diff --git a/INSTALL.md b/INSTALL.md
index 7041d14..34be8a5 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -46,10 +46,13 @@ You will also need the `cmocka` package to run the unit tests.
 2. Run autogen.sh
 3. Run the following commands:
 ```
-./configure --prefix=/usr
+./configure --prefix=/usr --localstatedir=/var --sysconfdir=/etc
 make && sudo make install
 ```
 
+You may want to remove or edit the `--prefix=/usr` option, most users prefer
+non-distro binaries in `/usr/local` (default without `--prefix`) or `/opt`.
+
 ## Configuration options
 
 ### udev
diff --git a/daemon/Makefile.am b/daemon/Makefile.am
index 0c87b1a..5e6780e 100644
--- a/daemon/Makefile.am
+++ b/daemon/Makefile.am
@@ -26,7 +26,7 @@ x52d_CFLAGS = \
 	-DSYSCONFDIR=\"$(sysconfdir)\" \
 	-DLOCALEDIR=\"$(localedir)\" \
 	-DLOGDIR=\"$(localstatedir)/log\" \
-	-DRUNDIR=\"$(runstatedir)\" \
+	-DRUNDIR=\"$(localstatedir)/run\" \
 	@PTHREAD_CFLAGS@ $(WARN_CFLAGS)
 
 x52d_LDFLAGS = @PTHREAD_LIBS@ $(WARN_LDFLAGS)
@@ -51,7 +51,7 @@ x52dconf_DATA = daemon/x52d.conf
 
 install-exec-hook:
 	$(MKDIR_P) $(DESTDIR)$(localstatedir)/log
-	$(MKDIR_P) $(DESTDIR)$(runstatedir)
+	$(MKDIR_P) $(DESTDIR)$(localstatedir)/run
 
 EXTRA_DIST += \
 	daemon/daemon.dox \