2019 Recurring Revenue Report: RMR Growth Continues to Rise

There are several compelling reasons for security dealers and integrators to sell recurring revenue-based products and services. Among them is 23% growth last year and 15% projected for 2019.

2019 Recurring Revenue Report: RMR Growth Continues to Rise

Imagine making money while you’re sleeping. Granted some people can seem as if they’re sleepwalking through their workday, but that’s an entirely different matter.

While salespeople, managers, owners and investors of many professional installing security systems providers continue to count sheep at night, those of companies that build a book of recurring monthly revenue (RMR) accounts are instead likely counting their steady cash flow. Consider this a wakeup call as security contractors snoozing on RMR could indeed lose.

RMR (a.k.a. passive income) is not only the gift that keeps giving in terms of generating a continuous stream of revenue that allows firms to earn money round the clock, but it also delivers a multitude of other business benefits.

RMR-based accounts boost a company’s equity and in doing so convey the type of straight-ahead value that investors and the financial community are accustomed to and seek out.

Additionally, conventional wisdom dictates that those customers represent the ongoing opportunity to upsell more products and services, allowing deeper, “stickier” long-term relationships to take root.

Engendering that kind of loyalty fuels positive word-of-mouth and referrals too can create a groundswell of exponential growth.

Furthermore, those qualities can help a security firm access more favorable lines of credit and fetch a more substantial multiple if the business is eventually placed on the market to be sold.

The recognition of all those perks combined with greater customer desire to exploit newer technologies in the name of heightened efficiencies, effectiveness and convenience in both the home and the workplace — in concert with manufacturers stepping to the plate with evermore software-based, “as-a-service”-style solutions — have coalesced into a “perfect storm” of transformative opportunity for security dealer and integrator enterprises.

Developments in open platform, interoperable smart homes, automated buildings and both the Internet of Things (IoT) and Industrial Internet of Things (IIoT) are further imploring the industry to embrace recurring revenue models.

With RMR becoming so central to security business, it’s no wonder SSI publishes a wealth of material on the subject. However, it was just a year ago that the publication sought to augment the written word with empirical market data — thus the Recurring Revenue Report was founded.

Initial surveys can be eye-opening but the real payoff is when the process is repeated to allow for comparisons, further analysis and the gleaning of trends.

Forge ahead to answer questions that include the extent RMR is driving the electronic security industry’s direction in 2019; how much is being made by those focused on RMR; growth percentages; how RMR is affecting the industry’s technology sectors; and which residential and commercial devices, systems and services are best lending themselves to the RMR model.

View the 2019 Recurring Revenue Report

Download the 2019 Recurring Revenue Report

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!

About the Author


Scott Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration. Well-versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is nationally recognized as an industry expert and speaker. Goldfine is involved in several security events and organizations, including the Electronic Security Association (ESA), Security Industry Association (SIA), Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), ASIS Int'l and more. Goldfine also serves on several boards, including the SIA Marketing Committee, CSAA Marketing and Communications Committee, PSA Cybersecurity Advisory Council and Robolliance. He is a certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast. Goldfine joined Security Sales & Integration in 1998.

Security Is Our Business, Too

For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.

A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!

Subscribe Today!

One response to “2019 Recurring Revenue Report: RMR Growth Continues to Rise”

  1. […] While some dealer programs have minimum requirements, others allow you to collect and keep the recurring monthly revenue (RMR) that makes sense for you. The best programs also allow customizable pricing that can create a […]

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Our Newsletters