Commercial Security: The Secret to Growing Your Alarm Business RMR

alarm company owner with graph showing increasing trend in RMR

All alarm business owners – even those who own traditional alarm companies – are beginning to recognize the immense value of recurring monthly revenue.

In this day and age, many are making an effort to diversify their offerings and ensure that their eggs are in more than one basket. They’re also looking for new ways to generate recurring monthly revenue in order to further increase their profitability.

The Internet of Things has brought about many new opportunities for recurring monthly revenue on the residential side – opportunities that many security businesses have tapped into.

But there’s another place to look to generate additional RMR. A place that has remained largely untapped by many alarm businesses: commercial security.

Pursuing Commercial Security RMR

Much like residential customers, commercial customers have needs that can be met with service contracts, remote monitoring services, automated features, and other elements that can generate substantial recurring monthly revenue. 

If you serve customers on both sides – residential and commercial – it’s likely that you can transition pretty easily to serving both in a way that will help you to generate additional recurring monthly revenue. 

If you’re not currently serving both residential and commercial customers, but you’re a well established residential provider, the transition to the commercial side may not be as challenging as you think. And, in the end, it may be well worth the effort you put in, as it could help you increase your profitability substantially.

Tips for Growing Your Commercial Program & Commercial RMR

As an alarm business owner, you’re likely already familiar with how to sell your products and services in a way that wins over customers. Still, there are a few specific strategies that can help you if you’ve been focused on residential but you’re looking to grow into the commercial market in order to further increase your RMR.

Lean on Your Existing Reputation

If you’ve developed a strong positive reputation on the residential side, that will be a tremendous asset as you’re working to develop business on the commercial side. The things you do well in the residential market can help you to pave the way as you branch out and begin work to establish yourself as a trusted commercial provider.

Let your reviews and customer recommendations speak for themselves, and continue focusing on providing top of the line customer service as you work to attract new customers and build business in the commercial market.

Build On Your Current Business Model

Many alarm businesses that are successfully expanding into the commercial market are doing so by building upon the same business model that has fueled their residential market growth. These businesses are focusing on providing unbeatable customer service and positive user experience while creating efficient systems and developing reliable sources of recurring monthly revenue. 

The key here: play to the strengths that are already serving you well and give your customers the features and services they want. 


Offering both residential and commercial services affords you the opportunity to cross-sell your services! Many residential customers are also business owners who would likely be interested in managing the security for their personal residence and professional properties with one company. 

Consider offering bundles for customers who choose to manage both their homes and businesses with you. You’ll make life easier for them, and they’ll help you to expand your business and generate additional RMR. A win-win!

Seek Out Reliable Sources of Commercial RMR

Expanding into the commercial market is especially fruitful because it provides you with another source of significant recurring monthly revenue. But, in order to capitalize on that opportunity for RMR, you have to know where to look for it. 

Keep in mind that opportunities for RMR in the commercial sector are similar to those in the residential security sector. Service contracts, remote monitoring services, and automated features are all good places to start when it comes to generating commercial RMR. You can learn more about growing your business’ value through contracted recurring monthly revenue here.

Increasing RMR by Expanding Into Commercial Security

The Internet of Things has provided many new opportunities for recurring monthly revenue for alarm businesses – but the opportunities don’t end there. If you’re a security business that has left the commercial sphere generally untapped, now may be the time to start exploring the chance for growth and new sources of RMR in that realm. 

Thinking about growing your business?

Whether you’re looking to expand into the commercial security sector to take advantage of the RMR opportunities that lie there, or you’re hoping to scale your existing residential security business, Rory Russell of AFS is here to help you.

With decades of experience and approximately $350 million in mergers, acquisitions and financing of burglar, fire, and integration companies handled, Rory knows the market and can help your business continue to grow and flourish, fueled by recurring monthly revenue. 

Give Rory a call at 800-354-3863 or contact him online to get the conversation started.

Thinking about expanding through acquisition? Check out our suggestions for what to look for in an alarm business that you intend to purchase here.