Help! The Primerica Lady is Coming! |

Insurance discussion and general information

Help! The Primerica Lady is Coming!

Question from a Primerica prospect: 

 Hey Ernesto, I was wondering, I read your comment about the Primerica company and I have been also asked to join the company.

Actually I’m pretty much being pushed into it by this woman, and it seems so weird to me that she wants me to pay a fee of $103 for a police check (when a police check in Ottawa, Ontario, Canada only costs about $14 Dollars.) And then I just found out today that she will be taking out $27 dollars for at least a year (I’m unaware for how long this will continue) so that’s about $324 in one year and she also wants the money in either credit card form or check.

I was wondering if you could answer my question, that would be really nice since you know more about this, and the woman will be coming to my house tomorrow and when I asked if I could have a week to think about it, she said “well.. I’m sure you will be able to make your decision within an hour of the presentation…and have your money check ready” doesn’t this all seem like a scam and that she just wants to reel me in because she makes money for getting customers?

Thank you so much, hope to hear from you soon :)  signed V.

 Primerica is an organization that sells life insurance and other financial products including mortgages.  In order for you to sell, you’ll need the proper background checks, licenses and (hopefully) training before you can be set loose on the public.  

To answer your questions:  I’m not from Canada, so I don’t know what licensing requirements are for where you live, so I’m not sure what you’re paying for. In the US, you’d need to pay for a life insurance training class (40 hours in the classroom in Ohio), followed by a state exam.  To sell financial products, you’d need to pass a NASD federal exam (about $150 if my memory is correct);  no class work is required, but it is helpful if you don’t know the material.  To sell mortgages you may need additional training and perhaps pass another exam. Each requires continuing education classes to keep your licenses in good standing.  The fees may go towards paying for that. 

So here’s the $100 (Canadian) question:  if you’re unlicensed, how are you going to earn money within the organization?  You’ll be commission only sales; without licenses, they cannot pay you.  Better yet, why would they even deal with you until you’ve passed all your exams? 

The answer: you are their marketing.  When this lady visits your house, she will put the hard sell on you to get you to buy all the goods she’s peddling. Next she’ll want you to write a letter to all your friends and family (she will insist on a list) telling them about your new opportunity.  Then, she’ll market her product aggressively to your friends and family. This is how she prospects.

You see, Primerica doesn’t advertise or try to find sales prospects in any other way.  They run help-wanted ads, bring in new prospects, Sell them stuff, and then market to the prospects friends and family.  A few people stay in the program and become up-lines and down-lines in the classic multi-level marketing model, but 99% of the prospects will burn out and quit.  To keep the model running they need a perpetual supply of new prospects.  In the future, (after getting your licenses and training) you’ll be running help-wanted ads and then giving the people who respond your sales pitch and asking them for a list of their friends and families. 

Whether Primerica’s products are worth a crap is a discussion for another post.

Hope this helps.  Good luck.

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