Primerica multi-level plan overview
Elderly and people whom are conservative with their expenses choose Primerica, which can be called a multi-level services company. Primerica concentrates on life insurance, but in recent years expanded to stock investment, financial investment, financial planning, and snowball techniques for debt consolidation.
If you work for Primerica, be prepared to be a bit of a cheer leader for yourself and your team. You must focus on recruiting to build your team or “business”, and finding clients to sell insurance to. Typically the initiation fee is only 99.00, which is very reasonable. Most MLM companies charge between $50.00 to 500.00 dollars for a license.
You need to advance in levels to gain higher commission on insurance and life insurance sales. You advance in levels by recruiting new members to your team, and by selling life insurance to new clients. You can get other federal required licenses like a series 6, so you can act as a stock broker for your clients. Pay is weekly, and they hand out the checks during public presentations, so new possible recruits can see that the company members are making money.
When someone from your team gets a sale, you make money; this process is called an override. The great thing about Primerica is that you can get overrides for the people who you recruited bring into the company. A senior VP can make one million dollars in a year. There is a senior VP in Colorado who made one million dollars in 2010 when most people couldn’t even pay their mortgage. The senior VP built up multiple teams over 18 years, and these team members built new teams. The Truth behind MLM’s is become the top of a pyramid, and you will be rewarded better than slaving away for an hourly wage. It’s the benefit of being an entrepreneur.
Primerica online opportunity
As you guys must be aware that this company has been in existence for a long time. Yes it was found in the year 1977. It’s a long time back and was formed by Mr. A.L. Williams. He had made this company with 85 associates which was formerly known as A.L. Williams & Associates.
The basic premise for making this company was to “Buy Term Insurance and invest the difference.” The MLM opportunity was hence created which seemed to have convinced a huge number of customers for switching over from the whole life insurance policies to the term policies.
Figures suggest that the ALW Marketing team took a mere 2 years to get over 100,000 agents across the country. Isn’t that amazing? Yes it is. Definitely A.L. Williams is a billionaire who has a made a fortune from this initiative. But this has been over the success of millions who are a part of this MLM program. Today Primerica is a publicly listed company over the New York Stock Exchange
The scale of business and its popularity has been growing due to the increase in products being offered besides the term life insurances. These include:
- Financial Needs Analysis
- Home and Auto Insurance
- Long term care insurance
- Legal Services (prepaid)
And definitely it’s not all that the company offers, the list goes on.
Becoming a primerica representative
The period of the MLM program suggests its popularity and the number of agents definitely add volumes about the possibilities. However, being an old horse, the program actually works in the typical MLM format. The plan is plain and simple where they have 11 level upline system which would offer kickback commissions from the recruits beneath. Simply, speaking the chain up to the 11th leg of your recruit would get you a series of commission.
For those of you who have been wondering if it’s a scam, then let me tell you that its not a scam. The company doesn’t recruit salaried agents for selling the products and neither do they contract with any independent agency. They develop the sales force based on the premise for offering job opportunity.
I know it might have gone a bit overboard …. But to make it simple let me give an example to you.
Suppose your friend tells you about an opportunity which could help you start a new career and be your own boss. Definitely, this is what we all want. Taking the program in consideration, he or she would invite you for a meeting where you would be briefed about the entire process, and the possibilities.
The meeting gives you the opportunity to know more about this and get all the clarifications required. Be sure that the presentation would please you and be full of hype and excitement. But let me tell you, if you do it right, there is more to learn and earn.
You must be eager to know what exactly are the membership programs on offer? Let me brief some on this area as well.
Well, the entire program is not a tough ask and doesn’t confuse you with loads of options. That’s something I like about it, i.e. plain and simple. The membership charges is $99 to join while you pay only $25 a month. It comes with an Online support as well. For Canadians, the fee is $103.95 and they pay only $28 each month. There are no hidden charges and includes all the taxes and additional charges.
The initial fee includes the amount for getting a license to sell life insurance policies which definitely makes sense. Ohh Yes.. While doing all these, you would definitely like to get a term life insurance for yourself and your loved ones.
So we know what we pay and what we have to do.. But what’s the compensation plan?
