Is Primerica A Pyramid Scheme? Does It Still Work In 2018?

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Is Primerica A Pyramid Scheme?There are a lot of opinions about Primerica lately and, although an established company, people are still wondering if Primerica is a pyramid scheme so I’ve put together this review to analyze this.

I will also go over whether the business opportunity that Primerica offers is a good one to try or if it’s a waste of your time.

As such, I will only mention their products as it pertains to the business opportunity side of Primerica and will not dive into the details of their products.

I will breakdown my Primerica review in the following way:



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Primerica Logo

Program Name: Primerica


Price: $103.95 one-time + $28/monthly

Recommended? No

Established in 1977, Primerica has been around for forty years now providing financial services to middle class Americans all over the country.


Primerica Home Page


The services they provide you is sure a long variety which includes:

  • Term Life Insurance
  • Financial Investments
  • Auto & Home Insurance
  • Long Term Care Insurance
  • Debt Solutions
  • Legal Solutions
  • ID Theft Defense

On top of this list, they also provide a complimentary service to analyze your financial needs to help families understand their financial situation better and to help plan for their future.

Primerica also provides a business opportunity to people who are interested in selling their products and making either some extra income with it or make a full new career out of it.

You are given the opportunity to be independent contractors, not employees, and you’ll be able to make money two ways: selling their products and services for direct commissions and overrides from recruiting others into the program.

You certainly don’t have to do the recruiting if you don’t want to in this program or others, but usually people do because they end up finding that they can make more from recruiting than selling the products or services.

In Primerica’s case, there is a big push to recruit others into the system from the research I’ve done, but it seems that’s only because they want a lot more reps to be selling their products.

Let’s take a closer look at how the program works.




Primerica's opportunity


If you want to take join their business opportunity, you have to pay a one time Independent Business Application (IBA) fee of $103.95, which has gone up over the years from $95.

You will also have a $28/month fee to use their business tools and online features.

In the MLM industry, I would consider this opportunity to be a low cost one to enter.  I had just written a review on LuLaRoe where people start that program with a $4,925 – $9,000 investment.

There are defined levels to achieve in this Primerica MLM structure and the higher you go, the more you will make as you can see here:

  • Representative – 25% commission
  • Senior Representative – 35% commission + bonus
  • District Leader – 50% commission + bonus
  • Division Leader – 60% commission
  • Regional Leader – 70% commission
  • Regional Vice President – 95% commission + bonuses
  • Senior Vice President – 95% commission + bonuses

For each level, there are several criteria that needs to be met before you can level up.  As you can imagine, you will have a pretty big team by the time you reach Senior Vice President.

I believe these are commissions on the products you sell, but I’m unclear on how much you can earn from your downline.

You can earn what is called overrides from the people you recruit in, but not sure what the exact percentages are.

This sort of information should be readily available on their website as it’s part of the analysis you should be doing to determine to join this program or not.

None the less, the Primerica program is typical for a MLM company but is it a pyramid scheme?




According to Wikipedia, a pyramid scheme is a company that offers incentives such as payment when their members go out to recruit others to join the scheme and the company does not provide the sale of goods and services.

Often, to join a pyramid scheme, you need to pay a joining fee, and as you recruit, you will earn, usually a large portion, of the fees paid by the people you recruit in.

The owner and the few people near the top of such pyramid schemes usually make make the most because they’ll have the most people under them.

Pyramid schemes are considered illegal and could be shut down by the government if found.  Just because you’ve been around for years, doesn’t protect you from being shut down if the government determines you have a pyramid scheme.

A MLM company works very similar to a pyramid scheme and have a few things in common which can make it hard to distinguish which is which.

The main difference is that MLM’s usually provide a retail sales component that are products or services you can sell to the general public as well as a recruiting component.

You can earn commissions from people you recruit into the program – what you get paid depends on the program itself of course but usually you can earn from people you directly recruit yourself and earn from the people your recruits bring in as well.

Sometimes you can earn infinite levels deep or tiers which are considered your downline, and some programs limit how far down you can earn from your downline.

I will close this section with a video that explains the difference between a pyramid scheme and a MLM very well:




The quick answer is no, Primerica is not a pyramid scheme because it has lots of products and services you can sell to the general public.

As well, Primerica’s compensation plan is focused on your product sales rather than your overrides from your downline.

In some other MLMs, the compensation is clearly focused on recruiting people into the system and those types of companies could be determined as pyramid schemes.

The modern day pyramid schemes are harder to determine and makes the line very blurry and grey as they mask their membership fees into digital products that are clearly and highly overpriced, which is done purposely so you can make high commissions from recruiting people in.

So, clearly Primerica is not like that and I can safely conclude that Primerica is not a pyramid scheme as it has products and services used by many Americans.




I included this question into this post because there are also people calling Primerica a scam and I want to clarify that it is NOT a scam.

A scam is when you’re taken for your money and get nothing in return or you’re being tricked into something else.  Check out my 11 ways to spot a scam if you want to see the signs.

