What they don’t reveal is that the two are usually not “apples to apples.” Sure, most alarm companies will offer you a short-term contract, but the price is usually not the low-ball one seen in the ads. That price is usually the “takeover” price for someone who already has a system but is looking to re-start their monitoring or switch companies.

But if you have a pre-wired home or have no system at all, there’s no way to get around the fact that the security equipment needs to be paid for one way or another. You can certainly take a month-to-month or 12-month deal, but you’ll be writing a fairly large check upfront for the hardware.

Companies like IE Home Security provide the equipment for free with a monitoring agreement. What this really means is that by signing a 36-month agreement, the cost of giving away the hardware and installation is minimized by the recurring revenue generated.

It’s a win-win for the consumer that doesn’t want to pay between $500 and $1,000 to protect their home and family.

So the next time you hear someone say “you have to be an idiot to sign a long term monitoring contract,” ask them to write the equipment check for you.

Stay safe,

William Lipman