Over on my consumer awareness site, Pink Truth, I have put together a few articles about Primerica Financial Services.
Like Mary Kay, Usana, and Mannatech, Primerica is a multi-level marketing company (MLM). The big difference, however, is that these other companies have a tangible product for sale, and many of the abuses come from loading participants with inventory they won’t ever be able to sell.
Primerica sells insurance (mostly life insurance), mutual funds, mortgages, and debt consolidation services. It appears that “debt consolidation” is the cash cow for the company, and it’s questionable whether consumers are really better off with the Primerica products than without. (i.e. The representatives are incentivized to push these products, even if it may actually cost the consumer more money!)
Primerica is a subsidiary of Citigroup, so many think this gives them instant credibility. Not for me. All it means is that Citigroup executives figured out how lucrative MLM is for the owners of the scam.
Here’s where Primerica enters the territory of being a scam:
- Overpriced products pushed to low- and middle-income people who probably have little to no experience with these financial services. They won’t realize the products are overpriced.
- Most of the sales are made by unlicensed representatives, meaning they aren’t well-trained about the things they’re selling.
- The representatives are generally paid lower commissions than at other companies. This is because Primerica is paying up to six levels of people about the salesperson. This is a hallmark of multi-level marketing. The seller gets a small payday so that many in the upline can get paid too.
You can find more information about Primerica on Pink Truth.
06 Apr 08 at 6:55 pm
I am a Primerica Representative and I take offense to what you say, because I know it’s not true. I know people who are millionaires because of this company and we do not prey on low income families. We educate people on how to get out of debt and save money for retirement. We teach them the truth about how money works! Maybe if you want to slam a company, you better find out the truth before you speak!
06 Apr 08 at 6:57 pm
Hi Linda, thanks for responding. The only “millionaires” are a couple of people at the top of the pyramid. And almost all the people below them have lost thousands of hours of their time and plenty of money… with nothing to show for it.
07 Apr 08 at 11:54 am
State investigators raided an insurance agency in Bountiful today. By the time they were done, the company’s regional vice president had confessed to fraud, and an ambulance had to be called.
We saw investigators going through files and business documents inside Primerica. They say after their interview with the regional vice president, he was taken to the hospital with some kind of medical problem. But that wasn’t before he reportedly confessed to insurance fraud.
One employee we talked to didn’t say much as investigators raided his workplace. “I don’t know what you’re talking about, honestly,” he said.
He’s been working at this insurance agency in Bountiful for six months. “We help people with their mortgages, their investments, things like that,” he explained.
But the Utah Insurance Fraud Division is investigating Primerica for insurance fraud. Investigators brought out boxes of evidence for their case. They tell us employees would give false information on applications to qualify people for insurance or to get them a better rate.
An undercover agent, whom we can’t identify, told us some of the workers may not have been licensed. “And in some cases, they’re individuals with criminal histories or some other issues that prohibit them from obtaining licensing, but yet they continue to sell products,” he said.
The agent says insurance fraud is a growing crime in Utah, and the public pays for it. “It costs consumers a great deal of money, and it erodes the confidence they have in their insurance product,” he said.
The division will present the case to the attorney general’s office. Investigators say you should always check business licenses with the state.
E-mail: syi@ksl.com
E-mail: tcallan@ksl.com
08 Apr 08 at 1:43 pm
Hello,
Why is it that all people belonging to MLM/Pyramid-Scheme networks always respond in the same brainwashed-like manner?
Oh - I feel offended…
Oh - I take offense to what you say…
Oh - I know it’s not true…
Oh - It works for many people…
Oh - You don’t know what you are talking about…
Oh - you better find out the truth before you speak!
I sense a pattern.
Linda, I would suggest you to place the words “primerica pyramid” in your google search bar. Maybe you can find out by yourself about what goes around…
Best Regards
08 Apr 08 at 5:36 pm
Here’s the Primerica office story. This is probably an isolated event. http://www.ksl.com/?nid=148&sid=3008453
The RVP is in deep stuff. Not to mention other agents if they were doing the same things.
07 May 08 at 12:52 am
Im just curious what the training fees are? Do reps of Premerica constantly have to pay for expensive training like tapes,functions,magazines etc
13 May 08 at 10:08 pm
Dear Colin,
There are no training fees. No one has to buy anything for their training at Primerica. Ever.
If someone wants to become a representative in the financial services industry (for any company) they need to earn their license(s). License fees are assessed on a state and federal level. Primerica will pay most of the fees for the life insurance license for qualified applicants. I receive invitations, on a daily basis, from well-known financial services companies to come work for them. The licenses I earned and maintain are vary valuable in the financial services industry.
Our company takes compliance rules very seriously. Anyone doing business without a license is doing so illegally on company, state and federal levels. Joe is correct that the story Mark referenced is about one Regional Vice President and how he ran his office.
Isn’t it interesting how some people gloat over a case like this?
I am curious to know where Tracy did the research for her article.
Our products are with solid companies such as Genworth, CitiTrustBank and MetLife, they are well priced and they are designed to benefit middle-income families. Our commission structure is fair - based on general agency such as an insurance or real estate company. Our relationship with clients is educational and needs based. We strive to do what is best for the client one-hundred percent of the time. Licensing and training must be completed before doing business. There are consequences for not following company guidelines as in the case above.
There are 57 Primerica representatives cash flowing over $1 million in a 12 month period. If you count their partner spouses, add another 48.
14 May 08 at 6:19 am
Your commission structure is NOT fair. It does not reward selling. It rewards recruiting. The person who actually sells a product makes far less than if the worked for a legitimate financial services company, because so many levels of the pyramid must be paid out.
“Cash flowing” more than $1 million a year is not something to be proud of here. Why? Because the only way to do it in Primerica is to build a pyramid and get rich off the recruiting of others. Almost no one can do it because of the way the numbers work in MLM schemes.
15 May 08 at 2:08 pm
Tracy, you wrote: “The only “millionaires” are a couple of people at the top of the pyramid. And almost all the people below them have lost thousands of hours of their time and plenty of money… with nothing to show for it.”
When presented with the fact that there are 58 representatives cash-flowing over $1 million in a 12 month period you responded “that the only way do it in Primerica is to build a pyramid and get rich off the recruiting of others.”
In your organization, do you have researchers, assistants, secretaries, account executives or any other employees or interns? If so, do you pay them the same wage as yourself? Is that fair? If you promote someone, do you simply say “great job” and give them more responsibility, yet pay them the same wage?
At home, do you employ a house cleaner, nanny, cook or personal assistant? Do you hire an accountant, tax preparer or plumber? Do you pay everyone the same wage? Do you pay yourself the same wage too?
Do you think that a corporation structure is better for workers than an opportunity to build their own business? What does a CEO, COO, CFO, Director and company President get paid generally? What do the Vice Presidents get paid? What about the Supervisors and Managers? What about the people they supervise and manage? What about the secretaries, clerks and executive assistants? Do they get paid the same wage as the CEO and President? Is that fair? Don’t they all work hard?
In a corporation how many people are at the CEO, Director and Presidential level? How many people are Vice Presidents? How many employees are Supervisors or Managers? How many employees are supervised or managed? How many are clerks and secretaries? How many at the top and how many at the bottom? How many in between? What shape does that bring to mind?
As in any business, representatives in Primerica are paid commissions for the level they have achieved. That includes, licensing and training. It goes without saying, but I will say it here to make my point clear, there are a lot of people in between newly licensed representative and those with million dollar incomes. There are thousands of representatives in Primerica making $100,000 to $900,000 who would have never made that kind of money otherwise. Certainly not in the corporate world and not in an MLM. There are millions of clients who have benefitted from the education and services brought to them by their Primerica representative.
An estimated 80 percent of the American population is considered middle-income. Do you think they deserve individual personal financial education? Do think they deserve to understand how money works and how the financial services industry functions? Do you think that with truthful education they are empowered to make better financial decisions for themselves? I think that IS what you think you are trying to do here. I am going to go one step further, and side-step my doubts about your agenda and say that you are trying to save people from making bad decisions about the companies they do business with.
That is my intention too, Tracy.
15 May 08 at 2:16 pm
Unfortunately, the analogy to a company with a CEO and other management is a false one. MLMs try to use it all the time to make these “opportunities” sound legitimate.
Here’s the real deal: Anyone who wants to “help” middle income people with financial issues can go to work for a real company… a real insurance agency or a real investment broker. They don’t need to do it through a pyramid scheme like Primerica that pays them little and rewards them mostly for recruiting.
Your lie that “thousands” make $100k to $900k in Primerica is completely unsubstantiated (hence why it’s a lie). You have no documentation to prove that. It’s just another thing that your cult leaders have asked you to repeat.
Misrepresentations of income are dangerous.
15 May 08 at 2:43 pm
My cousin recently became a representative. He knew nothing about Primerica. He started calling all of our family members trying to recruit them, until I told them to STEER CLEAR! He ended up quitting after I gave him some information on it.
I’ve had friends in the past that have thought they could make millions doing this.. and pestered and annoyed me until I was sick and tired of them and avoided their calls. I met up with a lot of them later and all of them had given up their pursuit of being a Primerica Millionaire. I have yet to meet one.
Oh wait I did!! The guy that started these scheme years ago. Not one of his little lemmings had a mansion or drove a car like his.
SAY NO TO PRIMERICA!
