Primerica is a service-based network marketing company that focuses on insurance. The approach is unusual, as most such companies choose to offer tangible products instead. Primerica is well-known throughout the United States and Canada. Some estimates suggest that there are somewhere around 120,000 Primerica representatives out there, which is an impressive figure.
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While the focus on services helps to make Primerica stand out from other MLMs, services can be more difficult to sell than physical products. One difference is that you’ll need to spend longer explaining the benefits of Primerica and how the services compare to the market. That type of sales pitch isn’t needed if you’re doing something like selling jewelry at a party.
Primerica makes the process a little easier by offering a Financial Needs Analysis for customers. This provides ‘a personalized strategy for financial security’. For representatives, the free service could be a useful way to promote specific services to customers.
Insurance is also an interesting field to choose to promote.
On the one hand, there is plenty of demand. Many people do need insurance and Primerica has various types to choose from. This includes some less common styles like insurance for long-term care and an identity theft production service.
On the other hand, buying insurance from a representative can be a bit weird (especially if they’re a friend or family member). Some people would feel safer going through a trained agent at a store so that they know they’re being given all the correct information by someone who knows the industry. Others may not, but it’s important to be prepared for some resistance.
Primerica itself is a controversial company. Some people consider it to be reliable, to the extent that Primerica has been listed in Forbes as being particularly trustworthy. Primerica is also publicly traded on the stock exchange, so it isn’t likely to disappear overnight.
Even so, reviews are mixed. Some people say that the business model is a scam, one that doesn’t offer the income potential that it claims to. Other customers have had issues with the insurance side of the process, saying that the policies get expensive as people age and don’t always payout.
Such issues with insurance aren’t unusual, but they raise an important question. Of all the products and services that you could promote, do you want to be focusing on one that is so heavily tied up with the financial welfare of your customers?
Two Ways To Make Money With Primerica
Primerica is similar to other MLMs in that you’re making money from sales and from building a team. The biggest difference is that you’re promoting services rather than products. Doing so means less pressure to buy physical products for yourself, but the style could make sales more difficult.
In this post, I’m taking a close look at both methods of earning, including any complexities along the way. I also consider the overall potential for earning money with Primerica.
Make Money From Sales
Primerica primarily focuses on insurance. This includes life insurance, investment insurance, auto & home insurance, and long-term care insurance. This is promoted in a way that you might expect:
How good the insurance is will strongly depend on the individual and their circumstances. Some people may find Primerica better than other services, while others may not.
There are certainly complaints about the insurance out there, but this is true for any insurance company. The number of positive reviews and the fact that the company is going strong suggests that Primerica is at least competitive.
They also offer a program to protect against identity theft and a pre-paid legal service. While these two programs don’t involve insurance, they follow the same general idea of protecting your future. For example, the identity protection program is described like this:
Selling The Services
Insurance is a very individual-specific field, making it difficult to compare Primerica to other insurance companies. Still, such a comparison isn’t really needed, especially as many customers do appear content with the services (especially non-elderly members).
The main thing to consider with Primerica is the sales process. You don’t just need to convince people that they need insurance, you also need to get them to purchase that insurance from Primerica. Doing so may involve them switching from another company or signing up for insurance for the first time.
Regardless of your potential customer’s situation, you’ll need to be convincing. You’ll also want to know the insurance industry well so that you can argue your case.
Being a successful representative would also involve being able to answer customer questions and resolve problems. This is likely to involve more in-person contact than you’ll find with many other types of MLM. You may also find yourself in emotionally charged situations, especially if customers try to claim on their insurance and don’t get what they expect.
Primerica does provide various concepts that can be used to help promote the services, including why insurance is critical for young people (especially young parents) and how waiting comes with a cost. None of these ideas are unusual, but they could make sales a little bit easier. Still, you can expect to spend a decent amount of time with each potential customer and you won’t always make a sale.
As for your commission, Primerica representatives start off by earning 25% from contacts. This can increase to 35% if they meet certain criteria, including making 12 transactions in a single month and being fully licensed. Because Primerica provides little pricing information for their services, it isn’t clear what this looks like financially.
Primerica Controversy
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 recruit 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 sketchy “pro-Primerica” comments around the web. For example, distributors often reply to any negative review with the idea that the reviewer simply didn’t try hard enough.
I’m always frustrated by this type of comment. If you invest enough time, money, and effort, most companies and models provide at least a little income potential – but that doesn’t make the company a good idea. An income model can still be unappealing and unrealistic, even if some people do make money from it.
