Firstline Security Cost Comparison

by Karoli on August 12, 2007 · 73 comments

[Note: This post concerns Firstline Security, Inc., incorporated in Orem, Utah, NOT Firstline Security Systems headquartered in Anaheim, CA]

Commenter Paul, who is a first-year “Advertising Director” for Firstline Security in Washington State (Vancouver area), was recruited out of Texas A&M university and has been trying to convince me that my criticism of Firstline is unfair and unwarranted. In the process he challenged my contention that the sales pitch is deceptive because Firstline claims to provide “free” equipment in exchange for the placement of a yard sign and commitment to a 36-month monitoring contract at $45.00 per month. (Details are available on the GetFirstline website).

Firstline markets the Simon 3 wireless security system with the Alarm.com GSM security module. i was able to find the Simon 3 with the GSM module on sale at Safemart.com for $459.95. Monitoring was available through LiveWatch on a prepaid basis for $24.95/month with two free months, or $249.50 for a year. Assuming that years 2-3 do not have the 2 free month provision, that would work out to $850 for monitoring, plus $500 (with tax) for the hardware, or a total of $1,350.00.

The Firstline Security, Inc. package works out to $1620 for 36 months, including the “free hardware”, assuming a direct checking debit each month for the monitoring fee (if the credit score is high enough they will paper-bill but charge extra for that).

That’s a difference of $280.00. I am not sure that I had the exact hardware that the basic Simon 3 system Firstline sells includes, so I also went to HomeSecurityStore.com and tried to match the Firstline system exactly. I was able to configure a package with 2 keyfobs, a handheld wireless touchpad, GSM, and 2 “panic pendants” for $526.88, which when combined with the monitoring package available from LiveWatch.com, is still less than the Firstline package with the ‘free hardware’.

Paul also argued that Firstline is a company listed on the Inc 500. I was unable to find it listed, or any possible predecessors. I was able to find a 2001 listing for SafeHome Security, which has an association with Brandon Savage, a VP with Firstline through 2005 and also Sterling Barnes, President/CEO of Firstline through 2005.

It’s worth noting that the Inc 500 list is a ranking based solely upon growth. Given the aggressive sales tactics of Firstline sales reps, it wouldn’t be surprising to see them listed as a fast-growing company. Other companies listed in 2006 include social networking sites, internet startups, home mortgage companies, and medical/insurance based companies, sectors that have experienced growth both in public and privately-held arenas.

There’s a moral to this story. Firstline presents itself as a trusted company, proudly displaying badges from PBS Kids (presumably for the safety level of their website) and the Better Business Bureau. Yet, their website has no information about their corporate officers or leadership and they are training their “advertising directors” to sell an overpriced product using deceptive sales techniques. The invocation of the Inc 500 as some sort of revered benchmark, when there is no identifiable listing for Firstline through 2006 is further evidence of their deception.

Finally, I was reading through one of their contracts and happened across this provision:

“You understand and agree that in conjunction with employee training, quality control and the provision of services, we may monitor and/or electronically record video and audio related to monitored activity at your location, as well as conversations with you, emergency services providers and law enforcement personnel. Further, you understand that privacy cannot be guaranteed on telephone, cable and computer systems, and we shall not be liable to you for any claims, loss, damages or costs which may result from a lack of privacy experienced…”

The first part seems to be related to 911 emergency monitoring, which we should all know happens, particularly if you’ve heard a 911 tape played on your local news after some sort of crime. The second part, though, where I’ve bolded? Think about that in the context of the expanded FISA provisions that allow warrantless wiretaps and monitoring on electronic communication.

Install one of these babies and you might end up in an FBI file. Particularly if you’re not a big supporter of our current administration. Think it’s preposterous? Study what happened during the dark days of the McCarthy era and J Edgar Hoover’s FBI. It’s not at all unthinkable.

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  • anonymous

    um….. the reality show is very real, i’m in hawaii right now, and the show ends today, in fact i’m now just finishing my business plan, and the whole only make 20,000 thing, yeah i made 110,000 this year and it was my first year, i was the number one first year rep, and yeah when i started i knew nothing, but i never lied to anyone, lying in my eyes is the same as stealing, and you go to hell for that!!!! but yeah, trust me the show is very real, and i’ve had to do some really hard things to make it this far, and its not our fault you suck at life and they didnt pick you, sorry….

