Welcome to Primerica review, this post will help you decide if Primerica is a pyramid scheme scam or legitimate way to make money online.
I'll show you exactly how Primerica works and reveal the truth. We'll discuss reviews from Reddit users and online communities, and I'll list the pros and cons of their program; let's get to it!
Primerica Review Summary
Product Name: Primerica
Product Type: Insurance & Financial Services MLM
Price: The fee to get started is $99, + $25 monthly fee
Summary: Primerica isn’t a pyramid scheme or a scam. We have reached this conclusion because they offer a real product and a real service. Their sole source of profit is not from recruiting people. However, like many other multilevel marketing programs out there, it is difficult for a person to make a sustainable living on Primerica.
What is Primerica?
Primerica is a multilevel marketing company that’s based in the United States. It sells financial services and insurance products.
On the plus side, Primerica is taking a unique approach to multilevel marketing in that they are not focusing on health, beauty, or wellness. This market is saturated with many similar products being peddled in the same way.
It makes it difficult for a consumer to know how or why one product stands out above the rest. Selling insurance and financial services using multilevel marketing is unique, and as yet there is not a lot of competition in this sector.
We would compare Primerica to AmeriPlan, a healthcare insurer that sells via network marketing. Primerica traces its roots back to 1977. It was founded under CitiGroup, INC. They separated via an IPO in 2010. This company is selling on the New York Stock Exchange with the symbol PRI.
With over four decades of history behind them, the Primerica pyramid scheme rumor seems to be unfounded. They appear to be a legitimate company. Scams and pyramid schemes usually do not last long on the market.
It is a multilevel marketing company, so it follows many of the principles seen in other multilevel marketing opportunities. Money is earned by:
1. Selling products or services
2. Getting other people to sell products with Primerica
We are going to focus on the money-making opportunities in just a few minutes. But let’s key in on the products that are being offered.
Products Offered by Primerica
Products offered by Primerica include: ·
- Long-Term Care Insurance
- Credit Monitoring
- Debt Management Plans
- Home and Auto Insurance
- Financial Investments
- Term Life Insurance
Primerica focuses on the middle-class families in Canada, Puerto Rico, and the United States as their target audience.
make money with Primerica?
There are two primary ways that a person can make money with Primerica.
- Selling insurance and financial products to earn a commission. This is the same process for a person working in sales in a traditional company.
- Create a down line of recruited individuals. Help them learn how to sell. Make a commission off of their sales.
As simple as this may sound, there are certain steps that a person needs to follow before they can promote these financial products and make money.
In the next section, we'll examine authentic Survey Club reviews left by users on Reddit and other online communities. Get ready to read what types of ridiculous experiences people have been having with this company.
Steps to Get Started with Primerica
Everything starts with the enrollment fee of $99 USD. This $99 allow you to get an official “Primerica Sales License.” It also covers the cost of your background check. This makes Primerica different from other multilevel marketing schemes out there.
You can't work for them if you have a criminal record or other questionable things in your background.
They do this because they are concerned about the reputation of their sales representatives. This is a positive thing and another reason I do not see this as a pyramid scam.
After the initial payment, you must pay $25 a month. This gives you access to tools and a platform that allows you to learn about the product and market your business. The $99 you invest to get started may be refundable after a few months working with the business.
Primerica Compensation Plan
You can earn a commission with Primerica in one of four ways:
- Earning a commission on financial products. Primerica offers several products and services. You can get a commission by selling any of these products.
- Earn a commission on insurance. When you sell insurance or any financial plan, you earn a commission that follows the percentage scale posted below.
- Payments from down line insurance sales. The more you sell, the higher you advance in the ranks. This allows you to earn a higher percentage of commission from the sales produced by your down lines. Your goal is to help those who you have recruited to earn more sales.
- Overrides on down line insurance. A commission of up to 10 percent can be yours from the sales of your down lines.
Primerica has an 11 tier compensation plan.
This means that you will get a commission from the people you directly recruit, the people they recruit, and the people they recruit, going down 11 tiers. There are different commission rates for different ranks.
- Representatives earn 25 percent commission
- Senior Representatives earn 35 percent commission and a bonus
- District Leaders earn a 50 percent commission, plus a bonus
- Division Leaders earn a 60 percent commission
- Regional Leaders earn a 70 percent commission
- Regional Vice Presidents earns a 95 percent commission and a bonus
- Senior Vice Presidents make a 95 percent commission, plus bonuses
is Primerica a Pyramid Scheme?
Going back to the question we asked at the outset, is Primerica a pyramid scheme? To accurately answer that question, we first have to understand the characteristics of a pyramid scheme.
A pyramid scheme has been defined as a business model where people recruit members and promise them payments or services if they enroll other members in the scheme.
A pyramid scheme does not include the offering of products or services for sale. So, basically, a pyramid scheme focuses on recruiting members as opposed to selling a real product or a real service.
Primerica Pros & Cons
I want to take a few minutes and discuss the things I like about Primerica and the things I don’t like. Let’s start with the positive.
Distributors Are TrustworthyAs we have mentioned, before anyone can start working with this outfit, they need to go through a background check. Only after that background check do they receive an official sales license from the company.
Sadly, there are many people out there pushing products or services via network marketing who don’t know what they are doing, have a dubious criminal record, and shouldn’t be out there. The screening process of Primerica gets rid of a lot of that.
Reasonable CostThe $99 for an initial fee and the $25 each month are reasonable prices to pay to get access to a product or service to sell. After a few months, the $99 is refundable. Other multilevel marketing programs require members to spend thousands of dollars just to get their foot in the door.
A+ Better Business Bureau RatingThe A+ rating from the Better Business Bureau breeds confidence. It’s difficult for a company to get and maintain that rating. Primerica has had this rating since 1980. This is a reputable company and not a pyramid scheme. Don’t listen to naysayers. Look at the truth in front of your face.
Let’s now move on to some things I dislike about Primerica.
A Ton of ComplaintsSure, they have an A+ rating with the Better Business Bureau. However, they have received a ton of complaints about the products and services they offer. Of the ominous 150 customer complaints found on the BBB at the time of this writing, most of them are connected to taxes, the cost of insurance, moving funds around, or penalties.
This Service Is Not for EveryoneThis is not a business opportunity for everyone. To make money, you must dedicate time to learn about insurance plans, financial products, and the rules and regulations that govern their use and sales. Not everyone can do this. This is best for those who already understand the finance industry.
This company is primarily for individuals who live in Puerto Rico, the United States, or Canada. I’m not sure if people outside of these three countries can even join.
Needing to Recruit Friends and Family MembersThis isn’t a pyramid scheme. But it is multilevel marketing. This means you have to recruit people. When you are making your list of people who might be interested in these products, inevitably, your friends and family members will be on the list.
I’m not saying that it’s bad to sell a product to your family. However, you risk ruining friendships and relationships with a multilevel marketing business. If you have the right technique and the gift of gab, maybe you can do it. But it takes a lot of hard work, and most people just don’t have the skill set.
Low Success RateWhen you look at the income disclosure for Primerica, you see that in 2016, in North America, their members made on average $500 a month. That’s it. When you dig deeper, you realize that six out of 10 failed to make one penny.
Is Primerica SCAM or LEGIT?
Is Primerica a scam or legit? They are legit. They offer a real product and a real service resell. While it’s true that distributors can make money by recruiting other individuals to sell the product, this is not the only way to make money. In fact, it is possible for an individual to make a 95 percent commission by selling Primerica’s products however there many downsides to Primerica such as customer complains and low success rate to make money. Have a look at my recommendation below instead.