This is a company which is based on the US. There are many agents employed in this business. These members work independently. However, most of us have the doubt “is Primerica a pyramid scheme?” This article will help you to find it out.
To find this out, it is required to study the type of business that Primerica use. By finding out how it makes money and how it helps the employees to earn money, we can easily identify whether this is an initiative of multi-level marketing or not. So, let us get started. First, it is essential to know what is meant by that scheme is.
What is a pyramid scheme? Is it legal?
This scheme is a type of business. It promises the members that they will pay them for enrolling others in the scheme. This scheme does this instead of providing services or products to the members. These schemes are usually unsustainable and they are illegal. The reason for this is because enrolling people becomes impossible just as it multiplies. Now, let us find out what this organization does.
The services of Primerica- what does it offer the buyers?
Unlike the models of business discussed above schemes, this firm offers a lot of services to its consumers. This is a financial corporation which is also engaged in insurance services. They provide services to consumers through their agents. These employees use many sales strategies to sell these financial products of the company.
The sales strategies that they use are distribution, franchise and direct sale. This company employs a large number of representatives who provide consumers with their financial products. There are many goods that they offer these buyers.
The business model of Primerica- how do its members earn money through this?
Citigroup is its corporate parent and all the things offered by Primerica is by this corporate parent. The agents of this company have a goal just like in any other organization. The goal of the employees of this business is to sell these goods and push them to a warm market. It means they should sell the goods to the people who are close to them. It can include their family and the friends who they would be comfortable to deal with. The reason for this is it easy to sell a product to a person they personally know. And also, approaching them is also easy. Therefore, there will be a successful number of sales by each agent.
When the members of this organization sell a service, they will receive a commission for that. It is not only the member that receives a payment. Also, those who have enlisted the member will also get a payment. Those are the two ways that they can earn money in this business. Although it might seem to be easy to earn money this way, there are some difficulties faced by them. Let us now identify these problems.
The problems of this business model
Although it is easy for the employees to make sales to the warm market, there is a problem in that. That is the fact that it will reach a saturation point at some time. This really is a big problem for its members. This happens because once you sell the goods to them, it is not easy to provide the product to the same group of people once again. So thereafter, making sales will be challenging.
As a solution to this problem, this business offers these representatives the ability to enlist a larger number of people. Then, these people also can be members of this company. By doing this, it is also clear that the sales of this organization also will get a fill-up. Therefore it will be advantageous both to the company and the members.
The other disadvantage for the representatives is that they cannot earn the $100,000 promised by the organization. That is mostly due to the reason mentioned above. This does not mean that nobody can earn that amount by using this method. There are people who earn significantly large amounts of money but however, the usual amount of an employee is not enough as a source of living. The income depends on your effort and therefore if you work really hard, you will be able to earn a significant amount of money. Through this, we can also understand that this organization is a Multi-level marketing company.
We can now confirm that Primerica is not a pyramid scheme. Now, let us identify the differences between that scheme and a Multi-level-marketing company to understand why this is not a pyramid scheme.
Why isn’t Primerica a pyramid scheme?
Usually, in these schemes, they do not provide any service or product but promises large a large income with a very little effort. But it is totally different in Primerica. This financial company provides a number of financial services as mentioned before. Therefore, it is very clear that this is not a pyramid scheme. And also, your effort will decide your income. The earnings depend on the direct sales and the people that you have hired.
In multi-level marketing, you have the ability to out-earn anyone who is above you. As this organization also allows this, it is very clear that this is a Multi-level marketing initiative. But in other schemes, you can never out-earn anybody above you. The reason for the consumers to confuse this legitimate Multi-level marketing company is because this operates as a pyramid scheme. Therefore, there is no doubt that this is confusing for most people.
Can you actually make a profit by joining Primerica?
This is where you should be really concerned. This is a legal company that offers a number of services. It is true that you can earn a significant amount from this. But, you will have to be aware of a lot of things.
First of all, signing up for this is not free. You will have to spend a significant amount of money on this. And then, to keep up with the sales, you have to work continuously to keep in touch with the people. You should recruit people as much as possible to increase your income. By doing so, it is not impossible to earn the required amount through this. But remember, it takes time and effort.
Another fact is that you should be really good at convincing people to accept the offers that you present. You should master your communication skills very well to connect with the customers easily and make them like the service. Remember that everything depends on the way you approach your customer. If you are not good at interacting with people, it is better to stay away from this.
As we can see, Primerica is not a pyramid scheme and it is a Multi-level marketing[MLM] company. If you have an idea to join this, make sure you are good a interacting with people as this needs active connections. And overall, you should know that you have to put in a lot of time and effort to earn a good profit. The profit you gain completely depends on the amount of effort you put in the business, as this is not easy money.
Just refer to the following video so that you can have an adequate idea regarding this program.
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