You are welcome to my Primerica review. I am sure you are here to discover all about Primerica Business Opportunity and how you can make money with it. But, Is Primerica a Pyramid scheme? Or, Is Primerica legit or scam?
Insurance is a big part of our lives, and having a company that pays you for insuring your life or property seems like a great idea.
I am sure you must have come across Primerica, and you are researching to find out more about the product. This was how I discovered how to transform my skills and ideas into a full-time income online.
I am in no way affiliated to Primerica. So, expect an unbiased and objective Primerica review on this product.
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Primerica at a Glance
Founder: Arthur L. Williams Jr. & Glenn J. Williams (CEO)
Industry: Financial Services and Multi-Level Marketing
Founded: February 10, 1977
Headquarters: Duluth, Georgia, United States
Price: $99 signup fee & $25 monthly fee.
Summary Review of Primerica
Primerica Financial Services, Inc. is a company that provides financial services such as Mutual funds and Life Insurance to their clients and prospective audience.
It is good to know that Primerica Business Opportunity is neither a scam NOR a pyramid scheme; this is because they have real products and services.
The company utilizes a Multi-Level Marketing Model, and so it has sales representatives spreading the word of its products and earning commissions. Is Primerica legit? Yes, Primerica is legit and never a scam.
The Primerica sales representatives earn a commission for every financial product sold, and the recruiters will also receive a commission from the portion of the sales made.
This commission earns by recruiters will apply to all the uplines, up to eleven levels.
The usual MLM problem applies, the Primerica sales independent representatives find it very difficult to make a full-time income.
And because they employ MLM models, you will always work for the people at the top of the pyramid.
The way Primerica Business Opportunity is structured makes it something akin to a pyramid scheme.
You will, at the end of this article, know if this Primerica Business Opportunity has some element of a Pyramid scheme or a great idea for a side hustle.
What is Primerica?
Primerica, Inc. is an Insurance, Financial Services, and Multi-Level Marketing model business.
They employ this strategy, along with the services of independent distributors, to sell financial products and services.
The company has a history that goes as far back as 1977 (44 years ago), and its founders are Arthur L. Williams Jr. & Glenn J. Williams (as CEO).
It was a subsidiary which later separated from Citigroup (its parent company) after an initial public offering (IPO) in 2010, and its headquarters is in Gwinnett County, Georgia.
As of December 2018, Primerica boasts of some 130,736 Insurance-Licensed Sales Representatives.
Primarily, they sell term life insurance, as well as mutual funds, annuities, segregated funds, managed accounts, long-term care insurance, credit monitoring, pre-paid legal services, home insurance, auto insurance, and debt management plans.
Forbes listed Primerica in 2015, as one of “America's 50 Most Trustworthy Financial Companies”, Primerica employs over 2100 employees (with 614 more on-call).
The company accrues an average of 1.9 billion USD in annual revenue as of 2018, also publicly traded and listed on the New York Stock Exchange (NYSE). You can read more about Primerica here.
Primerica Product Line
Primerica Business Opportunity offers the following financial services.
- Term Life Insurance
- Long-term Care Insurance
- Auto & Home Insurance
- Financial Investments
- Credit Monitoring
- Debt Management Plans
How to Join Primerica
Become a Primerica representative will require you to part with a refundable fee of $99, which covers Primerica Sales License and a background check.
I think the background check is pretty cool; since it separates sheep from wolves and ensures that the sheep selected give quality wool!
Furthermore, in addition to the $99 (refund available after 90 days), you will need to make a monthly payment of $25 to access Primerica marketing tools, materials, and training.
Who is Primerica For?
If you are new to affiliate and internet marketing, I would advise that you steer clear of this Primerica Business Opportunity.
Is Primerica legit or scam? Primerica is legitimate and not a scam but it will be very difficult for you to make money. The business model run by this company is direct sales or MLM business model that rewards only the people at the top of the scheme and the owners of the business.
Only 0.3% of people that join MLM that end up making real money. The other 99.7% will lose their money. See why in this research work done by Mr. Jon M Taylor.
