Is Primerica A Pyramid Scheme?

Is Primerica A Pyramid Scheme?

Hello! Thanks for reading my Primerica review!

Primerica is an often scrutinized and criticized company due to the fact that many people have made claims that it is a pyramid scheme or a scam. But some have also said that it is a legitimate company.

Since you're reading this now, it's likely that you have been told by a friend or family member about the benefits of Primerica insurance or the possibility of making some money selling it.

Number one, I have to say great job not falling for the sales pitch right away and instead going online to do some research and find out if this is the real thing.

Checking things out thoroughly first is the best way to not get scammed and lose money. Eventually, if you look hard enough, you will find the best method to make money online!

As a prerequisite I should tell you, I have no association with Primerica whatsoever.

So just know that I don't want to sell anything to you here. My purpose is just to give you an honest review of this company.

Is Primerica a pyramid scheme? Or is it legit?

Let's find out...

Primerica Review

Company Name: Primerica

Cost: $99 refundable fee up front, then $25 a month

Rating: 45/100

Recommended?: No

Primerica Review

Summary: On the plus side, Primerica is not a pyramid scheme. It also isn't a scam. This company has actual products for sale. They aren't just focusing on the recruitment of other people in order to make money. But like other MLMs it is very difficult for anyone to earn enough income to make a full-time living working at Primerica.

Is Primerica An MLM?

Primerica is a Multi-Level Marketing (MLM) company headquartered in Duluth, Georgia that mainly sells insurance. They also have some types of financial services available.

Honestly, it's quite interesting to find an MLM that sells insurance as so many of these types of companies are competing with each other in the health products industry and making it hard to find out which ones are the best.

One example of this Tranont, although Tranont does sell financial services as well.

Primerica on the other hand is more similar to AmeriPlan which is an MLM that sells health insurance as a network marketer.

Primerica started in 1977 as part of Citigroup, Inc. In 2010 they broke away from Citi with an IPO.

Today Primerica is listed publicly on the New York Stock Exchange. Its symbol is PRI.

Looking back over the extensive history of this company, I would say that Primerica is a legitimate company.

Were this to be a pyramid scheme or any other kind of scam, it would most likely not be around as long as it has.

As this is an MLM company, it has two main parts to it:

  1. The insurance products/financial services
  2. Their Primerica business opportunity that allows you to make money promoting Primerica.

I will explore the second part a little later. But first check out this review from a former member about why he left the company...

Primerica Products

The type of products available at Primerica varies. Some of them are:

  • Term Life
  • Investments
  • Pre-paid Legal
  • Auto & Home
  • Identity Theft
  • Financial Need Analysis

The target demographic of Primerica is mainly middle class people in the United States, Puerto Rico, and Canada.

Can You Make Money With Primerica?

Primerica has two possible pathways to making money:

  1. Be a salesman as you would for a regular insurance company and make commissions by selling financial products.
  2. Bring in other people to work for the company and earn commissions from their sales.

But before you are able to promote Primerica products and earn commissions, you will have to complete a few other tasks.

Getting Started with Primerica?

Number one, there is a fee of $99 due upon joining.

The $99 pays for your background check and a Primerica Sales License.

The difference with Primerica is that each representative must go through a pre-screen process. This is where they look at your background to make sure you don't have any criminal history or derogatory things that would prevent you from working with them.

This screening is just to validate that they are getting the best employees to be their sales reps.

Once you complete these and are accepted in, you will have to pay $25 per month. This gives you access to their platform and helpful tools. This includes marketing material and training to assist you with making sales.

After that it's up to you to put in the work if you want to make money.

And also, the initial $99 can be refunded if you stay with the company for the first few months.

Primerica's Compensation Plan

This is the interesting part. How do you get paid with Primerica?

These are the main for ways to make money with Primerica:

  1. Sell Insurance and get commissions - Percent of sales you get for any financial products sold. (see below for details)
  2. Overrides on sales of your downline - You get 10% commissions when your downline makes a sale.
  3. Differentials on sales of your downline - When you move up in rank you are able to get more commissions from helping your downline to sell more.
  4. Other product commissions - Primerica has a lot of financial products that you can sell to make commissions.

The best part of this compensation structure is it has 11 tiers. You could receive a commission from recruits of your recruits 11 tiers down.

Here is a list of the various commission percentages by each rank:

  • Representative commission - 25%
  • Senior Representative commission - 35% + bonus
  • District Leader commission - 50% + bonus
  • Division Leader commission - 60%
  • Regional Leader commission - 70%
  • Regional Vice President commission - 95% + bonuses
  • Senior Vice President commission - 95% + bonuses


Don't Like MLMs? Check Out My #1 Recommendation

How To Recognize A Pyramid Scheme 

Now to answer the original question ...

Is Primerica a pyramid scheme?

For us to answer this we must really know what a pyramid scheme is.

Wikipedia defines a pyramid scheme like this: "A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services."

Another way of saying this is if a company focuses more on the recruitment of new members instead of focusing on the selling of their products, then it is probably a pyramid scheme.

Is Primerica a Pyramid Scheme?

I would say NO, I do not consider Primerica to be a pyramid scheme.

