi billion dollar business if it wasn't effective.

[@oneafteranother4588]

Did ADT sales for about a month and it was horrible, they made us act like “relocation managers” to gain trust with homeowners and we had pressure on us all day to make sales or you would get fired

[@eurosonly]

Sounds a lot like selling knives.

[@williammayfield9105]

Work for Vivint

[@topkingrevolution]

​@@williammayfield9105 I’ve worked for both Vivint Sales and ADT Business sales I can definitely tell you Vivint is worse in Micromanaging than ADT however the Cultures are polar opposites Vivint is definitely more fun young and frat like in terms of culture while ADT is a professional corporate culture. With that being said though ADT gives a lot more freedom and resources to help you sell from leads to appointments. Vivint is completely self generated sales. Both are great opportunities to gain experience in sales and move up in the sales world.

[@jonathanboever5503]

I manage a local security company and do almost everything opposite of ADT, we focus on custom installation projects (rather than amassing monitoring clients), we have one year contracts (month-to-month thereafter), we rely on word-of-mouth (rather than high pressure sales). We are also shifting with the times, finding that proactive security cameras are the future rather than reactive security system alarms. Everything here about ADT is spot on, however.

[@MrPaxio]

what about one of those prolapsing cameras?

[@jonasbaine3538]

@@MrPaxio 😂. Is that what you meant to write?

[@kareemmehdi]

The real annoyance here is that most home insurance companies give steep discounts if you have home security systems. There are a few DIY companies which are much better than dealing with ADT but it is still an annoyance

[@mcpr5971]

Or conversely, ADT should include a certain amount of insurance as part of the contract. If they're so sure your house is safe, it should cost them almost nothing to include $50k coinsurance against theft or fire.

[@RumbleRish]

@@mcpr5971well, the issue is that ADT can’t suddenly decide to begin offering insurance. Insurers are one of the most heavily regulated entities and insurance law in general is quite complex.

[@geoffclapp5280]

Can you name some companies that aren't garbage? Are they regional?

[@ethanmye-rs]

I know very little about home security. However, I would seriously look at driving down cost. Sell it as a sub brand, deliver the install as a DIY kit, and automate as much of the monitoring as possible. The giant sales force is a rock dragging down a perfectly healthy business.

[@Kiwiiizzz]

If people wanted to do that, it would be much cheaper to buy cameras yourself

[@lajthabalazs]

Users can install the deviced, AI (or really some unsophisticated CV algorithm) is already monitoring the feeds. And if something is going on, the user can call the police. There's not much a company can charge monthly fees for.

[@fabsmaster5309]

It's been done. You are describing Ring and Simplisafe. Even ADT has a sub-brand called Blink which is a low-cost DIY option. The still keep the traditional service as their bread and butter because it is much more profitable.

[@SCIFIguy64]

All you need for a robust home security setup is a decent PC to be a server, Ethernet and cameras. Minor drilling in the walls, and you have a closed circuit system that could save as far back as you got storage.

[@stevenboston2205]

Simplisafe already does exactly that

[@caven7056]

As a south african private security is extremely important as our police force is basically nonexistent

[@whyamiwastingmytimeonthis]

I wonder how much of that is purposeful incompetence, so that the “private police” gets more business

[@dankmemes8619]

​@why am I wasting my time on this I'd agree, but for most governments, having complete control is what they want. I think its just incompetence and being evil and don't want to admit that- Sorry my lawyer has told me I cannot finish this statement.

[@toasterbathboi6298]

​@why am I wasting my time on this I don't see why a police force would purposely hurt itself to sacrifice business to a third party. Doesn't really seem like the police get any benefit from that

[@ob1coyote]

@@toasterbathboi6298 higher-ups in the government might get kickbacks from the private security companies. They almost certainly get some benefit to direct police to more affluent areas. What downside for the police? The police do a less than stellar job, the people demand better/more police, the police say they need more money, police get more money. Repeat…

[@whyamiwastingmytimeonthis]

@@toasterbathboi6298 only if you believe the "privates" are an unrelated third party. I bet a significant chunk of them are ex-cops and whatnots

[@Nick-tv5pu]

My home came with ADT equipment. I thought about buying their services, as they offered a discount since I had the equipment. I quickly changed my mind after a salesman showed up at my door every month for the first year that I owned the home. If a business has to send someone to my door so many times just to get me as a customer, I already know that their services must suck.

[@geigertec5921]

The amount of money you'll spend on a useless "home security" system will end up costing more than any burglar could ever steal from you.

