A lot of people have been asking us, “Is Primerica a Pyramid Scheme?”.
Read this unbiased review to learn more.
Primerica has been the subject of controversy recently, with some people claiming its a scam, while others say its a life-saving opportunity.
Who can you trust?
Let’s find out if Primerica is a pyramid scheme or not.
Primerica Review:
Product Name: Primerica
Product Type: MLM for Insurance and Financial Services
Creator: Glenn Williams
Price: $99 + 25/month.
Best For: Those that want to recruit new members to build a team and sell insurance and financial related products.
Rating: 60/100
Summary: Primerica has more value in it’s core insurance and financial products compared to most mlm products. The primary focus is on sales and recruitment of new members like all MLM systems.
However, you’ll be competing in a tough niche with established brand name companies using outdated marketing methods, backed with a mlm reputation – Not an easy sale. Your success will be highly dependent on your sales and marketing skills.
Recommended: No. If you’re looking into Primerica for the money making opportunity, I’d encourage you to take a look at my favorite online business training program instead. It’s got all the tools and support you need to run a successful online business. Plus 10 Free classes to get started.
Here’s My Top Recommended Training >>
Would you like to check out our Primerica Video Review? Just click the video below…
What is Primerica:
Established in 1977, Primerica is a company in the Financial Services industry, and they provide various insurance and financial plans for middle class families.
To join the company, an initial fee of $99 is required plus an additional $25/month to use their online platform and tools.
To earn money, members are required to promote the company and build a team to earn additional bonuses and rewards.
In short, members will be promoting two things; the financial plans, and the business opportunity.
Primerica Products:
- Investments
- Debt Solutions
- Auto & Home
- Long-term Care
- Legal Protection
If someone you refer to Primerica buys a financial plan or joins the business opportunity, commissions will be added to your account.
So as a member, can you make money with Primerica?
Naturally, there are different levels within the company, even official positions with a fixed salary, so income levels vary drastically.
Though this company does use the same pitch that most network marketing companies use (e.g. live free, be your own boss), it does have some unique features.
Primerica Pros:
For instance, one thing about the company I appreciate is that every member needs to do a background-check before participating in the business opportunity.
As we all know, there are a lot of people promoting network marketing companies who have no idea what they’re doing!
Primerica officially hires members, so a background check is necessary.
The initial fee of $99 is put towards a background check and a sales license, and the fee can be refunded in a few months time.
Then, once everything is in the clear, a subscription fee of $25/month is required to access the tools and platform.
In most cases, when a company hires someone, they’ll pay for a background check out of their pocket, instead of asking the employee to pay it.
Nevertheless, the fee is refundable, so it’s not a complete deal-breaker.
It’s a smart move on the companies part, it filters out the untrustworthy members.
I also like how after the background check you’ll be given an official license to promote the business.
The background check will scan for criminal records to see if you’re a fit to work for the business.
In short, Primerica does put effort into making sure their independent distributors are qualified, unlike other companies that hire everyone under the sun. It’s a little similar to American Income Life.
In other words, the company follows the rules, and they want all the paperwork to be done properly.
Primerica Training Included:
Some training material is also included in the members area.
The material will teach you how to market the services without coming across as too pushy.
There are also some marketing tools to help with promotion.
In addition to marketing material, there are some helpful videos that explain various rules of personal finance.
The commissions are also not too bad, with each member qualified to earn 25% of the sale they make.
Is Promoting Primerica a Good Idea?
When you register for a license, Primerica asks for a list of “Hot” leads – anyone who you think would be interested in the business.
In most cases, this is a list of your friends and family members.
Like most networking companies, the idea is to build your team so you can live off of your team’s sales commissions.
If you do decide to promote Primerica, you should learn how to target warm traffic that’s interested in Primerica’s products.
Makes for an easy sale!
It’s not that hard and you can learn how I do it in our free eBook. It’s really a guide to how I rank on Google.
Enjoy!
Is Primerica a Scam?
To be honest, Primerica is not a scam or pyramid scheme.
Though it does have some things in common with pyramid selling it also is a bit different.
For instance, the commissions are not “Sent Up” the ladder, and there are no down-lines.
Instead, new affiliates are added to your team, and there can only be one team.
There are membership levels, and you can qualify depending on the amount of sales you and your team earn.
To join you’ll need to send an application to the company or get in touch with an representative, there are no online registration forms at the moment.
Need help understanding the difference between MLM’s and Affiliate Marketing? Check out our in depth post comparing the two models by clicking the image below.
Why Is Primerica Considered a Pyramid Scheme?
The problem with Primerica is they advertise the opportunity as the solution to all your problems.
