The truth about the primerica business

09 Apr 2015 03:27
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I have been to quite a few multi-level marketing recruiting conferences over the years. I consider myself to be an open-minded individual, so I don't mind meeting with the recruiters and truly learning what the company is all about. It assists that I don't have much desire to follow the crowd and do not have a issue saying no or leaving when I understand it is not what I had an interest in.

I met someone from Primerica a couple of months back, and just got a call from a various employer a couple of days ago. Considering that they seem to be growing, I figured I would share my ideas and see exactly what everybody else thinks.

Primerica Pros

I was fascinated by Primerica because, having worked in banking and presently working in the brokerage industry, I comprehended that they were providing a important service to their customers. Primerica is a divison of CITI, one of the biggest banks in the world. Citi offers practically every monetary item under the sun and they make use of Primerica as a sales force of their numerous items.

Exactly what I believe is brilliant with Primerica is that their objective is to assist their customers utilize their existing income and shift things around liberating extra money to money retirement and other savings objectives. In the example they showed (I am not sure if it was the typical American's monetary situation) they refinanced the consumers mortgage and changed them from a cash value life insurance policy to a term policy freeing up $500 a month. They then take this $500 and show them ways to make good use of it by purchasing mutual funds for retirement, saving for college, and so on.

The reason they can work with anybody is because they have a computer program that does the advising for them. The Primerica representative gives the computer system particular info about the client's financial circumstance and it spits out what they call an FNA (Financial Evaluation). This analysis shows the rep and the consumer how they can conserve money and exactly what they should put that money in the direction of.

I was happily amazed to find out that they motivate their consumers to pay their mortgages twice monthly instead of the standard month-to-month payment. This leads to countless dollars of savings over the life of the loan. In addition they offer term life insurance instead of whole life, although insurance companies make a lot more cash off of whole life than they do term. I am not naive to think that they are doing this from the goodness of their hearts (public business that huge generally have one thing on their minds: putting cash in the shareholders pockets).

Coincidentally or not, this appears to be rather of a win-win. CITI is willing to make a sacrifice and make a little bit less money on a couple of products in order to liberate the customer's cash that will likely be spent on other CITI items.

Primerica Cons

They are still a multi-level advertising company. The issue I find with many MLM's is that many of them persuade and press individuals to sign up with— personally, nothing turns me off quicker than when I feel like I am being pressured into something.
I did not sign up with them so I don't have a complete understanding of how they make money. My representative said something about there being 4 ways, but appeared to purposefully keep it vague. From what other Primerica representatives have stated, a lot of cash is made from recruiting people rather than offering items— and it is hard to make much money if you do not hire a bunch of individuals.
The commission payments are lower than other salesmen in the market. My assumption is that given that they aren't looking for financial competence when employing, they can get away paying lower commissions. Numerous of the representatives employed would not have the credentials to work numerous other locations in the market.
If you do leave and stay in the market, they have a non-compete provision for 2 years within a 50 mile radius of your address. If you leave, you have to leave the clients that you worked so hard to get in the first place. Most likely common in the market, however something to remember nonetheless.
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https://www.youtube.com/watch?v=tvOmOV8UeRU

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