Here at Primerica, you pay the one time IBA fee to get licensed which is required to have if you’re going to sell insurance.

Then the $28/month fee is to use their business online tools to help you with building your business.

Therefore, I can’t conclude that Primerica is a scam because you are getting something of value in return for your money.


However, Do I Recommend Primerica’s Business Opportunity?

Even though Primerica is not a scam or a pyramid scheme, I still do NOT recommend this business opportunity because of several reaosns.

A lot of what you learn on how to build this business at Primerica is the old way of doing network marketing where you will be asked to bring people to meetings, showing them flip charts and getting them to presentations.

They will tell you to write all the people you know and compile this list called your “warm market”.

I guess starting with a “warm market” would be easier than a “cold market” which is contacting strangers.

However, in this day and age, without knowing how to leverage the power of the internet, many people who go into such programs will inevitably run out of ways or people to recruit or sell insurance to.

I don’t see any advance training to leverage the internet in Primerica’s program so you will be set up to fail if you don’t know how to get leads from the web.

On their income disclosure, you can find this:

From January 1 through December 31, 2016, Primerica paid cash flow to its North American sales force at an average of $6,088 per life licensed representative.

Sure there are people who can make 6 figures in this program who’s probably been in it for years, but there must be a lot more people who make close to nothing to bring that figure down to an average annual income of only $6,088 per rep.

Such as most MLMs, once people dry up in their recruiting efforts and don’t know who to sell their products to because they are so in-person focused, they inevitably fail.

Most MLMs don’t have a high track record for success stories and majority of the people that join usually don’t do well at all.




If you take a look at this video and see my explanation regarding using affiliate marketing instead of the MLM business model, you will see a clear winner.

You may be able to see other options and opportunities that will open up to you if you choose affiliate marketing instead:



MLMs are good because they give you a product/service to promote and sets you up easily to start your own business.  But often, the methods taught in these programs are not catered to the world we live in today which is on the internet.

It’s time to learn how to make money online by creating an online business where you don’t have to bother a single person you know or buy inventory for products that are usually hard to sell.

The flexibility and enormous opportunity of the online business model that I love to use far outweighs the limitations of a MLM business.

As well, the business model I use doesn’t limit you to just working with one company, you can work with multiple companies for the products you want to promote.

Many companies like Target, Amazon, Best Buy, Apple and Walmart nowadays support this type of business model so you can work for yourself, be your own boss, and partner up with as many companies as you wish to do business with.

To understand how this business model works, why it works, and the potential it brings, check out my free guide which explains it all here:

Get My Free Ultimate Make Money Online Guide Here Button


You will also see in my free guide where you can get started today for FREE that includes proper training, business tools, and support.

This is what everyone should be focusing on building these days, an online business and adapt with the times.

You will learn everything easily as the training I show you is step by step along with training videos that makes it simple to understand how to build this kind of business.

You will be learning a new skill that can be used for the rest of your life!

There’s no time to waste as this online business will also take time to build, just because it’s on the internet, it doesn’t mean it’s going to be any faster.

However, the potential is far more reaching and you can be very successful if you dedicate yourself in it.



If you have any questions or thoughts regarding whether Primerica is a pyramid scheme or anything else, please do not hesitate to leave me a comment below. I always reply to my readers! 🙂


Let’s make money online!

Grace @ Work Anywhere Now



9 thoughts on “Is Primerica A Pyramid Scheme? Does It Still Work In 2018?”

  1. Most people in Primerica make $0, which is what drives down that average. Just like most people with a gym membership, don’t ever go to the gym, and never end up looking like Arnold Schwarzenegger. They don’t put in any effort. That doesn’t make Primerica (or the gym) a bad system. It means people are inherently lazy. Another factual statistic is the Primerica has more people earning 6 figures and above than any company in the world. 86 people currently earning over $1,000,000/yes. Sounds like a good place to make a lot of money while helping people who desperately need it to me. I highly recommend it. Anybody can succeed there, if they’re willing to learn and work hard. It’s not for everyone.

    • Thanks for your input Cam and I think that’s right with a lot of different methods of making money. Majority won’t do anything with it but there are always some that do and make good money with it.

      How about you? Have you made money from Primerica? What has your personal experience been? Would love to hear your success!

      I’ve been using the method in my guide since Sep/16 and it’s grown into a 4 digit online income, so I know what I’m doing works and many more members have successes like this too that I actually know of, not just statistics.

      I wish you all the best Cam,

    • no…..86 are not CURRENTLY earning over a $M. That is simply a cumulative count of single best 12 month earnings over a 40 year span. Many are long since gone, and some are even deceased.

