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DIY LICENSING LISTED ON CONTRACT
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Ken,
    On the nationwide DIY agreement we got from you there is a place to list all of our licenses.  We don't have an alarm license in any state other than CA.  Can it be deleted this section except CA license #?    All orders are done online;   We don't provide Central Station monitoring in states requiring alarm license for monitoring (per the list on your site).
Thank you
anon
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RESPONSE
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    Complying with the different laws in different states is a challenge.  Your Subscriber Agreement has to comply with each state law and often these provisions compete with each other when it comes to font size and placement of provisions.  Our Nationwide DIY Agreement is customized for your business model and operation, and we offer individual changes and modifications after you've had the opportunity to read and digest the many provisions in the agreement.  
    One of the provisions is the listing of licenses, required in just about every jurisdiction that requires a license.  
    The above question is curious and most likely raises an issue that arises often.  Let me start with this:  Why would you go into the nationwide DIY business without offering monitoring?  If all you are doing is offering to sell and deliver equipment to be installed by the subscriber I think you need to reconsider your business model.  There isn't much mark up in electronic alarm equipment; competition is fierce.  The money is in the monitoring, the RMR [recurring monthly revenue].  
    There are different levels of monitoring, all of which you should be charging RMR.

  • Self Monitoring - signal goes only to subscribers internet connected device  [you have to set this up using one of the vendors who offer this service.  That vendor is going to get a monthly fee, from you or from the subscriber directly.  If you charge and pay the vendor you will mark up the monitoring charge and make your profit.  If the subscriber pays the vendor then the vendor pays you a recurring referral fee.
  • Self Monitoring With Subscriber Able To Dispatch To Central Station - works like self monitoring except that the subscriber can screen and then dispatch the signal to the central station.  The central station may already have the signal and be waiting for the subscriber's dispatch or doesn't have the signal until the subscriber dispatches.  These signals go through a vendor communication receiver and billing is same as with self monitoring, though here the central station is also getting paid so its in the mix.
  • Professional Monitoring; With Or Without Self Monitoring - signal goes to central station and the central station decides whether to dispatch.  This is traditional professional monitoring.  Signal may also go to subscriber, but subscriber doesn't need to communicate with central station to facilitate a dispatch. Generally the subscriber pays the dealer, who pays the central station and a third party vendor who provides the gateway for the communication.

    So where's the confusion?  if you are contracting for monitoring service, except self monitoring with no professional dispatch, you need a license in about 18 states and a few municipalities, even though you are subcontracting the monitoring to a wholesale central station.  Because DIY operations are different we need to check the licensing laws in each state to determine when a license in that state is necessary.  Contact our Jennifer Kirschenbaum, Esq. at (516) 747- 6700 x 302 or me for nationwide monitoring and DIY issues.
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