You have to have a way to read the rpm. On the 600 nitro, there are two magnets in the fan and it's picked up by the sensor that came with teh kit. The sensor usually will come with all nitro kits, but check them before you purchase. If it doesn't, you can get one that will bolt to the back fo the engine and it will read the crank pin as it goes around.
I think the sensor is about $25. If it's on a nitro, there should be a mount somewhere on the frame, but if you are doing custom, then you mount them on the back of the engine. If you are putting this in something electric, you will need to find a way to read the rpm of the motor or the head by inserting a magnet somewhere in there. Well, two actually to keep things in balance. Exactly how though, I'm not sure. I know a lot of electrics that are bigger have the gov built into the ESC, but don't work that well from what I have read.