That’s the key point with Primerica and many other MLMs. Sure, you can earn money, but you’re jumping through hoops to do so. You never even end up in full control of your own business.
Time And Cost Requirements
Because you’re working with insurance, Primerica requires more education and knowledge than most other network marketing companies. This requires passing various licenses and certifications.
If you’re looking for a way to earn long-term, then such requirements mightn’t be a bad thing. If nothing else, you get the chance to learn the industry, which should increase your chance to make sales. Still, the time investment is considerable and won’t work well for everyone.
There will also be some financial costs. The first is your initial joining fee. This is $99, which isn’t too bad for the industry. There is also an optional $25 fee each month. This provides access to various training models and the like. Because you can’t trial the site first, you need to pay the first $25 fee before you know whether the site is worth using.
You’re likely to find other costs along the way too. 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!
Make Money Building A Team
Building a team is the other way to earn with Primerica. The basic idea is the same as always. You need to recruit other people into the company, as part of your team. Each team member (including yourself) is then responsible for recruiting others and making sales.
The idea becomes a bit more complex with Primerica, as representatives need to go through training. The amount of training (and licensing) also increases as members go further in the company. These aspects may make recruiting more difficult. You’ll need to find potential team members that have enough time to invest in the company.
Primerica operates through a unilevel rank-based team model. This means that the team below you falls roughly in a pyramid structure. All the people that you recruit are on your first level, the people that they recruit are on the second level, and so on. Income is then based on their performance and on your rank.
As for the ranks, these are levels that you progress up within Primerica. Higher ranks provide more income potential and the requirements increase as well. With Primerica, rank requirements aren’t just based on your team and sales. They also depend on training. For example, here are the requirements for two early ranks.
Even at these early levels, the training and sales requirements are considerable. Primerica provides some examples of income, which suggests that the money-making potential is high. Just be aware that there are no details about the average that people actually earn from customers. Because of this, it isn’t clear whether Primerica’s income estimates here are realistic.
Based on the compensation percentages provided, it does seem that Primerica has higher income potential than most other MLMs – if you can make sales. On the flip side, the amount of work per client is higher as well. You may also find it pretty difficult to even get into the second rank.
Can You Generate Reliable Income With Primerica?
The Primerica Review
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Making money with Primerica isn't an impossible dream. Every MLM has some success stories and the services from Primerica are legitimate.
Perhaps the biggest challenge is that the most successful Primerica members will be the ones that build a decent team, while also keeping up with sales. If you just market the services to your friends, family, and colleagues, you will quickly run out of prospects. To be truly successful, you need to expand your reach beyond the people you already know.
This means seeking out new markets and leads, while also improving your salesmanship skills as you go. After all, insurance salespeople often aren't all that popular. You'll need to be able to promote the services without being too pushy or annoying.
While doing so is possible, it's best to be aware of the challenges before you get started. Don't expect Primerica to be a walk in the park simply because you like the services or the overall idea.
It's also worth mentioning that you'll probably need to do some learning outside of Primerica. MLMs aren't well-known for having amazing training. Most fall short of giving you the information that you need. For example, they rarely provide much information about taking advantage of the online environment - even though this is a key place to find more customers.
So, while I wouldn't recommend Primerica personally if you're going to give the company a try make sure that you take learning into your own hands.
MLM Critic & Author: Nathaniell
What's up ladies and dudes! Great to finally meet you, and I hope you enjoyed this post. I have to be honest though. I'm not a big fan of MLM. Tried it. Hated it.
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Thomas
So is there anything i should know before i leave (sadly i was duped by recruitment a few days ago) . also i cannot get my 99 dollars back? Is there any thing i should be careful of when i do leave? please help and thanks .
Nathaniell
Getting your money back is probably not possible, but at least you go out before you got too deep in! That’s something to be thankful for!
Earl
I think a bit more research is required, as there are quite a few erroneous conclusions here.
1. You have to jump through hoops to enroll. Actually, enrolling is easy. There are, however, classes to attend and exams to pass. This is financial services, and is a highly regulated market. Licenses are required at the state and federal level.
2. $99 to enroll will make the company rich. Hardly. Find out where the money goes. For $99, the classes are provided and expenses paid to secure a life insurance and, if certain requirements are met, securities license. My life license cost me between $400 and $500 dollars. I had the license before I joined, so I know what it cost. The securities was over $500. They are by no means making money off a $99 fee.