16 May 08 at 2:07 pm
What is false about my description of a corporation? I asked you what you thought the pay structure was and if is was fair. I asked you if you pay your assistants the same wage as yourself and you have not answered that.
If someone is in training is it fair to pay them the same wage as someone who has had several years of training and studied for and earned several licenses?
Every year Primerica publishes a book with representatives cash flowing $100,000 or more in a 12 month period. The current book has over 2,300 representatives listed. It also lists their previous income and career.
Tracy, I know you are going to try to make that a lie - so here is the back up to that. This is based on what was paid out and reported as income on the 1099s to the federal government.
Tracy, you said “Most of the sales are made by unlicensed representatives, meaning they aren’t well-trained about the things they’re selling.” Our company does not allow representatives to do business without a license and training. If an individual attempts to do so, there are severe consequences at a company, state and federal level. Anywhere from being ousted from the company to going to prison. This is true with any financial services company.
Tracy, you removed the web site links to the [snip] Why is that?
REd, sorry about what happened to your cousin. I hope your family is proud of itself.
If you want to have more fuel - read “Coach” by Art Williams. You will find out the truth of why this company was started. If you have the courage…
16 May 08 at 2:15 pm
Ann - I don’t provide links to MLM propaganda on this site. It’s just not something I want to do. I don’t have any assistants, so that’s why I don’t have an answer to your question.
A corporate structure in which employees are receiving wages is different than an MLM or pyramid scheme. So it’s not a valid comparison. It’s apples to oranges, but made to seem as if it’s apples to apples to give the MLMs an air of legitimacy.
Regarding licensing: I will research that one, as I don’t remember what made me conclude that most members of Primerica were licensed.
I’ll concede the point on your book of people with gross incomes of $100k. I’ll also say that this doesn’t include business expenses which can really change the picture. And I will also say that I’d love for Primerica to publish a book listing all the people who make poverty level earnings.
16 May 08 at 4:15 pm
Trac - our business is designed for people to start part-time with training and schooling so they do not need to quit their current jobs and leave those incomes behind. No one has to go full-time until they feel they are ready.
The exception is someone promoting to the Regional Vice President level. They are required to become full-time. No one has to promote to that level, however, until they feel ready. We are encouraged to become financially secure and debt-free before taking on that responsibility.
You know, I’m not sure how many representatives are in the training and licensing stage compared to those who are licensed. But I do know that until they are licensed, they are not allowed to sell insurance or offer financial investments.
Have you figured out how to run a business with no overhead? I would love to hear your tips on that.
Tracy - I take my business very seriously, you have probably gathered that. Not everyone can do what I do. And, yes, there are days I just want to give up. But it is worth every headache, every book I have to read, every lecture I have to attend, and every test I have to study for, because I know in my heart that what I am doing is good for my clients. I know the positive difference I have made in their lives and there is nothing anyone can say or do to change what I have accomplished.
19 May 08 at 9:25 pm
Anne -
Don’t waste any more energy typing responses to these guys. Go build a business and become financially independent and let these guys talk to themselves. We both know that PFS is one of the greatest opportunities in the world - and has been for over 30 years.
Get what you want, by helping others get what they want…. & Never give up!
Joe
19 May 08 at 9:32 pm
Joe - You may not have noticed, but I’m not a guy. I’m a woman. But at least you were kind enough to grace us with some MLM-speak. “The greatest opportunity” is what every pyramid scheme and mlm calls itself.
22 May 08 at 7:25 am
I don’t know if you are interested in third party opinions, but you might want to check out a book called “ABCs of Making Money”. Two business consultants (not Primerica agents) wrote this book for budding entrepeneurs. In it, they list 15 characteristics of a good business opportunity. They then go on to say that of the thousands of businesses they have reviewed, only Primerica meets all 15 characteristics. They also have a web site http://www.abcsofmakingmoney.com, so you can check them out if you wish.
As a second note, you do not have to build a team to make money at Primerica. There are plenty of people in the Leaders book previously mentioned (the ones making over $100,000 per year) whose team is small to nothing. The problem is that next year, you have to do it again. Just like all the other companies. The difference is that when you build a team, you don’t have to do it again.
If that does not work for you, fine. I’m not interested in recruiting people who are not looking for a change. But that doesn’t mean it is a scam or a ripoff. It means that it is an opportunity available to anyone, but of interest to only some. So be it.
22 May 08 at 9:37 am
Here’s the problem with authors like this “recommending” a MLM… Book publishers know that MLM flunkies are a huge market. If you offer a book to them that appears to give them the key to success in their MLM, they’ll buy it. These guys have obviously decided it’s lucrative for them to pitch their ideas in conjunction with Primerica. I doubt that their opinions are unbiased.
And while some may say I’m biased against, MLMs, that’s only true to the extent that I’ve yet to see an MLM with something less than 98% or 99% of participants losing money. MLM is a structure in which almost everyone loses, and for that reason, I’m generally against MLMs. But I make no money from anyone or anything in holding this opinion. I blog about it for free.
23 May 08 at 7:35 pm
Just one quick question, I’ve studied alot of fortune 500 companies, MLM’s, and so for. Every one of them is set up the same exact way. The guy at the top makes the most money. Anne was getting to it earlier. I’ll take Wal-Mart as and example. You have many many store clerks who do the most work and make the least amount of money. Those store clerks have supervisors in each area who make more than the clerk(there are fewer supervisors). The department supervisors report to the assistant managers(which again make more money per hour and there are fewer assistant managers). Then you have the store managers who make more money per hour than the assistants and there may be 4 per store. Those 4 managers of the store answer to a district manager who might oversee the whole state. Those district managers of each state answer to regional managers. The 6 regional managers report to the CEO who makes the most amount of money in the company. So, now draw lines around that structure, if i’ve made my point clear, WAL-MART IS A PYRAMID AND YOU NEED TO QUIT YOUR JOB RIGHT NOW AND STOP SHOPPING THERE. Now there is nothing wrong with a pyramid, all corporations are made up and look like a pyramid because we all know the CEO who is making the most money isn’t running around helping people who walk through the door at wal-mart. There is only 1 CEO and hundreds of thousands of store clerks who don’t make anywhere clost to what the CEO makes on a yearly basis. Now this structure is awesome because that CEO makes the most amount of money, but also has the most amount of responsibility also. But, what is the chance of that store clerk to ever make it to the top and be the CEO(NEVER). So, ARE PYRAMIDS REALLY ILLEGAL UM NO.
Now is what people think about when they hear about a pyramid is called a ponzi-scheme. Which in a ponzi-scheme the only way to make money is recruit people and charge them a fee, BUT THERE IS NO PRODUCT OR SERVICE THAT CHANGES HANDS, HENCE TAKING ADVANTAGE OF PEOPLE AND ILLEGAL.
With an MLM, people have to buy the product(make-up, soap, juice) and mark it up(higher price than what they bought it for) and try and sell it to other people for a profit.
Now with Primerica, the agent doesn’t buy the product then mark it up and sell it to a consumer to make money now do they. There is a product and service that changes hands when money is exchanged. They are called products to protect your income, help get rid of debt, save for retirement, and ultimately a business opportunity. There is also a chance that the AGENT WILL MAKE IT TO THE TOP. There is a GUARANTEE in Primerica, BUT THE AGENT IS THE GUARANTOR. The system is in place and if you follow the system there is 100% success rate, but if you don’t follow the system there is failure. Just like in every other business there is a business model or system that all employees/independent contractors should follow if they want to excel in what they do. But, when people fail, they blame and look at everything else except the biggest problem, THEMSELVES!!!!!!!
You believe what you want to believe, but if you do the RIGHT research Primerica is not a bad company, IT’S AN AMAZING COMPANY. Read the magazine Success from Home(they did a whole magazine on Primerica), Premier Business magazine(another magazine that did a whole magazine on Primerica). Another place to do your research, go find a author named Bruce Sankin and read WHAT ALL STOCK AND MUTUAL FUND INVESTORS SHOULD KNOW. He’s the main ARBITRATOR for the National Association of Security Dealers(NASD now known as FINRA). In his 30 years of arbitrating he has never had to settle a dispute between a client and Primerica.
Some people take advice from the BROKE person sitting next to them who borrowed $20 from them yesterday and now they are telling you how to use your money. They go looking for the wrong information from uncredible sources. Like i said, make your decision, but before you do look at credible 3rd party Financial publications and you will find the truth on Primerica and it’s business system.
All businesses rise and fall on one thing and that is people. Just like every other business, if you want to be successful you have to have great people and unfortunately you are always going to have them bad apples in the bunch.
24 May 08 at 8:22 am
Sean - Sadly the “every company looks like a pyramid” doesn’t really work. Why? Because the companies you refer to are legitimate companies, with legitimate jobs, that provide real paychecks to people. They are NOT endless chain recruitment schemes like Primerica and other MLMs. That’s the difference.
The legitimate companies also don’t rely on propaganda to give them credibility. They don’t need to. They’re not saying, “but we’re on the NYSE” or “we’ve never had an arbitration case” or “Mr. XYZ owns a MLM so it must be good” or other nonsense.
And they also don’t have half-literate representatives running around trying to defend their honor and yelling “you just don’t understand this company!”