[@qx4n9e1xp]

I 'member as a kid, I wanted my parents to install ADT REALLY bad, because of that commercial. But I had no idea what it actually was, I just thought it was cool & rich-looking to install a keypad on the wall that flares out cool blue lights throughout the house.

[@lostboy8084]

You would wonder why ADT doesn't purchase companies that produce the equipment.

[@JJJRRRJJJ]

Because most of those companies are 10X the size of ADT.

[@jamescook983]

@@JJJRRRJJJ ADT (American District Telegraph) did manufacture their own equipment years ago. They had R&D and engineering. They have many patents for fire and security devices going back decades. Many fire and security equipment brands were once owned by ADT/Tyco and are now owned by Johnson Controls who ended up with ADT /Tyco's commercial business'. They had local sales and service offices in every moderate to major city and had local technicians. Many of these local offices monitored the local accounts and had armed guard response. When they were bought out by Tyco, they went to the same off the shelf equipment used by their competitors and ceased manufacturing and R&D. They closed multiple monitoring centers merging millions of accounts resulting in long hold times, delayed response and pure chaos. The sales people then had to try and sell the same stuff for outrageously higher prices. Then they started the dealer program and the local sales people had to compete with the dealers selling the same service and equipment. It was a good company to work for in the 80's and 90's. I was able to retire early with a pension and nice 401K balance.

[@mistermoneyman8899]

True story, NOT kidding. I became a door-to-door meet salesman back in 03-04. I one day met a door-to-door home security system salesman and I asked him how business is. He told me that business is GREAT.... mostly due in part to the September 11th attacks. I said REALLY?!?!? He said yup and because 9/11 was only two years earlier, people were still on high alert and he figured the home security system sales being grea was due in part to that. Scare tactics in sales(and politics) It Worked before during an d after 9/11....... Still works TODAY

[@u-shanks4915]

the audacity of that guy

[@MkadinA01]

I ran IT for a company who owned an alarm system/camera company. They were using a VERY large hardware/software distributer for the service they sold. I didn't have much control over their security but people don't realize that a LOT of employees there have complete backdoor access to your cameras with a simple username and password. Thankfully nobody was but I heard of many other companies like them that did have employees spying.

[@williamford9564]

26 minutes of how sleazy ADT and the home security business is and then bam, we see they are now in the most sleazy business of all, solar installations. This was an outstanding video. Thanks!

[@theodoreolson8529]

When I was in the military we moved a lot. Every time I bought a new house there was an army of alarm company representatives knocking on my door. Many of them from the same company. I have used Simpli Safe for awhile. Not perfect, but when I compared any other company they were much cheaper. I don't work for them nor am I compensated by them. I have a dog too and I think his barking is a deterrent.

[@timbrooks8690]

I feel you I get adt letters 4 times a week.

[@MrPaxio]

deterrent to what? aliens?

[@FletcherFinance]

❤🐶

[@mohammetyoui820]

I'm just impressed at how smooth the sponsorship integration was

[@sky_rokit]

Or how ironic it was…

[@Wolf_Larsen]

I wouldn't call it smooth but rather unfortunate. Hope the money is sweet because it's really rich to shit on home security while shilling a service that's literally the same kind of scam but for online stuff.

[@s.s6499]

@@Wolf_Larsen Fair point. An easy objection against Aura is "But Apple/Samsung etc already do the same thing". I'd say 'redundant service' instead of 'scam' though.

[@JMRJosh]

You weren’t kidding. That was incredible 4:57

[@jonasbaine3538]

@@Wolf_Larsen yeah the video has incredible bias! 😅

[@compromisedssh]

Great video as always. I remember mentioning this to you in one of my previous comments, but I work as an engineer, so I never got around to taking many business courses, let alone get an MBA. I genuinely appreciate how approachable you make the subject matter in your videos. Despite my lack of business education, I'm always with you as I watch your videos. You do a great job of explaining things in a way that doesn't seem dumbed down. Keep up the fantastic work.

[@compromisedssh]

@Ben Hi Ben. What are you talking about? Whatever it is, it has nothing to do with what I was talking about. I think you may have replied to the wrong person.

[@lanesmith2853]

Back in 2017 the police in my county literally told everyone to call the police if Vivint salespeople showed up to your door

[@DIVISIONINCISION]

I paid an electrician to install security cameras and dusk 'til dawn lights with 24/7 monitoring tracked by app uploaded to a cloud. It cost me $2K total, but no other fees and the system works exactly how it's supposed to. When ADT/Vivint come to the door, I simply point up to the corner of the entryway and tell them they're already on camera. Ends the sales pitch fast.

