Primercia Business Review – The complete Monty
Primerica Financial sets is a financial sets company that operates using the MLM business form. Representatives can earn either by selling various financial products and sets like life insurance, mutual funds, variable annuities, segregated funds, loans, long-term care insurance and pre-paid legal sets or by actively recruiting more representatives to do the same and get a commissions from their sales. Using an MLM business form to sell financial sets might draw some criticism, but so far, it has paid off well for Primerica. But if you’re reading this article, then I speculate the bigger question is whether it will pay off well for you too.
Primerica, whose headquarters are located in Duluth, Georgia, is a subsidiary of Citigroup, which by itself, should ease concerns about whether this particular MLM is a authentic business. Citigroup simply has too much at stake to risk involvement with a dodgy subsidiary to tarnish it’s name. Primerica has gotten a lot of criticism for aggressively recruiting just about anybody to become a representative (a danger of using an MLM business format), but the products and sets sold under the Primerica name are, by all indications, authentic.
The Compensation Plan
For this review, let’s focus on Primerica’s best-known product, term life insurance, which is sold under the Primerica Life Insurance Company. This is probably why a large number of agents go into Primerica Financial sets to begin with.
Entering Primerica costs $199, which is reimbursable upon passing a licensing exam. The commission on a sale of term life insurance is 25%. The representative who closes that sale gets the bulk of the commission but has to divided the rest among people in their upline.
As with any business structured around multilevel marketing, you are paid commissions based on your sales level. Selling term life insurance policies on your own is a hit or miss proposition. So to enhance your chances of getting meaningful income from Primerica on a regular basis, the smart representative turns to recruiting new reps so he or she can receive an override from their sales. The more people you recruit (who truly close on sales,) the less actual personal selling you have to do to receive a greater income.
Primerica gets a nod for being a authentic MLM business. But like any other MLM business opportunity, success comes only to those who have the proper set of skills to keep their business growing until residual income kicks in. Primerica’s idea of recruiting the average Joe into their sales force is great in theory, but one sometimes runs into problems when recruitment standards are thrown out the window completely. nevertheless, it seems to be working out well enough for both Primerica and those dedicated representatives willing to put in the time and work involved.
If you’re considering a Primerica business opportunity, take a close look at your “warm market” of family and friends (who will probably be your first prospective recruits). Then ask yourself honestly if they’d be willing and able to actively sell term life insurance. already with the proper training, some people are just not inclined to get into that kind of thing.
In short, you need to ask yourself if you could replicate the success of people higher up in the company. That’s a question only you can honestly answer. If you have any doubts about being able to sustain the level of recruitment needed to keep this particular MLM business opportunity growing, then keep your options open. There are thousands of business opportunities that might be a better fit for you.