Is Primerica a pyramid scheme?

Is Primerica a pyramid scheme or another MLM? See my honest review!

Hello everyone! Welcome to my honest review on Primerica, Incorporated. Is Primerica a pyramid scheme or just another MLM? Actually its a good questing and I am happy for you, because you are at the right place to see the real answer! 

First of all, I would like to congratulate you doing your research before investing your time and money in this particular make money online opportunity. Researching is one of the best ways to get successful. 

Today, we will get to know more about multi-level marketing and the pyramid schemes. We will investigate on how this 2 ways of making money online differ to each other or are they even similar in some ways. Since it is already very rampant, we should examine which companies are making money out of the illegal ways.

Now, we will talk about Primerica. We have a lot of doubts of this company being a multi-level marketing and at the same time a pyramid scheme. But before that, we should know what exactly is its business model and how do they make money for theirs employees.

Also, let me be clear to you that I am neither an Affiliate of Primerica nor have a connection within the company. Furthermore, I am not here to sell anything. This is just an analysis and a review on which make money online opportunity is the best for us.

Without further ado, let us dig deeper and let us see for ourselves; is Primerica a pyramid scheme?

Is Primerica a pyramid scheme?

Brief Details About Primerica

Product Name: Primerica


Founders: Arthur Williams Jr.

Price: $99 plus $25/month

Recommended: NO

What is Primerica? 

Primerica is a multi-level marketing company that is known for selling its financial services and insurance. This company is based in United States with its headquarters located in Duluth, which is a city near Atlanta, Georgia. In April 1, 2010, Primerica had a corporate spin off from its former parent company, which is the Citigroup Inc., by an initial public offering. 

In the year 2017, the company has 120,000 independent representatives through its securities broker – dealer affiliates and through the PFSL Investments Canada Ltd. The company primarily advertises life-term insurance, home insurance, auto insurance, long - term care insurance, as wells as segregated funds, mutual funds, segregated funds, annuities, credit monitoring and a lot more financial services. 

In the year 2012, Primerica has become the main target of a number of lawsuits asserting that the representatives of the company wanted to profit by earning commissions to a group of people. This reprsentatives persuaded firefighters, teachers, and other government employees to take off from the secured government retirement insurances to improper high risk retirement insurances offered by the Primerica. By January 2014, the company settled its allegations partaining 238 cases for $15.4 million.

Who is the owner of Primerica?

Primerica was first founded by Arthur Williams Jr. in 1977 wherein during that time, the company garnered the idea of a multi-marketed concept of “buy term and invest the difference”.

Their main goal is to provide a sufficient protection with the term life insurance for those middle-income employees and to be able to help these individual save and invest their money.

It was a private general agency and Williams named it Financial Assurance, Inc. (FAI) .In 1980, A.L Williams signed a contract with Indemnity, MILICO and PennCorp Financial Services to extend its power and benefits.

Today, it is now owned by A.L Williams and Associates and it was until 1987 when American Can Company (partner company of Primerica) initiated a change of name and hence, the company’s name was successfully changed to “Primerica”.

Is Primerica a pyramid scheme?

How does Primerica works? 

So, Primerica’s business opportunity works around its agents. These so called “agents” are not Primerica’s employees. Instead, they are independent contractors that invested in to the business. 

Primerica does not pay us the salary or any benefits, which a normal company does have, to promote their products and services. Rather, we are at our own and we are solely responsible for selling and also recruiting so that we earn an income.

Let us say for example we are Primerica’s representatives, as of this level, we earn an income from commissions of 25% on services, products, insurance, and other things offered to our new clients.

However, we may be able to increase the commission percentage and other bonuses as we increase our levels. And in order to increase levels, we have to recruit more people in to the system.

While we are recruiting a lot of people, the multi level marketing comes into play. Since we are earning money by offering others to become a sales representative, we also get an opportunity to sell Primerica’s products and other services offered.