[@TheBunnyTheBearFan]

Absolutely love your videos, but this one was one of the best! My mom had ADT for years, and got stuck into an ever-increasing pricey contract, and I'm very happy that someone with a lot of reach is talking down about them.

[@eggy3231]

I also wonder if the unaffordability of houses and real estate may also have led to a shrinking customer base, since it's a service that is largely only available to homeowners. Even for landlords, getting systems for multiple houses would probably get very expensive very quickly, and the extra cost would be unattractive to potential renters, useless when no one is living there, and a massive hassle if the house is being used as an Airbnb. With long term contracts, renters certainly aren't going to go for the service, especially if they aren't certain that they'll even be living in the same place for the entire duration of the contract.

[@richardgoebel226]

Until you work for them or work alongside of them you will not see the good, the bad, and the ugly truth. This video is good for showing the financial side and a bit of the sales. Certainly not the entire picture of ADT or the industry.

[@anonymousdogg1559]

Vivint almost got me, luckily they had a 3-day cancellation policy, so on the 3rd day I decided to not go with it, but now a new issue arose, they never took the cameras back, I tried making 3-5 appointments in total, and every single one got canceled. I gave up and just waited it out to see if they would ever call for their stuff. This was in January, now we’re in April. They just won’t take back their cameras. I miss my ring but their doorbell is in the way. So I can’t even get Mail notifications. I’m worried that if I remove a camera myself. I’ll get charged for damage I didn’t do.

[@3peko]

Late response but if you’re still having that problem a T5 screwdriver can remove the screw at the bottom of the doorbell camera, and then you can just Phillips the rest. They won’t charge you for it

[@luddexd2344]

Love the sound quality! So much better than some of your earlier videos!

[@Taospark]

The thing is, local flash storage is so cheap now that you (or ADT) can set that up instead of relying on cloud subscription storage or basic monitoring. Also, the customer churn doesn't mean all of them do not want a security system since many could go to Vivint, another monitoring company, or a DIY solution.

[@lajthabalazs]

What is hard is to get your alert and video streem outside of your home without a cloud system. With many Internet providers putting the user behind a NAT, the only way to get data out is through a third party. Can be a cheap instance somewhere in a cloud provider you set up and manage, or can be a service tailored for the use case, with only a registration needed. Local storage isn't worth much if the robbers take your computer.

[@VEVOJavier]

The whole problem with local storage is that they can just steal the cameras along with the stored footage, which cloud storage solves

[@Taospark]

@@VEVOJavier It depends where you secure the storage elsewhere on the property (wirelessly or connected) instead of just having it be a microSD card on the side of the camera. You can also back up the local storage on the cloud for a running month or something for like 5 bucks a month.

[@Taospark]

@@lajthabalazs There's many open source APIs that can send alerts but no real standard in part due to ADT or Ring's dominance. Storage also doesn't have to be on the camera or computer not to mention a temporary cloud backup without resorting to a full $40 subscription.

[@lajthabalazs]

@@Taospark Yes, $7 for IFTTT, $14 for 2TB of Google Drive storage, and a small bump to the electric bill running a local proxy to upload videos to the cloud. Plus all the hours one spends to make everything work, everything secure.

[@churchrvb13]

Ring offers all sorts of options that you said they didn’t. Ring has professional monitoring, cellular backup as well as battery backup. All with no contract and only $20 a month.

[@Vativ]

The irony of having a aura ad on this video lmfaoooooooo

[@HCG]

You mention Ring stops recording when Wi-Fi goes down. Have you actually confirmed this? Every single smart doorbell I’ve used had constant recording to a local microSD card. I cannot imagine Ring missing this simple and incredibly important feature.

[@mariecarie1]

I can. It’s true. When Wi-fi goes down, you’re sunk. You can still see through the camera, but it doesn’t record anything.

[@ray-mc-l]

great video. a few video ideas that come to mind: gyms, retirement homes, health insurance, gambling

[@ricter]

I never understood why people don't just buy the $10 yard sign and stick it in front of their house, and not actually pay for the service. Is a potential burglar really going to risk calling my bluff, when they could just go after some other house that doesn't have a sign or cameras or something?

[@jonasbaine3538]

Because its known that tons of people don’t have active alert service.