24 May 08 at 5:04 pm
OK so now i’m half-literate. I guess that’s what i am and the person i’m going to be and i can live with that. I don’t know how you can say Primerica is not a real company, i do believe Primerica’s Home Office takes up 5 city blocks in Duluth GA. REAL PEOPLE DO WORK THERE. One other thing, the checks that the field force get are fake. We pay our bills with fake money is really what your saying. ALL MY CHECKS HAVE CASHED AND PAYS MY BILLS. BUT, IT’S FAKE MONEY ACCORDING TO YOU. I HAVE NOT RECRUITED A PERSON IN THE LAST 8 MONTHS, I’VE ONLY BEEN IN THE BUSINESS 8 MONTHS. LAST MONTH I STILL MADE $9,000. NOW ALL THAT FAKE CASH IS SITTING IN MY BANK ACCOUNT. LIKE I SAID BEFORE, DO THE RIGHT RESEARCH BEFORE MAKING A DECISION BASED ON HEARSAY FROM THE BROKE PERSON SITTING NEXT TO YOU. Now i’m not saying Primerica is the best company out there, but to some people it’s their only shot at bettering themselves and their families.
You can call the magazines what ever you want, but they are legitimate 3rd party material outlining what the company does for families. You can say what you want Tracy. But the real truth lies in REAL RESEARCH, instead of reading blogs from other people who blame the company and not their failures within themselves.
24 May 08 at 6:15 pm
Awwww, Sean. I’m sorry you don’t know the difference between a marketing piece in a magazine and real research. Those marketing pieces aren’t “legitimate” when it comes to telling the whole story about multi-level marketing companies.
It would be a sad sad day if Primerica was someone’s “only shot at bettering themselves.” To think that deceptive, predatory companies are one’s only chance at success would be sad.
30 May 08 at 6:32 pm
Tracy, how much income did you earn last year, and how many hours did you work for it?
30 May 08 at 6:55 pm
Why would I tell you how much money I make? And what does it matter to you? I’m not trying to recruit you into any sort of scheme.
01 Jun 08 at 8:36 pm
What’s so deceptive and predatory about Primerica? I would like you to educate me on that question. Also, let me know what real research is, Please? Where or what kind of research on Primerica did you do?
01 Jun 08 at 9:06 pm
Wow,
This is a very interesting blog. Tracy, I completely agree with you. I can’t understand why people don’t see (or maybe they just don’t WANT to see) why an MLM business cannot work for the majority of people who join! And NO, an MLM business is not the same thing as a legitimate business. The “chain recruitment” scheme has to end somewhere… and if that’s the MAJOR way to make your income… you’re in trouble!
The real question is: Is Primerica really an MLM business? Sean just said he made $9,000 last month alone without recruiting anyone. If not through recruitment, how do frontline Primerica employees make money?? I’m asking this for real.. I don’t know.. so if anyone knows, please tell me.
My cousin joined Primerica last year and we can’t get him to stop talking about Primerica on our family website. Every other post is asking us to attend some info meeting or to help him with his business by giving him just one hour of our time. I must say, it is getting rather irritating. We all are nice to him about it and usually politely decline his offers; but many have talked with him. Out of our family, I think only his mom took advantage of his “services” and HE said that she is a lot better off now.. whatever that means??
I feel his intentions are genuine and good (to help our family be debt free, financially secure, etc.), but I feel like he is not completely informed. When an uncle of mine posted on our family website how certain other companies offer better rates than primerica.. my cousin flipped out on him and got really offended. He took it way personal.. which seems to be a common thing with other Primerica employees.
Just today my cousin boasted how Primerica has been the #1 company on Fortune 500 for seven consecutive years. Is this true? I can’t find anything to back that up. Citigroup isn’t even #1 and even it it was.. that’s a large leap to say that Primerica is as well by association, right? Does anyone else have any information about this “Fortune 500″ claim??
I think most Primerica employees are good people with good intentions. But, I’m concerned that they are either just naive and not fully informed or that I’m missing out on the “opportunity of a lifetime.” The jury’s still out on this one for me.
Well, that’s my two cents anyway.
01 Jun 08 at 9:07 pm
Sean,
Research means examining facts. Using critical thinking skills.
01 Jun 08 at 9:44 pm
Travis - People pushing MLMs will use anything and everything they can to make their “opportunities” sound legitimate. The Fortune 500 thing? Fiction. But it sounds good, right?
Here are a couple problems with what Sean said: 1. We have no proof of his earnings, and MLMers are notorious for exaggerating these types of things on a regular basis. 2. Even if he did make that last month, I’d like to see what he made the other 7 months. 3. MLMers are quick to throw out a number but not show anything else about the business.. not expenses, not what it took to get that number, etc.
You and your family are experiencing exactly what MLMs, including Primerica, are all about. “Just come listen.” Blah blah blah. It’s all about trying to recruit others in so that you can get a piece of the action if they recruit too. If the products are so good, why does he have to hound the same people over and over? Why isn’t he selling to legitimate customers that he gets like any normal business owner?
And finally.. as to whether Primerica is an MLM, the answer is yes. You can make money in Primerica without recruiting. But if that’s the way someone wants to go, they should go to a regular insurance agency where they will get a normal commission. In Primerica, your commission is much smaller than a real agency because they end up dividing the commission between people on all these levels of the pyramid.
You should also know that Primerica DETESTS being referred to as an MLM. Their reps will do whatever they can to get you to believe that it’s not. Bottom line: It’s got a recruiting scheme, it pays commissions to multiple levels, and the person making the sale doesn’t even get the bulk of the commission. That’s classic MLM.
The “compensation plan” is next to impossible to find on the internet. Why do you suppose that is? Is it because they’re proud of it and want to show it off?
01 Jun 08 at 10:49 pm
Tracy,
Thanks for the info. So is there ANYTHING good about primerica as far as their services or products are concerned? Have you looked into that at all? Are all their services overpriced and just unnoticed by the customers who don’t really understand what’s going on? Or do they provide useful help to people and it’s just their marketing you don’t like? I can see how people might just sign up based on his or her family member who doesn’t even completely understand the business. I just feel bad about my cousin being so caught up in Primerica.
As for me.. I’m ashamed to say that I already learned the hard way about MLM’s through another family member and a different company (Pre Paid Legal, do you know much about them?). This family member signed up me and a few of my other gullible cousins.. promised to help us build our “legs” as he called it…. he made a few bucks off of us joining.. and then it went nowhere. Luckily, I didn’t lose much money and didn’t ruin my reputation by trapping anyone else. But it was an important lesson learned as well as a necessary increase in my criticism of “easy money/get rich quick” schemes.
I’m really completely fine missing out on all of these MLM “opportunities of a lifetime.” I’ve got years and years to learn about how all this financial stuff goes. I’m young and still in college. I guess I’ll just have to continue on with my boring, stable, future of practicing medicine after graduation.
Which reminds me… I think its sad how no one in these MLM’s seems to care about the “long term.” They like to boast how many of their millionaires never went to college. Many even seem to belittle and laugh at people getting an education and having a career where people work 5 days a week. When in reality.. the MLM way of life only works for so very few at the top. I think it’s sad that they make themselves out to be the BEST THING EVER.. when they, in the end, are really potentially hurting a lot of people.
01 Jun 08 at 11:04 pm
Travis - The insurance products sold by Primerica are legitimate, but everything I’ve read about them indicates they’re overpriced. Premerica reps are taught to target people of middle income or lower. Many of their customers have little financial knowledge and don’t realize they’re overpaying. The sales pitch is a hard sell and they’re told they’re buying the best thing since sliced bread. And they pitch themselves as the only ones willing to help middle and lower income people.. isn’t that benevolent?
Prepaid Legal??? http://www.prepaidillegal.com
02 Jun 08 at 9:23 am
This is a very interesting blog and discussion, indeed.
We (my boyfriend and I) are considered a part of “middle-income America.” We decided that it was time for us to get life insurance, so we met with a Primerica agent a couple of months ago for a Financial Needs Analysis. We were already familiar with debt-stacking so we didn’t need the FNA to show us how to effectively pay off our debt. We were more curious to see what kind of policy coverage and premimum payment they would come back with afterwards
When we sat down with the results of the FNA, we were very pleased with the policy and the monthly premium payment. It had excellent coverage and the payment was incredibly affordable. However, before diving in and declaring them “the best thing since sliced bread,” we spoke with a representative of Select Quote, a popular independent term life buying service that many Americans use, and on the couple quotes on life insurance policies they gave us, the premium payment was between $4-$37 more than what Primerica gave us. And it was only A+ rated, not A++ rated like Primerica’s is.
Needless to say, we decided to go with Primerica, and we have not second-guessed our decision since.
Primerica and the services they offer are not for everyone, but you can’t deny that they ARE good for a lot of people. Not everyone who gets involved with Primerica, either as a client or as an agent, is an imbecile or ignorant or misinformed.
02 Jun 08 at 9:26 am
I actually CAN deny that. Primerica is a good deal for VERY FEW people. You seem to be one of the lucky few.
02 Jun 08 at 12:29 pm
Tracy,
Why don’t you look it at PFS this way? Let’s say a person signed up with PFS and didn’t make a lot of money. In the process, he/she got licensed (all reps must have a license), learned various types of insurance, loans, mutual funds, met new people. It’s valuable education.
Some of your points might make sense now that Internet is available. However, it only happened recently not when the company started and not everyone is willing to spend time on Internet but would prefer to buy term insurance from PFS not expensive policies from traditional insurance agencies that only care about generating commissions.