- Financial freedom.
- Be your own boss.
- Never worry about money again.
- Earn a comfortable income.
- Work from Home.
- Dream Big.
- Etc.
These are all vague promises.
Primerica also wants you to believe its very easy to make money with the program, but its actually a little harder than you think.
If you don’t have experience in sales, it will be difficult to promote this company, at least enough to earn some side-income.
In short, Primerica is a network marketing company that does have some issues but it’s definitely not a pyramid scheme or a scam.
Can you make fast cash?
I can’t recommend this company for fast cash.
If you need fast cash, read this article.
Primerica, like most network marketing companies, is a long-term project that you slowly build.
If you’re good at selling insurance (the main product being sold) then you can likely see some success with this business.
But keep in mind, about 60% of all members fail to make a single cent.
Nevertheless, the company’s services are useful and have helped many people come out of financial holes.
In other words, its easier to promote Primerica services than other networking marketing services where there’s not much value.
Conclusion to Our Primerica Review:
To summarize, Primerica is not a pyramid scheme, but I also don’t recommend it.
I don’t think its a good idea to invest so much time into a business that could go under at anytime, taking all your hard work down with them.
It’s also a struggle to find clients.
I think its much better to build your own website, one that can – potentially – bring in a lot of clients and cash on auto-pilot.
How Do I Make Money Online?
Rather than relying on your team or down-line to produce income, I found a way to build my own income source.
It’s nothing crazy. I created a niche website based a topic of interest. Then I learned how to drive free traffic to my site.
By focusing on a specific niche, I’m able to target my audience and bring warm leads to my business that easily convert into sales.
It’s not rocket science. It’s just about helping people.
Wanna Learn More?
Check Out My Top Recommended Training Program >>
Have you tried Primerica? Is Primerica a Pyramid Scheme in your opinion?
Leave a comment below and share your experiences!
Primerica
$99 + 25/month
Pros
- Primerica Officially Hires Members, Background Checks are Required
- Training is Included
- Not a Typical MLM Scheme
Cons
- Offers Vague Promises of Income
- They Make it Sound Very Easy to Make Money
- Not Easy to Sell Insurance
Your article is good. I’d like to correct, that YES they have Uplines and Downlines and YES you share your commission with Uplines. It is MLM, they are members of the DSA.
I would not recommend Primerica to anyone. Furthermore, prices for Term life Insurance are so much lower online
The company is not a scam. It’s a legit company, but it’s practices are garbage. I have just cancelled my policy after 20 years because they increased my premium by 370%!!!! It went from $53 per month to $197!!
And they didn’t even give me a heads up. And they didn’t really seem to give a sh&* that I was cancelling.
Stay away!
Hey there! Thanks for this review! I’ve never tried Primerica before. I know you said it’s not a pyramid scheme, but would this fall under a multi-level marketing program? What is the biggest difference?
Also, I agree that it’s unwise to invest in something you don’t trust. Is there a reason you say it might go under soon – or is that just an opinion?
Overall, I understand the company. The price doesn’t seem that bad compared to other programs out there, but I’m not really a sales person, so it’s probably not a good fit for me.
Thanks for opening my eyes with this great review. Very thorough!
Awesome Kayla, thanks for your feedback on Primerica.
Best
Todd,
I agree with your assessment that Primerica is not by definition a pyramid scheme. First of all, the company does have physical product within its structure – insurance and financial services around debt-solutions, investments, legal protection, etc.
As you also stated, there are no downlines involved. One can’t recruit people who recruit other people who recruit other people so that eventually it goes 8 – 10 -12 levels beneath you. In that example, you would also benefit monetarily from the work of others.
True pyramid schemes have that business model, plus no actual physical product to which the company is based. People would only be tricked into joining a company of this type with the promise of earning potential and nothing else.
I also agree that I also do not trust this company. How long has it been around? Are there legit examples of people who have benefited in some way by the company’s products? How good are these company’s tools designed to help a member?
In addition selling insurance either online or more likely through making face-to-face contact with strangers truly is not easy. Kind of like the used car saleseperson who tries to persuade a person into buying a car which turns out to be a complete clunker!
Jeff
Great points Jeff, thanks for your feedback on our Primerica review.
Hi Todd as a former insurance agent I ran into Primerica quite abit. I must say that as a company that has been around for 40 years the chances of them going out of business is very slim. Although I never thought much of the way they sell and recruit it does work for them. In reading your article it is clear to me that they have undergone many changes since I was in life insurance. One of which appears to be a flat 25% fee on products sold. I would not like this as an agent since typically agent commissions are much higher. One question I would have is: Is the back ground check because they are selling securities, and what is the licensing that is required?