[@CoasterMan13Official]

​@@jonasbaine3538 aka a dog

[@jonasbaine3538]

@@CoasterMan13Official i meant that many people don't have current alarm service subscription, the physical system is there and alarm goes off but no alarm service will place a call to police. dogs are good but can be incredibly expensive and a list of responsibilities

[@BLUE_OCTOBER-TRIX]

That’s what I have just a sign

[@Ziegfried82]

@@jonasbaine3538 yep a big dog (one that could actually deter burglars) costs a hell of a lot more than a security service subscription.

[@hundid5930]

Love that your posting more!

[@retrogeek34]

I worked in the industry for a few years. Nearly drove me over the edge. Glad I had the sense to get out.

[@MatthieuVlogs]

you would do great in pe... love the analysis! Thanks for the breakdown!

[@weston.weston]

I enjoy this channel very much, very well done!

[@johnball8758]

Vivent sucks. I made the mistake of letting their salesman in .He wanted $129 a month, then dropped it to $99.He started asking a lot of personal info, then wanted me to sign something. I told him I wasn't doing it and asked him to leave. Don't let them in your house.

[@yeildme911]

Great video, very thorough

[@addanametocontinue]

Given the prevalence of affordable wireless cameras that you only have to charge a few times a year that can record to a built-in SD card slot and access via phone app, it's hard to justify paying a dime for any security service.

[@vylbird8014]

Recording to the built-in SD slot has an obvious flaw. But you can easily buy a little NAS box with CCTV functionality and conceal it somewhere hard to access. Just add a couple of basic UPS devices and you've got yourself a subscription-free home CCTV system. It won't stop your house getting robbed, but it'll give you a much better chance of police identifying the bastards later.

[@jacksonheu2593]

Used to work for brinks home and yea everything he said is spot on. Except they were much smaller with 700,000 customers down form a million last few years. The company is bleeding out and having large layoffs. It’s only a matter of time

[@Jaymic]

I absolutely believe that the retention rate that Peloton brags about is from the same predatory contracts for their service rather than from the devices themselves. The amount of recalls they've had show that the product is definitely not their focal point.

[@Luna04567]

My family had this for our childhood home, as foreigners I guess we were seen as an easy target.

[@jamesodell3064]

We have a dog and an alarm company sign. Lived here 31 years and no burglars yet.

[@Ryan-wr8fx]

That ADT commercial from the early 2000s is so nostalgic

[@jaadotech]

Awesome channel! Any other recommendation of channels similar to this (i.e with a leading-edge business tone & overview insights rather than the over-dramatic sesnsationalisation that many youtubers are afflicted with)

[@Quickicecarreviews123]

I love company man

[@nickfrichette9860]

You mentioned it a bit at the end but I would love your perspective on the solar panel for homes market!

[@MrBrewman95]

Yes!!!

[@daviscorporatellc]

Wonderful video, very well presented. You have a new subscriber

[@Quickicecarreviews123]

Yep first vid I seen of his and just subbed

[@sircampbell1249]

Started in alarm buz in 1979 and still only charged 15.00 month for monitoring. Lots of greedy people in business...

[@ethancondry3474]

I work for ADT as a remote inbound sales rep. You’re incorrect about some things. The self set up option is only a contract IF the customer prefers to finance the equipment. If they purchase outright then it’s a month to month contract at $25 without cams and $35 with cams. Adt is gaining customers at a very fast rate right now. Vivent sold to NRG oil and gas and they charge 3x more for equipment and installation. Brinxs is basically a professionally installed self set up system. Self set up systems are 100% reliant on wifi so if power goes out so does your security. In the end ADT is really the only option left for homeowners looking for reliable security and with the addition of the quality service plan to every new account maintaining that system is actually affordable. Clearly I’m biased because I work for ADT corporate. Sincerely though it’s the best company I’ve ever worked for. They treat employees really well and pay a livable wage. Benefits are amazing as well. So I have good reason to be biased.

[@seangutierrez1337]

If I want to have ADT Security installed to my household in the future, what are some tips to get the most out of my security, and how to get the best deal based on my needs?