02 Jun 08 at 12:32 pm
Now THAT was a stupid statement. Primerica reps are out for commissions just as much as any regular insurance agency. The difference? A regular agency actually pays a decent rate. In Primerica you have to recruit and hope they sell to supplement your small commission from actual sales.
Seriously. Anyone who is really interested in selling insurance should go to a traditional agency.
02 Jun 08 at 3:18 pm
See, here’s the thing: I’ve known a lot of insurance agents and personal financial planners. I know a lot of realtors too for that matter, it’s an occupational hazard. The real ones are focused on getting my business. The nitwits from Primerica that I’ve met have only been concerned with recruiting me. None of them have ever broached the subject of insurance policies or PFP portfolios; it’s always been about recruitment. So the arguments to the contrary from the sockpuppets above don’t really hold water.
I’ve said it before: real insurance agents and financial planners dont troll shopping malls looking for new insurance agents and financial planners. Legitimate companies have HR departments that take care of that.
I’m all in favor of selling on commission. I’m also all in favor of being self-employed. Both of those are grand things, and I encourage anyone who wants to do that to go for it. But being an expendable crewmember in an MLM is not self-employment, no matter how often you recite it to yourself in front of the mirror.
02 Jun 08 at 3:48 pm
MLMer to self: I AM and entrepreneur. I AM I AM I AM!!!!
03 Jun 08 at 1:41 pm
Primerica formerly A.L Williams has been around for years. Where are all the financially independent people they have helped? They once had a sales force of ovr 200,000 agents, how is it they boast of a bit over 100,000 agents? Only about 2-3% of Term Life policies ever make it to claim.
You Primerica agents are defending a company you arn’t even a employee of. Your independent agents. I fail to see what the problem is if you can get better products for your clients and a better contract yourself elsewhere. why not consider it. Your not full-time employees. In most cases people are part-time making extra income.
Hey Kool-Aid,,Hey Kool-Aid,,,You go out and find clients/recruits. You bring in business maybe train the person and who owns the client/recruit? Keep
doing what your doing, your just licensing reps. for others. It seems like nobody is saying anything about the possible pending sale of Primerica. How would that effect you as an agent? What about your current contracts?
As for the people making big money at Primerica yes it’s from building up reps.
Let me ask the agents this, how much of your training is industry training? Why do you offer savings on Auto/Home by comparing different companies, but not with Life or LTC products? Who earns renewals on a LTC sale? Why do Prepaid Legal associates earn renewals from their produicts sold and you don’t on your Legal protection Program. So you see you guys are missing out on money you may not even see. That’s lost money you could use for your FAMILY..Do you remember the rule of 72?
Stay where you are..Hey kool-Aid,,,Hey Kool-Aid..Primerica isn’t a bad company, they have their way of doing business and they are out to make a profit, it’s just too bad many agents there don’t look at it that way when looking at what best for their business interest. Yet many people just don’t know what they don’t know and when they find out we try to educate others, but as with the cycle many of us have been on we don’t want to hear it..Hey Kool-Aid,,Hey Kool-Aid..Yes I know the flavor. i used to drink it myself..
12 Jun 08 at 11:24 pm
Dear fans & opponents of Primerica:
I have to say that it was a lot fun to go to the Primerica “interview” today. I had posted my resume on careerbuilder a few weeks back and just a few days ago, I had received a call from a recruiter saying that PRIMERICA is expanding and is opening offices throughout Denver metro and that he was interested in meeting with me to discuss the opportunity. I figured it was perhaps a commissioned sales job or something like that, but it didn’t bother me. As long as it is a good opportunity, I am willing to do it.
I get to the meeting and low and behold there were 30 people already seated in the room awaiting the first speaker. I thought to myself, well this is a hell of way to have a personal interview to discuss a business opportunity.
Well, I figured, I’m here and I’ll stay and hear the spiel to see if I’m still interested.
The speech ran on with the first speaker for several minutes explaining to the group how many people are in debt, have no life insurance, hate their jobs, the economy sucks, aliens are attacking, the Broncos won’t win the Super Bowl, etc etc etc. The second speaker came on and spoke endlessly about how PRIMERICA can solve middle-class America’s problems with their debt, lack of life insurance, global warming and general constipation.
The thing that I don’t understand is their approach to the financial solution
for middle-class America and how they can provide a “business opportunity”
to the audience class that mostly, except me, sat like cattle nodding and exclaiming “That’s Right!” and “That’s so true!.”
Their model showed a mortage refinance and separate savings from that re-fi to pay out 8-12 % return for a period of 20-25 years. PRIMERICA reps please answer me: What financial instrument or institution would guarantee that
rate over that long of a period? BANKS LEND/ SELL MONEY at those rates, they don’t buy money at those rates. That’s why the Federal Reserve was created. I’m not talking either of compound interest, which they arrogantly explained to me as if I had no clue about math. No bank at current market prices pays that in any instrument and no fixed asset instrument or institution will guarantee this either.
So the model that they use to engage a potential rep or customer is flawed right off the bat. If you use real interest rates or rates of return in that model, you might as well just keep your money or mortgage or debt instruments with your current bank.
At the end of “personal interview,” I was about to ask a question on how do you generate sales leads but the speaker ran off to many other engaged fans sitting in the audience. My question is: If PRIMERICA is part of CITIGROUP, why have I NEVER EVER SEEN A COMMERCIAL ON TV or Radio about it. CITIGROUP indeed is one of, if not the, largest corporations in the world and it can’t spend 1 penny, peso, shekel or drachma on advertising its retarded sister company? Are sales leads from cold-calling, hanging out at the 7-11 asking strangers about their insurance needs or jus beg your family members?
I have done cold-calling in my business for many years and it can generate GREAT business but you need to know what you’re doing and not for an untrained rep with a new product.
Low and behold again, I was given a flyer to fill out at the end of speech,
where I was asked to fill out all my information, including home ownership,
how many children, where I am from Haiti or not, how many parakeets I own,
etc etc a lot of personal questions AND IF I AM INTERESTED IN A
COMPLIMENTARY FNA. This did it for me! I knew exactly what they are
doing. This is how PRIMERICA generates sales leads, They call people
offering them an opportunity and then try to sell them their freaking products.
It’s not illegal but I think it’s pretty pathetic.
If they do plan to open up 10 different offices in the Denver Metro area,
then they can advertise when a job is available. Don’t try to con people into
thinking their interviewing for a job and then try to sell them your stupid
inconsistently and possibly criminally inaccurate products.
I welcome all comments or questions that I may address.
Cheers
George
13 Jun 08 at 1:41 pm
I am pretty confused about all of this scam that is being talked about. I had never heard of Primerica Financial Services. I am currently looking for a job and I had posted my resume online. I received a phone call on tuesday asking me to come in for an interview today at 1:30pm. I went to my interview and it was a one on one. The lady seemed interested in me and asked me to come for a second interview in which they will thoroughly explain what the company is about and how much can I make, salary wise. She talked about a speaker that would explain all of this but I had no idea that it was one of these type of scam jobs. I was really looking forward to it but now I am pretty confused and upset because I am trying to find a real, good job. They said they are trying to open up new locations in the Atlanta area so I thought it would be a good opportunity but now I am completely lost with all this scam talk. Am I really going to be one of their next victims, is this a scam? I NEED A REAL JOB!!!
13 Jun 08 at 2:33 pm
Mary-Anne Primerica isn’t a scam or a job. It is a business opportunity.
As an independent contractor you will have the opportunity to sell
insurance and investment products if you get the required licenses.
It’s not a job. (W-2).. Keep looking for a job and still consider Financial services on a part-time basis. Primerica is a good place to get licensed (wink, wink). I think they have a training program for $99.00 that pays for licensing. If later on you wished to go to another agancy and enven work as a CSR rep., you can just take your license and leave.
Let me just say again that Primerica is not a scam company. They also do not offer jobs. (unless you work at corporate) You would be a independent rep. 1099 not W-2…
I hope this answers your question.
13 Jun 08 at 3:19 pm
It’s a really, really, really BAD opportunity. But an opportunity nonetheless. You will have the opportunity to earn much lower commissions than you would at a legitimate insurance company. Unless you want to recruit. Build the pyramid and you might make money if you’re in the fraction of 1% that actually earns a living. Yee haw!
14 Jun 08 at 7:42 pm
I am a student at University of Toronto, and I have some knowledge and insights to “business” from the courses that I have taken in earlier years. I am currently taking summer courses and working at the same time.
I have been introduced to Primerica by a friend of mine a few weeks ago and in training right now. Before I decided to associate with Primerica, I did do vast background research on the company to make sure I wasn’t getting into something that was a scam or what not. The internet seemed to show more negative claims on Primerica then positive ones. However, I noticed that most of the negative entries were personal thoughts and opinions of what they thought of the company. I doubted that they were only practice of prejudice and outcome of emotional breakout or something. I have not yet once came over a legit investigation or properly done study on the company that had negative claims to convince me that it was really that BAD. One of the solid investigation that i read about was this one from ripoffreport.com. I thought they were credible as they always take customer’s and not the company’s side.
http://www.ripoffreport.com/reports/0/229/ripoff0229393.htm
So from the internet, I concluded that the company is not a) scam, b)good, c) but not perfect.
