Is Primerica A Pyramid Scheme?

Being a Financial Adviser nowadays is trendy, and is told to be one of the most high-paying jobs in demand right now. That’s what Primerica has to offer to their new applicants, to be an FA and guide people on the ways of how to intelligently and properly use your money. They also will encourage you to be one of them if you want to if you ever show interest in the said craft. That’s why all of us are here right? To know how to make money with Primerica, let’s go ahead and discuss it below.

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The insurance company Primerica (Prime America) was founded in 1977 by Arthur Williams Jr. It has been helping people, so they say, make better financial choices for more than 40 years and is still going strong until now. It is a legit company that makes use of the MLM model to give compensation to their Financial Consultants (1st level) but why do others say that they are a pyramid scheme?

Some people do get confused between MLM and Pyramid Schemes like they can be used interchangeably but no, MLM is different from a pyramid scheme. Mlm companies have products or services to offer to customers to earn commissions from, unlike the ones who are operating pyramid schemes which the only way to earn is to recruit and you’ll get a percentage on their membership fee.

Primerica is now being led by the current CEO, Glenn J. Williams, who has a little bit of history in the company itself. He first served as a member of the company’s sales force in 1981 and as he reached goals inside the company, he has been able to serve in a variety of management and leadership roles which then led him to where he is right now. He has mastered the craft of selling insurances, and that’s what others will teach you when you try to enter this venture.

Selling insurance is their game and their most popular product is life insurance, which they call in the company as Term Life Insurance. You can pay insurances either in full (one-time payment) or in monthly coverage until a specific period of time (term). And if you ever get in an unexpected accident, your listed beneficiaries can turn in a claim to get what they call death benefits, but this is the least that we all wanted to happen. What we want is to use this for the future, retirement funds, building a home, pay for one’s education and many more.

Opportunities offered by Primerica is to be one of their financial consultants. Anyone is free to sign up as long as they passed the screening test because which company, especially an insurance one, is willing to have someone who has a criminal record, is there? After the screening comes the interview, which they say is like a walk in the park, then voila, you are now qualified for the job.

To become one of their financial consultants, there is a membership fee that costs $99 and a monthly fee of $25 for your membership to stay active and also cover backend operations. This includes insurance catalogs, and a personalized website that can help you keep track of your customer’s insurances and coverages. They don’t provide a paid-for insurance lead program that’s why you will be the one to find prospects to which you will offer insurances to.

Insurance companies usually work on a commission-based business model. It’s like “you reap what you sow” kind of thing. In Primerica, they offer 25-30% commission on each insurance product they sell, and if you didn’t make anything, then $0 for you. And they also have what they call 11-tier compensation plan, where you can earn commissions of up to 10% from your downline’s sales that can go down to 11 levels. 

They can easily be tagged as a pyramid scheme because of their main focus on recruiting people into the company, but they’re not. They have insurance products and services for consultants to sell and earn commissions from. They’re a legit company, and a publicly-traded one at that, that have an entry in the stock market. They’ve been featured in Forbes as well. Their product Term Life was also given an A+ superior rating by the A.M. Best, which most of the insurance companies struggle to attain.

As for trying the opportunity offered by the company, it is not that easy to make your own downline and make an agency with the company’s brand name. You’re required to achieve certain ranks before doing so. Even if it is available for everyone to join, you still need to have your license to sell financial products, which is done outside the company. After you’ve done all that, the next part is to recruit, where your primary target is your warm market, which can sometimes affect your relationship with them, in a bad way that is.

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About the author: If you want someone who will talk straight with you, respect your time, and show you a business that might actually work for you, you should watch this short video.