Primerica.....

[John Holmes]

A little while back a friend of mine told me that she had an opportunity to work for a company called Primerica. She explained that they were a financial company which does loans, debt consolidation, life insurance and investments. She does not have any background in financial work and said that this company trains you. She told me that they have meetings and motivational seminars and invited me to one. So I went. It was held in a rented office location and there were allot of people there. All seemed very nice, welcoming any new people who came aboard. My first reaction was that I thought to myself, oh no, not another Amway/Quixtar marketing scam. But I decided to sit and listen. So in the hour and a half that I did, I heard some very inspirational speeches and talks of success. I left there feeling exactly what I thought. Yup, it’s another Amway!

The problem is I am now trying to convince my friend that this is a scam and that she isn’t going to make any money there. And possibly even lose money. However, she is dead certain that it is legit and that with hard work she will become successful there.

My question is, has anyone ever had any experiences with them that can confirm if I am right or wrong?

 

[Gentle Ben]

My cousin was into it, She called me up, wanting to discuss my investments, I told her that I was happy with my current situation, besides I wasn't comfortable dealing with family when it comes to finances. She told me that she just wanted the experience of talking with people etc. I obliged her.
After her sales pitch, she asked how much I wanted to invest to start off with , I reminded her of "I'm happy with my current situation and dealing with family " she was noticeably upset, It reminded me very much of the sales pitch door to door vaccum salespeople we used to see.
She lasted about 6 months & went back to her original job (retail sales)

 

[nautilus]

I have no experience working for them. I do however have some money invested through them, and I'm quite happy with the progress being made. Been involved for 5 plus years. So far, so good. They have asked if I would like to work for them as well, but I declined.

 

[l69norm]

A little while back a friend of mine told me that she had an opportunity to work for a company called Primerica....

I just had a seminar from them. Essentially, the mutual fund companies give a 5% commission for selling their funds. There's a 60/40 split between you and your "broker". You are really depending on your client going into a long payroll deduction scheme for his RRSP, where you'll collect 3% of his new contributions. The clients don't pay the commission up front so they see $1 balance for each $1 invested. The commission comes from the mutual fund management fees (MER).

Once a "broker" recruits 30 salespeople working for him, he spins one of his salesman off to become new "broker", who then recruits the next 30 salesmen. The new broker then pays the old broker a "bonus" and so on and so forth.

You only need to take one course for 3 days ($600) to become licensed to sell mutual funds. It's almost RRSP season and the next available course is early Dec, which is why they are recruiting so heavily.

If you think about it, the average person puts $5K into RRSPs a year. Thats $250 commission of which you keep $150 and the broker gets $100. Assuming you can get 100 clients on payroll deduction, thats only $15K a year of extra income. (BTW you get 3% commision on new contributions, nothing on existing ones)

I don't know if it's worth it for all the effort you would need to get 100 clients. The real money is being the "broker". I suppose there's a tax writeoff angle as well.

It is legit in that you're selling regular mutual funds like Trimark, AGF, etc and you won't lose money in that you don't invest any to begin with (as a salesman). The performance of the funds is exactly that and your clients get statements directly from the mutual fund companies, not Primerica

It might be a lot of hours to work to make a sale. Now they claim that it takes about an hour to do a deal or you get paid $75 an hour assuming that you sell every second person which isn't too bad. I suspect there's a lot of competition from the banks which have a name/ reputation to most consumers. I also suspect that you would only do well if you did have an investment background like a CFP.

It makes me wonder if you did the same thing on your own and took the course and just bypassed the broker altogether?

 

[Belle Angeline]

To the men who wrote about Primerica Thank-you for your guidence. So many options for my future. You people are helping me so much.

Love sexygurl

 

[WhaWhaWha]

Talk about a bait and switch operation.

They advertise paying jobs. They invite prospects to interviews and ask for resumes. Then it's on to a seminar about how good it is to have money and what money can buy and why having no money is bad... Then a sales pitch for an investment which is required by the job seeker to continue...

Them: "Your first paycheque will cover the cost of the license"

Me: "Well you're catching me in a job seeking phase of life so currently I have nothing to invest. Why not deduct it from my first paycheque?"

Them: "It doesn't work that way, we need to ensure that we are paid up front to meet our expenses."

Me: "Well if you can't trust me from the outset how will one week's pay make a difference when I start representing your company?"

Them: "It's not that we don't trust you it's just that we can't be sure your license fees will be covered by your revenue."

Me: "Well a moment ago you said I would make it back in my first week. Knowing how hard I work and how much I need this I think I will probably surpass those expectations, so my revenue potential really isn't an issue is it?"

