The realities of Primerica’s multi-level marketing scheme
If you’re eyeing a career as a financial advisor, you may have come across Primerica MLM, which actually is a well-established financial services company. After all, the company tells us they have “a great opportunity for people from all walks of life to achieve their dreams”.
But not every shiny stone is gold.
In this Primerica review, we’ll cover:
- Primerica founders and costs.
- Is Primerica a legitimate company?
- How Primerica’s business opportunity works?
- How much money can you (really) make?
- Pros and cons
Lets dive in.
Product Name: Primerica
Price: $99 flat fee. After that, it’s $25/month.
Founders: Arthur L. Williams Jr.
Product type: MLM (insurance & financial services)
Overall Ranking: 5-6 / 10
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What were the beginnings of Primerica?
Founded by Arthur L. Williams Jr. in 1977, Primerica went through several name changes, mergers and acquisitions.
But during the ‘80s that the company went BIG.
In 1983, in fact, the company was listed on the NASDAQ stock market, and in 1988, Sanford Weill’s Commercial Credit bought Primerica for an eye-watering $1.54 billion.
Throughout the years, the company has steadily grown in popularity across the USA and Canada.
So much so that today (2021), Primerica has a net worth of $5.8 billion!
What does Primerica do?
Unlike other MLMs selling physical products, Primerica sells insurance and investment opportunities for middle-class families in the USA and Canada.
Their top-selling products include:
- Term Life Insurance
- Financial Investments
- Long-term Care Insurance
- Auto & Home Insurance
- Credit Monitoring
- Debt Management Plans
Is Primerica a legit company?
Despite a few lawsuits and speculations of Primerica operating a pyramid scheme, the company maintains an overall spotlessly clean business image.
So if you’re asking whether Primerica is a legit business, know that it has a BBB rating of A+.
Plus, in 2015, it was listed by Forbes as “America’s 50 Most Trustworthy Financial Companies”.
What more could you ask for, right?!
How to become a Primerica agent
To get started, there’s a one-off $99 fee. After that, it’s $25/month to stay in active status.
But because of the nature of the company, agents can’t sell products until they have an insurance license.
So in the initial stages, all new recruits have to do is introduce Primerica, to warm and cold contacts and refer them to a licensed Primerica agent.
Essentially it is your job to go door knocking and have doors slammed shut on you. This might be part of the boot camp training.
Representatives can also recruit new members and earn a commission through any sales made through their downline.
Once you obtain a state insurance license and become a Primerica agent, you can sell Primerica’s term life insurance.
And when you have a financial advisor license, can you sell Primerica’s full range of products.
Primerica MLM compensation plan
The main problem with this (like most mlm’s), multi-level marketing scheme is its compensation plan, which pays representatives way below the national average.
In 2010, Primerica was reported to have over 100,000 representatives selling the company’s financial products, with individual earnings averaging $5,156 per year
Generally, a Primerica agent earns 25% on sales which total to around $6’000/year. Depending on the individual’s sales skills and downline, this number can, obviously, be higher or lower.
But let’s be honest. Like most MLMs, making good money with Primerica MLM is going to be hard.
The Pros of working for Primerica
This company is appealing for its low-cost fees, which gives anybody the chance to be part of its dynamic team.
More importantly, however, it is a well-established company with an overall good reputation for its quality service and products.
Therefore, working for such a big company gives representatives more credibility, making it easier to sell and recruit.
The Cons of working for Primerica
Apart from its insurances costing up to 29% more compared to other insurers, the main complaints from this MLM come from the sales process and compensation plan.
But this doesn’t come as a shock. After all, this is a multi-level marketing company, and as such, representatives will either have pushy sales tactics or have no sales experience.
Should you join Primerica?
Truth be told, this MLM scheme is a double-edged sword.
The company works well for people who are looking to buy term life insurance and other financial services, but it will destroy anybody who wants to join their MLM programme.
In other words, if you’re a financial insurer (or looking to be one), you shouldn’t even consider working for Primerica because you’d only earn peanuts.
And given the unique set of skills you’d bring to the job, it would be an insult to yourself to join Primerica.
Rating: 5-6/10. I am not rating the product here, just the mlm earning potential side of the business.
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