At the company level, so far, what I have learned from the “training” was beneficial to me at a personal level, discovering and learning how money flows or works. Like the author of one of the best selling business books “Rich Dad, Poor Dad” Rober Kiyosaki said finance is not taught in school. And it was true, things that I have learned about finance (not just about the products Primerica promotes but how finance works in general) were applicable to my-self and my family, with or without Primerica’s products. I believe Primerica’s products are legit though. I think the work of Primerica’s agent is to educate the families not “sell.” Because we teach them about finance, so they can make better decisinos for themselves, perhaps in future they’ll make better investment with another company.
I keep hearing that Primerica’s products are overpriced, i don’t think this is true, but they never make the families pay any more than what they are currently paying. And plus, even if Primerica’s products may not be the “best priced” in the market, the representitives have helped the familes already by having them save significant amount of money. Maybe an agent from a different might visit the same family and offer a better product with better price, which by all means is great for the family, great!
Oh when I was at Primerica’s office, there was this new guy that just started to work and got a $20,000 pay check from helping a family with a “big house.” Sigh, with that kind of money I can pay off my tuition fees. Stats at the company shows that a starter earns about $400 per clusure, so if you help one family a week, thats $1600. That kind of income for me as a part time soudned great. If you calculated the income per hours work, its roughly $70/hour.
In my point of view, after doing number of case studies on families that were literally ripped off by real big insurance companies and financial institutions, Primerica was like a protagonist in some way, kicking in in the middle, and help families save money rather than sell products. Hence making the “evil” “annonymous” insurance companies and financial institutions to make “less money” and giving little of this as comissions of the agents and most of it back to the families.
For me, Primerica has provided me with vast knowledge in finance and I think it’ll be a great part time job apart from school and another part time job. Certainly a better part time than at McDonalds.
……..that was just me.
Have a great week everyone…God bless.
14 Jun 08 at 7:49 pm
This comment completely cracked me up. You’re a college student. You don’t have “vast knowledge” of ANYTHING. You are exactly the type of “mark” they look for. Completely naive but thinks they know what they’re doing. Sucked in by some claim of a “large house” and $20k.
If you have sales skills and knowledge of insurance and mortgages, you’re better off working with a normal company that does these things. You’d make far more money.
But Primerica has sold you a bill of goods, and they’ve helped you completely discount the “negative” things you’ve found on the internet. Those “negative” people are just jealous losers, right? I’m sure that’s what you’ve been told.
You are textbook… exactly what they look for. Someone drawn in by their flimsy claims and willing to preach to others about the scam.
14 Jun 08 at 7:59 pm
you are all so silly. anyone who sits down with a primerica representative will be educated on the real scams that are out there, including the ARMs, Balloon payment loans, Cash Value life insurance and Banks as an institution. if you guys really need a job… try and put those companies out of business and leave primerica alone. for the love of all that is good and holy… primerica is what we do. it works and it has never hurt anyone that worked in it or was a client. i have never told you all that i think your business as a doctor, a contractor, a businessman/ woman…. was or is a scam. even though primerica has the same structure as any business in the UNITED STATES OF AMERICA! a contractor has to boss people around and will get paid on the quality of work done by his employees…. what a scam. a doctor get paid off of all of those poor people that have to get treated by him. it is just unrighteous for that individual to ask for money for the chairity he should be doing. it’s sick… right? WRONG! and a business man/ woman wouldn’t even contend the amazing opportunity found in PFS. they might even join in.
so, to all you lazy butts that never did anything in Primerica and are here now leaving your comments every day because you are unemployed, and essentially, a failure… just buck-up, shut up and get up off your rear and come join the elite in a company that DOES have credibility… haha, at least more credibility than this silly site that everyone is treating like the fountain of all truth. haha, shameful. see ya’ll.
14 Jun 08 at 8:04 pm
Aaron - Unintelligent, insulting rants like this really don’t advance your position that Primerica is a good company. No one is complaining that people earn money from selling products and services. The complaints about Primerica are:
1. It’s primarily a recruiting scheme. The name of the game is recruiting a big downline. Find people who will recruit more to recruit more to recruit more. The business is about building the pyramid.
2. The actual seller of a product in Primerica gets lower compensation than at a normal company because all the tiers of the pyramid need to be paid.
3. The products and services sold by Primerica are generally overpriced.
14 Jun 08 at 9:51 pm
Would you guys go to http://www.term4sale.com and run some rates?
Do you have a clue how important it isas a business person it is to know who owns a client? Do you know the what impact a noncompet clause can have on your business? Do you know what other products you can sell with the same licenses you currently have? You bash against Cash value policies. Well have you ever heard of Life settlements?..Your loyalty to a company and RVP is possibly costing you money…
You say you are out to help families. Well considering PFS doesn’t offer a disability policy, why not go out and contract witha company and offer it? Did you know with some companies in some states, you can send in the application along with an agent contracting paperwork?
For Disability, you can contract with Illinois Mutual by faxing in the paperwork and be able to offer their products in a few days. Oh I forgot your an captive independent agent. If you send your clients to me for disability coverage I might replace your term and you’ll get a chargeback..I guess it’s best you not mention disability to your clients…Why is that??? No i’m not talking about waiver of premium.. You guys don’t know what you don’t know…
15 Jun 08 at 6:06 pm
I wasn’t told by anybody to do or say anything. What i said were my mere opinions and no i havn’t spent a single dime in training and learning all these new things. Also, i will not spend a semester studdying at Senca in order to earn a credit so i can get a licence, but rather “i will take the adventage” of the Primereica sponsored program and benefit from it. All this economics/finance isn’t my field of study nor my prime interest. I am a lfie sci student and i will be working in science fields anyway. I think it has been a great benefit and opportunity for me since day 1 and I’m glad. Let’s all be happy together for once.
15 Jun 08 at 6:07 pm
Primerica offers disability insurance, its optional. We tell families about it.
15 Jun 08 at 11:04 pm
Well get the license and just keep your options open. many PFS agents just don’t know what other products pay. With a life/Health license you can also sell Fixed and Indexed Annuities, Life settlements, Critical. Illiness, health insurance, med supplements, and other products.
As always as an independent contractor you have the right to run your business as you see fit. Working within the Financial services industry can mean that you retire when you wish and the book of business you develop has a market value. The decisions you make today can determine your income tomorrow. Considering you say your still in your University you are in the beginning of the baby boomer trend. your coming into the industry at the right time. You will have a window of about 10-15 years of a massive wave.
The trend today is preservation and distribution. The big days of buy term And Invest The Difference is a thing of the past. Today there is a shift of going toward active money managers. Times are changing, and PFS isn’t willing to change. There’s no need for a part-time agent to be captive.
19 Jun 08 at 11:29 am
The reason I, a Primerica recruit, am having a hard time seeing where people think Primerica is a scam is this:
All of the classes and training I’ve had, so far: FREE
The money I paid for my licensing exam: WENT TO THE STATE, not Primerica. (and I believe it was discounted because Primerica paid most of the fee.)
The money I paid Primerica went to a background check (not Primerica) and a study book (that I -wanted- because it was cheaper than the books I saw at the corporate bookstore in my city.)
I haven’t given Primerica any money. I have a real, State insurance license that I can use with any insurance company. I plan to work on getting my securities license and a real estate license, by the end of this year.
I’ve always wanted to be a realtor, and Primerica is helping me achieve that dream, whether I work hard enough to become a $100,000 earner, or not.
Everyone I’ve talked to has been very up-front with the fact that I’ll be working for a commission, that I don’t have to recruit people, if I don’t want to, that I can expect my earnings to be a couple of extra hundreds a month, if that much, and that I’m not supposed to sell a client ANYTHING they can’t afford or can’t use.
They encourage us to work hard, do more, and actually strive for six-digit earnings, but they NEVER lead you to believe that -everybody- does it.
I don’t understand how a person can call it a scam. I’m an incredibly pessimistic person. I didn’t work for make-up companies or knife companies, because I would have to -buy product- in order to sell product. Whether I succeed, or not, those “tangible product” companies get their money. With Primerica, if -I- don’t get paid, they don’t get paid. It’s in Primerica’s (as a business) best interest to support and encourage their representatives.
Primerica doesn’t make me do anything but get licensed, which, whether I was working with Primerica, or another company: I would still have to do, in order to sell insurance.
I’m not trying to change your mind. I just want anyone else that sees your ill-informed post to read about my experience.
* Products are priced competitively. I’ve, personally, done research on this. Also, Primerica does not charge application fees, so, people can take a good look at THE EXACT policy they would be purchasing or loan they would be agreeing to, before spending out any money. Also, Primerica is about clearing people’s debt in enough -time- for them to enjoy their lives. If I can pay a low rate to be in debt for the rest of my life or pay a higher rate to start saving and enjoying my life… I’m going to go for the higher rate if it fits into my budget. That is what we offer people!
* We MUST be state licensed in order to work for Primerica. Primerica doesn’t even -pay- unlicensed individuals, so… what would be the point of someone without a license trying to make a sell?
* Primerica pays commissions that -I- have agreed to. If I wanted to work for another company, I would. I’ve done my research, and I don’t want to work for anyone but Primerica. A few of my friends have been working for Primerica since we started college. They, as -college students- are making thousands of extra dollars, every month and have been for two years. Everyone won’t get the same results, but I know three girls that are doing it. These are hard-working girls that have gotten licenses in neighboring states, and car-pool to other cities to talk with families. ALL of them started donating to the American Heart Association after I had heart surgery, last year. How many college students do you know with enough extra income to financially support a cause they believe in?