Them: "Well if you aren't willing to invest how can we have faith in your dedication?"

Me: "It's not that I'm not willing. I just told you I don;t have it. Well if I make nothing or change my mind and walk away just revoke my license and noone will be out of pocket. But if you are serious about your interest in my potential wouldn't it be a shame to throw it all away because I simply don't have the startup funding?"

After this interview, I decided to do my own backround check on this company. The owners have been in major trouble in the USA with the Federal Trade commission. On the receiving end of numerous lawsuits.

Bottom line is if you have to pay money to get a job, there is something wrong. I will tell you what I told them two years ago. Life is too short to do business with dishonest people, even if it's potentially profitable. I now work for a proper company that paid their own expenses and paid me for training and certification. And they are still hiring. No sales required. No commissions. Just go to work and get paid.

 

[i am one]

The short of it:

- Primerica is a pyramid scam disguised as "financial advisors."
- They're hiring people with no financial education or experience - are these the types of people you want managing your assets? Sure they "train" people, but only in sales techniques, not about fund management.
- No legitimate company would make the employee pay for their own training. Don't even try to justify this, it doesn't happen.
- The whole pyramid system is dependent on sales - you selling to someone else.

Now there's going to be a handful (1 ouf of tens of thousands) of Primerica salespeople saying they'll pulling in the big bucks just by putting a lot of time and effort into it. Well, if I worked 90 hours a week at my job then I'd be pulling in big bucks as well.

 

[Malibook]

I wouldn't call them a scam.
They are a middleman broker who do nothing to earn their commissions.
Why deal with them when you can deal direct?

 

[pblues]

The short of it:

- Primerica is a pyramid scam disguised as "financial advisors."
- They're hiring people with no financial education or experience - are these the types of people you want managing your assets? Sure they "train" people, but only in sales techniques, not about fund management.
- No legitimate company would make the employee pay for their own training. Don't even try to justify this, it doesn't happen.
- The whole pyramid system is dependent on sales - you selling to someone else.

Now there's going to be a handful (of tens of thousands) of Primerica salespeople saying they'll pulling in the big bucks just by putting a lot of time and effort into it. Well, if I worked 90 hours a week at my job then I'd be pulling in big bucks as well.

I went to one of their seminars with the promise of an IT job fair. What a pile of crap. They had well rehearsed staff doing the old rah rah thing. If you want to do investments, start with a bank. They will pay for your courses. Stay there two years, then go onto an investment firm...

 

[Coach]

It's not a scam, it's backed by one of the largest financial institutions in North America, Travelers. However it is a multi level marketing company. They recruit people to become "reps" and send them out to sell and recruit more reps. It is completely legit. Like many MLM's , even commissioned sales people, especially in mutual funds etc., only avery few actually make it. The company knows if they get 100 recruits only a very few - can't say what the number is - will make it.However they haven't outlayed much for training and they keep your customers after you move on.
Not a scam, completely legit, but a hell of a way to try and make a living.

 

[K Douglas]

I was recruited by them back in the late 90's went to one of their seminars and didn't like the pushy aggressive attitudes. Plus they wanted me and my family to invest all our savings with them. Did a little research on them and said forget it, I'm far better than this. My advice is to stay away people.

 

[wonkyknee]

It is definitely multi-level marketing...which can be allright. Like any business you can be successfull with them, just shop around and deal with an office that you feel comfortable with(ie: level of professionalism). As for paying the broker, its the same as Real Estate, Mortgage brokers, inurance agents etc etc.....you gotta pay your dues, and pay for your education. You can indeed work for a bank, but they will take a lot higher cut..don't kid yourselves. You can get licenced and work for a brokerage, whether big or small(boutique)..once again, you will either be a paper shuffler, or you can try helping with sales...the larger portion will go to the house...again...you will pay your dues.
If you can't even afford to pay for your own licence:..ie: $250.00??..then yes you shouldn't bother trying to start your own business. The reality is most businessess need high start up investment and/or loans. 10's of thousands of dollars. In commission business you generally won't need this, but you WILL PAY YOUR DUES. Rule of thumb: If you survive the first 5 years, you'll most probably last much much longer.....if you make it 10 years in any of the above mentioned businesses, you would probably have achieved much success!

Bottom line: don't be afraid to pay your dues....but make sure wherever you decide to work commission sales that you feel comfortable...ie: professionalism, ethics, sales support, helpful staff, education, etc etc....

 

[mtl_guy]

Primerica is a SCAM.

Its also a JOKE within the investment biz (if anyone even gives them two seconds to make fun of them.)