[@ethancondry3474]

@@seangutierrez1337 stick with corporate adt. You get the best pricing when you do everything over the phone with corporate. Adt mails out fliers that offer multiple free cameras. When you call off a flier number it auto generates extra promotions for agents to use. Also ask about affiliates. State Farm home insurance literally pays for most of the equipment. There’s others like amex, American family and usaa. Also be straight up with the person you’re talking to. Let them know what your budget is and what your needs are. I will do whatever I can to get your pricing within your budget as long as it’s reasonable. Corporate phone reps do not make commission off equipment. We get a set commission no matter what is sold. I’m always looking to give people the best deal I can on equipment/install. There’s always going to be contracts when you’re financing equipment. If you can afford to pay off your equipment upfront then do it. We still have to do a contract due to the break even point being 24-36 months BUT now 12-24 months is now an option for me to use. I do not get less commission for shorter contracts. That’s a dealer thing.

[@seangutierrez1337]

@@ethancondry3474 Also, what is the difference between purchasing equipment and monitoring through ADT directly, and through ADT authorized providers?

[@lexdecs8294]

@@seangutierrez1337I’m also a corporate inside sales rep. The gist is a dealer only gets paid when you sign up with a 3 year contract. So they will often charge a higher monthly, but “give” a system for $100 if you qualify. If you talk to a corporate rep you would be paying for the equipment over the long term, but would be a cheaper rate. I would always recommend a self setup system. If you buy the equipment all at once or a 3 pay you can do it from month to month or pay over 2-3 year period. Still have the same quality of monitoring as the people who are paying $100s.

[@elmerikamari801]

Ironic to start shilling right after talking about underhanded business tactics :D

[@brycehughes8840]

Gotta hand it to you... your ad segues are smoooooth

[@Shay416]

You know what's insane. It cost less than $6 cdn to monitor a home. So the markup is insane. Which makes it a great business depending on which side of the coin you're on.

[@Mpg-gh5fq]

I will NEVER sign up with ADT and I recommend everyone else steer clear of them! They ripped my parents off with a new system that did not work the first time we tried to use it. Their phone tech support was useless. One time, they told us that the panel was supposed to show a 1-minute countdown to leave the house before it arms but not actually give you that time. Every time we called, we were put on hold for a long time. Once, I asked to talk to a supervisor right away, and they transferred me to a line that had a 72-minute wait. Their in-person tech support was not much better. They failed to show up for appointments twice. They finally showed up on the third attempt, and the technician admitted that the phone people had given me incorrect information. Yet somehow they manage to keep an A+ rating with the Better Business Bureau despite having a 1.04/5 customer rating on that site (see 13:00 in the video).

[@cs8712]

Print an ADT sticker and put it on your door. There, now you're secured.

[@frankisawesomee]

Love this channel

[@joylox]

I was curious and looked into it. In Canada, the new Telus security thing is ADT here. It seems kind of weird, but Telus is a major mobile company, owning a lot of the country's phone towers, so that makes sense. I'm sure they were in Canada before that, and a lot of what I have looks like their stuff, but it's so hard to tell since it's all so generic.

[@flappyandrew]

Vivint smart home also sold their Canadian side of business/customers all to Telus Security and left the Canadian market

[@adriandunne4382]

In Australia ADT services mainly commercial and business users and also provides compulsory fire alarm services for commercial and high rise buildings.

[@TheLordByron]

The delay from time of alarm activation to the call to the police is absolutely staggering with ADT. On average the call to the police can take up to 20 minutes after the initial activation.

[@TommyCubed]

We triggered ours by accident, opened a door that instantly triggered the alarm, and we hadn't reset it properly. It took their security person about 30-40 min to show up.

[@vylbird8014]

@@TommyCubed Well, yes... you think they want their security person to turn up while the crime is in progress, and potentially be confronted with the thieves? That's a way to see a property crime turn violent. For ADT, it makes more sense to to be a bit late rather than expose their employees to danger and themselves to liability.

[@LiberalLoudMouth]

These companies buy the door/window sensors for $11, then sells them to the customer for $129. It's gross asf.

[@brennanpostich2351]

Just wanted to say how refreshing to is to see a content creator start graphs and charts from 0. Suspiciously, you tend to see more shaky data never starting from 0… 🤔

[@Gorslax]

I worked for an ADT dealer for a few months in the sales arm and I can attest that they would have us tell customers to sign up and we’d get them installed asap because the contract doesn’t technically start until the install is completed. We’d lock them into a 2 year contract from initial agreement and all equipment would be free with monthly plans anywhere from $45 for the barest system to $65 at the priciest one with the most cameras. We were provided with brightly colored system option sheets with very large dollar values to show people how much the equipment cost (so we said) and how it was such a deal to get it for free. Our biggest competition was vivint which is even worse with the equipment financing contracts they lock people into. As a whole I realized after a few months and some sales that being a salesman wasn’t for me and moved on. At that job the turnover was very high, in the time I was there we went through probably 10 or so sales people not including myself. People who were fired or quit for whatever reason.