This is because the only folks with half a chance of earning (and representatives make an average $5000 annually).
After extensive research, I concluded that their business opportunity is best for experienced MLM and network marketers who have a talent for both selling and recruiting. Please know that Primerica is legit and not scam as a company, it is just the business model that is wrong.
Primerica Compensation Plan
To know how to make money with Primerica, let's take a look at their compensation plan.
There are four ways to earn with Primerica Business Opportunity:
- Direct Sales Commission: Direct commission on Primerica insurance products. Sales commission increases with rank, and we will look at that in a minute.
- Overrides on Downlines Insurance: 10% Commission on the sales that your downlines make – up to 11 levels deep!
- Differentials from Your Downlines Sales: When you rise in the ranks, you can earn significantly more by supporting and helping your downlines to get more sales.
- Direct Sales Commission On All Other Primerica Products: As it sounds, a commission on the full range of other products offered by Primerica.
Commissions earned by different ranks in Primerica Business Opportunity are:
- Representative: 25%
- Senior Representative: 35% + bonus
- District Leader: 50% + bonus
- Division Leader: 60%
- Regional Leader: 70%
- Regional Vice President: 95% + bonuses
- Senior Vice President: 95% + bonuses
The Primerica Business Opportunity
Primerica is all about selling insurance and earning a commission by the representatives.
Primerica Business Opportunity promised you a lot of successes and opportunities that will help you succeed.
They are stated below:
You will start a Business Of Your Own
Primerica Business Opportunity will empower you and give you a platform to start a business you can call your own, to make your dream come to reality.
They claimed that you would have the opportunity to own your own business, run it, set your schedule, and make money that is based on your efforts.
You will Get Out of Debt.
They promised that this MLM program would help you get out of debt and empower you to achieve a financially independent life.
Primerica skills and financial education will take you out of debt in no time; as a result of what you will be able to put to work and achieve.
You Are in Control of Your Finance
With Primerica Business Opportunity, you are promised to be in control of your financial future and also can create a business and life you want and desire.
You'll Learn to Impact Knowledge to Others.
They claimed that Primerica would help you have an impact on the life of others, most especially everyone you care most about.
There is also this promise that you will be helping your relatives and people you come in contact with getting informed and become educated in terms of their finances by empowering them with the solution they need to achieve their financial goals.
You Will Earn More Money Monthly
The Primerica Business Opportunity promises to empower you and help you be in charge of your community that will later help you earn more money in the long run.
As you help others in your community and do well, it will come back to help you financially.
You will be able to make more money monthly that will help you:
- Pay down your debt
- Help you take care of your immediate family
- Save more money for the future.
The Reality of Primerica Business Opportunity
Vague Description of Gains and Profiting
The Primerica website only stated a lot of motivation narration without a precise way and method you will achieve all the claims.
In Life, there is what must be done to achieve something in principle.
You Are Prepared to Fail From Day One
Primerica Business Opportunity prepares you to fail from day one.
Primerica claims that by starting your investment with a penny and continue to double it every day.
After a month, i.e. (30 days), you should have with you over $10 million.
This is to encourage or tricks the new people just starting MLM never to give up and grant them hope that their earnings will grow exponentially as they recruit and invest their profits and gains from their recruits.
This is to condition your mind and prepare you for failure. You will later realize that lack of getting active recruits will result in your earnings getting dips, hence nothing to invest.
You will think you need more time; the problem is that for most MLM programs, you’ll never get the penny doubled no matter how much you tried. Is Primerica legit? No, this does not imply that Primerica is a scam.
They Only Make you to Dream Big, But?
The Primerica Business Opportunity presentation shows you much expensive stuff, such as cars, houses, and boats. They make you see what life could be like in a perfect world.
Considering what the Primerica representatives are currently earnings, i.e., over $6,000 per annum, how can you achieve such a dream life?
Primerica Ask you To Save to Become Rich.