With that, we will be able to build a downline upline system, where we get to recruit more people to join the group, who will recruit more people, who will go on and recruit more people.

In the downline system, we get to receive commissions for the sales and also recruitments of our downline.

Is Primerica a pyramid scheme? YES!

The recruiting strategy of Primerica

Usually, the very first people that we rushed into purchasing the products are our family members, relatives, friends, or any close associates who are potentially and may be easily convinced into investing at the company.

We, the representatives, then receive a commission for every sales that they accumulate. They are then encouraged to recruit more people to invest.

Their costumers then becomes a representative and will then recruit another person. And so with these process, the sales, recruiting, and revenues continue to get bigger.

As a matter of fact there are 7 levels that Primerica’s agents may be able to achieve in this business. For each level of increase, the commissions and bonuses that we receive also proportionally increase. 

With that kind of scheme, the representatives will do their best in recruiting more. More recruits, more money.

Well, that kind of thinking is kind of similar to a pyramid scheme right? But we cannot conclude yet, let us take an even closer look.

7 levels of being a Primerica agent

As we sign up with Primerica, we get to be called the Associate. In our very first level, we will not be able to earn something or have any bonus. All we need to do is to get the life insurance license.

As soon as we get the license, we move on to the next level, which is the Representative level. And as I have mentioned earlier, we can get commissions for 25% of the sales of our downline.

Next, we have Senior Representative level. If we are able to complete our financial needs analysis, then we will be able to level up from the representative level. With this level, we can receive 35% commissions for the sales and 10% bonuses if we have 3 associates recruited.

The next level is the District leader. We need to promote 1 senior representative in our downline and generate $2,500 of premiums in 1 month. If we are able to achieve those qualifications, we get to earn 50% commissions and 15 – 25% bonuses.

As we promote 1 district leader in our downline and generate $5000 in premiums, we get leveled up to the Division leader. We will be able to earn 60% of the commissions and 10 – 35% bonuses.

In order to level up to Regional leader, we will need to promote 2 new district leaders and generate $7500 in premiums. With that, we will be able to earn 70% of the commissions and 10 – 45% bonuses.

At the Regional Vice President level, we will need to promote 6 district leaders or above, get $20000 in premiums, and get security license. With that, we will earn 95% of the commissions and 10 – 70% bonuses.

Is Primerica a pyramid scheme?

How to make money with Primerica?

Although some representatives earn more money than others, some representatives also has average to very least earnings. This variations of income is absolutely possible because some representatives may have more collective recruits and have sold more premuims than the others. 

And as we can clearly see above, getting recruits offer a lot bigger percentage of commissions to the sales of your downline. In short, if you really want to make a lot more money with Primerica, you have to be really good with persuasion.

Also, you have to enlist new representatives which are very willing to look for new recruits as well as very good at selling the products.

Basically, this kind of job is really difficult since most people nowadays are very hard to convince. Perhaps, they are knowledgeable enough that this kind of marketing does not guarantee profit or payment of hardwork.

Now, what if we will just sell the product and do not recruit at all?

Well, we cannot really deny the fact that if we sell the product we just get the exact retail price. But if we recruit others to sell the product, the commission percentage will do all of the work in giving us a lot more income. 

This company’s structure is a bit off since it will generate a pyramid scheme with its representatives to its downlines. The higher we are in the heirarchy, the better our income will be.

A chain of reaction will fastly spread all throughout the place and the ones in the bottom of the pyramid will be the ones to be greatly affected.

Primerica's red flags

Due to the company’s structure, there is a lot of tension going on in terms of recruiting other people. Our eagerness and improper way in persuading others that “you should join us because of this and that” is a big red flag that everyone should know and must be knowledgeable about. 

The company or the ones at the top of heirachy chain really loves to tell the people to try recruiting first the warm market. It is because they feel like recuiting will be a lot more easier if we are comfortable with the person we really want to recruit rather than a complete stranger.

