The Company and Products
No Primerica company review would be complete without mentioning Arthur L. Williams, who founded the company in 1977 as A. L. Williams and Associates, with a goal of transforming the insurance industry. Mr. Williams believed that whole life and other add-on insurance packages sold by the big insurance companies were too expensive for the average consumer. He reasoned that if his customers would buy term insurance and invest the difference between term and these more costly vehicles, then they would be better off financially and better able to manage their retirement, higher education needs, etc. With this "buy term and invest the rest" philosophy he was able grow his business into a company that now serves six million customers in the U.S., Canada, Puerto Rico, and Spain. Primerica now sells term life, auto, and home insurance, debt relief loans, mutual funds, and other financial instruments through a sales force of 100,000 licensed representatives. The company is currently a division of Citigroup. But with Citigroup's huge losses and government bailout this year, they are planning to sell Primerica with an initial public offering valued around $1.6 billion.
The Program
The company is set up as a traditional multi-level marketing or direct sales organization with these 100,000 representatives all working as independent agents. The reps, almost all of whom work part-time, make commissions from the products they sell, but also recruit others to join the business opportunity so that they can make additional down-line commissions. For as little as $200 you can start your career with Primerica. There are no education or business experience requirements needed to begin with the company. When you sign on you will receive training and support, access to legal and compliance advice, publications created for educating clients and recruiting prospects, an online back office to keep track of your business, and a hand-held device for submitting claims and orders. The primary marketing method used by the Primerica rep is the Financial Needs Analysis. This is a free tool that offers prospective clients an assessment of their current financial situation and suggests a strategy for their financial security.
Analysis
Primerica has a thirty year record of success, and the products they offer can help thousands of families to gain financial security. But while Primerica does offer a way to make money with your own business, I believe that most independent agents will struggle to find success within this system. The challenges they face are numerous, but the biggest might be that to make any money at all they will need to sell to and recruit friends, family, and acquaintances on a regular basis. This is very difficult and uncomfortable for many people and most give up on this technique after a few disappointing attempts. The other market for your business is the millions of others that you do not know, and this is an even more difficult proposition with the marketing methods available. It is of major concern that Primerica does not allow sales of its products over the Internet, which will hamper a representative's ability to tap into his cold market of millions of possible clients. Another challenge for many reps is that when they begin their career with Primerica they are likely not in a solid financial position themselves, which makes giving financial advice to others a tough sell. So if you believe that you can make a difference in the financial lives of others, are able to sell and recruit your friends and family into the business, and can work hard to cold call enough prospects to make successful living, Primerica may be the right choice for you. If you would rather find a home business where you do not have to attend home meetings or opportunity presentations, do not have to sell to friends and family, and are encouraged to leverage the power of the internet to reach millions globally, then you should continue to look for the business that is the right fit for you.
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