3. Are the only ones that can make money the ones at the top? Easy litmus test for this one, just look at the most recent $100,000 and million dollar earners. Many have only been in for a few years.
4. Sure, most of us don’t make a lot of money. That’s because most of us don’t do much. I write an occasional policy for someone, or process a rollover. I’m an engineer, and do this for fun. It’s also something to fall back on if my job dries up. In order to make money, you have to be engaged, and work at it. Look at what the statistics mean before bashing the company with them.
Is it for everyone? No. Is it for most people? No. But for someone who is a go getter, and really goes after it, it’s a good opportunity.
David Marnell
Glad you cleared that up Earl;
You are not jumping through hoops. $99 is a bargain for the classes that are provided and expenses paid to secure a life insurance and, if certain requirements are met, securities license. As you testified, it would cost a lot more on your own.
It is very easy to accept a job and the salary offered and think you are secure, but if you want to be financially free it is most likely not going to come from working for somebody else. Yes, you have to be a go getter. Most millionaires are. Don’t waste your time replying to this and arguing that Primerica and MLM’s are pyramid schemes. You work for a company, and you work hard. Who do you think makes more money from your efforts. Your manager, the Director above him/her, the VP above him/her, etc, are all making much more money than you, because of your work. That to me, is a pyramid.
Nathaniell
But who takes on more risk? If a company fails, you just get a new job. At the end of the day, you just go home and don’t think about work. Company owners, managers, and other higher positions take on more responsibility. They often take more schooling and experience to get there. So they take longer to get the position, acquire more risk by taking the position, thus make more money.
David Marnell
So then every company is a pyramid. So don’t attack what you don’t understand by calling it a pyramid.
Nathaniell
Not true. A CEO of a company does not recruit other CEO’s, and the sales people do not recruit other sales people. Not every company is a pyramid.
nate
I have joined primerica and it seems like all I did was burn through my immediate contacts and now I have nowhere to go but down. I know it works but it really depends if you want to convert into a Jehova Witness style of approaching people.
Nathaniell
Sounds about right for MLM in general.
Blee Joseph
Hi Nathaniell, I recently went to a meeting at primerca and I have to say my gut feeling says it is a waste of time, I don’t mind the cost but personally I really do not find financial services fun and it seems like they make you go through a lot just to get started. Your review has shed some light on the company and has reinforced my decision not to do it, thank you. I also will check out your material on affiliate marketing 🙂
Nathaniell
That’s pretty much where I think most people are. Financial services are just not going to strike a chord with most folks. Can you make money with Primerica? Yeah, some people do. But I think you’re much better off trying to do something that interests you rather than just be a cheerleader for a company so you can make commissions. Good luck with affiliate marketing, and let me know if you have any questions with your training.
Artist850
I second that. Many thanks for the valuable insights.
Not a 98%
You don’t understand the company because your obviously a 98% rather then an elite minded person.
Ask yourself, why most if not all Primerica Investors have nice cars and houses with 0 debt and the people talking smack about Primerica have cheap cars with lots of debt and many credit cards.
Everyone against Primerica are accustomed to Jobs and Paycheck to paycheck lifestyles.
Too many haters on the wealthy, if you don’t understand what your not taught in school that’s your issue.
Nathaniell
Sure, sure. You talk about “investors” but what you really mean are guys on top of the pyramid. I agree with you that people need to change their mentality to become wealthy, but I don’t believe that buying into an deceptive MLM company like this is the key to getting anywhere. Sounds like you’ve been a bit brainwashed because these are typical MLM slogans that members from various companies repeat as their mantra and spout off on my blog.
“OMG! You have a job! You are such a loser!” Job shaming is very typical of MLM mind control tactics.
John
Elite writing skillz…
“You don’t understand the company because your obviously a 98% rather then an elite minded person”
“because your” = “you’re”
“rather then” = “rather than”
“elite minded” = “elite-minded”
(Haha just in the first sentence, not even close to 98%)…
Awesome post Nathaniell!
Thanks…
J Dodge
Out of the 500,000+ individual reps with Primerica at some point, since 1977, only 5980 (as of 12/31/14) have ever earned more than $50k during a best, 12 month rolling window, including advances, at least once. And many never repeated those numbers ever again. That represents a mere 1.1% who ever broke the $50k mark AT LEAST ONCE.