I appreciate what Primerica has done of them and can do for me. We’re all International Business majors that plan to expand with Primerica and be a force for good, in this world.
23 Jun 08 at 12:25 pm
My old roommate is in the process of getting roped into this crap. She called me a little over a week ago, told me she was in the process of getting a new job (although she has a great management position [department position], for a big well known store) That they recuited her from her posting her resume online -within 2 days of posting she has two responses from two similair companies. She is planning on doing this on full time, quitting her secure job and paycheck. She asked if she could come practice her sales pitch on me and my bf. I told her that would be no problem. She shows up for for our ‘appointment’ at my home, earlier than planned with two people (trainers as she said) who she never told me she was bringing.
They then sat down with us, asked us WAY too personal questions, including how much we make a year, how much I’m selling my livestock for (horses), what my health, dental, vision, life, AD & D, and disability insurances are costing me. Which we weren’t comfortable telling complete my old roommate…let alone complete strangers. They wanted to know about the mortgage, when we explained we were selling the house, and moving into another. He said we weren’t good candidtates. Unless we were interested in working for them. And when we get financing for the other house then we should consider them. (What we didn’t tell them, is that the other house is inherited, and we won’t need a mortgage.) He also said to ask plenty of questions, so my old roommate can learn from them.
The one question he couldn’t answer was what could this company do for me, since I have no credit card debt, my car loan is 2.9% financing, and aside from everyday bills that I don’t have much in the way debt. That’s when he said I wasn’t a good candidate. That the ideal candidate is: 25+, married, loads of debt, and children. 25+ is the only one that applies to me. But he did try hard recuit us to work for them. The very end of their pitch he explained how the payout works….how they’d all benefit if we would have signed up for something. The higher up making the most of course.
My old roommate thinks she will be doing a great deed, helping people, but I know she has no experience working in finances, and has no business giving any financial adivse to people. She is a perfect recruit for them though, easily brainwashed, naive, and she is one of those people who is constantly is comparing what her and her husband have to the people around her. She wants to be better than everyone, and thinks money is the way to do it….
And lastly, they said she is on the ‘fast track’ to becoming a higher up, and she plans on having her own office in 3 years, and being like the man who is her bosses boss, who they claim is making $80K and month…thats $960K a year….While visions of riches dance in her head, all of our mutual friends that she has been trying to make appointments with are advoiding her….
27 Jun 08 at 8:39 am
For anyone wishing to better understand how an MLM really works:
Primerica, Quixtar, Amway, and any other MLM organization out there all share the same characteristics. In the interests of the MLM fiscal goals, the internal structure and business plan are superb. Lets break down the business plan piece by piece.
1. First of all, advertising of services comes at almost no cost. MLM organizations recruit agents to promote services. Not only do average MLM agents make little or no money, but they have to pay for a “license” to promote the MLM products. This is an ingenious plan. The agents assumes the costs to promote. In reality, the agent is paying to work for the MLM.
2. Second, Risk. MLM’s assume almost no risk. If agents wish to open regional offices, the costs must be assumed soley by the agent. In the instance of financial distress, the MLM is free from litigation arising from financial ruin, any legal costs arising, etc. MLM organizations encourage reps to open satelite offices because dissemination of goods and advertising will increase with no cost or risk attached.
3. Turnover. Since the majority of money is made in the sign-up fees, conference attendance, and motivational tools sold, the business model does not depend on educated, hard-working individuals to drive the MLM to success. MLM’s will thrive on new recruits with little or no experience simply “attempting” to succeed. No real interest or value is vested in MLM agents since turnover nears 100 percent annually.
These are my three reasons why MLM organizations thrive. MLM agents; however, nearly always fail. My father was correct when he said, “Son…people will do things for money they ordinarilly wouldn’t do.” Spot on Dad, Spot on!
05 Jul 08 at 1:12 am
I think Tracy is working for one of those insurance companies that scam people, and is just scared Primerica is ruining her business.
http://www.ripoffreport.com/reports/0/229/ripoff0229393.htm
05 Jul 08 at 1:13 am
Oh, I forgot….
Insert your personal attack on the dotted line
…………………………………………………………
05 Jul 08 at 5:47 am
It doesn’t take much effort to figure out that I don’t work for an insurance company, but why bother yourself with silly details?
05 Jul 08 at 9:46 am
No one is saying Primerica is a scam or bad company. They do business the way they do. The issues are Primerica agents thinking they are the savior of the Financial services Industry when many/most of their agents don’t have a clue about other products or agent contracts within the industry.
Compare the PFS agent agreement/compensation and products against other marketing organizations. Compare the PFS legal plan/compensation against
working with another organization and having a direct contract with Prepaid Legal. Side by side PFS can be beat all day everyday by an independent. Be it for the business or for the recruit.
Primerica has a 100,000 plus agents. They are the big dog on the block. That’s changing. The word is getting out.
07 Jul 08 at 10:37 pm
I had an interesting conversation with a human relations person. I asked the right questions (about recruitment needed to advance, about A.L. Williams, the founder, up front costs, about the many complaints about the company and its product, both from former employees and former customers (many of them old friends). My final conclusion: They run a thinly veiled Pyramid MLM, in which the last people who get recruited usually get it in the shorts.
I remember this same stuff from back in 1977 when it first appeared. My friends who got involved were convinced that they were trying to help people, a cause which they believed in completely, that they were completely dedicated to helping other friends and friends of friends help people (while accumulating wealth, of course) and boy, did they try to get me on board. I saw then what it was they were selling to new “employees” . It was a pretty bad deal then and it appears things have not changed that much.
I have no problem with those who think this is a great way to help others while becoming wealthy at the same time. As for me, I want no part of it.
08 Jul 08 at 5:33 pm
AMEN, BROTHER!
09 Jul 08 at 9:00 am
Does anyone know does this company have anything to do with the new Genistar company now operating newly in the UK? Sounds very familiar….
10 Jul 08 at 2:16 pm
I am sorry for you Tracy, You don’t have the chance to do something different in your life and someone’s else’s. How much $ are you making a year? are you working for a company or for yourself? Do you have the posibility to be financialy independent? I am Mexican and I have work hard as other immigrants, didn’t speak english (now I learned), didn’t know no one in this country. But I have a Degree: “Bachelors in Business Administration with major in Accounting”. and no one gave me a chance. Everybody I know told me to work hard (and I did it for 11 years) they are broke. Then everybody told me to get more education and I did finished my University, but nobody cares. I took any job and they never told me I can make $100,000.00 dollars a year if I work hard (with overhead expenses). That is the Primeca Opportunity! Now you talk bad about the MLM?, and Pyramids, What’s a Pyramid? like Egipt or Teotihuacan in Mexico? I think you are just bore with your life and everything around you. I am writing this because you are taking the opportunity to other people to become something that everybody wants, the american dream. Financial Independence. And no matter what you say Mary kay still makes millions of dollars, Avon, Amway, Primerica, etc. I am gonna recommend a book, the one that Ray Krock, Walt Disney, and any other millionare that drop off of school and got succes wrote. thats Primerica. And this words come from the Mexican Top of the Class with an Average of 10 (A) in the Universty. Pretty Smart Guy with a Vision! Best Regards! P.S. Also I recommend Fast Food Nation Book read it its an awesome way to learn about corporate america.
10 Jul 08 at 2:19 pm
I’ll have to agree with you Adrian: Those companies are making millions of dollars. How? By scamming hard working people out of their money. If you want to become rich, open a MLM. It is one of the most lucrative forms of business for the owners of the companies (unless you’re Len Clements and keep failing at it). It is a crime-in-progress that our government refuses to stop. How beautiful for the owners of those companies. Check out the millions of dollars the executives of Usana have made through stock options. Brilliant, indeed!
10 Jul 08 at 3:21 pm
Thanks for your response, that was fast! Let me apologize for my errors in my writting. Also, just to let you know I am a Regional Leader with PRIMERICA, the company that gives me all the tools to become a Financial Professional. I am License for Insurace, Mortgages, and Investments and other Financial Products. So every person it is responsible for their own Licenses and for their own acts (like the guy that is mention in the investigation). What I do for people is to approach them to the companies that they can be dealing with by their own, but they are to busy to do it. So, without the platform that was created for me by Primerica, I am not be able to do it . Now I have the support of great and wonderful investment companies like Van Kampen, Legg Mason, Fidelity, AIM, etc. And the back up of a corporation like Citigroup. I am not here to convince you but I don’t think that there is other company helping the average guy to enter the financial world to become a Professional and get the money they deserve and help fellow Americans. And also, Do you want to do it for all your life? no! that is the reason you can invite to work WITH YOU more people and show them how to do it so they can get the same Professional Life as you. So don’t be so hard with you and other people, give yourself and other people the experience of something new, exicting, because life is short. If you feel Primerica is not for you, what do you have to loose? you can still go back to your old same and boring job working for somebody else and make them rich while your life is vanishing. Thanks for everything and hopefuly I will meet you one day, when I sign my RVP contract for ownership. p.s. the DryDude above whetever he sounds like and old person, he remembers 1977? Well Dude, you lost! you could be Rich by now!…I’m sorry, have to go back to help more people and make money!