Hello Todd,
Although I do respect your honest opinion on Primerica, I totally disagree with you. I myself am an agent with Primerica and I believe in it 100%.
It’s no way close to a pyramid scheme. You do have to go out and look for recruits and your clients but that just leads to more recruits and more clients. We work on a referral based system.
I’ll say it’s going pretty good as well since we are one of the top companies with the most 6 figure AND 7 figure earners. We’ve also been in the Forbes magazine year in and year out as one of America’s top 50 most trustworthy companies. We have about 7 million clients and more licensed agents than State Farm, Farmers, and Allstate combined.
Primerica is a great opportunity as a client and an agent. You can work from home for the most part, have another job, or be full time and still be able to have control over your schedule. I love my company and would recommend it to anybody!
Thanks for your feedback Julissa on Primerica.
Hey there Todd,
Thanks for the very informative article!
In today’s world there is so many people who are struggling and are looking for these quick ways to make extra cash.
Every second one seems to be a scam which is very unfortunate! Thanks so much for reviewing Primerica. I will definitely stay clear of this one
Regards Hailey
You bet, thanks for the feedback Hailey on our Primerica review, happy to help.
Great article I am impressed that you have explained it in detail. The company is inclined towards the financial solution promotion and that is only limited to one thing.
Also there are controversies around so may be some what hard to take it on. I was pitched before to take a call, but it is nice that I came across your website and found my answer.
My not going to take part in this program but the program which you mentioned attracted to me and also think a newbie like me can get a good returns in long run.
Thanks once again for sharing your views.
You bet Amy, happy to help. You should go through our Free Email Training series.
The price is right and I think this will give you a solid foundation to create online success.
Take the secrets we offer and never look back.
Best,
Todd
Good thing I found this article before subscribing to Primerica! I head many mixed reviews on this product and your blog post definitely helped me come to a decision.
I have a couple of other friends also interested in this so I will have them read this review and make their own informed decision. Thanks and keep up the good work!
-Shawn
Appreciate the feedback Shawn.
Best
Hello Todd,
Thank you for sharing a very interesting review about Primerica. I have to point out, you really explain in detail everything one needs to know about this program.
I will listen to your advice and I will not join this program because it can go down any time. Keep up the good work.
Thanks for your feedback on Primerica Karlo, much appreciated.
Ive got a little experience both as an insurance agent and working in operations for a life insurance company. Though not mlm, a lot of independent sales forces are structured similarly to an mlm. Agents can not only sell out products, but they can contract other agents to sell underneath them. When they do this, we still pay out the same total commission, but the sub agent now gets a share of that according to what the agents agree upon. I believe Primerica, TransAmerica, and many legitimate Insurance sales forces are set up similarly.
While it’s true that technically Primerica isn’t a pyramid scheme, with their way of promoting themselves and their structure, In my opinion they are just as bad as one.
Yes they might not have the Multi level marketing structure, but they still promote a product in a different light than what it is, and provide baseless and wild promises to make you rich quick and get you your dream car.
Excellent point Garth. Thanks for your feedback.
A pyramid scheme is never an option for me and I won’t advise that of anyone except you are willing to take the risk of recruiting and forming an army for top members.
The wealthy affiliate thing you mentioned really caught my attention.
I always love your articles, I am always looking out for them.
Thanks
Hey Jimmy, thanks for your kind feedback. WA is a great place to launch your internet marketing career.
Really a great resource and tool to improve one’s online skills.
Best,
Todd
Hi Todd,
There are so many programs online it’s hard to find the Legit ones. This article makes this Primerica seem like it’s a real company.
But I found something else that caught my eye, your #1 recommendation Wealthy Affiliate seems like a real winner.
I looked at them and read a number of reviews and they seem like a real internet marketing college or something.
I am going to sign-up, with Training to guide me I can’t go wrong. Thanks so much for sharing this information!
That’s awesome Lady-Val. I’ll send you some messages on how to get started and help guide you through the training.
They’ve helped 1,000’s just like you and me start, run, and maintain online businesses that work and provide good services for the consumer.
Check out their Community Support and don’t be afraid to ask questions when you need help.
Best,
Todd
A pyramid scheme by definition is a promise of payment for recruiting others into a scheme that offers no goods or services. An MLM or Network Marketing company has a similar pay structure but does offer a service or goods. A reputable MLM cannot survive by recruiting alone, someone at some point has to sell the goods (as long as it is not to distributors to collect dust in the garage).
Primerica seem to be trying to get the best out of all worlds with their structure and I haven’t managed to find the benefit of that yet, but with most MLM it will work for some.
