Is Primerica a scam?

[Zelenius]

I once attended this Primerica presentation many years ago but left early because my sleeze-o-meter was sounding the alarm signal after only 5 minutes. I've been to a number of MLM meetings and seminars over the years, initially meeting their representatives at job fairs or because a friend recommended I go, but Primerica set a record with their extreme sleaziness. I think Primerica was the last or second to last MLM meeting I attended.

It was so utterly predictable too. I went more to confirm a suspicion and because I had time to kill that day; all the talk about "financial independence", and how quickly these clowns representing the company rose through the ranks and got rich by working part time made this thing smell far worse than most gas station bathrooms. Oh yeah and recruit everyone you've ever met in your life and all your previous lives.

But as a skeptic, I wonder if I am sometimes wrong. Maybe I misunderstand Primerica. I have done research on Primerica and read the horror stories, and it reminds me a lot of Amway. Being more familiar with Amway due to almost getting involved with it, I believe Amway is a scam. It seems like a very cleverly designed pyramid scheme that uses their products to make it look legitimate. Perhaps the same could be said for Primerica, which may be working even harder to look legit.

So is Primerica a scam, or just a lot like a scam? Is it a pyramid scheme? Has anyone here been involved with Primerica?

 

[The Central Scrutinizer]

Never heard of it.

 

[Gord_in_Toronto]

After a bit of Googling I conclude that this company does sell insurance but it is not a good deal as there are companies that sell the same product for less. Its sales approach is Multi-Level Marketing such that your primary income would come (after you have sold policies to your friends and family) from skimming from the sales of the agents you recruit.

In this it is not much different from classic Amway. "Many are called but few are chosen".

Do your own research. This is not too bad a place to start:

http://answers.yahoo.com/question/index?qid=20090303114639AAK2ji5

 

[icerat]

I once attended this Primerica presentation many years ago but left early because my sleeze-o-meter was sounding the alarm signal after only 5 minutes. I've been to a number of MLM meetings and seminars over the years, initially meeting their representatives at job fairs or because a friend recommended I go, but Primerica set a record with their extreme sleaziness. I think Primerica was the last or second to last MLM meeting I attended.

What did they do that was sleazy?

It was so utterly predictable too. I went more to confirm a suspicion and because I had time to kill that day; all the talk about "financial independence", and how quickly these clowns representing the company rose through the ranks and got rich by working part time made this thing smell far worse than most gas station bathrooms. Oh yeah and recruit everyone you've ever met in your life and all your previous lives.

Ok, hype.

But as a skeptic, I wonder if I am sometimes wrong. Maybe I misunderstand Primerica. I have done research on Primerica and read the horror stories, and it reminds me a lot of Amway. Being more familiar with Amway due to almost getting involved with it, I believe Amway is a scam. It seems like a very cleverly designed pyramid scheme that uses their products to make it look legitimate. Perhaps the same could be said for Primerica, which may be working even harder to look legit.

"almost getting involved" doesn't really make one very familiar does it? Amway has been investigated more than once, by more than one country, because of the very accusation you make against it, and has been cleared every single time. Indeed it's brands are some of the best selling in the world, with spokespersons over the years ranging from Sandra Bullock and Bob Hope to the present day with Kurt Warner and Miss America, not exactly products as a "cover".

So is Primerica a scam, or just a lot like a scam? Is it a pyramid scheme? Has anyone here been involved with Primerica?

No it's not a pyramid scheme, nor is it inherently a scam. Until a successful IPO in 2009 it was a division of Citi Group. It uses multi-level marketing. That means it suffers from the strengths and weaknesses of that model. One of the weaknesses is that anyone can join and they have a deal of independence in the way they operate. You'll find some groups push the hype and are more interested in recruiting other sales reps than in selling insurance, others the exact opposite, and everything in between.

So even if Primerica itself isn't a scam, it sure doesn't sound like the ones who introduced you to it would be a good type to get involved with.

 

[Spindrift]

Scam. I actually got a call from a guy who was instructed to simply go through the phone book. When I asked him if that was the best marketing suggestion they could do then perhaps they may not be the best company.

Another company who avoids at all costs mentioning their name for as long as possible.

 

[Mycroft]

I once attended this Primerica presentation many years ago but left early because my sleeze-o-meter was sounding the alarm signal after only 5 minutes. I've been to a number of MLM meetings and seminars over the years, initially meeting their representatives at job fairs or because a friend recommended I go, but Primerica set a record with their extreme sleaziness. I think Primerica was the last or second to last MLM meeting I attended.

