Is Primerica a Pyramid Scheme Or a Legit Insurance Business Opportunity? (Review)

Primerica Financial Services, Inc or Primerica as it's popularly known is a biz op that has a lot of controversy going around it. Some call it a pyramid scheme or a scam and some support it saying it's a legit money maker for them.

Also called Prime America at times, they distribute financial products to the North American residents. They sell life insurance, mutual funds, home and auto insurance, and legal services. They left Citigroup in 2010 - which was their parent company back then.

Doing your research before getting started with a program never hurts since it can help you find legit opportunities, and avoid scams. In this review of the platform, we share everything you need to know before you make up your mind.

What Is Primerica?

Primerica is a US-based multi level marketing firm which specializes in selling financial services and insurance. It's very similar to Ameriplan which sells healthcare insurance utilizing the same MLM business model.

Name: Primerica
Founded In: 1977  
Type: Financial & Insurance Services
Price: $99 Initial and $25 Monthly
is Primerica a legit insurance company or a scheme

Primerica is listed as 'PRI' on the New York Stock Exchange and they seem legit. A pyramid scheme won't last in the market for more than a few years, this company has been around since 1977.

Their business comprises of two parts:

  1. Their financial products
  2. Their MLM biz op through which one can make commissions selling insurance.

The Product Line

Primerica offers a bunch of financial products to the citizens of North America, Canada, and Puerto Rico. Their product line is pretty big, it includes:

  • Financial investments
  • Home & Auto insurance
  • Term-life insurance
  • Financial investments
  • Debt management plans
  • Credit Monitoring

Can You Make Money With Primerica?

Of course, you can. There are two ways with which you can bank some cash with Primerica. 

  1. You'd sell financial products to earn commissions on the sales you generate - like an old-school salesman would.
  2. Recruit people under you in Primerica and get them to do the 'heavy lifting'. Just like you would focus on recruiting people under you if you're a part of an MLM company. 

However, you don't get to promote their products right away, there's a $99 one-time fee which you'll have to pay to join the program - it will get you the 'Primerica sales license'.

They have a screening process for each of their distributors. Your background records and identity will be verified before you're approved and that's is a good thing since it ensures a safe environment for all to work.

Once you've gone through the Primerica screening process and are accepted, you'd have to pay $25 monthly if you want to continue to access their tools and resources - includes training and marketing material.

Also, the initial $99 that you pay is 100% refundable after a few months have passed.

Primerica Compensation Plan

There are multiple ways to get commissions with the Primerica business model. 

  • Promote insurance plans and earn commissions - if you bring new customers to the company, and sell financial plans, you will earn a percentage of the total sale amount.
  • Get paid from your downlines' sales - if you recruit people and they join under you, you will earn 10% override commissions on all the sales they register.
  • Rank advancement bonuses - you can earn more commissions as a result, and also help your direct recruits with promotions.
  • Other products - you can choose between the numerous products Primerica has to offer, and earn a percentage of the sale value.

Primerica has a 11-tier structure. You can earn from your direct recruit and their recruits up to 11 levels. The commissions rates vary depending on your rank with the company.

Primerica Compensation Plan
  • Representative - 25%
  • Senior Rep - 35% + bonuses
  • District Leader - 50% + bonuses
  • Division Leader - 60%
  • Regional Leader - 70%
  • Regional Vice-president - 95% + bonuses
  • Senior Vice-president - 95% + bonuses

Is Primerica a Pyramid Scheme?

No, Primerica is not a pyramid scheme, nor is it a scam. The company sells real products and they have been around for more than 40 years now. Recruiting isn't the only business model on which they rely for closing sales.

Is Primerica a Pyramid Scheme

You can make up to 95% commissions promoting Primerica financial products (depending on your rank). That's among the highest paying MLMs without a doubt. Those who claim it is a pyramid scheme or a scam are probably people who tried promoting as an affiliate but had little success.

However, 8 out of 10 MLM programs are not legit. Be sure to do your research before hopping onto another program. MOBE is one such platform, it was taken down by FTC since it wasn't compliant.

Before getting started with a multi-level marketing program, it's always a good idea to first understand the company's vision, and more specifically their tactics. If it's all about recruiting other people and there's nothing substantial worth promoting, you know what to do!

Things We Liked

  • Primerica does background checks before accepting new distributors, this surely helps with the trust factor. It also helps the company to maintain their standards since they don't accept everyone.
  • The $99 sign-up fee is refundable after you've cleared the background checks. There will be a minuscule $25/month fee if you intend to stay onboard as a Primerica distributor/partner. It's more for accessing the platform's tools and training.
  • A+ rating on Better Business Bureau - it's not easy to get an A+ rating from BBB, and it's even harder to maintain your ratings. Primerica has it since 1980, and that's a major milestone!

Things We Didn't Like

  • Primerica has a fair share of bad reviews and disgruntled customers. It's evident from the hundreds of negative reviews in BBB. Most of them have issues with the company's product line and services. Some of these have to do with taxes, penalties, and cost of insurance.
  • Recruiting isn't for everyone - and more so if you're not a fan of the topic which is insurance. If you're not a huge fan of the financial industry, your promos will ask for a great effort.
  • Success rates are very demotivating - on an average, Primerica distributors make roughly $7,000 per year, which turns out to be less than $1,000 a month. It could make for a decent side income, but it's far from being considered a day job replacement.

Final Thoughts & Conclusion

Without a doubt, Primerica is one of the better business opportunities out there. You can make a decent income promoting it as an MLM business. It only helps they have been in the game for more than 4 decades, and that's no joke.

is primerica a pyramid scam

It's simple - only do what you like and are comfortable doing. If you don't like multi level marketing - recruiting others in general, you should instead opt for a different business model.

There's nothing wrong with recruiting other people, but it should be your cup of tea. If you're not a big fan of multi-level marketing businesses, then you're better off staying away from Primerica.

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