Good to know you really are looking after the dealer. I was also wondering who owns the contract for both services. If DragonFly is going to have the central station own the contract why not just let the dealer have an account with the central station and then the dealer can own the contract even if it's month to month.
     Presently the DragonFly program is designed so that central stations can get the DragonFly software which will enable the central to receive signals from RSI [now purchased by Honeywell].  USA Central Station, the first to sign on to DragonFly has a Dealer Program, they created SDN-Security Dealer Network just for the DragonFly program.  The dealer markets the DIY system and refers the potential subscriber to the SDN/DragonFly website.  When the subscriber signs up to purchase the DIY components and signs up for monitoring the DragonFly website will know that it was that dealer's referral because it came from the dealers website or customized landing page provided by SDN.  The dealer will then get paid from SDN, as its Dealer, an ongoing commission each month so long as the subscriber continues to make payments.  This model affords the dealer the advantage of getting into the DIY business for the cost of marketing, creating a page on its website that links to the SDN/DragonFly website.  I know the Security Dealer Network (USA Central Station) deal is fairly generous to the Dealer in terms of splitting up the subscriber's monthly payment.  
     DragonFly system, by the way, is only DIY indoor and outdoor cameras with motion.  The cameras pick up movement and sends video through the on-site HUB to RSI , which then transmits the video data to the subscriber's smart phone.  Subscribers having reviewed the video will have the option of disarm, disregard or dispatch. Requesting a dispatch will forward the video clip to a professional monitoring service such as USA Central Station, who, in turn, will dispatch to First Responders.
    The Dealer doesn't own the "contract" except that the Dealer does have a vested interest in the recurring revenue.  In that sense the Dealer does own a recurring revenue stream.  Owning the contract is not essential in this scenario because subscribers are purchasing the DIY equipment from the manufacturer and signing up for the monitoring service on an Internet connected smart phone using an APP; payments go to RSI , who pays Security Dealer Network-SDN, who in turn pays the Dealer.  Give Bart Didden a call to get involved.  His number is 877 872 1266 and his email is bdidden@usacs.net.
     Some obvious questions would be, 

  •  how much are the two packages to the subscriber?, 
  •  what is the dealer entitled to and for how long?, 
  • does the dealer even know who the subscribers are that originated from his website? , 
  • does the dealer even have a website? 

    Over the decades there have been other efforts to mobilize and capitalize on a dealer’s position of trust within his account base and potential referrals.  A major satellite programming provider offered a similar program.  The “residuals” (not really RMR for the dealer) declined and disappeared as performance and growth leveled out and dropped.  When someone else owns the relationship, this is a real risk.  Not a bad concept as long as the dealer realizes that he is simply a sales channel for a clever product.
Rob Gerhardt
Group Gerhardt, LLC
Gainesville, GA
     Good points and I was skeptical at first also.  However, I thought about it.  There isn't much to be made on the equipment, and Dealers are not asked to buy inventory and then resell the equipment, nor are they asked to stock parts for repairs because they don’t provide service so that's a good deal.  The term is month to month, so there is no guarantee of longevity.  I believe, however, that the cameras will only work while the monthly payments are being made, so subscribers can't change services to another provider without having to buy and install new cameras.  I believe the program by Security Dealer Network [USA Central Station] is going to provide monthly reports so the dealer sees how many are paying.  Owning the "contract" isn't going to add much.  
     SDN and USA Central are actually planning to create a marketplace for the "revenue stream" so that dealers can buy or sell the revenue stream.  [I'll post that marketplace on The Alarm Exchange].  There should be "equity" and value in the revenue stream.  
     Dealers only need to invest in a webpage and whatever marketing they want to do.  Other than agreeing not to sell other DIY systems, the dealer is making no other commitment or obligation.
   Additionally, I prepared the Dealer and Subscriber agreements for Bart Didden / SDN and I know that the intention is to protect the Dealer for the life of the account.
another DragonFly program
    I hope this email finds you well.  I wanted to send a quick follow up email to you in regard to the DIY – DragonFly email you sent our.  CMS is excited to partner with Videofied/Honeywell as an authorized DragonFly provider.
    Here at CMS (http://www.cmsn.com/) we’ve seen a big increase in DIY interest.  In fact we have a handful of dealers that we currently monitor who have become so successful with this business model that it’s all they do!  Unfortunately, until now, the process for an independent alarm dealer to do this all on their own has been complicated and costly.  By offering a DragonFly dealer program we can now assist our dealers in becoming successful in the growing DIY market.  Here’s a link to a quick video that explains a little more about how the DragonFly dealer program works: https://www.youtube.com/watch?v=AsBNA_8kvAI&feature=youtu.be.
    The program essentially enables dealers to sell DIY to their customers in the event that their customers are not interested in a traditional security system.  The best part about the program is that the dealer really doesn’t have to do a whole lot except generate the sale, and they still own the contract! This link will take you to a cut sheet that explains the details on the CMS Dealer Program and the breakdown on cost/RMR: https://www.facebook.com/CmsCriticomMonitoringServices/photos/pcb.454391564771612/454391441438291/?type=3&theater.
    If you know of anyone who is interested in learning more about the CMS DragonFly dealer program feel free to pass this information along, and direct them to this link which has contact information for our regionally based Business Development Representatives: http://www.cmsn.com/contact-us/.
     Thanks for your time,
 Tony Wilson, President
    I haven't been asked to and haven't checked CMS's program out yet so I don't know how it differs from Security Dealer Network - USA Central's DragonFly program.