Is Primerica a Pyramid? Is it legal? Do people really make money doing it?
Okay, here's the deal.
Section 14-291.2 of the NC Statue defines a PYRAMID as: "'Pyramid Distribution Plan' means any program utilizing a pyramid or chain process by which a participant gives a valuable consideration for the opportunity to receive compensation or things of value in return for inducing other persons to become participants in the program."
In other words, you join by buying something. Pyramids are ILLEGAL. So to the question of "is Primerica a pyramid?" no because it would have been shut down by the SEC, NASD, Federal Gov't, State Gov't, etc. And let me ask you, if Primerica is vested by Citigroup the LARGEST corporation on this PLANET, why would they put their trust, let alone their financial backing into a Mickey-Mouse Pyramid scheme? They wouldn't.
Rufus Ligh Edmisten, the North Carolina Attorney General with a reputation among state insurance commissioners as a "pyramid expert" & Barry Clause of the Department of Insurance both studied Primerica(A.L. Williams) to determine if it was indeed a Pyramid as many claimed. After nearly two years of study, Clause and Edmisten and their team of experts released a 17-page report concluding that Primerica was not a pyramid. Why? You DO NOT HAVE TO BUY ANYTHING TO JOIN.
Which brings me to the difference between Multi-level companies and Pyramids. A pyramid, which as forementioned, is illegal but works like a chain letter. There is no product or real service. You get paid to recruit. A multi-level company works by recruiting someone to purchase products wherin promotions and advancements are based on the products you BUY. Classic example, Amway. You gain 'diamonds' not by how many SA-8s you sell, but how many you bought for yourself to stock in the garage and over price to your friends and neighbours. In Primerica, you neither get paid to recruit, nor are you required to purchase any of the products. As I tell everyone that hires on with us, YOU DO NOT GET PAID TO RECRUIT. YOU WILL NEVER RECEIVE A CHECK FOR RECRUITING SOMEONE. So, what is Primerica then if not either of those things? It is a Modified General Agency system. A general agency system works as such:
Consider real estate. A broker has an office and works on a 6% contract. So if a he sells a house, he gains a 6% commission. But a smart broker will recruit agents to help sell houses. These agents are probably on a 4% contract so if they sell a house, they will earn that in commission and their broker will earn the difference in contract (6%-4% = 2%). That is how Primerica works. An RVP (broker) gets paid 95% on Insurance. Their agent gets paid 25% and if the agent sells a policy, the RVP earns a 45% override.
So the agent, the broker, and the company are happy making money. BUT what if the agent becomes a broker? Well 6% - 6% is 0% so there is no override. In Primerica, if someone you recruit PASSES YOU, you DO NOT earn an override on them. Trust me, I've passed my recruiters. HOWEVER, this is where Primerica changed the rules of the General Agency system. IF an agent in Primerica wishes to become an RVP him/herself, they can and NO ONE will stop them.
Normally, an RVP would NOT want to have an agent become an RVP because they would lose their override. BUT the company said, well since you helped build a new RVP, 95% - 95% is still 0%, so you gain no override, but we don't want to penalize you for developing leadership so we will pay YOU a 15% bonus on the gross sales of your new RVP from our own assets. This way, no one stops you from advancing, the agent going to RVP makes money, the RVP still makes money, and the company (who created a system that ENCOURAGES promotions) makes money.
As for "will it work?" Did you work it? Or did you gripe about it? Albeit, this business is not for everyone, but folks, if you actually stumble into an office with solid leadership and work the system, it DOES work. It sure worked for Mike Sharpe who failed out of welding school and now makes over $5mil/yr. It worked for Doug Hartman who qualified for food stamps but now makes $3mil/yr or Mark Younger who worked for Fed ex now making over $2mil/yr or Boe Adams who used to be the president for Alexander Hamilton. It worked for former teacher and coach, Bob Buisson who used to earn $9,600/yr before Primerica and now is retired cash flowing over $4mil/yr. And for an accountant named Mike Tuttle who now makes over $2mil/yr. Even an Aircraft Manufacturer named Eric Bonfiglio who once earned $30,000/yr in his previous occupation, now makes over $1mil/yr just like the Dillon brothers, Francisco & Alain, who were clinical psychologists. Heck, even David Francis, a lawyer now makes over $1mil/yr with us just like Pastor Jim Kocher. Not to mention guys like Shane Rudman who used to deliver ice and yep, you guessed it, over $1mil/yr. It worked for Art Williams, our founder who earned $10,000/yr as a HS coach, and is now the 53 wealthiest person in the world. Folks, Primerica has near 5,000 people in the sales force that cash flow between $50,000-$99,999. Over 2,000 that make between $100,000-$999,999. And over 50 people who make in excess of $1mil a year or more. Want to know something else that's interesting? Mike Sharpe is actually someone in Bill Stewart's organization. But while Mike makes over $5mil, Bill just clears $1mil/yr. Quite the multi-level pyramid, right? How many people out there make more money then their bosses in the same job?
Yeah... this is a pyramid scheme alright. Maybe that's why Sandy Weil, the "Wizard of Walstreet" decided to buy A.L. Williams. Maybe that's why when Primerica, A.L. Williams, Citibank, and Traveler's Group joined together to form Citigroup, that using Primerica & A.L. Williams as the sales force thrusted Citi to be the #1 company in the world. Maybe that's why when 911 & Katrina happened and all those death claims went out, the only two major insurance organizations that paid death claims without question was Primerica Life and the Knights of Columbus (a church group). I'm a Primerican through and through. So for all of those who have 'tried it and failed' or were told how it 'doesn't work' quit using outdated and FALSE information to justify failures and, like Art Williams says "Just DO IT!"
So unless you've got REAL facts and not just hearsay about the legitimacy of this company, I suggest you keep your mislead comments to yourself. Folks I was a skeptic who did his research thouroughly before making a decision to work for this company. And for those who were 'screwed' by PEOPLE in Primerica, I am truly sorry. But it was the PERSON who hurt you, not the company. And just like in every job or business, there will always be those select few who are nothing more than your average bottom of the barrel a-holes. We're not immune to having jerks work for us, and neither is any other company out there. The question is, will you play the victim because of one or a group of individuals, or will you seize the opportunity and just go for it at a better office with better leadership? I'm sure there's a fast-food place near you that you don't go to, but take the extra 5-10 mins to drive to another location of the same restaurant. It's the same principle here, folks.
So if you want to be average and ordinary, do what you've always done and the next 10 years of your life will look exactly like the last. But if you want to make a change, if you want a better life for you and your family, then you need to change something right now. I've made my choice. Do your research and make yours.