Price: $99 membership fee
Owner: Glenn Williams (CEO) Peter Schneider (president)
Primerica is the brain child of a renowned financial management group known as Citi group which is also the parent company of the well-known Citibank. Its full company name is Primerica financial services Inc. and it is a multilevel marketing company that is based in Duluth, GA.
It is involved in the sales and distribution of financial products. Some of these financial services include; home and auto insurance, distribution of term life insurance, prepaid legal services, mutual funds and variable annuities. It initially started off under Citi group but broke off in April 2010.
Being a traditional multi-level company, Primerica engages its agents in the sales of their core services and products while encouraging affiliates to recruit new members under them in order to duplicate this process. Each representative receives a commission on every sale made while a portion is passed up to his/her sponsor in the scheme.
The company is involved in a very technical genre which includes financing and this has resulted in a lot of scrutinies over the years.
In this Primerica review, we will take a detailed look at the company and examine its legitimacy to help us reveal the next big promising venture or a massive Primerica scam.
1.) Primerica provides a good avenue for its members to learn more about personal finance and the basics of investment alongside other financial education.
2.) Untrained personnel are given a great opportunity to learn and participate in the industry without having to leave their own jobs. This gives way for self-development and additional value in the long run.
3.) They provide some great incentives for their agents aside from the recruitment bonuses and sales commissions and they are effective at recognizing affiliates for accomplishments.
1.) They provide very expensive policies and services when compared to close competitors with an even shorter guarantee period. This means that your clients are bound to pay more while getting a worse deal, inadvertently putting you at a position where you have to swindle your way into a deal.
2.) The top positions in the scheme are the big earners. After you get your license, Primerica gives you a commission of only 25% while your upline is entitled to the difference in their contract and yours.
3.) The big question of training also comes into play being that this involves handling personal funds and policies for actual people. It is particularly a difficult topic seeing as most individuals would prefer buying their insurance policies from legitimate brokers as opposed to family and friends.
4.) There is a lot of control from the company as there is a two-year non-compete clause if you decide to go independent. Needless to say, this puts you in a position where you are unable to take your clients with you and ultimately lose your commissions by having to start fresh.
Who is Primerica for?
The company strongly suggests that absolutely anyone can join as there is ample training provided for new members to enable them to take their first steps. However, experience has shown that this is not entirely true.
If you have no prior knowledge or interests in personal financing and perhaps a basic understanding of financial products then this might not be for you. The exception here is that you have great learning abilities and can pick up things as you go.
Distribution of financial services has never been a cake walk and it requires both the salesmanship skills and fast learning abilities in order to make good progress. Having a good network of close acquaintances who might be interested will also help a lot.
Primerica tools and training
In order to become Primerica agents, prospective representatives are required to take a brief training class after registration so that they can become life insurance licensed. At this point, regular meetings are held by independent representatives as a means where new members can be recruited and new agents can get more understanding of the system.
The idea is simply to convince interested or doubting individuals that the system is perfect for them regardless of their financial status. As a disclaimer, new members are told that there is no guarantee for any specific level of cash inflow coming their way but that there is great potential for compensation in line with their sales.
The main line of support with Primerica starts from your upline. Being an MLM network, it operates heavily on a hierarchy where people that are higher up the scheme are exposed to greater benefits and more inside knowledge. This is particularly obvious in cases where trainers get a portion of your sale even when they are making 75% already.
The company’s website also proves to be a good resource as it is a home page for all information and a portal to reach the customer support directly. Members can visit the website at www.Primerica.com and have all queries resolved.
Becoming a rep at Primerica
To become a representative with Primerica, you are expected to pay an IBA fee of $99 with an additional $25 every month to cover for the Primerica online support.
This gives you access to the support website where you can get inside information on how to conduct your business and increase your earning potential. All representatives are also mandated to attend the insurance licensing class after which they can proceed in the industry.
Reps are encouraged to start their pitches to their “warm market” which includes your close family, friends, and relatives as they are more likely to hear you out and get involved. After this market is exhausted, agents can then move to what the company refers to as the “cold market” which comprises of strangers and acquaintances and are expected to devise new ways to recruit more people which often involve setting up meets and seminars.
My final opinion of Primerica
Operating in the insurance and financial services industry, Primerica offers quite a reasonable joining price for potential agents and this may be the attracting factor seeing as the impression is “pay $99 and smile to the bank”. It is therefore important to straighten these out. Working for Primerica ultimately makes you an insurance salesman/saleswoman without the typical 9-5 working structure….and the office.
There is also the case of an annual increase in the number of people dropped after recruitment coupled with the low average annual income of $5500; the reason is not entirely far-fetched. The company’s products are overpriced and agents that are further down the earning chain are presented with low commission rates which put a strain on the earning structure. Therefore, if one is to make a living from Primerica, then he/she must focus on recruiting more active people into the system as history has shown that this is the most effective way to make it in the business.
In conclusion, Primerica is definitely not a scam and it pays, but it is not a business to put your hopes on as serious progress is difficult and unlikely since you earn mediocre Commission by peddling overpriced insurance policies. If you are looking for a career in finance, you might want to look for a more independent route.
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