An Honest And Critical Primerica Review (Don't Join Before Reading!)
An Insider Review From A Former PFS RVP
Primerica is a financial services company that uses an MLM model to distribute financial products to Middle America. For more than three decades, Primerica has been able to produce many, many 6-figure a year earners. In the first quarter of 2010, Primerica officially broke ties with it's parent company, CitiGroup, and went public. Currently, Primerica's sales force is made up of 100,000 representatives. It has maintained a good rating with the BBB, and it is a legitimate opportunity (despite what you may have heard).
With that said, there are some pros and cons you should be aware of if you're going to join Primerica. In this critical review, I will highlight details and list the pros and cons of Primerica's business model and give my objective opinion of whether or not Primerica offers an excellent opportunity for the average person.
Let's start with the Pros:
1. Primerica allows someone to come on-board and obtain state licenses to market life insurance, securities and mortgages.
2. Primerica allows people to come on-board part-time, which is RARE in the financial services field. This is a huge feature since agents can learn the business at their own pace while making income from their jobs.
3. With the Primerica compensation plan, a rep can make a decent living simply selling Primerica's financial products.
4. Primerica offers a lot of support to it's reps... mainly because reps have acces to physical offices run by local RVPs.
5. As I stated earlier, Primerica has one of the most impressive track records in the MLM industry. Currently, there are over 60 people in the company that make more than $1,000,000 in annual income.
Now, let's give you the Cons:
1. The training of financial concepts and products are pretty basic, which is unfortunate for some clients that are acquired by "newbies". Personally speaking, I wouldn't want my kid's education funds, my retirement accounts and, especially, my life insurance accounts handled by someone that's been licensed for 30 days and has no experience in truly offering financial advice.
2. Primerica pays a much LOWER commission to reps when compared to what they can make if they were an independent financial services rep.
3. You are captive at Primerica. In other words, you can't offer other company's products and your clients are NOT your own. While only offering Primerica products may not be a bad, as a financial rep, you have a reponsiblitity to your clients to shop for the best possible products for them. "Shopping around" is something you CAN'T do at Primerica, but as an independent, you can.
4. As a network marketer, you will lose about 80% of your incoming reps because of the licensing process. The company stats indicate that ONLY about 20% of incoming reps pass their life insurance exams. What about the eighty percent that don't pass their exams? They inevitably give up on the business.Imagine building a group that is recruiting 100 new people on a monthly basis. Now imagine 80 a month of those 100 a month were people you couldn't build with because for whatever reason they couldn't pass the licensing state exam (Not cool).
5. This is a significant detail of the business model that's typically NOT disclosed upfront - When you get promoted to Regional VP, you have to give your BEST leader(s) to your upline. This is known as "ownership exchange". Imagine, working your behind off to earn your Regional VP promotion, only to give up your best leades and starting all over again... Only this time around, as an RVP, you have office expenses to worry about and you are full-time with no other sources of income. By the way, Primerica requires it's RVPs to be full-time and forbids them from making money elsewhere. This is a critical feature you need to think about if you are considering the Primerica Opportunity. In other words, if you plan on building different streams of income, you can forget about it once you promote to RVP.
In closing, Primerica is a real legitimate business opportunity where once can go to learn the basics of financial services while building a network marketing team. Just make sure you do your research on the products and compensation plan so you know exactly what you're walking into.
Should You Get Involved?
If you're interested in a network marketing opportunity that DOESN'T require hours of product training, the liklihood that you'll lose eighty percent of your recruits because of licensing and the "Replacment" concept, then Primerica might not be for you.
However, if you like the idea of recruiting agents (and you're OK with a super-high attrition ratio) and building your agency with the opportunity to qualify to open up your own Primerica office, then Primerica may be an opportunity you should explore.
Author Resource:-
Jaime Soriano is a Business Developer, MLM Coach
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