Hey, welcome to my review of Primerica. I know many of you who have just heard about Primerica may be wondering “Is Primerica A Pyramid Scheme”?
Well, in today’s post I’m going to go through what Primerica really is and give you my own personal review, from someone who’s not by any means associated with Primerica.
Yes, you will be getting my unbiased, 3rd party review here.
But before I start my review, I must congratulate you for taking the courage of reading online reviews first before jumping into anything that you’re not really sure of.
It’s ALWAYS a good thing to do a thorough review before purchasing anything or committing yourself to something that you’re on the fence about. It’s THE way to avoid getting into money traps and scams.
If you’re here to find whether Primerica is legit company to make money online from, well let’s get on to it.
Is Primerica a pyramid scheme? Here’s the truth..
Founder: Arthur L. Williams Jr.
Product Type: MLM selling Insurance & Financial Services
Price: To join as an agent $99 upfront + $25/month
Summary: Primerica is a financial service company that thrives under the multi-level marketing structure. They mainly offer a term-life plan for life insurance as well as other basic financial services one might need like mutual funds, annuities, debt management, etc.
That being said, as Primerica is an MLM company, there are a lot more things that you will need to know before buying its services OR becoming one of its members.
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What Is Primerica?
Primerica, as stated on Wikipedia, is a known MLM company in the financial services industry.
They have been around for the past 40 plus years and initially founded under Citigroup, Inc. However, on April 1st of 2010, they spun off from the group as they are deemed to be worth a lot more as an independent company.
When I knew that Primerica has been around for the past 40 years and had been under Citigroup, I personally had a lot more faith in the company.
And it’s true – Primerica is NOT a scam.
The reason being, if it’s a scam or a pyramid scheme, they won’t last as long as 40 years. They will also be immediately investigated as they are in the financial service industry – which has one of the tightest regulations out there.
However, with any other MLM company out there, you need to know how they make money:
- Selling their product/services
- Recruiting members to make money promoting Primerica
But what are they actually selling?
Well, I’ve mentioned they mainly are selling term-life plan but there are also other services you need to know:
- Mutual Funds
- Segregated Funds
- Managed Accounts
- Long-term Care Insurance
- Pre-paid Legal Services
- Home Insurance
- Credit Monitoring
- Debt Management Plan
You can see more here on their product page.
Is Primerica A Legit Company
As mentioned just now, Primerica is a legit company. They are operating under the multi-level marketing model, therefore they have 2 sources of income.
If you are wondering whether or not to buy insurance or their other financial services, you can relax now as your money is in good hands and you won’t be scammed.
Again, they have been around over 40 years and in the financial services industry which is highly regulated. The fact that they can sustain that long, should give you a sense of relief to buy their services.
However, since they are only selling term-life insurance plan, you NEED to do your homework whether or not this is the best option for you. I will tell you more about this below. So keep on reading!
Before we get to that part, let’s just cover the title of this post “Is Primerica A Pyramid Scheme?”
Since they are well-known as an MLM company, one has to wonder whether or not they have a similar structure of a pyramid scheme.
Is Primerica A Pyramid Scheme?
Now you need to know what exactly is a Pyramid Scheme first. If you’re not sure how to differentiate, watch the video below:
Pyramid scheme is usually when a company’s source of income is mainly on recruiting people. In order to make more money, they need to recruit more and more people.
You can see this pattern when a company promises, say, 2X return to your investment. For example, you are promised by the company that if you invest $100 today, you will get $200 next month.
No such company can actually make such claims. Not even investment companies.
Therefore, when any company mentions that kind of promise, they will get the “$200 return” when they get more people joining in.
So, the question “Is Primerica A Pyramid Scheme” will now be answered.
Well, they are NOT a pyramid scheme. They have other main sources of income other than recruiting people and getting money off the membership. They have actual approved financial services products that people can buy and for the agents to get commissions off.
Now if you’re reading this review because your primary reason is to make money with Primerica, read my next section carefully.
How To Make Money With Primerica?
First thing first, Primerica DOES NOT pay salary.
If you’re thinking of joining Primerica today and quit your normal job, well you might need to think twice as you won’t get any salary from simply joining.
In fact, in order for you to start making money with Primerica, you NEED to pay the upfront fee of $99. This is for you to get your sales license and get a background check of yourself done. It’s actually good that you will go through this.
By the way, in any financial service sector that you’re in i.e insurance, unit trust, investment banking, as an agent you will need to go through an examination to get a license.
And $25/month which is highly recommended for you to get their online access for training and tools.
So how do you actually make money with Primerica?
Well, it’s all based on your commission. The more people you’re able to recruit, the higher your level is. And the higher your level is, the higher the commission percentage that you will get:
- Representative Level – 25%
- Senior Representative – 35%
- District Leader – 50%
- Division Leader – 60%
- Regional Leader – 70%
- Regional Vice President – 95%
What I Like About Primerica?
