Product Name: Primerica
Price: $99 sign up
Other Costs: $25/month
Industry: Insurance + Financial Services
What is it?
Primerica is a network marketing company that sells a range of financial services throughout the United States using a network of representatives. The concept is that people can make their own independent income by selling products or services from this company. In a nutshell, working for Primerica makes you an insurance salesman, although the business model is different from owning your own business or working a typical 9-5.
Being an insurance salesman sounds extremely boring to me, so right off the bat, this is not a company I would work for even if they have a really good compensation plan. I also think that being a representative of this company does not mean you actually own your own business, so the business model does not appeal to me either.
However, some people may find the financial industry interesting, and enjoy the networking aspect of the business. If you understand and enjoy things like auto/life/home insurance, debt management plans, and mutual funds, but do not want to work at a traditional job doing it, then this could be the right place for you!
Before You Buy
Primerica does offer refunds, but be careful about investing into the company if you are tight on cash. You are unlikely to get all of your money back because not all fees are refundable!
What I Liked About Primerica
As far as the business opportunity goes, Primerica does have one clear advantage over similar companies – you don't have to purchase any products to test or demonstrate. All the stuff that you'll be selling or promoting can be learned and compared with the information they give you and your own online research.
Very often with network marketing companies you are required to purchase products on ‘autoship' or maintain a certain number of personal purchases to maintain your seller status. This is not the case with Primerica, though there are some monthly fees associated with it.
Oh, and it's only $99 to join, which is pretty fair compared to some business opportunities which can cost $200-$500 or more!
I also like that this is a unique industry for network marketing. As dry and boring as I think insurance is, if you have a background in it, you would be able to transition much more easily into your position as a rep for this company.
One more quick fact – Primerica is a publicly traded company on the US stock exchange. It's not just another ‘fly by night' company!
What I Didn’t Like
Hype + Low Average Earnings
In theory, it is possible to earn money simply by selling the services that Primerica offers. However, what ends up happening a lot is that representatives quickly find out that the top earners in the company are there because they recruit new reps into the company. Like many network marketing programs, there are some crazy success stories of people building full time businesses in a short period of time.
The part of the story that's not usually mentioned is that these successful people had large networks of friends or business colleagues to promote to. Sometimes, you'll find that the top earners are involved in several MLM companies and they actually built their current network by jumping from one company to the next, taking their downline with them.
Primerica uses a MLM business model. They sometimes refer to it as direct selling, but the concept is still the same. In this structure a person earns money for their sales, as well as the sales of the people they recruit and the people that person recruits and so forth. In concept, the more people you have in your ‘downline’, the more money you will make, so it's extremely advantageous to you to tell your recruits that they can make big money by forming their own downline.
There is actually a lot of controversy surrounding Primerica, as some people heavily promote the company, while others say that it is nothing but a scam and pyramid scheme. For example, this snippet was from an article in Money MSN:
To a lot of us, $5,513 still sounds pretty good, but remember, this is the average. When you have a handful of people earning upwards of $100,000 the only way to get this average would be to have a lot of people earn much less than the $5,000 mark per year.
Legitimate Business Opportunity?
A lot of people ask whether companies like Primerica are scams. That’s actually a difficult question, because it depends on how you define a scam. Personally, I don’t think Primerica is a scam per se. However, it is very difficult for the average person to get ahead in the company, and there are a lot of unexpected costs and extra work that isn’t obvious up front.
What kind of costs? How about travel expenses related to finding clients? What about your own time spent learning the products and about competitors products? Yes, that's the cost of doing business, but being a rep for this company is not as simple as paying $99 and then going to the bank!
At the risk of angering any current Primerica representatives here, it's hard to ignore the fact that there are lots of complaints online about being recruiting under false pretenses, and accusing this company as being a pyramid scheme. Whether or not you believe it's a pyramid scheme, just realize that some people you try to recruiting will think this. You'll need a very good explanation as to why there are so many complaints online!
Plus, to me, it seems like there are a lot of sketch “pro Primerica” comments around the web, always trying to prove people wrong and saying that their complaints are not legit.
Is The Website Worth It?
Perhaps the thing that is most frustrating for me to see is that they charge $25/month for access to a support website called Primerica online. $25/month is not very much, but there is no trial period to see if the cost is worth it. I think it would be better to offer the first month at a discounted rate or even free, so new IBOs could test it out and see exactly how Primerica Online is going to help them.
You Need To Get Online
What most new reps fail to understand is that if you market these services to your friends, family, and colleagues, you will quickly run out of prospects. The most successful people in the company are the ones that are growing their network, and making sales every day.
If you want to reach a wider audience, you need your own website, and you need to reach an audience that's interested in buying insurance or other financial services that Primerica offers.
- How do you build a website?
- How do you get people to your website?
I can help with that! I run several profitable websites on a variety of topics. If you want to start one to promote your Primerica business or any other business, you can definitely benefit from reaching every country in the world with your message. The best way to make a sale it to give the customer enough information to make a good buying decision. A website is the best way to deliver that message!
Working for this company is going to be a good fit for someone with a background in insurance or financial services. You should also be a dynamic leader or experienced salesman, and should definitely have a website to reach a wide enough audience so you don't run out of potential clients.
What do I do?
On my website One More Cup of Coffee I review business opportunities, make money online products, and other ways to get away from the typical 9-5. I also teach people how to get their business online, no matter what they're promoting!
One thing I also do is help people that have no idea how to start a business or which products they want to promote. When I started in 2010, I didn't have any products or even know how to make money. I started my first website about computer software, and was making a full time income after just 2 years.
You can create a website about anything you want, and make money by promoting products from other companies! You can reach the entire world with your website, and never have to promote anything to family or friends.
Whatever type of product you decide to promote, it's VITAL that you generate leads to grow your business.
But let's face it, "parties" are boring, and no one likes the annoying Facebook friend who's always promoting a biz-op.
That's why I use this lead generation system. Learn how to generate leads outside of your circle of friends and family and discover what it means to truly own your own business, rather than just be a cheerleader for one network marketing company.