Primerica Business Opportunity presentation encourages representatives to invest and save their money. They claimed that you don’t need to make much but safe more!
They suggest that Primerica will teach you how money works.
But, Primerica is wrong, in my opinion. The amount of money you earn is significant.
The income disclosure statement of 2016 of Primerica stated that an average Primerica sales representative made $6,088 for that year. How much can you invest with that amount?
This is why the amount you earn is also vital.
You Are Not a Business Owner as Primerica Rep.
The Primerica Business Opportunity presentation made you believe that joining Primerica will instantly make you a business owner.
They even sighted Robert Kiyosaki's Cashflow Quadrant four words (Employee, Self Employed, Business Owner, and Investor); that highlighted four ways of making money.
Statically, the above assertion might be accurate but not for multi-level marketing. If you become a sales representative to Primerica, it won't make you a business owner because you can only earn a commission.
How to Make Money with Primerica
For you to make money with Primerica, you have to know what they do first.
So, what does Primerica do?
Primerica is a company that deals in financial services; they promote and sell financial products ranges from insurance, investment, and debt management products.
You can make money with Primerica through the selling of their various financial products, such products include:
- Life insurance,
- Mutual funds
- Debt management products
- Variable annuities,
- Segregated funds,
- Long-term care insurance and
- Pre-paid legal services
You also make money with Primerica by actively recruiting more sales representatives for them even to do more of recruiting to get a commission from their sales.
You don’t need to have strong financial skills to become a sales representative for Primerica.
This company promotes its products, recruits its agents, and pays via an MLM marketing system.
To effectively make money with Primerica, you must like the ideal financial advisor; otherwise, Primerica's job is not for you.
You can only make money with Primerica if only you are an excellent financial planner and tutor.
To become a quality financial planner and be able to make money with Primerica, you must be ready to study and pass exams. You must first become a licensed insurance agent; otherwise, it will be fraudulent and illegal to practice and engage customers.
If your plan is to get promoted via Primerica ranks, you will eventually need to take the exams. If studying and taken exams is not your thing, then become a Primerica representative is a wrong idea.
Are Primerica Representatives Making Money?
The question is this; can you make money with Primerica?
I can assure you that you will make money with Primerica, but the quality of what you earn also matter.
It is essential to know that you will not earn Passive income with Primerica but commission only; because you are not a business owner. You a sales representative and commission-based contractor.
Since Primerica employ an MLM model of marketing; considering Jon Taylor research on network marketing that discovered that 99.7% of MLM participant would lose their money.
He also discovered from the same research that ‘Primerica is a product-based pyramid scheme’; he stated that you have the least chance of making money with Primerica than betting your money on Casino or use your money on lottery tickets.
Many Primerica representatives are making more money than the stated average, most notably the very few contractors at the top of the scheme.
That also evidence that the majority of the representatives at the bottom of the scheme are not making money either.
Why It Is Difficult To Make Money With Primerica
One major reason it is so difficult and tough to make money with Primerica is that the sales representatives are not making sales.
This is shown clearly in the company on the 2018 Primerica Annual Report.
You have to make sales of financial products of Primerica to earn a commission.
Starting from 2016, the Primerica agents made a monthly average sale of 0.22 of life insurance policies (which is 2.6 sales for that year); where there was a decline in 2017 with a monthly average sale of 0.21 and a further decline in 2018 of a monthly average sale of 0.19.
This is a pointer to how difficult it is for Primerica sales agents to making sales; known that without sales, there are no earnings.
The company made over $1.8 Billion and $1.6 Billion in revenue in 2018 and 2017, respectively; the average sales representative only made sales once every 1.7 months in 2018, which was worst compared to the previous years.
It is critical to know that the amount earned by Primerica in 2016 was $1.5 billion.
Despite the little increment in the amount made, the total number of sales representatives increase from 2016 to 2018 sporadically with incremental in sales.
Primerica Licensing Requirements
For you to sell mutual funds and various variable annuity products, the US sales representative is required to be registered with the Financial Industry Regulatory Authority – FINRA.