I like the fact that it’s not a scam or a pyramid scheme and it’s an actual legit company.
They do have a working, financial services to be offered to customers and there is an opportunity for you to make money with them. The money that you’re spending upfront, it’s not an exorbitant amount and I do think it’s justified with what you’re getting.
Comparing to other MLM companies that require you to pay hundreds of dollar upfront, $99 is still affordable.
Also, you will get $99 upfront fees refunded back to you in a few months time – which not every sector and company does this practice.
As you get online access to tools and training, you will constantly be updated with what’s working in the company and how to effectively promote the products as well.
If you are new to this recruiting type of work, they have online training that you can go through to learn.
What I DON’T Like About Primerica?
1. Cult Like
Like any other MLM company, it’s always easy to feel like you’re in a cult. This has been one of the topics being shared by members in Reddit. You can google it and you will find this topic written by members.
It’s not exactly surprising as you are going to be communicating and engaging with people that are in the same mission as you. It can be good for your motivation but you always need to come back to reality and really go through and filter what others are saying, outside of your Primerica community.
Not one product is the best. But once you have that kind of mentality in a group, it’s easy to feel like you’re being in a cult.
2. Only Term-Life Plan
I’m not an insurance agent but I am a CFP (certified financial planner) and I know for a fact that a term-life plan is NOT everything to everyone.
I don’t know how can a life insurance company only be selling one type of plan. It boggles my mind!
This will make you less fiduciary – meaning that if your client is not suitable for term-life plan and you’re only selling them this insurance plan, it means that you’re putting yourself BEFORE your client.
You are NOT taking into account the concern of your client – which perhaps can be more adequate to be supplied with a universal plan. But because you need to make sales and recruit more people, this can be a blind spot to you.
People need to know term-life plan is the most basic plan, has no cash value (you won’t get your money back once the lock period kicks in), and once your plan has expired and you want to extend your policy there can be quite a jump in terms of your premium payment.
3. Low Commissions
When I was searching for what others have mentioned on the commission side of Primerica, I have to take note that they are not the best at giving you commissions WHEN you’re starting out.
Other insurance companies give higher commission even when you’re just starting out, with higher tier.
4. Not For Everyone
I’m sure that if you’re reading this and you want to join Primerica, you will be from the countries that they are operating in. But just to also note here that Primerica only operates in the United States, Canada as well as Puerto Rico.
Another thing is that I know some people don’t really like talking about finances. I, on the other hand, LOVE talking about it.
So when some people don’t really have the interest of reading up more and learning about the financial industry and how it works, it might be hard for you to get into this.
You might need to go through more training as questions can be given by your prospects and you will need to know the answers to them – even if it’s outside of the products that you’re promoting.
This opportunity perhaps will be better with people who already have experience in the financial industry.
I personally don’t like to recruit people in anything. I’ve tried MLM before and this is the part I hate the most. And unfortunately this is the part that will make me money.
If you’re an introvert, DON’T waste your time here.
I’m ambivert (mid of introvert and extrovert) and it already drains my energy when I have to recruit my family and friends. This can also strain your relationship with them.
Now you might be an extroverted person and love doing sales – so this might be for you.
But this is not for me. I don’t like to promote subpar products. I prefer to promote great products that I’ve used and seen improvements on even if it’s for free.
6. Depends on Your Team
What I’ve learned about joining an MLM before is that, you really REALLY need a good team. Meaning that you will need a good mentor that will train you as well as your downline.
If your mentor is just another person who is NOT a leader, you might not get the priority access in terms of their best training. If you end up in a team that’s less helpful, you’ll have low success rate.
BUT you won’t know all this before you join. You only realize that you’re not necessarily in the best team once you have seen how other teams are doing.
7. Low Success Rate
You can read this thread on Quora when it comes to their success rate.
It’s not high. In fact, in 2018, Primerica disclosed that they pay an average of $6,069 commissions to their representatives. That’s $6,069 in a year, not a month.
So in average, it’s only $505 a month. Is that enough? You ask yourself. Also include the time you need to put in to meet your prospect face-to-face (they also encourage face-to-face meeting), gas and other miscellaneous expenses.
Now, it doesn’t mean that you will have this low of a success rate too. You reap what you sow.
Should You Go With Primerica?
As a buyer of the product, I will most likely NOT go with Primerica since they are only selling term-life plan when it comes to life insurance. AND I couldn’t even get a quotation online.
As a buyer, I find this troublesome.
AND as to join Primerica to make money, I also won’t go and join.
First and foremost, I don’t like recruiting people. I prefer to find a product that’s great and sustainable for users so that prospects to come to me instead (if you want to know more on this, read the next section below).
This is my opinion and I can see that my cons outweigh my pros, therefore I won’t go with Primerica.
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