As I said before, Primerica has several real products that salespeople can earn money selling. They do not just focus on bringing in new members as their way of making money.

Actually, there are people who make as high as 95% of sales on some of the financial products at Primerica.

This makes it among the best paying of MLM companies.

When someone reviews Primerica and says it's a pyramid scheme, this almost always is a person who failed to sell enough to make money. You should not be listening to these people.

But, just beware...

Just because an MLM has products does not make it legit.

The line between pyramid scheme or not is becoming more blurry all the time. More companies are getting good at hiding their pyramid scheme nature.

For instance, Digital Altitude and MOBE are great examples. Both of these companies became popular by promising to help people make lots of money in the internet marketing space.

But in reality their training was not really for internet marketing. Once in, they would actually train their members to bring in more people to the program and never how to make money with internet marketing.

And because of this, both of these companies were shut down by the FTC and can no longer do business.

I tell you all this to let you know that there is a lot of scams in the MLM industry. So do your research and be extremely cautious when deciding whether or not to join a company. Especially if they are asking for money upfront.

As I said in the beginning, since you are here you must be a careful person so continue to watch out for these scams.

Pros Of Primerica

1. You can trust their members

As I said before, each person has to submit to a background check in order to join Primerica.

When they get accepted they will get the sales license for Primerica.

The truth is, many individuals are out there trying to promote MLM companies that don't know anything about it!

The process of pre-screening people helps make sure that their salespeople are good quality people.

2. The cost is reasonable

$99 upfront and a $25 monthly fee is all it takes to join.

And you can even get a refund of the $99. It is just to get your background check and license done. The $25 every month pays for the training and tools you receive on the platform.

So really the cost of being a member is just $25 per month. This is affordable if you want to give them a try.

Compared to several other MLMs I've reviewed that ask members to pay thousands upfront, this is very cheap.

Most health industry MLM companies require you to buy lots of products at the start and this drives the price of participating way up.

3. A+ BBB Rating

An additional plus for Primerica is their A+ rating with the Better Business Bureau (BBB).

Most people have heard of the BBB, but many don't realize that accreditation and A+ rating is difficult for companies to get.

Even more interesting is that Primerica has had their rating with the BBB dating all the way back to 1980.

Again, it's not likely for a scam company to have a great rating like that for that long. They would have been found out by now have lost accreditation or lowered their rating.

So despite all the haters who failed with this business, this just proves that Primerica is a legit company.

Cons Of Primerica

1. Lots of Complaints

Even though they have that good rating, there are several complaints on the BBB website about Primerica.

Is Primerica Legit?


As you can see there is 116 complaints at the time of this review. Most of these are in thee category of having a problem with one of their products or services.

As I read through I found that a lot of the complaints were about funds moving, taxes, penalties, insurance costs and so on.

2. May not be for you

Another con is that this company is not for all people. In fact many will find it difficult to be successful here just because they will not be interested. You will have to study these products and know a lot about insurance, as well as laws and regulations.

A lot of people just don't have the interest to keep up with it all.

To me, this business is best for people who already work in some type of finance or insurance and enjoy learning about that.

Also location could be a limiting factor as Primerica is mainly operating in the United States, Puerto Rico, and Canada.

It may be possible to sign up in other countries, though you won't have the same amount of support.

3. They will ask you to recruit everyone you know

Even though it isn't a pyramid scheme, it is an MLM and that means you will have to recruit others to join.

But this company teaches members immediately to ask everyone they know if they're interested in Primerica products.

You will find yourself going up to family and friends and trying to sell insurance to them. This could become annoying and drive people away.

Now there's nothing inherently wrong with doing this, but you have to ask yourself do you want to always be trying to pitch everyone because you're trying to make more money? I couldn't do it myself.

I've heard many bad experiences of people ruining relationships with others because of their involvement with an MLM company.

Now you can develop the correct methods of selling and not lose friends, yet still make money in an MLM.

This will be an incredible amount of work though. More work than most are willing to do.

Which brings me to point four...

4. Most do not succeed

This is the case with most MLMs. There is not a high rate of success and most members do not earn enough money to make it worthwhile so they quit.

Primerica even has a disclosure of income that says that in 2016 the average representative made $6,088. This comes out to about $500 a month.

And in reality, that income is only from about 40% of their members. The other 60% never make anything at all.

This does not give me confidence that I can succeed with Primerica. And honestly I don't think most can succeed with MLM period.

How I Earn A Living From My Websites

So what do I recommend since I don't like MLM?

In my opinion the best way to start an online business and make money online is through affiliate marketing!

It's easy...

  • There is no recruitment involved to earn money
  • You're free to choose whatever you want to sell and in whatever industry instead of just the ones offered by an MLM company

As a matter of fact, through affiliate marketing...

I have built several websites that earn thousands of dollars monthly. This gives me multiple passive income streams and allows me to earn a full-time income online.

Don't get me wrong I have to work hard, but the effort is worth it and I enjoy what I do. I've gone from living paycheck to paycheck to living the dream. And it took me under a year to accomplish.

If you'd like to learn how I did it, click here!

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Hi, I'm Jared.

Check out how I earn a full-time income online through affiliate marketing.