[@shipxsunk]

You could do an entire video about defenders and their business practices. I was there for 4 years. It was insane.

[@clintcountryman4849]

Don't need the whole system. Just steal an ADT sign and put it in front of your house

[@LegendaryCollektor]

Here's what I do for security; 1. Bowley deadbolts. If you dont know Bowley locks you need to look them up. Good fucking luck. 2. Well built windows that are shatter resistent. The plus is they're energy efficient too. 3. Myself and my fiance work from home most of the time. If you break in while we're home we have 2 9's, a 22, and a 7.62 that'll easily explain why you picked the wrong house. 4. Our neighbors are retired and extremely friendly and nosey but in a good way.

[@LegendaryInfortainment]

One good thing I can say for home/business alarms and monitoring, is that programming Radionics alarm systems for large facilities made a good living and kept me out of the grunt work of installing the buggers. Most were never going to get the "bang" out of the buck that they were expecting from these systems and services though. VERY good production, thanks.

[@gamerforlife9865]

Nice, 2 videos in one week, we have been blessed by modern mba

[@bobbinsthethird]

I was just waiting for the ad placement. How is this video assaulting home security going to try and sell me a security product. Aura did not disappoint.

[@Tanktaco]

Well that was scathing.

[@michaeltabet9223]

Love this a searcher security if def a target industry

[@PrinceofPwnage]

I'm also astonished at how "weak" houses are in the US. My dream is to have a home with a 6ft solid concrete wall around it like my house in Mexico was. Here in the US most houses are completely exposed in the front, and only the backyard is fenced in, and to make things worse with full glass rear sliding doors and big windows at front door.

[@captmaverickable]

4:48 That is when I found out I was watching one slick advertisement for Aura. This is neuro linguistic programming at its BEST!!!

[@MorbidGod391]

14:25 if you install the ADT alarm yourself and buy the equipment in full you are not under a contract with ADT. Just FYI.

[@JTA1961]

Good info... I do most everything myself & was disgusted when door monitors just needed batteries changed & those "cox" suckers were workin me fo a service call & new item required when we both knew it didn't. I bailed

[@Karina_Engr]

The company I signed up with showed my a contract on his iPad, took it away to do things, and fill in blanks. However, before I signed anything, I re-read it, and he put in 6 years instead of the agreed 2 years. I pointed it out to him, and he fixed it, but dang! How many people has he done this to?

[@iVitaliy1]

The funniest thing about this video is your advertisement of yet another security company 😂

[@Scotty_in_Ohio]

When (not if) you cancel a security / alarm company contract do it via snail mail (and you can also via phone/email) - you may not have to go as far as sending it registered mail but that's good if you have the feeling that there may be a fight on your hands. If you're calling - they'll always say that your call may be recorded - you should record it too. Get a follow up (email at least) confirmation that you are indeed canceled and confirm if you need to do anything with the equipment (most won't want anything back but it's often in the contract that they can ask for it to be returned). If you still have the gear make sure it's not contacting the central office - I've heard stories about people who canceled, had the confirmation they were but were billed for months past and had re-connect fees, etc. because the system kept in contact with the monitoring company.

[@MorbidGod391]

7:58 again, miss leading info. Yes, the alarm will still function and yes it might be able to communicate with ADT through the cell towers BUT the cameras would as of today not work because the camera need internet (unlike Ring Alarm Pro which has a backup cell for their cameras as well as the alarm).

[@MrMexed15]

Vivent was one that i dealt with the salesman knocked on the door and had a trainee with him and i let him do his speal. My chihuahua terrier was in my arms and by the end i was not interested in their products and my dog immediately sensed the salesmans change in attitude and became aggressive. The salesman basically said you wouldn't mind being robbed then or something bad happening to your house. I told him I've lived in the hood. I've seen robberies murders houses burning down etc. I'll be ok without your system. Definitely pissed him off.

[@CommissionerLofi]

Buying the sign and placing in front of your house is just as effective.

[@hughshux7960]

Nice video

[@yellowjones2103]

I felt like I watched a commercial for ADT 😂😂😅😅

[@iTzDritte]

Wake up babe, a new Modern MBA just dropped 🎉

[@brandoniswhoiam]

Again!