Primerica is a publicly-traded company that has been around since 1977. The company operates by selling numerous financial services to the public. Members who sign up for this program can make money by selling financial products and services like life insurance, loans, variable annuities, mutual funds, prepaid legal services, and long-term care insurance. The price of joining Primerica as a representative and start making money is roughly $25 a month. Many aspects of this business made people wonder whether it is a multi-level marketing business o a pyramid scheme.
Is Primerica a Pyramid Scheme?
Primerica is not a pyramid scheme; members sign up and earn a commission for each sale of the product they generate. You don’t have to purchase any of Primerica’s products to make money from it.
Primerica- An Overview
Primerica was founded in 1977 by Arthur L. Williams Jr. and Glen J. Williams. It is considered a multi-level marketing company currently offering insurance and financial services in the United States of America. Prices of their services start at $99 a month, and these services come with lots of numerous benefits.
The low cost of starting a joint venture business with Primerica is one of its main advantages. The company is recognized on Forbes ratings, and it has a good BBB rating. To become a distributor or partner and make money with Primerica, you need to undergo screening tests. It also comes with a low ongoing or recurrent cost. To make money with Primerica, you don’t have to purchase any products or keep any inventory.
Perhaps some people complain about this product because the company has numerous lawsuits hanging on it. There are some complaints about this product, and there are very few success stories available on the company’s website. Another issue many complain about is that you may have to work hard to sell to friends, family, and strangers.
What Does Primerica Do?
Primerica offers a wide range of insurance and financial services for everyday people. There are several investment opportunities the company offers everyone who wants to secure the future of their finances.
The company can also be regarded as a multi-level marketing company providing everyday people the opportunity of starting their businesses. These people will make money by selling the products offered by Primerica.
The company provides a video on its website that offers more information on getting started and sustaining an income as a representative or business partner with the company.
Primerica’s Product Line
Primerica sells and promotes the following line of products;
- Financial investments
- Time-Life Insurance
- Long Term Care Insurance
- Auto & Home Insurance
- Credit Monitoring
- Debt Management Plans.
The company offers a very easy-to-use financial service, and you can monitor everything on a user-friendly dashboard. The primary investment instrument used by the company is mutual funds. This means you don’t have any control over the investment and price points.
Keep in mind that several other companies are selling the same products as Primerica. Companies like Legal Shield, Team National, Fluorescent Sand, Global Dream Network, 7K Metals, OnPassive, and United Success Network are significant competitors of Primerica in the country alone.
Making Money On Primerica
There are certain things you should know about making money on Primerica, and these include the following;
1. Become a Recruiter
You can make money from Primerica by becoming a recruiter for the company. This means you will earn a commission by selling the company’s products to customers. You can also make money when the recruited also recruit others under them- the more your recruiters recruit, the more you will likely make.
2. How Much Does It Cost to Get Started on Primerica?
It costs only a $99 one-time payment to get started on Primerica. You will also have to pay a monthly fee of $25 to stay active as a recruiter for the company.
You don’t have to purchase any of the company’s products, and there are no additional costs or a minimum you need to sell to remain active on the company’s recruiter lists.
What Is The Primerica Compensation Plan For Members?
There are four main ways of earning commissions on Primerica, these are;
- Sales Commission on Insurance Products (This is one of the significant commissions you make on selling any financial plans).
- Overrides on Downline’s Insurance- You will get a 10% override commission for the sales generated by your referred downlines. You can earn this commission up to 11 tiers below you.
- Differentials from Sales Generated from Downline’s Insurance- You will get commissions for helping those in your downlines generate sales from Primerica’s insurance products.
- Commissions on Other Product Sales- You will earn commission from selling other financial products aside from the insurance.
In addition to the summary given above, your commission levels will vary depending on the level you are on the Primerica program. For instance, when you join Primerica as a representative, you will earn up to 25%; when you move to the senior rep position, you can earn up to 35% commission on certain products. When you become a district rep, you will earn up to 50% commission, and when you get promoted to Division rep, you can earn up to 60% commission. When you become a regional representative, you can earn up to 75% commission, and as an RVP, you can earn up to 90% commission.
Understanding The Tier-11 Membership Of Primerica
It is pretty easy to explain the Tier-11 membership plan of Primerica. For instance, if you join the company as a representative, you will get 25% on any product sale you generate. This means Primerica will give you $250 out of a $1000 sales value of the product you sell.
If you help other people to join Primerica as representatives, you will be promoted up the ranks. Suppose you keep promoting and getting people to become representatives and get promoted to the regional manager position. In that case, you can earn up to $450 if someone who became a representative under you sells a product worth $1000- the person will only make $250.
This means you don’t need to do anything as long as those representatives on your downline are selling Primerica products.
Reason Why Primerica Is Not A Scam
There are two main ways an online business can be a scam; Either they take the money and pay people for a brief well before disappearing into thin air, or they don’t just live to their promises.
Primerica has remained in business since 1977, and those who make money being representatives still enjoy the benefits of their memberships. Though the system doesn’t work for everybody, those who find it hard to sell the company’s products re-recruit others to become representatives do believe the system is a fraud.
Primerica has a long-standing business record that still provides legit financial and insurance products that help regular people. Whether Primerica products are the best in the market is entirely different, but these products compete favorably with their rivals.
Technically, Primerica is not a pyramid scheme, even though you can invite others to become representatives, and you earn even from their sales.
It is a multi-level marketing program, no doubt, but it is definitely not a pyramid scheme. A pyramid scheme collects money from members and promises to pay them when they recruit others. While Primerica may look like a Pyramid scheme, you can make money selling products alone without recruiting anyone, and this is a major difference.
If the only way to make money on Primerica is to recruit members under you, then the Primerica system will be a 100% pyramid scheme.
What Are The Advantages Of Joining Primerica?
Primerica multi-level marketing system offers the following advantages
1. Low-Cost Business Startup
Not every business opportunity comes with a low-cost setup like Primerica. With a one-time fee of $99 and a monthly fee of $25, you can make more than your startup cost in less than a month. This also means there is no risk to your network, and there will be no risk to your current job because you can sell Primerica products on the side.
With a very low ongoing or recurring cost, you are not going to be subjected to risk other businesses are subject to
2. Great BBB Rating Plus Positive Reviews on Forbes
Primerica has been featured on Forbes several times, and the Better Business Bureau currently ranks the company as A+, meaning it can be fully trusted.
The company has been in full operations for over 40 years, and it is well-regarded hence the positive rating on its products and services.
3. The Quality Screening Process
You can’t become a distributor or representative of Primerica without passing through a screening process. This means you need to pass through some training before you are eventually signed up as a member.
Primerica’s multi-level marketing program is most suitable for individuals who are ready to promote a business, especially with a great sales personality.