Anonymous asked in Business & FinanceSmall Business · 7 years ago

PRIMERICA - Scam or Not?

Hi, so I'd like to start by saying I am only 18 years old and in NO way whatsoever am I in a "rough financial situation". I realize that these "PYRAMID SCAMMERS" Usually target people that are in rough money situations, or just need a little extra cash on the side. Right now I am perfectly happy with the income I make, although if a job involving "Sales" of any sort arose that could greatly increase my income at only 18 years of age, why wouldn't I take it? What do I have to lose? I am quite intelligent for my age and pride myself on being great in the sales field. I'm currently finishing gr.12 in high school and will be taking 1 full year off in between high school and college. I work 25-30 hours per week at a nearby hiking store, where I am the tops salesman week after week, yet we are NOT on commission at all.

Recently I helped a customer, apparently giving them phenomenal customer service while them and they're family shopped in my store before a hiking trip. The customer asked my first name at the end of the sale (which happens occasionally when customers are overly satisfied with my customer service). I told him my name, cashed him out and told him to have a nice day.

2 WEEKS LATER - I get a phone call at work from this same customer (No customer has ever done this.) asking if I remembered him. I went along with it, he told me how I had some of the best people skills he had ever seen and how I give phenomenal customer service. He then began to tell me how he owned his own financial planning business, and that there was 3 management positions available. He told me he thought my people skills were better than anyone he's seen so far and that I was perfect for the job. We exchanged phone #'s and as I got off the phone I went straight onto google. Searched "His Name" + Financial Planning Services. Primerica was everywhere.


Again, I'm only 18 years old so if anyone has any words of advice it would be greatly appreciated! I have not called this man back yet, and I am extremely confused as to what my next move should be. Please help!!!

5 Answers

  • Derek
    Lv 7
    7 years ago
    Best Answer

    Avoid Primerica! Just run a search engine on the phrase "Primerica scam".

    I had a friend who was approached and was told that Primerica was "looking to expand in this area" .They made it sound like he was being offered a job. He was invited to a "seminar" which was essentially a sales pitch. The presenters even planted schills in the audience to hype Primerica, hoot, holler, and applaud.

    Here was the gimmick- They were not hiring any employees. They wanted "recruits" to pay them a training fee. The recruit was then told that they were not being offered a job at all, but rather they were being offered self employment as a door-to-door life insurance salesman.

    The recruits were asked for a list of contacts that could be visited. (suckers) The recruit and a salesman would then visit homes to offer a free "financial needs analysis". This was in reality just a way to find out what products the consumer might be sold. If anything was sold, then the recruit got nothing , and the salesman got a commission. The consumer may have thought that they were helping a friend or relative by buying something, when in reality they got nothing. Usually when the consumer found out about how lousy the Primerica products were, they were angry at the recruit for assisting in the deception.

    It seems that the financial advice offered was always geared towards buying some Primerica product-even if that actually made no sense.

    Interestingly, the Primerica rep. had little education in financial planning. He was actually a janitor who had taken the "Primerica training course" in how to give a sales pitch. That's hardly reassuring

    Not surprisingly, Primerica is generally considered to be about the worst in the business. Lousy overpriced insurance products and deceptive recruiting practices don't help it's image either. They recruit huge numbers of suckers to be sales reps. the vast majority of which realize within a year that it's a lousy operation. It's also no surprise that they have a very high turnover rate when compared to more respectable insurance companies.

    Source(s): friend had a terrible experience with Primerica. for reviews, see DO NOT give them a list of contacts and DO NOT allow them access to your bank account or credit card. If someone is offering you a legit job then they should not be asking you for any money. They should be paying you for your time.
  • 6 years ago

    Jack Beaur gave you the correct facts bout Primerica, I know people that are Primerica reps and they seem to love what they do, peolpe that don't anything about marketing seem to be the ones that have the most negative things to say, you will always read something negative about any company. Regarding pyramids all companys are pyramids the only advantage to a reputable markering co. is that you have the potential to make alot more money as opposed to working for a company as an hourly or salary employee and making someone else rich by you doing all the work. As anything in life you can't just think your going to join and the money is just magically going to appear you get paid for what you do. if you do nothing you get paid nothing. but while you are sitting around wondering why people have what they have and you are living paycheck to paycheck the people that are out there doing marketing are getting paid big time. And remember just because your only 18 the decisions that you make in your life at that age means alot. And to the statement about paying 99.00, yes it is 99.00 to start but that for registration and all of the work they have to do, they also do not do credit checks AT ALL.