- Sales Commissions: The moment a new recruit signs up for the program, he is certified for becoming a certified individual for selling insurance through the Primerica Insurance Plans. Each new member is entitled to earn 25% on the sales they make. Simply speaking of you sell a policy worth $400 you get $100. This is purely based on the personal sales which an individual makes and it increase with each level the person gets promoted to within the company. In case you want to work on a part time basis, you have two representative levels while 3 leadership levels. Full timers could be promoted as high as Vice President and are eligible to open their own office with their preferred office time. The commission for part timers can go up to a level of 35% if they are representatives, while it could be anywhere between 50 to 70% when they work as part time leaders. Becoming a regional VP is a goldmine which makes a staggering commission of 95%
- Income from downline sales: Once an individual registers for the program, he goes through a novice period. In this period they have to undergo a specific duration of training and support. Income in form of overrides are commissions which are paid for compensating the people at senior representative levels. For each sale made by the downline team members, an individual is paid 10% of each sale until they reach Senior Representative Level.
- Differentials on downline sales: It is pretty similar to overrides where members are paid the commission paid to the leaders for ordering to compensate the time which they spend for supporting the representatives. For instance, in case there is a 2nd level of the downline there would be a person in between you and him. In case that 2nd level person sells $500 policy he makes $125. On it the differential is calculated by finding any difference among the commission level against theirs. Thus once you are entitled for 70% commission, you would get $225 from the sale (i.e. $500*70 – $125). So you make something every time as differential payment from the sales made by any one in your downline and so on.
- Other product sale commissions: For sales made of other products it doesn’t fall a part of the regular system. It means there is a chance to make extra money by selling the other products offered by the company. The commission structure as well as the exact commission % vary significantly from one state to the other. An example of a different product could be a $200,000 mortgage which would enable a distributor to earn a commission in between 0.3% to 0.5% which in this case would be $750.
Advantages and disadvantages of Primerica MLM
We spoke a lot about how things work. But to summarize we would like to put out the advantages and the disadvantages which this program comes with. First the advantages:
Primerica definitely offers services which are valuable to the clients. It is a division of the well-known group CITI. So you can expect it to be backed by some genuine authority. Being a part of this program entitles you to get access to almost any of the financial products which are offered by City through the sales force of Primerica.
The best thing about Primerica is they really intend to help its customers by using their existing income as well as shifting things across free up of the extra cash for fund requirements as well as savings goals.
Secondly, the company has the option for hiring anyone as they have developed a computer platform to offer advice to its members. They collect information from the representatives regarding financial situation of the customers and it converts it into FNA i.e. financial analysis. It represents the reps as well as customers in a manner in which they could save money and what needs to be done for investing their extra money.
Another positive is the fact that the company encourages its customers to pay their mortgages twice every month instead of the traditional monthly payments. It eventually ends up saving thousands of dollars as savings over the life of a loan. Additionally, the company sells life insurance instead of the whole life plans. This is a positive aspect as companies usually make more money with whole insurance than the term insurance plans. It means they do this out of the care for its members and customers and merely not profits.
Everything has a flipside and so des Primerica, some of the problems associated and reported in connection to its MLM program are discussed below:
Being a MM marketing company, it does come to the ears about the forceful selling where reps may pressurize people for joining. Additionally, it is seen that people make more money by recruiting more people against the idea of selling products and making regular money. Hence you won’t make much money if you are not recruiting more people beneath you.
Another thing which turns many away from the company is the low commission payouts as compared to the others in the industry. The fact is that the company doesn’t look at the financial expertise while recruiting which is why they can get away by paying lower levels of commissions. Most of the reps which have been working do not have the credentials to be a part of this industry.
Lastly, the company has a non-compete clause of 2 years in a 50 mile radius of a particular place. So if you leave the company you would not be able to stay a part of the industry for at least 2 years under another similar organization. Moreover, they require you to leave behind the clients for which you might have worked so hard over the years. But these are something typical of the industry and are in the good measures to keep the company and its members protected.
Overall, if you have the urge for selling financial products offered by a popular brand, the Primerica is one such opportunity. When done in the right manner it’s no one who would stop you from making money. And most importantly being an old company, it does have a track record for showing care to its members and customers.