Its MLM - multi level marketing - at its best (or worst).

They sell terrible products; mutual funds with huge fees and insurance which is inappropriate for most people.

Bottom line - if you like to sell Amway and you dont mind selling sh!t to your friends and family then this may be for you. And the more suckers you can recruit, the more money you make. (The big focus at Primerica is recruiting; recruit more people and you make more money. Why sell sh!t when you can have others sell sh!t for you?!)

Oh, and theyre backed by a big bank or insurance company? Theyre an embarassment that makes money for the parent company. Have you ever heard the parent mention Primerica proudly? Or even mention them at all?

PRIMERICA = SCAM

Google "Primerica Scam" and find the ton of pages devoted to this BS firm.

 

[toolioiep]

Primerica is a SCAM.

Its also a JOKE within the investment biz (if anyone even gives them two seconds to make fun of them.)

Its not a SCAM per se, but I can tell you that it is a big joke in the investment industry.

I'm a pretty high level executive for a major fund company, and we won't deal with Primerica reps. We simply do not want to be associated with the firm, and the vast majority of its reps. Besides, there is a million of them and the vast majority of them have next to no assets under management.

My advice? If looking to make a career with an investment firm, go to one that is reputable and that you don't have to ask strangers about.

 

[B470]

its not a scam...
had friends involved in it for awhile...they liked it and had done fairly well for ppl that started with no experience,
yes it is a MLM (multi level marketing)
if you dont mind hours and hours and hours of cold calling , trying to get ppl to invest with you AND get ppl to "come on board" the primerica train
its pbly an OK gig

 

[Papi Chulo]

I attended a recruitment meeting.. held by a friend

he seems to have done very well, but the impression I got as the meeting went on was that its structure was based on a pyramid, and did not bother with it.

 

[1HandInMyPocket]

I agree, Primerica, like WFG and Vector (Cutco) all discused in other threads are multi-level marketing companies. I believe the reason there seems to be many bad opinion on them is that they do mass hire, and only a small percentage do well. But it is also essential a sales-oriented job. If you're good at sales, you'll do good there. Yes it is easy for the reps, because they are good at sales (and may not understand why it is not easy for others).

 

[WhaWhaWha]

A little clue when job hunting...

If the job ad resembles a cattle call.
If an interview is booked the same day you call.
If you show up and there are more than two people ahead of you in line..


It probably is not a real job.

 

[John Holmes]

Well most of you have confirmed what I have already suspected, that it is in fact an MLM scam. I just wish that my friend would take my advice and pull out. She has already put in $200 for her training and believes that she will make allot of money with them.

 

[wonkyknee]

Most say London Life is a Joke....

Its not a SCAM per se, but I can tell you that it is a big joke in the investment industry.

I'm a pretty high level executive for a major fund company, and we won't deal with Primerica reps. We simply do not want to be associated with the firm, and the vast majority of its reps. Besides, there is a million of them and the vast majority of them have next to no assets under management.

My advice? If looking to make a career with an investment firm, go to one that is reputable and that you don't have to ask strangers about.

If you ask most professionals in the brokerage, mutual funds are a SCAM,...read the papers and they'll say Mutual fund fees are a scam. Mutual fund firms went around touting Teck funds in early 2000...then CRASH...same with most analysts on the planet....SCAM???

Mutual Fund firms moved all their client assets into RRSP CLONE 100% international Funds..then what?..the U.S dollar drops 35%??? all investors lose out on huge bull market in Canadian equities....SCAM. Mutual Fund firms still taking 2.5% fees all the way down!!!...SCAM????

REAL ESTATE fees??....many will say SCAM. $50 000 to sell a $1 000 000 home in the Yonge and Sheppard Area???? SCAM.

Yes there are 40 000 or so Primamerica agents out there making $35 000/year..maybe less...but they may be better off than many others...and the longer they last in the business and learn the trade, the more likely they will make $150 000/year at Primamerica or some other firm...that's probably 4-5times her current salary.

Lastly if the $200 fee is going to make or break your little friend then yes she should cut her losses now. I hear UPS is hiring for $10/hour..loading chemicals onto trucks at 2:00am.

Let her make up her own mind.

Instead of warning her that they will ask her to approach her friends and family to invest, why don't you do some research and educate her on how she can develop relationships with accountants, lawyers, mortgage brokers for referrals, holding wordshops, giving seminars to graduating professionals, taking an H&R block course and do tax returns for seniors and regular people, how she can buy a book of existing clients, go into companies and give seminars on basic financial planning???

why keep the girl down.....is it that she might become more successful than you????