    Also your not selling a produce.

  • 7 years ago

    I came to yahoo answers asking the same question. An acquaintance wants me to go to a seminar tonight. He told me theres a $99 background check fee. Ive been googling this company since last night and Im seeing 2 sides of the story. Someone also said they run your credit 7 times ( idk if this is true) and they ask for your debit card. Plus they all have the same story how you go to the seminars and theres 2 rooms with people and you can hear people in the other room cheering and applauding. Im getting suspicious about this company.

  • 7 years ago

    It's most likely a scam. Go along with it for now, and if he asks for money or avoids questions about the company or your paycheck, never talk to him again.

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  • Anonymous
    7 years ago

    Here is a list of facts about Primerica:

    1) There are over 100,000 life licensed representatives in the company, the largest marketing organization in North America.

    2) Primerica been in business since 1977.

    3) There are currently over 4.3 million clients in Primerica. That's lots of clients for a company that you think is a scam. Not only that, clients has invested over $28 billion through Primerica in various mutual funds and money market funds.

    4) Primerica has marketing agreements with various companies. They market Citicorp Trust Bank debt elimination loans, Metlife's Variable Annuities, ING 401(k), Genworth Financial's Long Term Care, Auto&Home Insurance referral program for Answer Financial Inc, mutual fund companies such as Fidelity, Legg Mason Partners, Oppenheimer, American Fund, Invesco, and so on. Primerica Financial Services owns their own life insurance company called Primerica Life and an investment company called PFS Investment Inc. It markets term life insurance for National Benefit Life in New York.

    5) Primerica has over 5000 offices in USA and Canada. The home office itself (located in Duluth, GA) is over 1 million square feet and it has its own zip code.

    6) Primerica spun off from Citigroup on April 1, 2010 and is listed on NYSE as symbol "PRI". Prior to this historic event, Warburg Pincus has agreed to invest $230 million in Primerica (which by the way spent $10 million researching Primerica), owning roughly 23% of the shares. Citigroup will own 50% of the shares. 12 months later, Primerica was named the best IPO of the year.

    7) Every financial company in America has to hold an annual compliance meeting. Primerica holds their Annual Compliance Meeting in the month of November. Every representative in those companies that are licensed in life, mortgage, and/or securities must attend that meeting. The purpose of this meeting is to keep representatives up to date to rules and regulations set by the federal government. By having this meeting, it protects the consumer as well as the representative.

    8) Primerica representatives are require to get certain licenses in order to talk about certain financial products. For example, if you wanted to solicit life insurance, you need a life license or a producer license. If you want to talk about mortgages or debt consolidation, you need a mortgage license. If you want to talk about investments, you need a securities license. These licenses are only issued by the state or the federal government (mostly state, except for the securities which is issued by the federal government), they are not issued by individual financial companies. To get these licenses, you have to pass a test. After you get your licenses, continuing education is required.

    9) Besides the fact that Primerica has over 100,000 licensed representatives, they also have about 2000 employees.

    10) Primerica has its own TV network that does live broadcast every Mondays and Wednesdays at 12pm. The broadcast usually has Co-CEOs or the President of Primerica speaking first. Then after they speak, successful leaders in the company does live training.

    11) Over 60,000 people attends the Primerica convention, which occurs every other year on an odd year. I'm not sure if they will still hold it at the Georgia Dome in the future since the company is getting bigger and bigger. I've been to every single convention and that dome is packed from the seats to the field. Its the most amazing event where everyone gets together. "One team. One dream."

    12) Primerica is member of the Better Business Bureau, which gave Primerica a business rating of A+ (as of April 1, 2010)

    13) Winner of Dalbar Service Award in since 2004

    14) Primerica is member of Insurance Marketplace Standard Association (IMSA). More info can be found about IMSA can be found at:

    15) Member of American Council of Life Insurers, as association of 377 companies representing 91% of total life insurance assets in the US, 90% of life insurance premiums, and 95% of annuity considerations.

    16) Listed on Russell 3000 index and Russell 2000 index as of July 1, 2010. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

    17) Named as a perfect business model in the book "ABC of Making Money"

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