Also, it is an important requirement for you to obtain and maintain licenses to sell any insurance and securities product in any states, provinces, regions, and territories in the USA and Canada where Primerica products are promoted.
Therefore, every sales representative is required to meet all state and federal regulatory requirements, and you must be designated as a financial investment advisor representative to practice.
You have to take and pass the necessary examinations. Most of Primerica's other products also required sales representatives to be certified before they can advise and sell those products.
Primerica encourages every recruit to obtain his or her life insurance licenses.
Primerica will either pay for your certification exams or reimburse you for specific licensing fees and expenses incurred as soon as you pass and obtain life insurance license certifications.
It is a requirement to be appointed by an insurance subsidiary as a sales representative.
Primerica has an in house insurance licensing program that helps every recruit to prepare for their various certifications.
The Primerica pre-licensing courses have a significant number of classrooms that support the recruits to prepare for their exams for the state and provincial licensing requirements.
Primerica has a contract with a third party education firm that conducts securities licensing exam preparations for sales representatives.
If you are from Canada, it is also an essential requirement for any sales representatives that are involved in selling mutual fund products and related products to have a license and be certified by the regulators in their provinces and territories.
So, how much do they pay at Primerica?
Primerica pays an average monthly salary that ranges between $1,500 per month for Financial Analyst to $10,000 per month for an Entry Level Sales Representative.
From the research, I did on sites such as indeed, PayScale and Glassdoor.
I discovered that the average Primerica salary ranges from $24,000 yearly for Insurance Broker to $100,000 for telemarketers.
It is important to note that all salary figures are approximations, and they are based on third party submissions.
How to Contact Primerica?
You can contact the Primerica Customer service care and support team via:
- Primerica Phone Contact: 1-800-544-5445
- Email Address: firstname.lastname@example.org
- U.S. Email: email@example.com
- Canada Email: firstname.lastname@example.org
What is Good About Primerica?
Unlike many of the insurance providers with a similar business model, there are right kinds of stuff that are worth commending about Primerica!
This is the first yardstick in measuring the viability of earning with an MLM. Unlike most similar companies with the same opportunity, Primerica charges a refundable $99 signup fee and a fair monthly fee of $25.
Although Primerica is an MLM, it has products that people need and focuses on sales than on recruitment. This differentiates it from a Pyramid scheme.
Furthermore, Primerica is publicly traded on the New York Stock Exchange (NYSE).
I don't think a company that is a scam will have been publicly traded for 44 years!
As I mentioned earlier, Primerica performs an extensive background check before issuing licenses to representatives.
This separates sheep from wolves and ensures that the sheep selected give quality wool!
Issues with Primerica
As attractive as Primerica looks, sadly, most Primerica distributors earn an average of $6,088 per year or $500 per month.
Those are the lucky ones. A scrutiny of their income disclosure reveals that the majority (60%) do not earn a single cent.
If you have no experience with Finance or marketing, best find something that matches your zodiac sign!
Otherwise, be prepared to study insurance plans, rules, and regulations!
Recruitment & Marketing Strategy
Primerica encourages you to recruit people – like every MLM – especially family & friends.
I can't emphasize on how running an MLM business can result in bad blood.
Here is where the waters get murky, and I'm not surprised. Despite an A+ rating, there are quite several complaints about their products and services.
Public/Online Opinion of Primerica
One Primerica representative revealed that he has been working with the company for more than a year.
He adds that while the company had great insurance prices, it was sometimes hard to get people to sell to.
However, another representative criticized the fact that the commission involves the number of people you bring in.
Series of Primerica Lawsuits
Searching online for various Lawsuits involving Primerica Life Insurance Company will get you to scare.
They have multiple Lawsuits online against formal staff, clients, and agents.
You just need to Google “List of Primerica Lawsuits.” It is indeed scary to see such a volume of litigation against a single entity.
According to the Wikipedia, Primerica was a target of multiple lawsuits that stated that their representatives planned to earn commission by manipulating Florida firefighters.