It was so utterly predictable too. I went more to confirm a suspicion and because I had time to kill that day; all the talk about "financial independence", and how quickly these clowns representing the company rose through the ranks and got rich by working part time made this thing smell far worse than most gas station bathrooms. Oh yeah and recruit everyone you've ever met in your life and all your previous lives.

But as a skeptic, I wonder if I am sometimes wrong. Maybe I misunderstand Primerica. I have done research on Primerica and read the horror stories, and it reminds me a lot of Amway. Being more familiar with Amway due to almost getting involved with it, I believe Amway is a scam. It seems like a very cleverly designed pyramid scheme that uses their products to make it look legitimate. Perhaps the same could be said for Primerica, which may be working even harder to look legit.

So is Primerica a scam, or just a lot like a scam? Is it a pyramid scheme? Has anyone here been involved with Primerica?

Primerica is a multi-level marketing scheme that involves packaging investments, mortgages and insurance into one package and marketing them to consumers while simultaneously recruiting those consumers as a sales force to sell the products further.

My background is in the mortgage business, and my wife has a background in insurance, so when we were pitched on Primerica, we were in a good position to evaluate their products. What we saw was that both their mortgage products and their insurance products were way overpriced and the level of knowledge of Primerica agents was pitiful. They pretty much have a cookie-cutter financial program they apply to everybody.

Promoting these different financial products through a single combined financial plan isn't a bad idea at all, but selling them at an inflated cost through poorly trained agents is. In addition the financial outlay for certifications and materials adds up quickly. On top of that, agents are expected to attend all kinds of inspirational meetings, often at significant costs.

There is money to be made in any of these fields, but it's best to get into it legitimately through a company that will train you properly.

 

[Joecool]

"almost getting involved" doesn't really make one very familiar does it? Amway has been investigated more than once, by more than one country, because of the very accusation you make against it, and has been cleared every single time. Indeed it's brands are some of the best selling in the world, with spokespersons over the years ranging from Sandra Bullock and Bob Hope to the present day with Kurt Warner and Miss America, not exactly products as a "cover".

And Sandra Bullock and Kurt Warner endorse Amway pro bono or are they compensated?

Anway was investigated and got off the hook because they had a sales requirement. A requirement that appears to be not enforced or very loosely enforced. Please note that during some of these investigations, Amway was fined for exaggerated income claims and they also had to pay 25 million to Canada for some tax scandal.

 

[Zelenius]

"almost getting involved" doesn't really make one very familiar does it? Amway has been investigated more than once, by more than one country, because of the very accusation you make against it, and has been cleared every single time. Indeed it's brands are some of the best selling in the world, with spokespersons over the years ranging from Sandra Bullock and Bob Hope to the present day with Kurt Warner and Miss America, not exactly products as a "cover".

I never claimed to be an expert on Amway, far from it. Besides the uncle I mentioned in another post who got ***-raped by Amway, I have known many other people who were involved with Amway. I feel I know enough to avoid it.

As far as Amway getting cleared by the government, I do not care. Many scams get cleared by the government all the time, so this proves nothing. The government can't possibly shut down all scams currently operating in this country, unfortunately, especially if they hire armies of lobbyists to protect their interests.

Yes, it's true that certain Amway brands are some of the best selling in the world. But then again, the same is true of cocaine and heroin. This proves nothing. Oh and Charlie Sheen, Paris Hilton, Whitney Houston among many other celebrities are or have been big users of those products.

No it's not a pyramid scheme, nor is it inherently a scam. Until a successful IPO in 2009 it was a division of Citi Group. It uses multi-level marketing. That means it suffers from the strengths and weaknesses of that model. One of the weaknesses is that anyone can join and they have a deal of independence in the way they operate. You'll find some groups push the hype and are more interested in recruiting other sales reps than in selling insurance, others the exact opposite, and everything in between.

So even if Primerica itself isn't a scam, it sure doesn't sound like the ones who introduced you to it would be a good type to get involved with.

The few people at the top of the pyramid make all the money. The people at the bottom, lured in by tall tales about wealth and financial independence either make nothing or lose money(this money gets transferred to those at the top of the pyramid). Finding all the right loopholes to avoid getting categorized as a pyramid scheme does not make them legit in my book.