On the other hand, there are some issues partaining this approach. First and foremost, it will most probably create a tension within our group of friends or our family.

The main reason is that they do not want to get involved in the recruitment but you still force them to do so. They will tend to avoid you as much as possible so that they will be free from your aggressive recruiting. 

And another thing, sooner or later we will run out of people to recruit to. As soon as we recuit 3 associates, each of them will also recruit 3 more people. Then those 9 people will each recruit 3 more people. The recruiting is getting higher at a very high speed and at an exponential trend. 

Now that is a lot more like pyramid scheme to me. The exponential trend will most certainly leave the ones at the bottom of the pyramid have no one to recuit already.

Are Primerica's products HARD to sell?

Going to another person directly takes a lot of confidence, most specially when selling a product or services. But then, that is the only way to partake in Primerica’s kind of business. And in order for them to buy the product, we need to convince them as fluent as possible.

The products that Primerica offers, like the life insurance, auto insurance, and home insurance, are definitely big decisions to make. When making decisions, an individual cannot do this at just one setting of face to face selling. 

Also, we cannot just take for granted the competition in the market. There are other companies that offer cheaper prices for the same services that we offer.

Let us take for example the life insurance, it is a lot cheaper in the funeral homes rather than at Primerica’s life insurance. All we need to do is convince them how Primerica is a lot more efficient and a lot better.

We also cannot deny for a fact that a multi level company has a costly price to their services because they need to cope up with their own sales model.

Now, unless we are a very great salesperson, that would really change the people’s mindset, then we are really going to struggle and fail in this kind of business.

The PROS of Primerica:

  • Gives training
  • BBB accredited
  • Gives commissions
Is Primerica a pyramid scheme?

The CONS of Primerica:

  • Products are expensive
  • Pyramid Scheme in disguise
  • Create tension within your group of friends
  • Constantly looking for recruits
  • Face to face selling
Is Primerica a pyramid scheme?

Are there any better make money opportunities?

The money that we earn in multi level marketing is indeed big because of the recruiting schemes, which would later on have negative effects. But, there are other kinds of marketing that would not involve those face to face selling and tricking to recruit other people. 

What I am talking about is the affiliate marketing. It is a type of performance based marketing where a company will pay one or more affiliate once a customer was brought to the company by the affiliate’s marketing efforts.

There are already millions of affiliates that are earning big time because of this marketing strategy. In this kind of make money online opportunity, there is no downline and upline system, no direct selling, and most specially you get to pick what kind niche your mind and heart really wants.

One of the best affiliate marketing startups is located in Wealthy Affiliate. It is the leading company in Affiliate Marketing industry and has been innovating and propeling the make money online industry. 

Unlike the other websites, the Wealthy Affiliate would love to tend to the needs of its members. For both beginners and experts, they give educational background, support, training to tools like Jaaxy, and give guidance in making websites, hosting and networking.

In Wealthy Affiliate, membership is free for everyone who wants to test the waters in the Affiliate industry. The premium build up is a lot more recommended for the people, who wants to earn more and are really interested in being an Affiliate.

Trainings, guides, and tutorials are already provided. All you need to have is the 3 key factors of like; patience, time, and effort.

Would you like to know how to build a real, strong, business in affiliate marketing? See my #1 recommendation here! 

Open your lifelong account right now, without providing even a payment card details!


Being in the multi level marketing industry is indeed very hard. You need to have the booming confidence in order to sell the products and services that the company offers. Also, recruiting others will give you more income due to the commissions to given. So, you will need another set of confidence. 

Is Primerica a pyramid scheme?  Yes it is! This kind of business is a pyramid scheme in disguise because the only way to move up in this company is through recruiting. Primerica is not responsible in giving you your salary. Instead, you earn through the commissions.

With those in mind, I am very hesitant to recommend you this type of business.

Instead, you may try to invest your time and money in Wealthy Affiliate. It already guided and helped lots of people come up to success. 

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