Primerica Scam? Yes It Is In My Opinion!
Primerica Scam Reality
The reality is that the Primerica scam is not a good business opportunity to join if you wish to earn a decent income as a sales representative.
2011 Average Yearly Income For Licensed Primerica Representatives: $5,544
2013 Average Yearly Income For Licensed Primerica Representatives: $5,614
– Source: Primerica Income Disclosure
2011 Yearly Income For Part Time Work At McDonald’s: $7540
Amount reached by multiplying the federal minimum wage of $7.25 by 20 hours for 52 weeks.
2010 Primerica New Recruits: 231,390
2010 Primerica Sales Force: 96,840
2011 Primerica New Recruits: 244,756
2011 Primerica Sales Force: 91,855
After a two year period and over 475,000 new recruits, the total number of the sales force dropped. This is an incredible failure rate.
Source: 2011 Primerica Annual Report Page 7
According to the U.S. Bureau of Labor Statistics the survival rate for a normal business is 54-61% after 4 years. http://www.bls.gov/bdm/entrepreneurship/bdm_chart3.htm
State Farm Insurance Agent Average Annual Compensation: $67,500
Primerica Income Breakdown for year of 2012, there are:
28 seven-figure earners from $2,517,808 down to $1,002,832,
1,035 six-figure earners from $954,753 down to $100,056, and
1,755 five-figure earners from $99,999 down to $36,010.
2,818 earners in total are making over $36,000/year.
– Source Primerica Online Competition Score Board
For those who believe that Primerica is not an MLM company, Primerica says they are an MLM company when they make comments to the FTC.
“Second, Primerica suggests … the Rule exclude multi-level marketing opportunities like those offered by Primerica and by many members of the Direct Selling Association. ” – Source FTC
Primerica employs an 11-tier upside system in which you get a kickback of commissions from your recruits, your recruit’s recruits, and so on up until the 11th level. (This information can be found on page 111 of the Primerica Final Prospectus filed on 4/2/2010.)
Primerica Scam Conclusion
The most common way that people are scammed by the Primerica scam is representatives contact them about a job interview that turns out to not be a job interview. These people are then charged a one time fee and many times a monthly fee. The warm market of these people is sold by the training Primerica representative and the trainee is left to fail.