10 Jul 08 at 5:40 pm
There is a difference between MLM and Pyramid scheme. Participating in a pyramid scheme is an offence under the Criminal Code of Canada, punishable by up to 5 years imprisonment. MLM companies are always vulnerable to negative claims because of the recruitment involved. However, that is just a new system that has proven to be effective. I think Primerica is legit, not perfect, but fulfilling its mission (helping mid/low income families) by bringing the Bay street financial services to the Main street.
10 Jul 08 at 6:22 pm
I couldn’t disagree with you more on your last sentence. One of the marketing tactics Primerica uses is the claim that they help low and middle income people who otherwise wouldn’t have these services (insurance, investments).
It’s simply not true that those people don’t have access to them. I know PLENTY of insurance agents and investment advisors who would be HAPPY to work with low and middle income people, and educate them about financial matters.
10 Jul 08 at 7:59 pm
Adrian I have 3 letters for you. HBW… Check them out http://www.hbwinc.com
You can be independent and offer many other products and services to your clients. Not to mention better compensation. Forget the PFS rah, rah, look at it as a business decision. If you can get a better contract and more products to offer why not take a look. You always have the option to go back to PFS.
Of course I understand your loyalty it to your upline and Primerica.
10 Jul 08 at 9:09 pm
I think what the “Unemployed” meant was based on the fact that major banks in Canda don’t bother to help mid/low income families with investment unless they have huge assets. For example, TD Canada don’t consider consulting with a client unless they have $100,000 in their portfolio just to offer them specialist mutual funds. Instead, what is provided to mid/low income familes in reality are GIC (rate of return at 3~4%) and for those who are more ambitious mutual funds (5~6%). Primerica allows clients to open up an account with less than $100 to benefit from specialist mutual funds(up to 10~12%). Another point is, life insurance agents gets paid 10 times more comissions than the Primerican agents by selling whole life insurance. With this kind of comissinoal benefit, there is almost no doubt that they will be selling whole life insurance. Hear this out though, according to Personal finance for dummies written by the Canadian government, term life insurance is the way to go for average incomers. Becuase most families do not need insurance after their retirement, and term life insurances are much cheaper. I believe for these reasons the company has specialy targetted mid/low incmoe familes and helped them financially.
10 Jul 08 at 9:13 pm
But are major banks the only places to get insurance and investments in Canada? I can’t believe they are. We have a company called Edward Jones, for example, that does investments for people with all incomes/asset levels… but is especially good w/ lower to middle income. Don’t you have some companies like that in Canada?
10 Jul 08 at 9:14 pm
LOL @ Jack.
Yeah, right. Go from one crappy MLM to another crappy MLM. What don’t people understand about these MLMs? They’re recruiting schemes. If you want to sell insurance and/or investments, get hooked up with a regular company! You’ll make a lot more money for selling!
10 Jul 08 at 9:24 pm
Truth is that very few families are financially knowledgeable, and probably the only fincnial firm they will deal with are with major banks becuase their big names provide them with sesnse of security. But more realistically, how many families would go to bank to pay bills, ask questions about finance, or get info about investments ? and how many banks would introduce anoter company? Sad reality.
11 Jul 08 at 12:17 am
Will your bank show you how to save money on your insurance? Will your investment company show you how to reduce your debt? Will your insurance
company show you how to calculate the amount of money you will need for retirement? We show people how to balance everything out.
We are not trying to be everything for everyone.
Also I’m getting tired of all this blog about MLM and captive agents and limited number of products. This is my example. Two years ago I bought a new car. I go to my favorite dealer because they don’t try to pressure anyone but they will find a car that fits a persons situation. The dealer sells Chryslers and Jeeps and recently added Toyotas. This is what I learned. The Chrysler Jeep salesperson cannot cross over to the other building and sell a Toyota. The Toyota person cannot sell a Chrysler or Jeep. If the salesperson sells enough cars, he gets promoted to sales manager. Guess how he gets paid. He collects a commission on every car sold by one of his salespeople. He has the
ability to hire people to sell or drop the people that don’t sell. The salesperson makes a commission, the sales manager makes a commission, the dealership owner makes a commission, the car manufacturer makes a commission. This is a the granddaddy of all the pyramid schemes that I hve ever seen.
11 Jul 08 at 7:41 am
Note to Mike:
Car dealership = legitimate business in which the purpose is to sell cars
MLM = recruiting scram carried out by lying about earnings and the product
11 Jul 08 at 9:08 am
@Mike: “Two years ago I bought a new car. I go to my favorite dealer because they don’t try to pressure anyone but they will find a car that fits a persons situation.”
If you could do the same thing for your clients why wouldn’t you? As most people at Primerica are part-time and are out to make extra money why if given the choice be captive?
11 Jul 08 at 4:38 pm
Hey Tracy, I am back! Car dealership Legitimate business? Yes, they legitimate rob and rip off people. Why they don’t show the price of the car anymore in the comercials?. for only 99.99 you can take this car home! oh, you cannot afford it? can you get a co-signer? they do this to everybody, how much can you pay a month? 100, 200, 300? they don’t say thinks like:”This is gonna be a simple interest loan and you’ll pay it off in the middle of the time at the middle of the cost” Edward Jones Investments is very great company and if they are helping people with 100 bucks is because they are loosing market and they found out that PRIMERICA is the only one doing it. well, that’s it! I see a couple adds in this webpage aren’t you Tracy receiving any money everytime someone clicks in this page and makes a comment? because if you are looking for scams, the Internet has the biggest! And I do not have any loyalty to my Upline, actually I do not even like him, I am loyal to my self and my work.
great talking to you guys, and the last thing is that everyone has fears, we fear loosing money, getting cheat, we fear the IRS and Immigration, the day we overcome our fears is the day we can open our eyes and decide what to do with our lives and the best way is to help others and make money doing it! Thanks!
11 Jul 08 at 4:51 pm
Yes, car dealerships are legitimate businesses selling legitimate products. They are not recruiting schemes like MLMs are. Thanks for your insightful comments.
11 Jul 08 at 5:08 pm
Loyal to yourself? Loyal to your work? Noncompete. Who owns clients and downline? What is your commission schedule? Can you earn renewals? Do you have to give up legs to be promoted? Can you sell other products your company doesn’t offer? To me it looks like the power is leaning toward the company.. It’s not personal… For some people Primerica is the company for them, but in many cases some don’t know there are alternatives.
11 Jul 08 at 5:33 pm
Well Tracy what is your Business what is your occupation? Do you have a legitimate Bussiness? oh yes!, at the top of the page you are selling a legitimate book! great Bussiness! and Jack do you have a legitimate bussiness also? and this is the last time I write, bye bye!
11 Jul 08 at 6:09 pm
for Tracy and Jack, yes we do help people sort things out. Yes we are a legitimate business. We sell investments from Franklin, Van Kampen, Legg Mason, Oppenheimer and other legitimate companies. Everyone does not need all of our products. Yes we do find out what fits each persons situation.
I have never seen any of our reps high pressure anyone. No one is lying about their income. Our products are not over-priced. I have seen some of my clients get turned down for loans because they did not qualify. Isn’t that better than a loan company that will qualify anyone so they can charge outrageous
rates, rip-off someone that cannot afford the loan and foreclose on them? We tell some people you can’t do it at this time but let’s work on it and in the future we’ll try it again.
You people who think that all MLM’s are scams are the same people that judge someone because of race, religion, ethnic background, etc. Why don’t you go pick on Mary Kay, or Avon, or Shaklee?
Even better yet, go to a Primerica office and get your free computerized analysis. Ameriprise charges around $400 for theirs and they don’t even have
the debt ratio program. Now who is over-priced? Find out what we really do
instead of bashing us on rumors and other’s opinions. Derogatory remarks about us were started when other companies found out they could not compete with our products. All you are doing is going along with the other sheep.
11 Jul 08 at 6:49 pm
Mike - You might try actually reading the post you’re replying to before you’re replying. I do pick on other MLMs as well. MLM is a fraudulent business scheme that our government allows to operate. Primerica is a typical recruiting scheme, where there is far more emphasis on recruiting new marks than selling anything. If people want to sell investments, there are far better companies to do it for. If people want to buy investments or insurance, again, there are far better companies to buy from. MLMs cause billions of dollars of losses to consumers each year. That’s criminal, in my opinion.
P.S. You couldn’t pay me enough to even walk into a Primerica office.
11 Jul 08 at 8:26 pm
Tracey I do beg to differ. Primerica recruits to sell. They don’t make any money from ” signing people up”. They are legit in what they do, but….the agents in my opinion don’t know much about the industry. They only concentrate on what Primerica tells them.
Yes Mike I know quite a bit about Primerica, because I used to be an agent. With the products I have access to I can beat you guys all day everyday. It’s nothing personal, it’s just a business fact. You can go to http://www.term4sale.com and do some quotes. I can have accesss to most of the companies you will see. As for investments as you know getting a 6,63 is just finding a broker dealer, but to go to another level, I can get a series 65 (RIA) and go that route if I so choose.
