Primerica
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BerryIntl
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Very True somarco. I don't know of one either. When I had my car insurance with Allstate I was never approached about an six figure income position with the company. But, does actively looking for more agents (and I'm not endorsing, supporting, or even encouraging the way that many of their agents operate, many of whom are quite pushy, stubborn, and definitely not open minded) automatically make them a 'multi-marketing' company?
Pretty much.
When the majority of income is derived from recruiting, not personal sales, that is pretty much the way MLM works.
While GA's are not that involved in personal sales, but rather recruiting & training, the entire Allstate (State Farm, NYL, Pru, Met . . .) agency is not on a recruiting jag.
You can call a pig a show horse but that does not mean it will win the KY derby.
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Primerica is a multi level marketing company. In order to advance in commision level the agent has to recruit. They can't advance just from personal production. That's unless things have changed over the years.
When Art Williams started the company he designed it to be MLM. The big money earners don't make the big money from selling products. It comes from the organizations they have built.
When Art Williams started the company he designed it to be MLM. The big money earners don't make the big money from selling products. It comes from the organizations they have built.
I agree with you totally on this.
I see where you're trying to go with this and agree on the similarities about both being captive. However, Primerica is definitely multi-level. Their market plan is "recruit to sell". Allstate's agents on the other hand are just out to sell. Their very nature is that of a recruiting machine. Which means a lot of agents each doing a little. It's great for the company and they do sell a lot, but not so great when the average agent only sells 1.5 policies a year. Hardly a part time income. Most of these people would be better off working a part time job at Walmart. It also has the brainwashing cult like mentality. If you're ever been to their meetings or get involved with them you'ld know exactly what I'm talking about.
I don't think the insurance industry has been trying to put them out of business. What proof do you have of this other than Art Williams created his "Crusade Against the Insurance Industry", which was brilliant marketing on his part. The people that join want to be part of something bigger than themselves, and this crusade is how they fullfil that need. I get tired of the US against them mentality and them thinking they are the only ones who do things right and all other insurance agents are evil because they rip people off selling cash value life. Look my typical client has "X" number of dollars to spend on life insurance. It doesn't matter to me if it's term or whole life or whatever, my commission is still the same. So to accuse me of ripping off a client is insane and that's what pisses agents off. Because most agents I know are trying to do the right thing for the client. While their philosophy of buy term and invest the difference may be the best option for most people, it's not to say it is 100% of the time. But for Primerica to admit this would be exposing the lie.
Ok so you admit the price issue. I'll be the first to admit it's not always about being the cheapest. Although most companies will beat them on price. But when you're talking about quality and value I see plenty that beat them. Product wise what's the difference between say a 250k policy from Primerica vs one from another company with the same financial ratings? Other than the other company is less and probably has a convertibility option in case the client has health issues and needs to lock in their rates for life. I mean term is pretty much term. It's a commodity product until you add some bells and whistles to it (riders). Now if you're talking agents for value and quality, I think most agents are trying to do the right thing for the client be it Primerica or another company. You always have your few bad agents who are just out for what's best for them though in any company.
I have no issues with part time agents. In fact many of the big boy companies are starting agents out on a training program part time now while they learn the business and keep their full time job. I think this is good since the wash out rate is so high. This way the new agent isn't risking his old career for something most probably won't like anyway.
I don't even care that Primerica is higher priced. I agree it's not about price it's about value and quality of service. Primerica does have some good agents. However, there are many of them who are highly motivated idiots. By idiots I mean ignorant of what they don't know but think they do. I've watched some of them hurt clients by replacing policies that should not have been replaced. I've watched Primerica agents not making enough money and their upline tells them it's because they're not committed enough and need to go full time. So they quit their job, still don't make money, get divorced, have family issues. And don't even get me started on the former RVPs I've seen washed up, broke and burned out and working low wage jobs now.
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When I joined Primerica several years ago, we were told that the only way you could make a larger commission was to recruit people. In that way it seems more like an MLM. I had some of my friends and family not appreciate trying to be recruited. One thought I was talking about Amway at first.
Here is Primerica's compensation plan that I found quoted by one of their own reps:
"The first level is Representative. To qualify for Representative, you must submit your Independent Business Application and get your life license. Representatives earn 25% commission on life insurance. Average annual premiums for life insurance for a husband and wife is about $1000. Representatives will earn $250.
The second level is Senior Representative. In addition to Representative qualification, you must have 3 new business associates to qualify for Senior Representative position. Senior Reps earn 35% commission on life insurance, so they will get paid $350. Not only that, they also earn 10% overrides (35% - 25%). So if you have a Representative who helped a family, the Representative gets paid $250 and you will get paid $100.
The third level is District Leader. In addition to Representative qualification, you must have one business associate promoted to Senior Representative. You and your team must also submit $2500 in premiums in one month. As a District Leader, you earn 50% commission on life insurance, 15% (50-35) override on Senior Reps, and 25% (50-25) override on Representatives.
The forth level is Division Leader. In addition to Representative qualification, you must have 1 business associate promoted to District Leader and submit $5000 in premiums in one month. As a Division Leader, you earn 60% commissions on life insurance, 10% override on Districts, 25% override on Senior Reps, and 35% override on Representatives.
The fifth level is Regional Leader. In addition to Representative qualification, you must have 3 business associates promoted to District Leader and submit $7500 in premiums in one month. Regional Leaders earn 70% commission on life insurance, 10% override on Division, 20% override on Districts, 35% override on Senior Reps, and 45% override on Representatives.
The sixth level is Regional Vice President. In addition to Representative qualification, you must have 6 business associates promoted to District Leader, be full time in the business, must be fully licensed, and submit $20,000 in premiums for 2 consecutive months (a minimum of $8000 in each month), must have acceptable persistency, and must be approved by Office of Supervisory Jurisdiction. RVPs earn 95% commission on life insurance plus bonuses and override commissions.
The seventh level is Senior Vice President.
The eighth level is National Sales Director.
The final level is Senior National Sales Director."
Now I ask you. How is this not multi-level?
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Not so in all companies Bob. The majority don't pay commissions for just "recruiting" - but pay out only when the recruit actually sells / markets a product.
Rockefeller said it best when he said that - "I'd rather earn from 1% of the efforts of 100 people than from 100% of my own" - he was a multi-billionaire . . .
The FTC is cracking down on those that pay out on "recruiting" versus product sales.
MLM has it's place - but in Insurance / Financial Services it's hard to do with all the licensing requirements and low commission structure. I know - I tried it and couldn't muster a team at almost any cost. Primerica however - has it down pat . . .
Tom
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I was recruited for AL Williams and later Primerica. It is hard to figure out how anyone can get excited about working that plan. Paying to sell. Are you kidding me? Making about a 12% commission at the start. Some will learn the hard way!
Actually 25% starting commission. (see my above post), but yes I agree. It's amazing how low it is.