Dean
Thanks Dean, great feedback on MLM’s and our Primerica Review.
Hello Todd!
I can see that you have found a network marketing company that sells insurance.
You have to pay to be a part of the business.
Reminds me very much about many other network marketing deals.
Ok, they are doing a background check on you to see if you’ve committed financial crime.
But that does not make their work more legitimate.
Or it sounds a bit suspicious.
That you can sell direct marketing insurance. Ok why not.
What I do not fully understand is that you say you see it as a legal business.
But you will not recommend getting started.
How did you get it?
I got it myself in my mailbox here last night and found your rating.
Steen
Hi Steen,
Thanks for your feedback. I don’t like the product and think it would be tough to promote. It also has a fairly high failure rate.
I try to promote products that I think have value and if your read our conclusion it breaks this down clearly.
If you want value, I highly recommend three great options for online income seekers.
Create a authority niche website – This takes time and dedication but can lead to full time online income and big profit potential. Even passive income.
Create Smaller Niche Review Websites and use Amazon to convert sales. Human Proof Designs can build these sites and optimize them.
Create A Specific Niche Product Website – This is really cool and can be the quickest way to get a site making quick cash for you.
I’ve put links for your reference.
Best,
Todd
Hello Tod!
I can see that you have found a network marketing company that sells insurance.
You have to pay to be a part of the business.
Reminds me very much about many other network marketing deals.
Ok, they are doing a background check on you to see if you’ve committed financial crime.
But that does not make their work more legitimate.
Or it sounds a bit suspicious.
That you can sell direct marketing insurance. Ok why not.
What I do not fully understand is that you say you see it as a legal business.
But you will not recommend getting started.
How did you get it?
I got it myself in my mailbox here last night and found your rating.
Steen
Hi Steen,
Thanks for your feedback. I don’t like the product and think it would be tough to promote. It also has a fairly high failure rate.
I try to promote products that I think have value and if your read our conclusion it breaks this down clearly.
If you want value, I highly recommend three great options for online income seekers.
Create a authority niche website – This takes time and dedication but can lead to full time online income and big profit potential. Even passive income.
Create Smaller Niche Review Websites and use Amazon to convert sales. Human Proof Designs can build these sites and optimize them.
Create A Specific Niche Product Website – This is really cool and can be the quickest way to get a site making quick cash for you.
I’ve put links for your reference.
Best,
Todd
Hi, thanks for your sharing about Primerica. At first look, the business appear to be like any other financial service business – finding clients and selling insurance.
The different part will be to turn your client into your business partner. For normal financial service companies, this has not been done so openly, probably to avoid the misconception that general public will have on them.
But Primerica takes the lead to promote this network marketing business model.Personally, I think this business is not sustainable, as you need to continue to look for new clients all the time.
Thanks for your feedback on our Primerica review. I like to keep things simple and this doesn’t do that.
I prefer to put the work in once, and get paid repeatedly. And this is done through online content that you get ranked in Google, YouTube, etc..
This has worked best for me and is achieved through affiliate marketing and targeting content.
If you need help with this, do what I did, go with the pro’s at Wealthy Affiliate and get start learning and building.
You can even put up multiple smaller sites based on a single niche. Here’s a 4 week webinar to learn how.
Best,
Todd
Wow I am happy I haven’t had any experience with Primerica. If its lasted since 1977 I guess there is something in it. Thanks for the suggestion Todd, I would probably try something like that. I think I am safer in Wealthy Affiliate.
Hi Jodie,
Thanks for your feedback on our Primerica review, much appreciated.
Wealthy Affiliate is a God Send in mine and 100’s of thousands of other students opinions. I think there are around 800K members right now.
But WA is the real deal, just think of them as a university and go with the college student mentality and you’ll do great at this business.
Here’s a things I think you might want to read as a newbie. I get this question often, so I thought you might have the same question too.
How long does it take to make money online?
& our free eBook on..
How to Target Keywords to bring in Free Traffic.
Both links should serve you well.
Best,
Todd
I think there is a lot of confusion about what is a pyramid scheme. There is the legal definition, and there is what everyone else thinks of as pyramid scheme – which is any MLM.
It sounds like Primerica doesn’t fit either one. I do like that they do a background check. Sounds like it would weed out a lot of people, not criminals (them too, I guess), but people looking for quick cash and a fast buck.
Thanks Randall for your feedback. I don’t think this is the best way to make money online or to create a successful long term online business.
So I don’t recommend Primerica. But for those that do want to make money online and want to know what to expect, I created this post.
Check it out if you’re new and series about building an online business.
Best,
Todd