I don't know how many times I answer this question but if you really did the research, you will eventually find out that Primerica is not a scam, a pyramid scheme, or a ponzi scheme. It is a multi level marketing company (MLM). People who have problem a MLM company are usually people with a job and they are stuck with a job mindset. But people with a business mindset will say that Primerica is the best business opportunity in America so far that is worth trying.
Anyway, I'm here to discuss on how Primerica is not a scam. For one, lets take a look at the size of the company. There are over 100,000 life licensed representatives in the company. 1 out of 2 people who get licensed in America today are from Primerica. Have you heard of any company that is a scam that has such a large number of people in a single company?
Second, Primerica been in business since 1977. I don't know about you, if Primerica was a scam, the government is sure taking a long time to take this company down. Plus, how many companies that were a scam and out of business has lasted over 5 years? None!
If the age of the company and number of representatives don't satisfy you that Primerica isn't a scam, take a look at this fact. Third, there are currently over 6 million clients in Primerica. That's lots of clients for a company that you think is a scam. Not only that, clients has invested over $40 billion through Primerica. Why would clients invest so much money in a company that you think is a scam?
Forth, Primerica has marketing agreements with various companies. They market Citicorp Trust Bank debt elimination loan, Metlife's Variable Annuities, CitiStreet 401(k), Genworth Financial's Long Term Care, Auto & Home Insurance referral program for Answer Financial Inc, mutual fund companies such as Fidelity, Legg Mason Partners, Oppenheimer, American Fund, Van Kampen, and so on. Primerica Financial Services owns their own life insurance company called Primerica Life and an investment company called PFS Investment Inc. If Primerica was a scam, why would all these companies have Primerica market their products?
Fifth, Primerica has over 5000 offices in USA, Canada, Puerto Rico, and Spain. The company is still expanding globally. Do you think a company that you think a scam will expose itself to the rest of the world? A typical scam company would keep a low profile in one town or in one state. The home office itself (located in Duluth, GA) is over 1 million square feet and it has its own zip code.
Sixth, after Citigroup's announcement of selling various companies earlier in 2008, there been numerous bids from many companies who wants to buy Primerica. As of today, Primerica is worth over $7 billion. (Source: Reuters UK, June 6, 2008). Why would companies want to buy Primerica if Primerica was a scam?
Seventh, every financial company in America has to hold an annual compliance meeting. Primerica holds their Annual Compliance Meeting in the month of November. Every representative in those companies that are licensed in life, mortgage, and/or securities must attend that meeting. The purpose of this meeting is to keep representatives up to date to rules and regulations set by the federal government. By having this meeting, it protects the consumer as well as the representative. Companies that are a scam are very unlikely to hold this meeting because everything has to be reported to the government.
Eigth, Primerica representatives are require to get certain licenses in order to talk about certain financial products. For example, if you wanted to solicit life insurance, you need a life license or a producer license. If you want to talk about mortgages or debt consolidation, you need a mortgage license. If you want to talk about investments, you need a securities license. These licenses are only issued by the state or the federal government (mostly state, except for the securities which is issued by the federal government), they are not issued by individual financial companies. To get these licenses, you have to pass a test. After you get your licenses, continuing education is required. If a company was in a scam, it wouldn't bother with all this licensing requirements.
Ninth, besides the fact that Primerica has over 100,000 licensed representatives, they also have about 1800 employees. Companies that are a scam wouldn't be able to pay so many employees.
Tenth, Primerica has its own TV network called Entrepreneurial Network (EPN TV)!
Eleventh, over 60,000 people attends the Primerica convention, which occurs every other year on an odd year. I'm not sure if they will still hold it at the Georgia Dome in the future since the company is getting bigger and bigger. I've been to every single convention and that dome is packed from the seats to the field. Its the most amazing event where everyone gets together. "One team. One dream."
12) member of the Better Business Bureau, which gave Primerica a business rating of A+ (as o
Answered By: Primerica Debate Team - 10/13/2009