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What Is Primerica?

Based out of Duluth, GA, Primerica is the trade name for Primerica Financial Services, Inc.

They will deny it, but it's your traditional multilevel marketing company and distributor of financial products to middle income families in North America.

The business opportunity includes the sale of term life insurance, auto and home insurance, mutual funds, variable annuities and pre-paid legal services.

On April 1, 2010, Primerica left Citigroup, its former corporate parent company.

How Does Primerica Work?

To become a Primerica representative, you have to pay an IBA fee of $103.95 that includes sales taxes and you're also encouraged to pay $28 per month for Primerica online.

Once you're 'hired,' you are told to write a list of your 'warm market' that consists of your friends and family so you can immediately start recruiting them which can then duplicate the process. Representatives put a strong emphasis on this as opposed to finding their own customers.

Reps are then required to take a brief class to become life insurance licensed and are told that their fee will be reimbursed.

They are given a script that will be used to persuade their friends and family to meet up with them and their upline for a presentation to turn them into customers.

Primerica representatives are independent contractors that solely get paid minute commissions through the sale of any of these financial products with some of the profits passed up to their upline.

The company employs an 11-tier upside system in which they get a fraction of the commissions from their down1ine down to the 11th level.

Representatives are told to pitch their 'warm market' because they are more likely to become a customer. After they have gone through them, they are told to approach strangers, also known as their 'cold market' when they're out and about.

A False Dream…

I have been to their meetings before and they have a way of convincing people that this is the best opportunity ever, that just by making a few sales per day and attaining just a few customers on a part-time basis, within a year or two you could be earning a six figure income and can spend your days playing golf and still be earning money.

They explain how you eventually will have the ability to leave your job in which they explain stands for 'just over broke' and become your own boss so you have the freedom to travel and spend more time with your family.

But in reality, they stay in business by taking advantage of undereducated and low-income people.

…there is no guarantee that you will achieve any specific cash flow level. Most RVPs/representatives do not achieve the levels illustrated. From January 1 through December 31, 2013, Primerica paid a total of $536,506,140 in compensation to its sales force, at an average of $5,614 per life licensed representative…" – Primerica

231,390 people were recruited in 2010 and 134,550 dropped.
244,756 people were recruited in 2011 and the average yearly income was $5,544.
152,901 dropped.

This equates to a 60% failure rate.

Source: 2011 Primerica Annual Report Page 7

In 2012, $509,227,049 was paid to its sales force, an average of $5,513 per life licensed representative.

According to Simply Hired, the average salary for state farm agent jobs is $32,000.

Why You Should Avoid This Company

*Only the ones at the top of the pyramid are successful.

*Not only are their unexceptional products overpriced but face fierce competition.

*They only guarantee level premiums for up to 20 years where other carriers can guarantee up to 35 years.

*Primerica traces its roots to A.L. Williams where the main goal was to find the best and cheapest term insurance to replace their whole life policies to invest the money saved. This is where Primerica fails because they employ captive gents. Representatives can't find their customers the best deal because they only sell one product and their rates are the same for both males and females. Just go to sites like term4sale.com and you will see that other life insurance companies have rates that are 10-50% less expensive than Primerica.

*All of their mutual funds are load funds.

*After you get licensed, you get a low commission of 25%. Your upline keeps the difference between your contract and theirs. Some trainers keep a portion of a sale that you make even though they are already making 75%.

*The agents are taught how to recruit and are not trained properly. Most people would prefer legit brokers with an MBA over buying insurance from friends and family.

*It's a nightmare for customers to cancel their services with them and you can't replace their insurance for up to seven years.

*If you decide to leave Primerica, you will lose all your clients resulting in them banking in on your commissions.

*You don't even own your business and you can only sell it to another Primerica agent.

*There is a two-year non-competition clause if you go independent.

*You can't have your own website because the company wants to control all of the content.

*It ruins relationships.

My Final Opinion of Primerica

The only way you can make a full-time income in Primerica is by working hard by building your team and selling people overpriced insurance. You will earn very low commissions and an annual salary that will not be enough to live on. This isn't a decent company to be involved in and there are much better companies that allow you to keep your clients, recruiting is not needed to advance, you can sell for anybody and sell your business to anyone.

You won't be helping people by selling them Primerica life insurance because there are others that cost hundreds of dollars less per year which could be used to invest in a mutual fund with lower fees. In the long run, this could put tens or hundreds of thousands of dollars more in your client's pocket.

If you're seriously considering a career in finance, go independent where you will truly own your own book of business. You will be able to shop around and you can always recruit other agents to get overrides without them thinking it's a pyramid scheme.

To Your Success,

Jennifer