This also involved various public workers in moving their funds from the safe and secure investment of the government to high-risk investments offered by Primerica.
The company set aside over $15 million to settle many allegations that involve over 230 cases.
You are checking dockets. Justin website, you will see over 342 cases involving Primerica Life Insurance Company.
How easy will it be for you to market and earn a commission from such a company will that many litigations?
How to Get a Refund from Primerica
The question many are asking on most online fora is “how do I get my 99 dollars back from Primerica.”
So, is it possible to get refunds from Primerica?
The answer is yes; you can get your refund from Primerica.
Just direct your request in the form of application and mail to:
- POL – 1 Primerica Parkway, Duluth, GA 30099-0001
- Direct your email to email@example.com
- Or call this toll free: 1-888-737-2255
Note that, a refund request for the POL fee must be made separately from a request for refund Independent Business Application fee.
BBB Primerica Review Rating Is “A+”
The BBB Accredited Primerica since the 31st of December 1979. Primerica is currently Better Business Bureau rated as “A+.”
This is a great achievement, in my opinion, for a business that has been around since 1979.
The implication of good the BBB Primerica rating is enormous such that, the company has always been on top of its customer service and support program.
They have been attending to customer issues. Customers will always complain, but how a company handles those complaints is what determines the stability of the organization.
Please note that having excellent BBB ratings does not imply that the company products and services were investigated.
No, the BBB Primerica rating has to do with the commitment of the company to always conclude and attend to customers' complaints in good times.
Is Primerica a Pyramid Scheme?
Is Primerica a pyramid scheme?
How do you spot a pyramid scheme MLM program?
What Is a Pyramid Scheme? A pyramid scheme is a manipulative way of making money based on the continuous recruitment of investors. Such a method of making money can not last for a long time.
It is a process of making money that involves promising people an incentive, money, services, primarily for recruiting other people into the scheme or manipulating them to take part in the scheme.
Note that there is no supply of real investment, products, or services to an investor or the general public. This is called a pyramid scheme because the process makes each level increase in the number of subscriptions.
So, why is the pyramid scheme illegal? Companies that practice pyramid schemes make all their income and profits virtually from recruits.
They make money from the entry fees they impose on their recruits, which is often concealed as the price for a compulsory purchase of products, training, or start-kit.
No, Primerica is not a pyramid scheme. This is because it involves sales of financial products that will earn you a commission.
Primerica will not pay you commission for recruitment and referral did to grow your up lines.
There are some claims online that Primerica is a product-based pyramid scheme.
What that implies is that the more recruitment is done, the more commission you get from every of your recruit that buys the products and services.
The bottom line is that the real pyramid scheme does NOT involve the sales of products and services. Therefore Primerica is NOT a pyramid scheme.
Is Primerica Legit?
Primerica is legit and not a scam.
The company's primary focus is providing middle-class American citizens for over forty years.
Primerica has been around for quite a while, and its compensation plan is very flexible and fair to its representatives.
The business model structure of the company is the major problem that may prevent you from making money from this company. It is important to not that Primerica is legit and not a scam.
Is Primerica Worth It?
What do you think about this Primerica Business Opportunity? Do you believe Primerica is legit or a scam?
Or do you think Primerica is a Pyramid Scheme? What do you think of my Primerica reviews?
Primerica is not a pyramid scheme; it provides its clients with insurance and financial service and training for its representative.
However, there is a thin line between distinguishing MLM products from pyramid schemes. This is why I always recommend an alternative to MLMs-affiliate marketing.
My top recommended product is Wealthy Affiliate; I have personally gained financial liberty through Wealthy Affiliate.
To find out how you can earn while learning the perks of affiliate marketing, click here.
Was my review on Primerica helpful? Are there any topics you wish I ought to have taken on?
Let me know if it was and drop your suggestions of product you will like me to review in the comment section below.
Is Primerica legit? Yes, this is a legitimate company and it is not a scam. I will love to hear from you, and please use my comment area below.
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