Home security sales FAQ: what reps sell, licensing, pay and the rules

A monitored security system: a control panel, door and window sensors, and often cameras, a video doorbell, smart locks or a thermostat, together with a monitoring agreement billed monthly. The equipment and the agreement are sold as one package. The rep sells and schedules; a technician installs.

The customer agrees to pay a monthly monitoring fee for a set term, typically several years, and the company supplies and installs the equipment. Agreements often renew automatically and charge for early cancellation. Explain the term, the monthly amount and the cancellation terms before the customer signs.

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Because the rep is paid on activated accounts, and a system installed the same day is far less likely to cancel before it is activated. Technicians often wait in the neighborhood so a system can go in within hours. It also means the customer must be clear about what they agreed to before the technician starts.

Yes, if they are free to switch and want to. Replacing or reusing another company's equipment is called a takeover. Ask whether they are still under contract, because they may owe their current company, and never imply that you are from that company.

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Per activated account. The amount usually depends on the monthly monitoring rate, the equipment package and the customer's credit tier, with part held as a back end based on accounts that keep paying. Ask how each of those changes the commission.

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The company pays for equipment and installation up front and earns it back over the agreement, so it checks whether the customer is likely to keep paying. Many pay plans reduce or withhold commission on accounts below a credit threshold. Run the check the way the company requires and with the customer's consent.

Accounts that cancel in the cooling-off period, fail to activate, or stop paying in the first months are commonly charged back or removed from the back end. Selling the right package to a customer who understands the term is the protection.

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It varies. California requires alarm agents, including people who sell at the buyer's home, to register with the state and pass a background check, and Utah licenses burglar alarm company agents. Texas, by contrast, stopped requiring a license for alarm salespeople in 2019. The company should tell you what applies in each market.

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Source: California Bureau of Security and Investigative Services: alarm company fact sheet · Utah Division of Professional Licensing: burglar alarm company agent · Texas Department of Public Safety: private security license changes (2019)

Claiming to be from the homeowner's current alarm company, saying that company has closed or is upgrading its equipment, and using fear to pressure a quick decision are the tactics the Federal Trade Commission warns consumers about. Use none of them. Say who you are, which company you represent, and that you are offering a new agreement.

Source: Federal Trade Commission: shopping for a home security system

A dated contract showing the seller's name and address, and two copies of a cancellation form, with three business days to cancel for any reason. Some states also require salespeople to show a license or photo identification. Go through the cancellation right out loud.

Source: Federal Trade Commission: shopping for a home security system · Federal Trade Commission: Cooling-Off Rule (16 CFR Part 429)

Often. State registration, where it exists, typically includes one, and a city solicitor permit may too. Tell the company early about anything on your record, since it affects which markets you can work.

Largely. The big programs run about May through August and relocate reps to a market, usually with housing. Some companies keep year-round teams in warm states.

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It can be, especially in a program with strong training. The sale asks more of the customer than pest control does, so the first weeks are harder and each sale is worth more. Many reps do a summer in pest control first.

Team lead and management roles come quickly for consistent sellers, because programs rebuild their teams every year. Others move to solar or roofing for a larger sale, using the same door skills.

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