DIY Security Real Deal but Not for Faint of Heart

When approached properly, the do-it-yourself model has the potential to produce better numbers than the traditional alarm business.

Although I have written about the do-it-yourself market before, I wanted to share some further thoughts on the subject following Monitronics’ acquisition of LiveWatch Security for what appears to be a very large multiple of RMR.
 
I’ve stated for a long time that when the DIY market is approached properly, you can build a serious business that has the potential to produce better numbers than the traditional business. Better numbers that include lower attrition, reduced creation multiples and strong average RMR. This combination results in great valuations.

Imagine greater stickiness and subscriber engagement, more active users, a reduction in actually creating the customers and advocates that are proud to evangelize the message that they did it themselves and communicate to their networks on why they should as well.

This all sounds like the security company owner’s dream, and it is if it is executed properly. None of this comes easy. You need a deep understanding on the new way of creating business. This requires professionals with these specific skillsets and ownership that has the belief and pockets to back it all up.

DIY is serious and I am certain it is a channel of the business that will experience some of the greatest growth. Unfortunately it is not for the meek. It requires real focus, dedication and capital. It requires a state of the art and highly efficient back office for origination, fulfillment and support. It is real with a finite path to success for those who believe and want to be part of what will continue to be a meaningful part of the industry.

About the Author

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Peter Giacalone is President of Giacalone Associates, an independent security consulting firm.

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