Primerica has been around in the network marketing game for a long time now. But there are still questions on whether it is a legit company or just another scam.
You might have landed in this review because a member of Primerica, possibly a close friend of yours, has approached you and introduced you about it.
It is an established company and has been running for a long time. The good news is, it does not only recruit people to make money.
They do sell legitimate products, or in this case, services. Primerica is a Multi-level Marketing company that sells health insurance.
This product is a unique one in the realm of MLM. Most MLM companies sell health and wellness or beauty products.
So if you are wondering if you should join the company as a member, or just thinking about buying from them, then this is the perfect review for you.
We will discuss a little bit about their products but mainly on how the company works. How you will make money with them.
First things first, you should thank yourself for putting the time in researching such companies.
Primerica was founded in 1977 under Citigroup Inc. Primerica then separated from its mother company via Initial Public Offering or an IPO in 2010.
Initial Public Offering is a process where a private company becomes a public one to expand and become a publicly-traded enterprise.
So what does Primerica do?
Primerica is an MLM company that sells healthcare insurance and is based on Duluth, Georgia. MLM companies differ from Pyramid Schemes because although they both recruit people, MLM companies have legit products to sell.
Since Primerica has been around for more than 40 decades, you can be sure that they are a legit company. No Pyramid Scheme or scam will last that long.
What does Primerica sell?
Primerica sells healthcare, life insurance, and others. Just like all businesses, you need a good selling point for it to succeed.
In beauty products, they usually garner customers by saying that they have the best products and they are all made from natural ingredients.
The same goes for health and wellness products. They claim to use all-natural ingredients.
So you might be wondering what Primerica sells and how they sell it to people.
Well, their selling point caters to the middle class. Since most insurance companies require large amounts of money, Primerica aims to give insurance at a lower price.
So let us talk about their leading product, Term Life Insurance.
Term Life Insurance means that you get to buy life insurance but is only limited. You can choose from 10, 20, or 30 years of life insurance.
If you die within the time that your term life insurance was bought for, then your family gets the money that you have invested.
This caters to the middle class because it is a lot cheaper than whole life insurance. The bad thing about Primerica in their Term Life Insurance is they only sell it to healthy people.
Basically, if you have a background on some diseases or other health conditions, you might find it hard to buy their insurance.
They sell their Term Life Insurance to people who are at the peak of their health.
Most Term Life Insurance companies let you convert their term life insurance into a permanent one.
With Primerica, you are not allowed to upgrade to permanent life insurance so you have to apply for a new Term Life Insurance.
So that risks losing your money.
Because if your term life insurance ends before you die, you need to apply for a new one and you might not be in the greatest shape by the time you apply for other insurance.
Primerica also sells other services. Here they are:
1. Primerica Secure
- This is Primerica’s auto and home insurance product.
- They have partnered with Answer Financial and together, they have helped around 400,000 people find the best deals on their cars and homes.
2. Legal Protection
- Primerica has partnered with Pre-Paid Legal Services under Legal Shield and offers access to legal services.
- Primerica and Legal Shield do not offer legal advice. Instead, they are a bridge for the customers to get legal advice from a network of provider law firms.
The following products are like the products that other companies sell. They are all basically the same so let us not waste our time discussing them.
- ID Theft Protection
- Financial Investments
- Long-Term Care Insurance
- Credit Monitoring
- Debt Management Plus
Primerica offers a long list of products that they sell but we are here to discuss something else. So let’s get into it.
How do you make money with Primerica?
Primerica’s Compensation Plan is a simple MLM compensation plan. The thing is, although it is simple, it does not mean it is easy.
There are two ways that you can make money from MLM companies. The first is to sell their products and get commissions, and the other is to recruit people.
This is where you make money by selling their products. So, if you are a Primerica member, you can get a 25% commission on all of their products.
This is how it works if you are a member, you are entitled to a 25% discount whenever you buy a product.
But since Primerica does not sell actual physical products, you get a commission if you referred someone to buy the services.
So if they buy insurance, you get 25% on the sales that the company makes from your referral.
The commission also depends on your rank. As you rank higher, you get higher commissions as well.
Here are the ranks in Primerica:
- The “Representative” who earns a 25% commission.