  • Wendy

    I have to say that with the “free” equipment and cellular service (doesn’t demand a land line)we thought that the $44.99 we are paying monthly seemed like a reasonable investment for our safety. What was crazy was the actual installation process. We were sold and installed on the same evening around 8pm, and it took two young techs coming from two seperate sides of town to get it done. The best part was having to fill the holes in the wall near my front entrance due to them “throwing” it up on the wall no where near where it was practical, and after we had identified where and how we wanted it placed (you know even with the light switch – pleasing to the eye). My husband also enjoyed going to his truck to pull the correct tools out for them to put the small holes in the sidewall of our doors for the connectors as to not have our doors damaged. Basically, we “helped” install our system after 8pm at night!

    Now, let’s talk about billing…. our contract says “bill monthly” but we get billed when
    SAI (their billing agent) gets around to it, and most often it’s done incorrectly. In the first six months of service we have been over-charged by more than $209.00, and customer service is a joke! On three seperate occasions I have sat on hold for a cumlative total of an hour or more, and still no resolution. Think you have the right to cancel if they are screwing up? Think again, if one more of those self righteous “reps” tells me to “read my contract” I’m going to go section 8 on them! Ladies and gentlemen, please do read the contract (front and back) it’s two legal size sheets in very small print, and you pretty much waive your legal rights. DO NOT ALLOW THEM TO INSTALL ON THE FIRST VISIT. Let them leave the paperwork so you have time to really read it, no matter which alarm company it is. As for us, two and half more years in our “contract”, and you best believe I’m sending the 60 day cancellation notice by certified mail – and most likely about six months in advance so there is no mis-understanding of our intent to stop service!

  • guyhaas

    I agree that anyone that is considering going with Firstline better be 100% convinced that this is what you want to do. It is impossible to get away from them once they have you. I cancelled (you have three days to change your mind). My fiasco started like Wendy’s at 8:00pm last September 18th. I tried to get questions answered through their (866) number and it was just a joke. I do not think they have any reasonable form of bussiness systems. Even though I cancelled (and removed their system) immediately, I was billed in October and November. The good thing I did was to file claims with the California Department of Consumer Affairs and Better Business Bureau. If I hadn’t, I doubt I’d have ever gotten my money back. I thought the whole ordeal was over a month ago, but guess what??? I got a paper bill in the mail over the Christmas holidays for another month of non-existant services… I think this company deserves investigation, say by 60-Minutes or the likes… I’m not sure how much exists other than an aggressive college-student salesforce! I’d love to see the execs of this company get the the Ken Lay/Enron, Bernie Ebbers/Worldcom, treatment!

  • http://www.drumsnwhistles.com Eric

    My experience with Firstline security was very very disappointing. The high pressure, 5 hour, door to door sales pitch, turned out to be a bounch lies and half truths. The installation of the security system “absolutely had to be done the same day”, according to the sales person, despite the fact it was almost 11pm, was shoddy. I felt like they bulled there way into my house with there snake oil salesman routine and tried to sell me garbage, under the disguise of “free”. Needless to say, I canceled the contract the minute they left my house. Thinking they would come back an uninstall the systems. Well, after almost 4 days they removed their system leaving holes in my wall, but then they continued to debt my credit card for the initiation fee of $33 a month for the next 3 months.Every month I discovered the debt, I called and they reimburse me, and assured me account had been closed, only to have this situation play itself out the next month.Finally when I think its over, we get an automated phone call 4 or 5 times a week asking us to call them about our supposed “closed account”. Then when I call, I’m told “oh, so sorry we forgot to take you off our attempt to contact list”… great, it’s a perfect ending to my Firstline nightmare.

    This company is a sham!!!

    Bottom line: Firstline Security = first rate ripoff

  • Jeremy

    I really feel sorry for all of those Firstline reps who were screwed. It’s seriously the same story every year. After hearing about Firstline going out of business this week, I was curious to check out their website. The recruiting dvd is hilarious: it’s a bunch of tools talking about how successful Firstline is. Firstline?? You have to be kidding me. If you want to have a good summer, go with a company that actually has some good leadership and training, like APX or “mini APX” (Platinum).

  • http://drumsnwhistles.com karoli

    Jeremy,

    You’re the second person to say that Firstline has gone out of business, but I can’t find anything in the news, business or legal areas that confirm that. Do you have a supporting link or is this rumor, especially given that you’re working for a competitor.

  • Chuck

    Have you all heard these guys are now going under??
    They have been operating in the red since inception and owners have literally squandered all borrowed funds /revenues. They went from going on cruises every month and “the fastest growing home security co in the galaxy” to upside down and under water. CLASSIC!!!

