Alarm and home-security commission has more moving parts than any other D2D vertical short of solar. The deal pays on a multiple of recurring revenue, the carrier holds a clawback for 90+ days, the dealer program holds an attrition reserve for 12–24 months, and the customer's credit tier changes the commission rate retroactively. If you're running this on spreadsheets, you're carrying risk you can't see on the books.
RMR-multiple commission structure
The dominant alarm commission model is RMR multiple: the rep earns a multiple of the contract's monthly recurring revenue. Common multiples:
| Tier | Typical multiple | Example: $50/mo RMR |
|---|---|---|
| Ramp / new rep | 20× to 24× | $1,000–$1,200 commission |
| Standard / tenured | 26× to 32× | $1,300–$1,600 commission |
| Top tier / dealer-program leader | 33× to 40× | $1,650–$2,000 commission |
| Install bonus (some dealers) | $100–$300 flat | Layered on top of multiple |
Veterans run on a richer multiple; ramp reps on a base multiple. Old contracts settle on the multiple in effect at signing — no retroactive rewriting.
Clawback windows: 90 days and beyond
Alarm clawback is the most aggressive in D2D. Standard window is 90 days from install, with carriers extending to 180 days for sub-prime credit tiers. If the customer cancels — or just stops paying — inside the window, the monitoring company reverses commission against the dealer.
D2DHQ protects margin with configurable escrow holdbacks during the window. Reps see the pending balance on every statement; the dealer sees aggregate exposure at a glance. When a cancellation lands, the reclaim posts on the next cycle — even when the carrier's churn report formats addresses differently than your CRM.
Dealer programs vs. in-house contracts
Most alarm sales orgs sit somewhere on the dealer-vs-in-house spectrum:
- Pure dealer. You sell contracts; ADT / Brinks / Vivint / a national carrier owns the monitoring. They pay you on a delayed cycle (usually 30–60 days post-install), often via a payout statement. Your reps wait for that cycle.
- In-house. You own the monitoring. Commission settles natively against your own RMR.
- Hybrid. Some product lines or geographies are dealer; some are in- house. Reps sell across both.
D2DHQ runs all three models from one ledger. Reps see one statement per cycle regardless of which side of the business each deal came from.
Attrition reserves: the dealer-program tax
Most dealer programs hold an attrition reserveagainst the dealer's account — typically 5–15% of every payout, held for 12–24 months as protection against long-tail cancellations. This is separate from the rep's 90-day clawback escrow, and it's the dealer's exposure, not the rep's.
D2DHQ surfaces your running attrition reserve balance and projects future releases against the carrier's schedule. That's operational visibility most spreadsheet teams flat-out don't have— and it's where dealers get surprised at year-end.
Setter / closer / installer splits
Alarm D2D often runs a three-stage motion: setter knocks and books, closer runs the in-home and signs, installer wires the system the next day. Some teams split commission across all three; some pay only the closer with a flat install fee out of the closer's share. D2DHQ supports both — and the variants in between.
QuickBooks for alarm commissions
Your bookkeeper opens QuickBooks on payday morning and the run is reconciled — commissions, clawbacks, dealer reserve adjustments. QuickBooks Online today; Desktop on the roadmap. See the dedicated QuickBooks commission integration page.
Configure your real reserve workflow.
After the one-time $500 setup fee, we'll collect a recent dealer payout statement, rate cards, and reserve rules, then configure rep commissions, clawback escrow, and dealer attrition tracking. Setup takes 5–7 business days after the required files arrive and includes a 30-day money-back guarantee.
Start $500 setupRelated
- Pest control commission software — attrition-based clawback for high-volume D2D pest teams.
- Commission clawback policy for D2D teams — how to structure 90-day windows that don't crater rep retention.
- How to pay door-to-door sales reps — the operator's playbook for D2D commission structures.
- QuickBooks commission integration — how D2DHQ posts alarm commissions and dealer reserves to QB.