- The “Senior Representative” who earns a 35% commission and bonus
- The “District Leader” who earns a 50% commission
- The “Division Leader” who earns a 60% commission
- The “Regional Leader” who earns a 70% commission
- The “Regional Vice President” who earns a 95% commission and bonus
- The “Senior Vice President” who earns a 95% commission and bonus
You can get a commission of as high as 95% when you rank up to the top. In order to rank up and earn more money, you need to recruit, which is the second way to make money with MLM companies.
In MLM companies, you get to earn the most money by recruiting. Most companies allow you to earn from your downline up to the 7th level.
With Primerica, you get to earn from your recruit’s recruit and so on up to the 11th level. This means that you earn more with more recruits.
This is one of the main problems in MLM companies. The money flows upward leaving the people under losing money.
With Primerica, you get 10% override commissions from your downline’s insurance sales. You recruit people and you rank up and remember, the higher your rank, the more money you make.
If you are still interested, here’s how you can join Primerica
First, you need to pay a membership fee of $99. Add another $25 monthly subscription for you to be able to access Primerica’s member-only website.
The website is a replica of their distributors’ websites. It includes different tools and support resources that guide you about the products and the company overall.
By paying the monthly subscription, you also get your own Primerica email.
Being a part of Primerica does not only mean that you are their representative. You need to be a licensed insurance agent to sell insurance.
In order to do that, you have to be a legitimate agent and it usually takes around 3 months for you to get a license.
While waiting for your license, Primerica says that you can sell their lesser products. But you will not make real money with those so you really need that license.
What I like about Primerica (Pros)
1. Legit Representatives
- The distributors of Primerica are all licensed because it is required by law so you can trust them.
2. A Trusted Company
- Primerica has been around for so long. This logically means that they are trusted and they have survived for that long because of their legitimacy.
- They were also on the list of Forbes 50 Most Trustworthy Companies in 2015.
3. Low startup cost
- You only need to pay $99 for your membership fee and another $25 for a monthly website subscription.
- This is a relatively low price for entering an MLM company.
What I do not like about Primerica (Cons)
1. Expensive Insurance
- Their insurance is almost 11% more expensive than other companies that sell Term Life Insurance.
- That is a high price to pay especially if you have competitors that offer the same product for a lower price.
2. The lack of plan conversions
- Primerica does not allow you to upgrade a term life insurance into a permanent life insurance
- That means that you need to apply for other insurance after your term has ended.
- When that happens, it is more likely that Primerica will not sell new insurance especially when your health is deteriorating.
3. Legal issues and Bad Customer Reviews
- In 2014, just 4 years after they separated from Citigroup, Primerica needed to set aside over 15 million dollars to settle multiple lawsuits.
- They also have a total of 148 reviews that mainly complain about their products
The negative of Primerica
Primerica, no matter how long it has been running, is still an MLM company which means that the main way for you to make money is to recruit people.
You bother the ones closest to you just so you can earn money. It does sound bad when you put it that way but it is the truth.
99% of people that have entered MLM failed. This means that you too are most likely to fail and lose money as well.
So what should you consider joining instead?
My suggestion and main recommendation is affiliate marketing. Wealthy Affiliate is a kind of affiliate marketing that teaches you all the right ways in online business management.
See, Primerica does have a website that it gives you but they do not teach you how to make it work.
That website is also a replica of all websites that they have given to their Representatives. This means that you have a lot of competition when people search for the company’s products.
In order to succeed in online business, you have to get a website that is unique so people will find it easily when they search for your product.
With the help of an easy-to-follow step-by-step lesson plan, Wealthy Affiliate helps you in creating your website to garner more clicks.
If your website gets more visitors, you make more money. You do not have to bother other people to make a living.
How will people visit your website, you may ask? Well, Wealthy Affiliate teaches you on directing targeted traffic to your website.
Targeted traffic is the search that people enter for a specific item. If you learn how to do that, then your website is going to make you a lot of money.
With Wealthy Affiliate, you just need $19 a month to get you started. Put in the right amount of time and effort, and your business will be there for a long time.
Within 3-6 months of learning with Wealthy Affiliate, your website will start making money. But do not get overwhelmed by that longevity, it is a relatively fast process for any business.
To make sure that your website will continue improving, I will guide you and give my personal comments on how you can be better at handling your website.
You can start learning today for a FREE seven-day trial! So make sure to check out Wealthy Affiliate and start your business on the right path!
If you have any experiences with making money from Primerica then share it with us in the comments below!
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