 

[Mister Agenda]

Primerica's main sin in my opinion is the deceptive and manipulative way they suck people in. Which is the main sin of all multi-level marketing schemes I'm familiar with. A number of entry-level workers in my division got involved with this outfit with the expectation they could make a living at it if they just worked hard enough, they were all disappointed. I attended a couple of their meetings, the pitch was financial independence, and once you were hooked you went to meetings that were basically pep rallies that seemed to be patterned after a charismatic church service. Most of the rank-and-file were lower-income blacks, which are a big and vulnerable demographic in my state. It may be legal, but I would advise anyone to stay away from it.

 

[godless dave]

I've heard of it, and as far as I can tell it's an MLM. Some people refer to it as Citigroup's dirty secret.

 

[godless dave]

No it's not a pyramid scheme, nor is it inherently a scam. Until a successful IPO in 2009 it was a division of Citi Group.

That doesn't mean it's not a scam.

It uses multi-level marketing.

That means it's a scam. All multi-level marketing operations are scams.

 

[Joecool]

Primerica's main sin in my opinion is the deceptive and manipulative way they suck people in. Which is the main sin of all multi-level marketing schemes I'm familiar with. A number of entry-level workers in my division got involved with this outfit with the expectation they could make a living at it if they just worked hard enough, they were all disappointed. I attended a couple of their meetings, the pitch was financial independence, and once you were hooked you went to meetings that were basically pep rallies that seemed to be patterned after a charismatic church service. Most of the rank-and-file were lower-income blacks, which are a big and vulnerable demographic in my state. It may be legal, but I would advise anyone to stay away from it.

This sounds exactly like Amway. If it walks and talks like a duck.....

 

[Almo]

That means it's a scam. All multi-level marketing operations are scams.

Yup. Math on those is just stacked against the people on the bottom. Makes their products uncompetitive in terms of price. There's a reason Wal-Mart has the best prices, and it's not because they use MLM.

 

[Joecool]

Yup. Math on those is just stacked against the people on the bottom. Makes their products uncompetitive in terms of price. There's a reason Wal-Mart has the best prices, and it's not because they use MLM.

The bottom line is that the MLM company and a select few who participate make money. The rest clearly do not. The scam gets worse when paid training is involved (Amway).

 

[icerat]

As far as Amway getting cleared by the government, I do not care. Many scams get cleared by the government all the time, so this proves nothing.

examples?

 

[icerat]

That means it's a scam. All multi-level marketing operations are scams.

Hmm .... care to define what you mean by "multi-level marketing"?

 

[Beerina]

In 2001 I lost my job. I got an email from a Primerica guy to come in. I was looking for a software job, so I went.

I was seated in a room with about 15 other people and fed a MLM shpeel -- how much do you want to earn? Get people to refinance, and also get others to join, then they work for you and you get a cut of their refinances. Insert diagram of people working for you, and people working for them, working for you, and so on.

The guy in charge claimed he had a 6 figure salary. Perhaps, I don't know. He definitely was good at sucking people in to give them the slop.

At this point I got up and left, informing the person who cut me off in the aisle that I was informed this would be an interview for a software job. Happily, everybody was watching that, which I was glad of.

 

[icerat]

I know little of Primerica. I've been trying to find a copy of their rulebook for their reps, no luck so far, but they are a member of the DSA and deceptively indicating something is a job offer is a clear violation of the DSA code of ethics.

Looking around the 'net there seems to be a *lot* of reports of that tactic being used by Primerica reps.

If folk want to stop that kind of thing they really should register complaints with Primerica/DSA.

 

[Spindrift]

I know little of Primerica. I've been trying to find a copy of their rulebook for their reps, no luck so far, but they are a member of the DSA and deceptively indicating something is a job offer is a clear violation of the DSA code of ethics.

Looking around the 'net there seems to be a *lot* of reports of that tactic being used by Primerica reps.

If folk want to stop that kind of thing they really should register complaints with Primerica/DSA.

They never say it's a "job offer". I am also a software person and told the person what I did and that I was looking for something in that field. They just ignore that, they don't care what kind of job you have. They say things like "Are you looking to get into management? We might have something for you."

 

[icerat]

They never say it's a "job offer". I am also a software person and told the person what I did and that I was looking for something in that field. They just ignore that, they don't care what kind of job you have. They say things like "Are you looking to get into management? We might have something for you."

Still deceptive IMO.