An Honest And Critical Primerica Review (Don't Join Before Reading!)

Published: 08th June 2010
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An Honest And Critical Primerica Review (Don't Join Before Reading!)

An Inside Look At Primerica's Business Opportunity
Primerica (formerly known as Primerica Financial Services/A.L.Williams) is a very popular business opportunity that combines financial services with a multilevel marketing model. For more than three decades, Primerica has been able to produce many, many 6-figure a year earners. In the 1st quarter of 2010, they officially parted ways with long-time parent company, Citigroup, and went public. Currently, the company's sales force is comprised of 100,000 life insurance licensed reps. 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 review, I will give you a critical review of Primerica, highlight the pros and cons and answer the question of whether or not Primerica offers a great opportunity.

First, let's start with the Pros:
1. Primerica provides a unique opportunity for someone who has NO experience in financial services to come on-board and get licensed and trained on the basics of life insurance, mutual funds, variable annuities and mortgages.

2. Unlike most financial companies, Primerica offers people the chance to join on a part time basis. This is a huge benefit because it eliminates the stress of trying to live off of 100% commissions-income from day-one.

3. With the Primerica compensation plan, a rep can make a decent living simply selling Primerica's financial products.

4. Primerica provides a good amount of support from local offices, from corporate headquarters and from website backoffices. They are also embracing technology by offering electronic applications (via mobile devices and smart phones) and paperless files eliminating a tremendous amount of paper files.

5. As stated earlier, Primerica has one of the best track records the network marketing industry. Currently, there are 60+ leaders in the company that make in excess of $1 million a year in income.

Now, let's give you the Cons:

1. The training is pretty basic , which is unfortunate for "unknowing" clients obtained by newbie reps. 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 out significantly less commissions to it's reps, when compared to what they could make if they were independent.

3. You are a CAPTIVE agent at Primerica. This means you are able to sell Primerica products ONLY. Without the ability to shop around for the best possible products for your clients, you may be selling them products that aren't suited for them. "Shopping" around is forbidden at Primerica, but is a standard practice for independent reps.

4. You lose approximately 80% of your team's recruits because of licensing. According to Primerica's numbers, around twenty percent on new reps get their insurance license. What about the 80% who fail to pass the state exams? They inevitably give up on the business.Imagine building a group that is recruiting 100 new people on a monthly basis. Think about this, out of those 100, 80 were people you couldn't build with because they coudn't pass their state tests for whatver reason.

5. A significant detail of the Primerica comp plan that isn't usually disclosed to new people is the fact that you have to PASS UP your best one or two legs to your upline when you promote to RVP. This is known as "replacement legs". 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, as a Regional VP, you have office expenses hanging over you. By the way, when you hit RVP, Primerica does NOT allow you to make money doing anything else but Primerica. This is extremely important to know if you are seriously considering the Primerica Business Opportunity.In other words, if you're interested in building multiple streams of income, that won't be possible once you hit 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 be sure to do your due diligence on the compensation model so you know exactly what's in store for you.

Should You Join Primerica?
If you're looking for a business that doesn't require HOURS of financial product training, the probability that you'll lose a ton of people during the licensing exams and the fact that you have to give your upline your best leaders, then Primerica is definately not 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.

Jaime Soriano is a Business Developer, MLM Coach & Attraction Marketer. He wrote this Primerica Review as a resource for people looking into the Primerica Business Opportunity. If you want to generate 50+ leads a day for your MLM business and profit from prospects that say "NO" to your MLM Opportunity, visiting Jaime Soriano's MLM Training

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