Q:

Is Primerica a scam?

A:

Quick Answer

Primerica is a multi-level marketing company, according to industry professionals. The business practices of such schemes are often called into question, but they typically are not considered outright scams.

Know More

Full Answer

Primerica is an insurance-sales business based on a multi-level scheme, colloquially called a "pyramid scheme" by many. Their sales representatives sell financial products, such as life insurance, term life insurance, mutual funds and annuities. Representatives receive a commission based on sales, with their recruiters also receiving a portion. The recruiter's recruiter, in turn, also receives part of the commission; the chain of commission-sharing goes up to 11 levels of recruiters. As such, representatives are also incentivized to recruit other salespersons and become recruiters themselves to increase their earnings.

To become a Primerica sales representative, a person must pass a background check, for which Primerica charges a fee. Representatives are also highly encouraged to pay a monthly fee for access to a website.

In 2009, Primerica generated 2.2 billion dollars in revenue, most of which came from direct premium payments from customers. Their most popular product was term life insurance. Sales commissions that same year totaled 34.3 million dollars. In 2008, the company took in 2.19 billion in revenue and had a net income of over 167 million dollars.

Learn more about Crime

Related Questions

  • Q:

    How does the dinar currency scam work?

    A:

    The dinar currency scam, as of 2015, promises profits for investors who purchase the Iraqi currency at present values and hold them until a point in time at which the dinar would be revalued, notes Investopedia. However, the 20 percent markup and the lies about the Iraqi military make it a swindle, notes CNBC.

    Full Answer >
    Filed Under:
  • Q:

    Is One Source Talent a scam?

    A:

    One Source Talent is a fee-based service that covers marketing and production costs for individuals who wish to break into the entertainment industry. One Source Talent does not work as an agency, meaning it does not take a percentage of income from individuals once they start working, they simply provide a service.

    Full Answer >
    Filed Under:
  • Q:

    How do you report an online scam?

    A:

    Report online fraud by filing complaints with the Federal Trade Commission, the state attorney general's office and the Internet Crime Complaint Center, advises the Department of Homeland Security. The FTC and Internet Crime Complaint Center have online complaint forms for consumers to use.

    Full Answer >
    Filed Under:
  • Q:

    Is a cash advance a scam?

    A:

    Cash advance scams affect thousands of individuals each year according to Loan.com, and legitimate cash advance businesses require state licensing. Red flags for cash advance scams include upfront fees, acceptance of bad credit, slight variations in company names from other legitimate companies, and phone solicitation.

    Full Answer >
    Filed Under:

Explore