  2. DEAR GRACE … COME ON You are trying to recruit people to work on your online business to be your downlines!! This is one more of the hundreds blog putting scams reviews to get people into a sales online bugging friend and family with emails facebook posts intagrams etc etc exactly same primerica or any other businesses do
    The difference is you said positive reviews then negative reviews and then YOUR MAGIC WORD : “I DONT RECOMMEND PRIMERICA ” to bring people to your business which is an mlm too…
    The only thing i can say to everyone is: There is just only way to now truth and is trying first in Primerica $124 is all your investment u have 30 days to decide that is the right work for u or not … no one becomes a millionaire in 1 day but in PRIMERICA you put the number on your checks with your hard work, u are the only one can have the power to become thousands $$$ earner or millionaire… its ur decision no one else!! At the end loosing $124 is not the end of the world is the value of 30 days of intensive education on a financial field u can use that to know how the money works. REMEMBER THIS: PRIMERICA HELP PEOPLE HOW TO SAVE MONEY HOW TO MAKE MONEY GROW is that not important for everyone??
    [removed contact info]

    • Hi Karla, you have no idea what you’re talking about. I am NOT in a MLM and what I do is not even close what you do so please don’t compare an old business model like a MLM and compare that to what I do.

      I have NO downlines, I am nobody’s sponsor. I would never work with a MLM and that will always be my recommendation.

      Never heard of affiliate marketing? You should check out my guide so you’re not stuck working with only ONE company. You could be working with a bunch of companies and offers.

      Of course, I don’t recommend anyone to Primerica, because it’s limiting, and it’s MY OPINION, I can say I don’t recommend it because I don’t.

      I recommend people building their own online business so they can have the freedom to choose the companies, products, and services they want to work with, not just what one company offers.

      Best of luck to you,

  3. You don’t recommend Primerica because it is “limiting” lol it’s only limiting if you make it limiting. I agree with the person that said “people are just inherently lazy.” They really are. In your blog, you mentioned that you also don’t recommend Primerica because you have to start with a “warm market” list and I quote from your article:

    ‘“They will tell you to write all the people you know and compile this list called your “warm market”.

    I guess starting with a “warm market” would be easier than a “cold market” which is contacting strangers.

    However, in this day and age, without knowing how to leverage the power of the internet, many people who go into such programs will inevitably run out of ways or people to recruit or sell insurance to.”’

    Lol this is horrible reasoning as to why you don’t recommend working with Primerica. You’re literally saying “don’t work with Primerica because it’s hard to talk to people after running out of your warm market and I don’t want to learn how to get more leads.” An example of someone not willing to put in the work to build their business. What do you think Steve Jobs had to do to have Apple grow from a company he started in a garage to what it is now? He worked endlessly to get it to where it’s at now.

    Another quote from your article:

    “‘I don’t see any advance training to leverage the internet in Primerica’s program so you will be set up to fail if you don’t know how to get leads from the web.’”

    Well duh you don’t see any “training” because you’ve never worked/tried to build a Primerica business. This is exactly why when people do research, you should never go to a blog where people base their articles on mainly opinions.

    Another one:

    “‘Sure there are people who can make 6 figures in this program who’s probably been in it for years, but there must be a lot more people who make close to nothing to bring that figure down to an average annual income of only $6,088 per rep’”

    This just proves my statement even more: never do research and get information from a BLOG “there must be a lot more people who make close to nothing to bring that figure down.” What you failed to mentioned in your article is that Primerica encourages people to work part-time on top of what they’re making right now at their job and being that most people come on part time, that is why that figure exists. Again, you’ve never worked in a Primerica business and people should never use blogs as a means of getting accurate information.

    Moral of the story: Your reasoning to not recommending people to work with Primerica is basically this: it’s hard, which is why you offer your other alternative business because it’s “easier” and “outweighs the limitations of an MLM”, reasoning which really is just an excuse to not work hard. The problem with everyone else is that they’d rather have it easy than hard, which in turn gives them the life they usually complain about. Like I said, there’s only limitations if you make limitations. Most people aren’t willing to delay their gratification and quit when something gets tough. Lol great article though! I had a great laugh this morning, especially when I read the last section on you explaining your recommendation and your online marketing solution.

    • Thanks for adding to my word count.

      Affiliate marketing offers way more ways to earn and not limited to just Primerica’s producs/services, I wouldn’t say it is easier but it is cheaper to get into.

      I work very hard for my online income, and I work on it full time. So, if you think affiliate marketing is easier, I don’t think so because you need to know all the SEO elements to knowing how to attract thousands of visitors/leads to your online business without paying a cent for it.

      I don’t have to pay for traffic, do you? You advertise? I don’t need to. I don’t pay a cent for my leads/visitors and I get 1200 – 2000+ people on this website EVERY DAY!

      But, to me, working on my laptop from home, earning a 4 digit online income, and not needing to talk to anyone, IS easier than working in a MLM environment in that sense.

      The work is not easier, it’s still a business I have so I have to put in lots of hard work to have my business earning what it is today.

      I wish you the best Joshua, glad I was able to give you a chuckle this morning.

      However, I don’t think you actually know or understand what I’m recommending and the power you can have if you learn the online skills that I have as an affiliate marketer.

      To each its own,


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