  • http://drumsnwhistles.com karoli

    Hi Chuck,

    I’m sad for the folks who won’t receive the payments they expect to receive on 2/1 — the final ‘backend’ pay. And it’s not even payroll, so won’t have priority like the others at the service center, because they were all ‘independent contractors’.

    Grrr.

  • Anon

    I worked for Firstline and it was a HUGE BUNCH OF SHIT on a day to day basis at the end. The part the pisses me off the most is that they knew full well that they were not going to be able to make payroll that was due to employees on Jan. 25 for the previous two weeks. While knowing this they continued on with “business as usual” for the week of the 25th and then sent everyone home on Friday the 25th saying that there were problems and while they weren’t able to make payroll that day that they were working on things and that the employees would have their money within the next few days. Then roughly 2 hours after sending everyone home Trevor Keyes sent an email stating that everyone was laid off (save for a few for the “rebuilding” team), that Firstline had filed for bankruptcy, and that it would probably take a few weeks before payroll would be met. So, they were able to swindle 3 full weeks of work from their employees for FREE! Trevor and Wright should be proud of themselves for the fact that they can do such shady, horrible things to their “valued” employees and sleep like babies at night. There were problems for several months on barely making payroll and yet they still went on the cruise and Hawaii trips, drove their Hummers, and had their snowmobiles and other toys. Trevor and Wright are slime bags and deserve all the negative press they can get!!!! They didn’t give a shit about the people who worked for them and depended on the checks we didn’t get. I know several people that weren’t able to make rent/mortgage payments, car payments, etc… due to not getting paid. Screw Firstline and their deceptive marketing and business practices!

  • guyhaas

    anon -

    so i’m supposed to feel sorry for the employees that knew that the whole firstline security business was a pyramid scheme, a sham, but continued to be part of it? sorry, no sympathy here! i agree with you 100% that the duo, the founders that dreamed up this scheme should get their fair dues. they certainly are scum! but it sounds like as if all of their cohorts were fine with ripping of old retired folks all over the country as long as they received a paycheck. all anyone working for firstline security had to do was google for “firstline security” and up would come all of the horrible examples of what was being done. any employee could have talked with anyone answering the 866-434-7785 number and i’m sure you would have heard horror stories. i had two encounters with employees that answered the phone. on my second call, for the first time in my life, i swore at the person. i was that upset. i immediately apologized, but that’s how bad it got! everyone that took a paycheck from firstline security that knew the pain and suffering that was being inflicted on the innocent public by the company’s tactics – i hope you all learned a lesson; sorry that it had to such a hard one… but if you only knew the mental anguish i went through… sorry, no sympathy here…

  • Tim in AZ

    What does anyone know about the company called Platinum Security, also based out of Orem, UT? I have been told by a recruiter that they are not affiliated with the old Firstline company and none of the Firstline people are running or working for Platinum Security.
    thx

  • Francine

    If there is such a show called “The prodigy” then where is the website? My husband and I checked and there is nothing to be found…hmm…kind of funny, huh? Unfortunately, my husband and I were part of the scam. We did sign up for the alarm system and we are doing our best to cancel it. Apparently, if they filed bankruptcy, then that should void the contract. I hope that the two that started this whole scam get what is coming to them really hard! And those on here that work for those scum bags, I hope you rot and feel the pain that others felt when they were lied to. You only wish you were sitting in Hawaii making thousands! I can only assume they are paying you to say that as well. Funny how money can make a person do anything. For those that got hurt by this, seach online and you will find hundreds of articles about this company and what is happening with their “so-called” company.

  • http://drumsnwhistles.com Karoli

    Francine,

    There was a website, but it appears to have been taken down. It was there a week ago, so I’m guessing it was pulled down as part of their bankruptcy proceedings.

    The folks who worked for Firstline thought they were selling a good product. I think blaming them really gives a pass to the folks at the top who not only deceived customers, but also employees.

  • http://drumsnwhistles.com Karoli

    GuyHass:

    At the time I wrote this post, there were only two posts on the Internet that were negative. I couldn’t find any articles in the mainstream press or anything that came up on a Google search. That’s one of the reasons I wrote it…to warn off other kids who might have been sucked in by the scam.

  • Francine

    Yes, I do feel for the employees that got sucked into the process, but I don’t feel for those that are on this website that say they work for them and stick up for the company knowing that innocent people are being taking advantage of. One of the people on here were saying, “oh well to the customers, they should of read the contract”. That’s crap! So, no I have no symphathy for those type of loosers! It has nothing to do with the contract, it’s about the sellers that went door to door and told lies just to meet their quota.

