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In Reply to: Re: Primerica: Why it's just anyother Multi-Tier Marketing Scam posted by Pammy on May 24, 2004 at 23:35:05:
: MAN I am GLAD I found this site!!!!! These Priamerica folks are as wacked as some of the Mary Kay ladies!!! I was almost suckered too! I am in GA and how they work their game is place ads in the paper like this is a regular job! They even pretend like it is at job fairs. They say NOTHING about what it REALLY is until you get to their office! I was fed the hook and line about financial freedom until I was told about the $199 fee for a background check and license! I wanted to LAUGH SOOOOOO BAD!!!!! He actually called me like this was a REAL job! I got up early in the morning as though this was a regular "job interview". In fact their ads are posted under "Customer Service". NOTHING is said about a fee! I don't under WHY there is a need for a license because there are NO classes to take like in real estate and background checks in GA costs less and $15!!!!! Anyway he asks me for names of my friends and then had the NERVE to say "we will visit them and tell them about it!" That's how I KNERW this business is CRAP when your own family and friends are recruited!!! If this business is so great, WHY do I have to get my own leads? WHY isn't it like other big companies where business comes to YOU? Most of all, WHY DO I HAVE TO RECRUIT MY FAMILY AND FRIENDS!!!!!?
First I do want to make it clear I have no formal dealings at this time with Primerica financial services, other then owning a MILICO policy (the name of Primerica's underwriting Insurance Company before changing their name). I am a CPA in the Dallas area and did recently check-into the options of writing investments and insurance through their system. The reasons I decided against it was that their rules required I eventually give up my tax practice, and the expectation of recruiting and training new agents. I feel that my CPA and my tax accounting business is complementary to the business and there is no reason I should need to leave one to pursue another.
To the individual who asked about Primericas pay schedule I am not sure of the current compensation rates, however Primerica is not a pyramid as some have expressed; it is however structured as a Network Marketing System (sometimes called Multi-Level Marketing or MLM). It is only fair to point out that nearly all sales organizations are similar in structure with the management obtaining their supervisory income due to a spread in the commissions paid to them as opposed to the amounts paid to the lower level sales personnel.
Most of the complaints you will hear about PFS are from those who are hurt by PFS's philosophy. I also believe in the mantra "Buy Term & Invest the Difference" in fact I have on several occasions issued a challenge to agents trying to sell my clients a Universal Life, Variable Life, or Whole Life policy to compete against even a fairly high cost term. To this date none have succeeded to even equal the benefit to the client, and I'm not talking about some new agent I now have a reputation and the last few times I have had this meetings with some of the most senior agents for major companies in the DFW area.
Yes there are cheaper term programs out there, in fact nearly every company has a policy the would beat the current PFS, the problem is that they never see the outside of the agents briefcase except after the client has already been shown the PFS program, and the agent has lost their credibility. It is for this reason some seem overly zealous in their presentations, however everyone that can be shown this and, even if not right away, eventually question the way insurance was sold to them could literally save them hundreds of thousands of dollars (no exaggeration in the slightest). There is no circumstances where a wage earner (not a millionaire) can do as well with the insurance products sold by the conventional companies as they would do listening to PFS concepts (or a company with the same philosophy), and even some doubt with the millionaire. Commissions are the only possible explanation for this discrepancy as the total commission for a cash value policy is usually in the range of 100 % of the first years premium, while the commission on term is usually in the range of 35%. Now think if youre the agent and have been told again and again the benefits of the cash account and you get at your commission level 50% of $1,800 or 17% of $300 which would you be most likely to sell? There are a couple other smaller companies with even stronger beliefs toward term and investments, including one that is positioned to eventually be a larger force then PFS with their ties to Bank One / Chase. This last company is where I send clients for honest truthful answers to insurance questions.
As to why Citigroup aligned with Primerica, Citi Corp saw within the ALW system (A.L. Williams was the marketing company originally) a very profitable venture and they were right. The only problem is that now PFS is closer to the traditional insurance companies then what Art Williams left.
If any of you have any questions I would be happy to talk directly to any of you. I can be reached at (972) 747-1040
Lloyd Fahlmann