You see Primerica is staying in the past. This is the distribution phase. Yes there is still a market for Buy term And invest The difference, but that market (babyboomers) have gotten older and now they are looking for protection and distribution….So stay at PFS and hope they change. For the company there’s no need to consider it, but as an individual agent it may be something you consider…Nothing against Primerica, but when I was there I had no clue about the industry and the different opportunities. One day you’ll see the light. On that day you will have to make a decision. Do what’s right for the company or do what’s right for the client…
I have been where you are.
13 Jul 08 at 9:19 am
I sold Acuras for a long time. A guy comes into the dealership one day and talks me into going to one of the Primerica meetings. I see and hear from the people and who did well and then they bring out the top gun and his wife who are making all of then money. I did not sign up.
A while later I am sitting with this couple in the Acura dealership who is currently telling me how bad their financial situation is. I keep thinking to myself, I have seen theses people before. As it turns out it was the big shot and his wife from Primercia.
That is my experience.
14 Jul 08 at 7:29 am
Any advise from anyone on how my old roommate who is now Primerica salesperson to understand the word ‘no’? I keep getting calls and e-mails from her saying she’s ran my ‘info’ (which I’ve never given her any information) and she can get me a great deal on life insurance.
Why do they ask their salespeople (or maybe it’s just her) to push their products on friends and family? What happens when they tap out their resources? Are stuck making cold calls? That would be awful!
14 Jul 08 at 8:15 am
New agents entering the company will come in with their network. Trainers use new warm market list of the new agent during the course of their field training.
15 Jul 08 at 9:03 am
Tracy, I don’t understand why you’re still going on and on. Don’t you have better things to do? If you have valuable information that will be welcome. But it seems like you are just whining and bashing Primerica and other MLM companies, which you don’t have much knowledge about. How much do you know about business and different business models? How much do you know about the economy? How much do you know about society and the job and income situation of the middle income America? I am not a Primerica rep but I know that their concept and the business model are excellent. Nor am I a distributor of any MLM company. I have been a business man all my life and I own three businesses and I have researched MLM and I think it is a legitimate and excellent business model. One day, in a late night talk show, Donald Trump was asked if he lost everything what would he do. And Donald replied that he would join an MLM company. Hearing this the audience laughed, and Donald said, “Why are you laughing? That’s why I am sitting here and you are sitting there.” So Tracy, stop whining from the sideline. Do your due diligence and if you have valuable information to share it will be much appreciated.
15 Jul 08 at 2:44 pm
Wow, Tracy, you are determined in your views. As a newly enlightened Primerica representative, I am beginning to see your point. I believed in the Primerica crusade mantra and joined the group about 10 months ago. Since then I was told that I had to have a minimum of ten face to face appointments with my trainer conducting the appointment and any sales made would go to her. I was also told I needed to be recruiting as many people as possible to build my business. At this same time I was attending class and going toward getting my life insurance and securities license. I generated several loans, life insurance, annuities sales, but I have never seen a penny for my efforts. Now l0 months later, I have been informed that my business is restricted to only life insurance sales because the home office just woke up and reviewed my application and realized that I am a licensed real estate broker and that they consider that a conflict of interest. My issue is not with their decision (although it is not illegal to have duplicate licenses), but that they waited so long to inform me that I would be restricted. I believe that if a company would treat me that shabbily they would do it to anyone and at any time in their career new rules might be thrown in. I say “good-bye” Primerica!!!!
If anyone is listening, I recommend you to steer clear from this company.
15 Jul 08 at 3:22 pm
Jack, I just visited you HBW website. How is it any different than Primerica?????
15 Jul 08 at 8:40 pm
Chad - I don’t think a business structure in which 99% of people lose money is a good thing. Sorry if you don’t agree with that.
http://pyramidschemealert.org/PSAMain/news/MythofIncomeReport.html
You should also know that the Donald Trump thing that you’re quoting is an urban legend. That rumor gives no credibility to MLM whatsoever.
I will continue to inform consumers about the pitfalls of MLMs, regardless of your opinions on how I should spend my time. If you don’t like it, don’t read this blog.
16 Jul 08 at 8:28 am
Marie:
Look at the products that can be offered.
There’s no recruiting requirements.
There’s no noncompete in the agent agreement.
Look at the compensation schedule.
Immediate ownership of clients and downline if the agent wish to build one.
Agents can advance from personal production if they so choose. It’s called total freedom.
The prices HBW quotes are the same prices people can get out in the market be it from TV, Internet, radio or whatever.
There are no restrictions on outside activities as long as what a person is doing is legal and compliant.
Dare to compare:
http://www.hbwinc.com/build/compare.shtml
HBW is a Financial Services Marketing company so they are not tied to any one company. They have their own Broker Dealer and they support series 6,63,26 and 65 (RIA). HBW agents have the ability to pick and choose any market they wish to target. yes even wealthy clients.
To me immediate ownership and the noncompete are two great points.
31 Jul 08 at 3:48 pm
You say this company Primerica is a fraud, well how many “pyramids” or MLM’s require state and federal licences to market their products? How many are required to submit annual compliance reports? How many can offer you a LEGAL document that says you are the owner of this business, something that you can leave to your family, or sell it back to the company and get 10-fold what your organization is worth? There’s a lot of things out there that say you can “own your own business”, but they are nothing more than “money-making opportunities”, not business-owning opportunities. And as for Tracy who wrote back on 7/11/08 that she can’t be paid enought to walk into a Primerica office, let’s hope your not one of these people out here who are still working in their 70’s because all you see is a company that is nothing more than a MLM, instead of seeing us helping people become debt-free and financially independent.
31 Jul 08 at 5:59 pm
Tracy - I would be interested to know what credentials you have that make you expert about PFS.Where do get your facts & statistics? Have you talked to someone @ PFS headquaters in Duluth? It seems like you just pull thing out of thin air! If you are going yo make statements that influence peoples lives it would seem like you would do real reserch & not just make random boilerplate comments. When ripoff went to PFS headquarters & got real facts they changed their opinion. I would suggest you do the same it may help with your credibility. As a PFS REP. for 20 years I find your comments not very intelligent & poorly reserched.
31 Jul 08 at 9:38 pm
John - I don’t have to go to Duluth to know that Primerica is a company that agents and customers should stay away from!
01 Aug 08 at 9:36 am
My sister was just recently visited by a Primerica Agent and was offered the services (products) after filing her application for mortage, according to the Primerica agent my sister did not qualify for refinancing. However the primerica agent told my sister about becoming an agent my sister mention her language barrier being that my sister’s first on only language is spanish she’s very well educated but does not speak english, so anyways the primerica agent insisted this was not a problem and sold my sister two memberships for 90.00 usd ea. i just went with my sister yesterday to what primerica agents call ”Up night” kind of like a motivational conference where current agents are asked to bring a gest or two i guess in an effort to recruit more agents? well one thing that discourage my sister is that all the meetings and training was in english only and she felt left out. I ofcourse did not join, however my sister already paid for the 90.00usd and she is not sure. Can some real ex primerica agents that had bad experiences with this company give me some advice or on the contrary if there is nothing wrong with this company and there is training in spanish available im also open for those comments, i just want to be in the safe side thank you!
01 Aug 08 at 8:01 pm
I used to be a Primerica agent. Primerica is not a scam. They just target a certain market and go after that market. At one time Primerica was the only company in town who signed people up on a part-time basis and sole term life insurance and a side investment for the Buy Term And Invest the difference concept. well today that has changed.
As far as ownership, the question is what does a person have to do to qualify for ownership? As I said Primerica is not a scam company, but agents today can do have more products to offer and get better contracts outside of Primerica. at least that’s my opinion.
To compare term products go to http://www.term4sale.com i’m sure you will notice a difference in premiums. Also take a look at this site.
http://www.christianpf.com/primerica-pros-and-cons/ They seem to have a debate going on, but the problem for primerica agents who post is they are posting to former PFS agents who are now independent. It’s kind of hard to debate people who have been in the company and are now outside the company. They know both sides while the Primerica agents basically only know what Primerica tells them..
Let me say it again, Primerica is not a scam, but they are a captive company. Which means they only allow their agents to sell what they allow them to sell.
For the person who wish to get their money back from Primerica you should call the company, because there may be a time limit…Also as a side note me myself, if you paid already, I would get the Life and Health license and never give it up..There’s no requirement that you have to sell anything..at lest from what I know..
04 Aug 08 at 12:51 pm
Traci-
It’s sad to read your negative opinions. How horrible. That’s exactly what they are, YOUR OPINION.. Sounds like you’re a bitter person with nothing better to do. Please take all that time and energy you have and help those in need instead of bashing a company like Primerica. When you bash it’s a sure sign of a bitterness whether you admit it or not. There is so much negativity in this world and people don’t need it. Do some soul searching and ask for forgiveness because what you’re doing is a sin. I never engage in anything online because a lot of it is garbage. Those of you that are Primericans, don’t give Traci the pleasure by responding anymore and move forward with what you do. All this negativity is not worth your time nor mine. God Bless!!!
04 Aug 08 at 1:03 pm
You never engage in anything online? You seem to be online… and you seem to be engaged here….
04 Aug 08 at 5:51 pm
Do some of you Primericans forget what you say about agents or companies that sell cash value products? It seems like you can’t take it when something is thrown back at you. Tracey can have her opinion.
Well today the heat is on Primerica. Is it justified, maybe or maybe not. I can see a name change in the future after your sold. I’m sure you guys get tired of being on the defensive all the time.
05 Aug 08 at 1:43 pm
I have