  • http://drumsnwhistles.com Karoli

    Hi Francine,

    I agree, no argument. But keep in mind, they wrote those back in late August, when there was no indication that the company was going bankrupt. I doubt there would be too many defending it at this point, though I have had a few on an earlier post of mine.

  • Francine

    Well hopefully we find justice to this matter and stop it so other innocent people aren’t taken to the cleaners. What a sad dilemma…

  • Former employee

    Karoli,

    You have the best collection of info on Firstline on the entire web. I was an employee last summer, but I did my best to be honest and up front with my customers; I guess thats why I wasn’t a super star with 200 accounts. I feel like I too was lied to looking back on it all.
    So as far as everything you’ve put on here, about the upper management and *some* of the employees you are spot on.

    Im concerned now about us getting out Tax info back. I received my W2 from my current employer last weekend but still haven’t gotten anything from Firstline. When my manager (who I am still friends with and is one of the good FLS employees) told me that they went under I first felt bad but if it is true that Trevor and Wright pocketed millions each then I hope they get busted. So my question to any Firstline former higher ups (Jake Dahl if you read this) do you know when we are supposed to receive our Tax info from last summer?

    Anyways keep the conversation going about these type of companies and the real risks vs reward that is involved. Firstline is not the first to fail at it and there are plenty of others out there.

  • http://oneyearplan.net/payitforward Scott

    I have thought about starting a company much like a security company because I have worked with companies in the industry. If you would like to know how it all works. This is how they make their money.

    1. They sell a contract to you for lets say 40 dollars a month and they give you the equipment (more like rent it to you, check your contract if you cancel before the end of the contract) for free.

    2. After selling you the contract their initial cost of equipment is lets say 300-500 dollars depending on their manufacturers or equipment distributors.. ex) Honeywell, GE… This is their upfront cost.

    3. Over the price of the contract they will make 300-500 dollars minus the total amount you pay at the end of the 36-60 month contract.

    4. To make these contracts more liquid or get money for them quickly they will sell these contracts to monitoring station or companies. You are not being monitored by Firstline or hardly any other security company. They sell either out right sell these contracts to monitoring stations (ex) Monitronics, SAI etc… ) or they will rent out some of these monitoring stations per customer which is much cheaper than the rate of 40 dollars a month it is more like 2.25-5 dollars per customer. So if the security company can in fact front the initial cost they will keep you “in house” and rent you out sort of speak.

    5. They will sell some contracts for the full contract value to the monitoring stations because statistically if you have a security system you will stay longer than the 36-60 month contract thus they start making money on you after the length of your contract. If you are kept in house the security company will start making money on you about a year and a half into the contract length because they will have covered their equipment costs. But that is not taking into account paying a sales rep and an installer. So they will start to make money at the end of the contract length and they have statistic proof that you as a customer will stay longer than the contract length.

    6. The problem with selling or renting you to a monitoring station is that if they don’t get the information correct your system could go off and then if no one calls you know you are not being monitored and the police are not on their way. A small bit of advice to anyone is to make the alarm go off and see if someone calls if someone does then you are in good shape… If not then you are not being monitored. Good luck in this rat race. It is an industry of cut throat sales and marketing…. Good luck consumer and do your homework. So instead of doing the security industry I decided to go into network marketing http://oneyearplan.net/payitforward/
    This is better information and will protect you far greater than a security system in the world of a falling economies etc…

  • http://oneyearplan.net/payitforward/ Scott

    Tim in AZ,

    Platinum security is a spin off of regional reps. from APX security that took off and started their own company. They did really well last season. Very well from what I heard. They would probably hire anyone with any security or summer sales experience. So the claim that they have no former FLS employees could or couldn’t be true you never know.

  • Mark

    That's nice that a customer can buy and install his/her own equipment, but what about when the motion detector goes out or the key fobs and or door contacts need to be replaced? that's when the lifetime service warrantee comes into play. There are companies like Protect America for instance who send you your equipment, you install it, they monitor it and when it malfunctions they will send you parts and walk your through servicing your equipment over the phone.

    I say to hell with that, why not get a trained technician to come out and service and replace parts at no charge?

  • Mark

    That's nice that a customer can buy and install his/her own equipment, but what about when the motion detector goes out or the key fobs and or door contacts need to be replaced? that's when the lifetime service warrantee comes into play. There are companies like Protect America for instance who send you your equipment, you install it, they monitor it and when it malfunctions they will send you parts and walk your through servicing your equipment over the phone.

    I say to hell with that, why not get a trained technician to come out and service and replace parts at no charge?

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